PetroTal Corp (TSE:TAL)
TSX:TAL
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PetroTal Corp
(TSX:TAL)
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Rating:63Neutral
Price Target:
C$0.55
▲(38.50% Upside)
Action:ReiteratedDate:03/27/26
The score is driven primarily by solid underlying financial health (profitability, strong operating cash flow, and manageable leverage), but it is tempered by a TTM performance downshift and a cautious earnings-call outlook highlighted by operational disruptions and the dividend suspension. Technicals are modestly positive but not fully bullish given weakness versus the 200-day average, and valuation is mixed due to an elevated P/E despite a high dividend yield.
Positive Factors
Strong operating cash flow
Operating cash flow at roughly twice net income and positive free cash flow give PetroTal durable liquidity to fund maintenance, service debt and finance targeted capex. This cash generation capacity provides a multi‑quarter buffer versus oil price swings and supports reinvestment or strategic flexibility.
Negative Factors
Operational reliability issues
Persistent equipment failures and constrained water handling capacity create ongoing downtime and elevated maintenance spending. These reliability problems can materially reduce realized volumes, raise unit operating costs and force recurring capex, undermining margin sustainability until reliability improvements are completed.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong operating cash flow
Operating cash flow at roughly twice net income and positive free cash flow give PetroTal durable liquidity to fund maintenance, service debt and finance targeted capex. This cash generation capacity provides a multi‑quarter buffer versus oil price swings and supports reinvestment or strategic flexibility.
Read all positive factors
PetroTal Corp (TAL) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$487.08M
Dividend Yield21.85%
Average Volume (3M)762.71K
Price to Earnings (P/E)5.7
Beta (1Y)0.48
Revenue Growth-2.90%
EPS Growth-31.97%
CountryCA
Employees251
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)-0.01
Shares Outstanding919,024,700
10 Day Avg. Volume634,315
30 Day Avg. Volume762,714
Financial Highlights & Ratios
PEG Ratio-0.10
Price to Book (P/B)0.50
Price to Sales (P/S)0.90
P/FCF Ratio2.89
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.04
Revenue Forecast (FY)C$192.70M
PetroTal Corp Business Overview & Revenue Model
Company Description
PetroTal Corp. engages in the appraisal, development, and exploration of oil and natural gas in Peru, South America. Its flagship asset is its 100% owned Bretana oil field located in the Maranon Basin of northern Peru. The company was formerly kno...
How the Company Makes Money
PetroTal primarily makes money by producing crude oil and selling it to third-party buyers. Revenue is largely a function of (1) realized oil prices (typically linked to global benchmark crude prices and adjusted for quality differentials and logi...
PetroTal Corp Earnings Call Summary
Earnings Call Date:Nov 13, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Negative
The earnings call highlighted some positive achievements in production growth and free cash flow generation. However, significant challenges overshadowed these, including operational issues, equipment failures, delays in the new drilling rig, and financial constraints leading to the suspension of dividends. The overall sentiment is cautious, with efforts focused on preserving liquidity and addressing operational hurdles.Positive Updates
Increase in Production
Production averaged over 18,400 barrels of oil per day in the third quarter, which is a 21% increase over the same period last year.
Negative Updates
Operational Challenges and Equipment Failures
The company faced pump failures and tubing leaks, requiring contingency plans for potential additional failures in 2026. Water handling capacity is a pressing issue, with the current capacity maxed out.
Read all updates
Q3-2025 Updates
Positive
Negative
Increase in Production
Production averaged over 18,400 barrels of oil per day in the third quarter, which is a 21% increase over the same period last year.
Read all positive updates
Company Guidance
During the PetroTal Q3 2025 webcast, the company provided guidance indicating that it experienced a 21% increase in production, averaging over 18,400 barrels of oil per day in the third quarter. Despite this, net operating income fell slightly due to normalized operating costs and increased transportation expenses. The company generated over $12 million in free cash flow for the quarter, bringing the year-to-date total to over $87 million. However, PetroTal announced the suspension of its fourth-quarter dividend to preserve liquidity amid declining production and a weak oil price outlook. The company aims to enhance water handling capacity from 170,000 to 240,000 barrels per day to accommodate 10,000 barrels of fluid per well, which is critical for future organic production growth. Additionally, PetroTal plans to finalize its 2026 budget by January, where further cost-cutting measures, including substantial reductions in operating expenses and general and administrative costs, will be outlined.PetroTal Corp Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
74
Positive
Cash Flow
68
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 283.53M | 363.51M | 286.26M | 327.12M | 159.19M |
| Gross Profit | 120.27M | 256.40M | 208.11M | 273.54M | 104.96M |
| EBITDA | 163.54M | 218.42M | 201.20M | 260.87M | 103.25M |
| Net Income | 44.96M | 111.45M | 110.50M | 188.53M | 63.97M |
Balance Sheet | |||||
| Total Assets | 803.68M | 810.47M | 658.29M | 602.88M | 398.29M |
| Cash, Cash Equivalents and Short-Term Investments | 129.20M | 102.78M | 90.57M | 104.34M | 44.92M |
| Total Debt | 98.58M | 64.69M | 28.87M | 101.09M | 115.86M |
| Total Liabilities | 289.35M | 298.96M | 194.34M | 203.55M | 194.03M |
| Stockholders Equity | 514.33M | 511.51M | 461.57M | 399.33M | 204.26M |
Cash Flow | |||||
| Free Cash Flow | 88.58M | 66.23M | 131.01M | 77.82M | -4.74M |
| Operating Cash Flow | 164.52M | 230.76M | 239.46M | 172.02M | 77.46M |
| Investing Cash Flow | -117.98M | -166.31M | -105.75M | -94.73M | -76.19M |
| Financing Cash Flow | -21.52M | -61.22M | -142.38M | -31.77M | 64.12M |
PetroTal Corp Technical Analysis
Positive
0.40
Price Trends
0.44
Positive
0.44
Positive
0.54
Negative
Market Momentum
0.03
Positive
59.03
Neutral
49.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TAL, the sentiment is Positive. The current price of 0.4 is below the 20-day moving average (MA) of 0.51, below the 50-day MA of 0.44, and below the 200-day MA of 0.54, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 59.03 is Neutral, neither overbought nor oversold. The STOCH value of 49.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TAL.
PetroTal Corp Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
63 Neutral | C$487.08M | 5.70 | 14.00% | 21.85% | -2.90% | -31.97% | |
62 Neutral | C$325.60M | 22.63 | 3.44% | 6.19% | -8.58% | -98.92% | |
56 Neutral | C$935.56M | -0.30 | -88.55% | 4.07% | -2.65% | -591.26% | |
53 Neutral | C$512.97M | -38.65 | -2.22% | 12.70% | 53.79% | -126.63% | |
50 Neutral | C$396.21M | -8.00 | -10.39% | ― | ― | ― | |
49 Neutral | C$455.02M | -61.93 | -7.11% | ― | 77.10% | -74.02% |
* Energy Sector Average
TSE:TAL
PetroTal Corp
0.53
-0.11
-16.80%
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107.84%
TSE:PRQ
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2.22
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78.89%
TSE:IPO
InPlay Oil Corp.
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88.22%
TSE:CEI
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0.85
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3.66%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.