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Prospera Energy Inc
(PEI)
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Rating:44Neutral
Price Target:
C$0.03
▼(-27.50% Downside)
Action:Reiterated
Date:09/10/26
The score is held down primarily by stressed financial fundamentals (negative equity, ongoing losses, and negative free cash flow). Technicals also remain weak with the stock trading below key moving averages and negative MACD. The latest earnings call provides a partial offset due to improved operating performance and cash generation, but execution and financing/dilution risk remain central.
Positive Factors
Record revenue and netback improvement
Record revenue, stronger realized pricing, and sharply improved netbacks indicate better monetization of production and stronger operating execution. If sustained, this performance can improve cash conversion, support reinvestment in producing assets, and provide a durable base for expanding output.
Negative Factors
Stressed balance sheet and negative equity
Negative shareholder equity and substantial debt leave PEI with limited financial cushion against production volatility or weaker commodity conditions. The strained capital structure can restrict flexibility, increase reliance on creditors, and make it harder to fund growth without external capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Record revenue and netback improvement
Record revenue, stronger realized pricing, and sharply improved netbacks indicate better monetization of production and stronger operating execution. If sustained, this performance can improve cash conversion, support reinvestment in producing assets, and provide a durable base for expanding output.
Read all positive factors
Prospera Energy Inc (PEI) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$21.31M
Dividend YieldN/A
Average Volume (3M)457.82K
Price to Earnings (P/E)―
Beta (1Y)-0.39
Revenue Growth6.62%
EPS Growth-66.67%
CountryCA
Employees118
SectorGeneral
Sector StrengthN/A
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)-0.02
Shares Outstanding608,988,160
10 Day Avg. Volume623,764
30 Day Avg. Volume457,821
Financial Highlights & Ratios
PEG Ratio-0.01
Price to Book (P/B)-1.54
Price to Sales (P/S)1.05
P/FCF Ratio-1.91
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)N/A
Revenue Forecast (FY)N/A
Prospera Energy Inc Business Overview & Revenue Model
Company Description
Prospera Energy Inc., a natural resources company, engages in the acquisition, exploration, and development of petroleum and natural gas properties in Canada. Its principal properties are the Cuthbert, Luseland, Hearts Hill, and Brooks properties ...
How the Company Makes Money
Prospera Energy Inc. primarily makes money by producing and selling crude oil and, where applicable, natural gas and/or natural gas liquids from its operated and non-operated wells. Revenue is generated from commodity sales (oil and gas) priced ba...
Prospera Energy Inc Earnings Call Summary
Earnings Call Date:Aug 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Dec 02, 2026
Earnings Call Sentiment Positive
The call presents a clear operational inflection: strong Q2 2026 revenue (nearly CAD 6.2M), major netback improvement (CAD ~30/BOE, up 170% vs Q1), positive funds flow and cash flow, high well-level payouts and a 16/17 reactivation success rate. Management has also improved reliability (85% uptime, zero pipeline failures) and completed balance-sheet remediation actions, while outlining a sizeable CAD 12M financing to scale a proven inventory. Key risks include a remaining net loss (~CAD 1M), dependence on the financing (and its dilutive terms), operational challenges with sand/bottom water on some wells, and commodity price volatility. Overall, the positive operational and financial momentum, demonstrated well-level paybacks, and clear scaling plan outweigh the remaining challenges.Positive Updates
Record Quarterly Revenue
Q2 2026 revenue nearly CAD 6.2 million — the highest quarter in company history; up 37% versus Q1 2026 and up 26% versus Q2 2025.
Negative Updates
Ongoing Net Loss and Need for External Capital
Company still reporting a loss of just over CAD 1.0 million in Q2 (improved from ~CAD 2.5 million in Q1); significant additional capital (CAD 12 million financing) is required to execute the growth plan, creating dependency on successful fundraise.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue
Q2 2026 revenue nearly CAD 6.2 million — the highest quarter in company history; up 37% versus Q1 2026 and up 26% versus Q2 2025.
Read all positive updates
Company Guidance
Management guided a CAD12.0M equity raise (CAD0.04/unit with CAD0.06 warrants) with ~CAD10.0M to be deployed into existing wellbores (including a CAD6.7M program funding 42 reactivations and targeting ~70+ Luseland wells) to scale a proven reactivation engine; they pointed to Q2/2026 results of ~CAD6.2M revenue (+37% Q/Q, +26% Y/Y), ~750 BOE/d, ~85% field uptime, realized pricing ~CAD91/bbl (WCS >CAD100), operating netbacks ~CAD30/BOE (up ~170% Q/Q), funds flow CAD1.3M and net operating cash flow CAD1.5M on CAD600k capex, seven wells already >2x payback (10-07: ~CAD370k operating income on CAD150k capex), cumulative 2025 reactivation capex CAD1.64M fully recovered with >CAD1.7M operating income to date, a 16/17 success rate in 2025, targets WTI ~CAD70–75 for the rest of 2026, forecasts a 4.3x return by Dec 31, 2028 tied to ~4.2x production growth, and expects AP cleanup (≈CAD1.8M arrears converted, AP to fall ~70% toward ~CAD5M).Prospera Energy Inc Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
18
Very Negative
Cash Flow
27
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Dec 2023 | Dec 2022 | Jun 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.52M | 16.89M | 16.64M | 11.82M | 13.90M | 4.41M |
| Gross Profit | 3.23M | -1.14M | 6.01M | 3.36M | 9.93M | 3.36M |
| EBITDA | 1.02M | 583.23K | 2.02M | -571.80K | 2.91M | 5.62M |
| Net Income | -12.06M | -11.32M | -4.29M | -5.17M | -209.86K | 4.35M |
Balance Sheet | ||||||
| Total Assets | 59.07M | 59.00M | 53.93M | 49.17M | 35.81M | 26.13M |
| Cash, Cash Equivalents and Short-Term Investments | 24.45K | 116.97K | 364.08K | 118.93K | 1.05M | 281.52K |
| Total Debt | 30.44M | 30.36M | 19.76M | 9.54M | 4.24M | 7.73M |
| Total Liabilities | 69.02M | 70.53M | 55.91M | 47.97M | 42.01M | 38.92M |
| Stockholders Equity | -9.95M | -11.53M | -1.98M | 1.20M | -6.20M | -12.78M |
Cash Flow | ||||||
| Free Cash Flow | -4.13M | -9.30M | -9.02M | -14.17M | -2.15M | -6.25M |
| Operating Cash Flow | 1.70M | -615.04K | -3.16M | 1.24M | 5.34M | -5.47M |
| Investing Cash Flow | -5.97M | -8.67M | -5.60M | -15.42M | -7.92M | -776.49K |
| Financing Cash Flow | 3.35M | 9.04M | 9.00M | 13.24M | 3.35M | 6.38M |
Prospera Energy Inc Technical Analysis
Positive
0.04
Price Trends
0.04
Positive
0.04
Positive
0.04
Positive
Market Momentum
>-0.01
Positive
54.40
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 0.04, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 54.40 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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
58 Neutral | C$53.19M | 2.17 | 36.07% | 40.98% | 135.10% | 585.62% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
47 Neutral | C$34.22M | -4.26 | -12.06% | 230.77% | -14.21% | 37.17% | |
45 Neutral | C$21.26M | -12.65 | -3.30% | ― | -1.78% | 49.69% | |
44 Neutral | C$21.31M | -1.41 | 134.84% | ― | 6.62% | -66.67% | |
43 Neutral | C$59.95M | -26.27 | -8.75% | ― | ― | 51.51% | |
41 Neutral | C$17.58M | -5.75 | -666.70% | ― | -24.51% | 1.06% |
* General Sector Average
TSE:PEI
Prospera Energy Inc
0.04
<0.01
16.67%
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Prospera Energy Inc Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Prospera Energy Extends Senior Loan to 2028, Clears Path for C$12 Million Equity Raise
Positive
Aug 29, 2026
Prospera Energy has secured a two-year extension of its $20.7 million senior term loan, pushing the maturity to August 31, 2028 while keeping the existing 12% interest terms, subject to TSX Venture Exchange approval. The move removes a near-term r...
Business Operations and StrategyExecutive/Board Changes
Prospera Launches Capital-Efficient Heavy Oil Reactivation Campaign in Saskatchewan
Positive
Aug 5, 2026
Prospera Energy Inc., a Canadian crude oil and natural gas producer, is concentrating on boosting output from legacy fields in Saskatchewan and Alberta through cost-efficient, environmentally conscious reservoir development. The company’s co...
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.