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Prospera Energy Inc (TSE:PEI)
:PEI
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Prospera Energy Inc
(PEI)
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Rating:46Neutral
Price Target:
C$0.00
▼(-100.00% Downside)
The overall stock score is primarily influenced by financial performance concerns, including high leverage and negative equity. Technical analysis suggests a neutral to slightly bearish trend, while valuation metrics are weak due to negative earnings and lack of dividends. The absence of earnings call data and corporate events means these factors did not influence the score.
Prospera Energy Inc (PEI) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$18.47M
Dividend YieldN/A
Average Volume (3M)217.79K
Price to Earnings (P/E)―
Beta (1Y)0.42
Revenue Growth2.27%
EPS Growth-89.87%
CountryCA
EmployeesN/A
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding461,625,500
10 Day Avg. Volume445,530
30 Day Avg. Volume217,788
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
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 ConsensusHold
Number of Analyst Covering1
Prospera Energy Inc Business Overview & Revenue Model
Company DescriptionProspera Energy Inc., a natural resources company, acquires, explores for, and develops petroleum and gas properties in Canada. It primarily holds interests in the Pouce Coupe and Red Earth properties in Alberta; and Cuthbert, Hearts Hills, and Luseland properties in Saskatchewan. The company was formerly known as Georox Resources Inc. and changed its name to Prospera Energy Inc. in June 2018. The company was incorporated in 2003 and is based in Calgary, Canada.
How the Company Makes MoneyProspera Energy generates revenue primarily through the extraction and sale of crude oil and natural gas. The company monetizes its resources by selling these hydrocarbons to various markets, including local refineries and energy companies. Key revenue streams include the production and sale of oil, natural gas, and natural gas liquids. Additionally, Prospera may benefit from strategic partnerships with other energy firms that provide operational support and market access, as well as from favorable market conditions such as rising commodity prices, which can significantly enhance profitability.
Prospera Energy Inc Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q1-2025)
| Next Earnings Date:Nov 28, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative aspects. While there were notable achievements in production capability, strategic initiatives, and revenue growth, challenges included increased operating costs and reduced netback. The company remains dependent on external financing but aims to achieve cash flow sustainability in the near future.Q1-2025 Updates
Positive Updates
Increased Production Capability
Prospera reactivated 27 wells, resulting in an additional production capability of almost 250 barrels per day at an average capital efficiency of just over $9,300 per BOE.
Successful Debt Financing and Strategic Initiatives
Secured $3.3 million in term debt funding and announced the acquisition of White Tundra Petroleum, pending TSX approval. Also reached a settlement agreement for approximately $1.5 million in convertible debt.
Operational Efficiency Improvements
Initiated a forced re-optimization initiative that streamlined corporate decision-making, resulting in staffing reductions of approximately 50% from Q3 numbers and reduced G&A-related costs.
Revenue and Sales Growth
Realized average net sales of 660 BOE per day, increasing from 640 BOE Q1 prior year and 625 BOE Q4 prior year. Achieved sales revenue of almost $4.6 million with an average BOE of just over $77, a 17% increase year-over-year.
Free Cash Flow Positive in March
Reported being free cash flow positive in March after covering interest payments, G&A, employee salaries, legal costs, and audit costs.
Negative Updates
Increased Operating Costs
Operating costs per barrel increased by almost 50% in Q1, reaching nearly $60 per BOE compared to roughly $39 in the year prior, due to unkind electrical outages and one-time infrastructure upgrades.
Reduced Operating Netback
Operating netback reduced to $627,000 or just over $10 BOE in Q1 compared to $1.6 million or $27 BOE in the year prior, impacted by one-time costs not being capitalized.
Dependency on External Financing
Continued reliance on external borrowing and debt financing, with plans to reach internal cash flow sustainability by the end of the summer.
Company Guidance
During Prospera Energy's Q1 2025 conference call, the company highlighted several key financial and operational metrics. The company deployed approximately $2.5 million in capital, focusing $2.3 million on reactivating 27 wells, resulting in an additional production capacity of nearly 250 barrels per day at a capital efficiency of just over $9,300 per BOE. Prospera's average net sales increased to 660 BOE per day, contributing to a sales revenue of almost $4.6 million, with an average BOE price of over $77, marking a 17% year-over-year increase. However, operating costs rose by almost 50% to nearly $60 per BOE due to infrastructure upgrades and extreme weather conditions. The company secured $3.3 million in term debt funding and reached a convertible debt settlement agreement, reflecting ongoing strategic efforts to enhance financial stability. Despite increased costs, Prospera reported a positive operating netback of $627,000 or just over $10 per BOE. The company remains focused on reducing debts, improving cash flow, and reactivating additional wells, with over 150 wells still available for future development.Prospera Energy Inc Financial Statement Overview
Summary
Prospera Energy Inc shows strong revenue growth but faces significant profitability and financial stability challenges. High leverage and negative equity are concerning, and cash flow issues persist despite some growth in free cash flow.Income Statement
Prospera Energy Inc has shown significant revenue growth in the TTM period, with a 95.9% increase. However, the company is struggling with profitability, as indicated by negative net profit and EBIT margins. The gross profit margin remains strong at 68.5%, but the negative EBIT and net profit margins highlight ongoing operational challenges.45
Neutral
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of -5.68, indicating significant leverage and financial risk. The negative stockholders' equity suggests potential solvency issues. Return on equity is positive, but this is due to negative equity, which distorts the metric. Overall, the balance sheet reflects financial instability.30
Negative
Cash Flow
Cash flow analysis shows a positive free cash flow growth rate of 13.27% in the TTM period. However, both operating and free cash flows are negative, indicating cash flow challenges. The free cash flow to net income ratio is positive, suggesting some efficiency in converting income to cash, but overall cash flow health remains weak.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.55M | 16.64M | 11.82M | 13.90M | 4.41M | 3.28M |
| Gross Profit | 12.71M | 6.01M | 3.36M | 9.93M | 3.36M | 1.87M |
| EBITDA | 980.69K | 2.02M | -571.80K | 2.13M | 3.34M | -10.45M |
| Net Income | -6.43M | -4.29M | -5.17M | -209.86K | 4.35M | -11.73M |
Balance Sheet | ||||||
| Total Assets | 57.53M | 53.93M | 49.17M | 35.81M | 26.13M | 5.48M |
| Cash, Cash Equivalents and Short-Term Investments | 946.57K | 364.08K | 118.93K | 1.05M | 281.52K | 153.39K |
| Total Debt | 26.11M | 19.76M | 9.54M | 4.24M | 7.73M | 1.58M |
| Total Liabilities | 62.13M | 55.91M | 47.97M | 42.01M | 38.92M | 24.12M |
| Stockholders Equity | -4.60M | -1.98M | 1.20M | -6.20M | -12.78M | -18.64M |
Cash Flow | ||||||
| Free Cash Flow | -12.51M | -9.02M | -14.17M | -2.15M | -6.25M | 608.06K |
| Operating Cash Flow | -4.76M | -3.16M | 1.24M | 5.34M | -5.47M | 632.00K |
| Investing Cash Flow | -7.32M | -5.60M | -15.42M | -7.92M | -776.49K | -23.03K |
| Financing Cash Flow | 13.03M | 9.00M | 13.24M | 3.35M | 6.38M | -925.00K |
Prospera Energy Inc Technical Analysis
Positive
0.04
Price Trends
0.04
Positive
0.03
Positive
0.03
Positive
Market Momentum
<0.01
Negative
52.08
Neutral
66.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PEI, the sentiment is Positive. The current price of 0.04 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.04, and above the 200-day MA of 0.03, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.08 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PEI.
Prospera Energy Inc Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | C$12.40M | 3.95 | 25.68% | ― | 26.39% | ― | |
58 Neutral | C$10.21M | 7.37 | 4.03% | ― | 200.52% | ― | |
51 Neutral | C$12.47M | -2.41 | ― | ― | -7.69% | -315.00% | |
46 Neutral | C$18.47M | ― | -379.86% | ― | 2.27% | -89.87% | |
44 Neutral | C$10.72M | -3.42 | ― | ― | ― | -4071.43% | |
29 Underperform | C$30.79M | -7.40 | ― | ― | ― | 70.30% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
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Prospera Energy Inc Corporate Events
Business Operations and StrategyM&A Transactions
Prospera Energy Boosts Operations with Strategic Acquisition and Joint Venture
Positive
Aug 29, 2025
Prospera Energy Inc. has announced significant operational updates, including the completion of numerous projects such as well reactivations, horizontal well re-entries, and infrastructure upgrades. The company has also closed the acquisition of White Tundra Petroleum and signed a joint venture partnership, which are expected to bolster its production capacity and strategic positioning in the industry. These developments are part of Prospera’s strategy to efficiently reallocate capital into high-impact projects, aiming to enhance production and operational efficiency across its assets.
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Prospera Energy Reports Q2 2025 Growth and Prepares for EnerCom Conference
Positive
Aug 14, 2025
In Q2 2025, Prospera Energy Inc. reported significant operational and financial improvements, including an 18% increase in net sales to 780 boe/d and a 38% reduction in operating costs. The company secured $3.2 million in additional term-debt advances and completed workforce optimization to streamline operations. Prospera also announced its participation in the EnerCom Energy Investment Conference in Denver, highlighting its strategic direction and operational milestones.
Business Operations and StrategyFinancial Disclosures
Prospera Energy Inc. Reports Strong Operational Performance and Growth
Positive
Jul 31, 2025
Prospera Energy Inc. has reported strong operational performance with an average production of 859 boe/d, primarily oil, from July 1 to July 23, 2025. The company has successfully completed numerous projects across its properties, including well reactivations and optimizations, contributing to sustained growth. Production at key pools like Cuthbert, Hearts Hill, and Luseland has been stable or increasing, supported by ongoing optimization efforts and strategic initiatives. These developments are expected to enhance Prospera’s operational efficiency and revenue, positioning the company favorably in the market.
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.