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Petrus Resources (TSE:PRQ)
TSX:PRQ
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Petrus Resources (PRQ) AI Stock Analysis

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TSE:PRQ

Petrus Resources

(TSX:PRQ)

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Neutral 67 (OpenAI - 5.2)
Rating:67Neutral
Price Target:
C$2.00
▲(11.73% Upside)
Action:Reiterated
Date:08/17/26
The score is driven mainly by mixed financial performance: strong operating metrics and a conservative balance sheet are offset by a TTM net loss and materially negative free cash flow. Technicals are supportive with price above major moving averages and positive MACD, though momentum looks stretched. Valuation is helped by the high dividend yield but weighed down by a negative P/E. The latest earnings call was broadly constructive, citing strong YoY operational improvements and clear production/capital plans, tempered by hedging, infrastructure, and commodity-price risks.
Positive Factors
Production growth and operating scale
Sustained production growth and record output indicate successful development of the asset base. Continued well additions and an exit run-rate near 12,000 BOE/d can support higher operating cash generation over the next several months.
Negative Factors
Negative and uneven free cash flow
Strong operating inflows are currently being exceeded by capital spending and/or working-capital needs. Repeatedly uneven free cash flow could constrain funding flexibility, dividend coverage and the pace of development if external conditions deteriorate.
Read all positive and negative factors
Positive Factors
Negative Factors
Production growth and operating scale
Sustained production growth and record output indicate successful development of the asset base. Continued well additions and an exit run-rate near 12,000 BOE/d can support higher operating cash generation over the next several months.
Read all positive factors

Petrus Resources (PRQ) vs. iShares MSCI Canada ETF (EWC)

Petrus Resources Business Overview & Revenue Model

Company Description
Petrus Resources Ltd. operates as a Canadian energy firm, actively involved in the acquisition, exploration, development, and eventual production of oil and gas reserves across western Canada. The company adopts a cautious approach to its explorat...
How the Company Makes Money
Petrus Resources makes money by producing and selling crude oil, natural gas, and natural gas liquids (NGLs) from its operated and non-operated wells. Revenue is primarily generated from (1) sales of produced hydrocarbons at prevailing market pric...

Petrus Resources Earnings Call Summary

Earnings Call Date:Aug 06, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call emphasized multiple strong operational and financial improvements—operating netback (+92%), funds flow (+32%), production (+21%), realized price (+46%) and the company’s highest-ever monthly production—alongside continued drilling activity and disciplined capital flexibility. Offsetting items include hedging losses, temporary production curtailment after the Harmattan acquisition, infrastructure constraints in North Ferrier, weak natural gas prices (-18%), and ongoing commodity price volatility. On balance, the positives (robust growth in netback, funds flow, production and realized pricing, plus record monthly output and active well program) outweigh the negatives.
Positive Updates
Operating Netback Improvement
Operating netback increased 92% year-over-year to $24.9 million for Q2, driven by higher production, greater liquids weighting and improved liquids pricing.
Negative Updates
Hedging Losses Masking Improvements
Hedging losses partially offset the dramatic operational improvement in the quarter, reducing the net financial benefit of higher prices and production.
Read all updates
Q2-2026 Updates
Negative
Operating Netback Improvement
Operating netback increased 92% year-over-year to $24.9 million for Q2, driven by higher production, greater liquids weighting and improved liquids pricing.
Read all positive updates
Company Guidance
Management reiterated 2026 capital guidance of $50–60M (H1 spend $33M; they expect to come in toward the higher end, just under $60M) and guided to an exit run‑rate around 12,000 BOE/d (June monthly production topped 12,000 BOE/d; Q2 average 11,070 BOE/d, +21% YoY) with upside optionality to exceed 13,000 BOE/d if they accelerate wells from 2027 into 2026; key Q2 metrics included an operating netback of $24.9M (+92% YoY), funds flow up 32% YoY, realized price $37.66/BOE (+46% YoY) driven by 39% liquids weighting and oil +59% / NGL +39% YoY (gas -18%), and near‑term activity noting two Harmattan wells brought on Aug 1, one more Ferrier well to be completed this month, and JV block wells slated for October.

Petrus Resources Financial Statement Overview

Summary
Revenue rebounded strongly in TTM (+19%) with solid EBITDA margin (~36.5%) and conservative leverage (debt-to-equity ~0.21). Offsetting this, TTM slipped to a small net loss (net margin ~-2%) and free cash flow turned materially negative (~-$24.2M), reflecting profitability and cash-flow volatility.
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
54
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue103.83M79.36M81.15M125.61M128.19M81.27M
Gross Profit39.20M9.74M39.89M61.73M66.99M47.91M
EBITDA37.94M60.29M44.59M84.19M98.81M138.81M
Net Income-2.07M10.57M-1.25M50.73M60.87M114.56M
Balance Sheet
Total Assets485.00M427.37M420.12M437.84M381.06M290.49M
Cash, Cash Equivalents and Short-Term Investments8.00K20.00K68.00K375.00K40.00K4.93M
Total Debt67.90M63.94M58.74M49.75M30.21M58.52M
Total Liabilities160.84M115.60M116.74M122.68M114.42M122.27M
Stockholders Equity324.16M311.77M303.38M315.16M266.64M168.22M
Cash Flow
Free Cash Flow-24.18M-794.00K26.91M-12.52M3.87M5.82M
Operating Cash Flow60.18M47.15M58.73M74.37M100.61M32.99M
Investing Cash Flow-90.85M-48.04M-51.70M-90.39M-97.80M-17.93M
Financing Cash Flow30.63M846.00K-7.33M16.35M-7.70M-10.13M

Petrus Resources Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.79
Price Trends
50DMA
1.74
Positive
100DMA
1.76
Positive
200DMA
1.78
Positive
Market Momentum
MACD
0.01
Positive
RSI
54.84
Neutral
STOCH
68.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PRQ, the sentiment is Positive. The current price of 1.79 is below the 20-day moving average (MA) of 1.80, above the 50-day MA of 1.74, and above the 200-day MA of 1.78, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 54.84 is Neutral, neither overbought nor oversold. The STOCH value of 68.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PRQ.

Petrus Resources Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
C$392.48M10.2827.62%6.08%28.63%24.06%
72
Outperform
C$610.48M71.535.33%20.75%42.92%
67
Neutral
C$269.48M-116.13-0.66%6.67%25.52%-126.16%
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
56
Neutral
C$395.32M15.597.79%15.04%-61.00%
49
Neutral
C$376.84M8.6957.31%8.00%39.79%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:PRQ
Petrus Resources
1.80
0.42
30.15%
TSE:ALV
Alvopetro Energy
10.52
4.47
74.00%
TSE:CVVY
Cavvy Energy
2.06
1.38
202.94%
TSE:GASX
NG Energy International
1.38
0.33
31.43%
TSE:RBY
Rubellite Energy Inc
4.21
2.02
92.24%

Petrus Resources Corporate Events

Business Operations and StrategyDividendsFinancial Disclosures
Petrus Resources Posts Record Output and Strong Q2 2026 Cash Flow
Positive
Aug 6, 2026
Petrus Resources reported a strong second quarter of 2026, with operating netback nearly doubling to $24.9 million and funds flow rising 32% year over year to $16.3 million, driven by higher oil and condensate production and significantly improved...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Strategem Capital Boosts Net Asset Value and Restores TSX-V Compliance
Positive
Jul 31, 2026
Strategem Capital reported a rise in net asset value per share to $1.39 as of June 30, 2026, up from $1.19 at year-end 2025, while its common shares last traded at $0.89, highlighting a notable discount to NAV. The company deployed 98% of its capi...
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.Date of analysis: Aug 17, 2026