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Petrus Resources Ltd. (PRQ.TO)

Toronto - Toronto Real Time Price. Currency in CAD
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0.2150-0.0050 (-2.27%)
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Neutralpattern detected
Previous Close0.2200
Open0.2050
Bid0.2150 x 0
Ask0.2300 x 0
Day's Range0.2050 - 0.2250
52 Week Range0.0550 - 0.3000
Volume16,300
Avg. Volume14,879
Market Cap10.636M
Beta (5Y Monthly)3.31
PE Ratio (TTM)N/A
EPS (TTM)-2.0360
Earnings DateNov 12, 2020
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est0.25
  • A Quick Analysis On Petrus Resources' (TSE:PRQ) CEO Compensation
    Simply Wall St.

    A Quick Analysis On Petrus Resources' (TSE:PRQ) CEO Compensation

    Neil Korchinski became the CEO of Petrus Resources Ltd. (TSE:PRQ) in 2016, and we think it's a good time to look at...

  • Petrus Resources Announces Third Quarter 2020 Financial & Operating Results
    GlobeNewswire

    Petrus Resources Announces Third Quarter 2020 Financial & Operating Results

    CALGARY, Alberta, Nov. 12, 2020 (GLOBE NEWSWIRE) -- Petrus Resources Ltd. (“Petrus” or the “Company”) (TSX: PRQ) is pleased to report financial and operating results as at and for the three and nine months ended September 30, 2020. Petrus is focused on the profitable development of its Ferrier Cardium asset to generate free cash flow for debt repayment. In the third quarter of 2020 Canadian natural gas forward prices experienced significant gains. The improved pricing in conjunction with Petrus' 70% natural gas weighting have contributed to a materially improved revenue outlook for Petrus for the remainder of 2020 and into 2021. Petrus' realized natural gas price was $2.51/mcf in the third quarter of 2020 compared to $1.12/mcf in the third quarter of 2019. Management continues to utilize financial derivative contracts to protect revenue streams to support planned debt repayments.Combined with an improved revenue outlook, the efforts Petrus has made to decrease both operating and general and administrative costs have generated increased free cash flow available for debt repayment. The Company reduced net debt(1) levels by $3.9 million in the third quarter; over the last two quarters Petrus has repaid $9.3 million in total net debt. Over the past two quarters, debt reduction has exceeded the bank's required repayment targets by 70%.Third quarter production was supported by increased volumes from the two Cardium wells drilled in the first quarter of the year. These wells were intentionally restricted late in the first quarter due to depressed commodity prices but were returned to higher production rates in July. Third quarter production was 6,463 boe/d compared to 6,291 boe/d in the second quarter of 2020. Third quarter production volumes were impacted by the scheduled 2.5 day turnaround at the Ferrier 2-25 gas plant in late September as well as turnaround work at a partner operated facility in the Foothills area; management estimates the impact on third quarter volumes to be approximately 170 boe/ d.HIGHLIGHTS: * Debt repayment \- Reduced net debt by $3.9 million during the quarter. Net debt repayment totals $31 million since the start of 2018.   * Strong funds flow \- Generated funds flow(1) of $7.6 million ($0.15 per share) for the third quarter of 2020 with net capital expenditures of $2.5 million.   * Improving natural gas pricing \- November 2020 to October 2021 AECO forward strip price increased 33% from June 30, 2020 to October 30, 2020 - $2.19/GJ to $2.91/GJ (Source: CIBC Energy Update).   * Credit facility \- The Company completed the fall borrowing base review subsequent to quarter end with terms consistent to the 2020 annual review.   * Low operating costs \- Operating expense for the three months ended September 30, 2020 was $4.05/boe. This is one of the lowest since inception and Petrus' management believes its operating expense is consistently among the best in its peer group. The Company continues to focus on optimizing its cost structure, particularly in the Ferrier area, through facility ownership and control.   * Commodity price risk mitigation - Petrus utilizes financial derivative contracts to mitigate commodity price risk and provide stability and sustainability to funds flow. Petrus achieved a gain of $2.20/boe in the third quarter as a result of these contracts.CREDIT FACILITY Subsequent to the end of the third quarter, the Company completed its fall borrowing base review of the Revolving Credit Facility (“RCF”). At the end of the third quarter of 2020, the Company was drawn $80.3 million against the RCF. Petrus has continued to exceed mandated debt repayment targets of $2.75 million per quarter as required under the terms of the RCF. The RCF maturity date is May 31, 2021. Petrus' management believes it has adequate liquidity to execute the Company's business plan over the coming year. The Company continues its efforts to divest certain non-core assets and evaluate other sources of capital to improve its balance sheet. Reduction of debt remains the Company's top priority. Since December 31, 2015 Petrus has repaid 49% or $110 million of its net debt(1).Q4 2020 OUTLOOK Petrus intends to remain flexible to adjust quarterly capital spending as the year progresses. The Company did resume drilling activity late in the third quarter as management accelerated a planned fourth quarter drilling operation to take advantage of favorable fall weather conditions. The completion and tie in of this well will comprise the majority of the $2.5 million in capital spending planned for the remainder of the year. With the high level of control afforded by operated assets and ownership of key infrastructure, the Company can adjust liquids content in the natural gas stream to maximize profitability of all products as well as adjust production rates quickly to respond to changing market conditions.OPERATIONS UPDATE Third quarter average production by area was as follows:For the three months ended September 30, 2020FerrierFoothillsCentral AlbertaTotal Natural gas (mcf/d)20,0281,2515,19426,473 Oil (bbl/d)7171002451,062 NGLs (bbl/d)8395145989 Total (boe/d)4,8943131,2566,463 Third quarter production averaged 6,463 boe/d compared to 6,291 boe/d in the second quarter of 2020. The increase is due to additional volumes from the two Cardium wells drilled in the first quarter of the year. These wells were intentionally restricted late in the first quarter due to depressed commodity prices but were returned to higher production rates in July. Third quarter production volumes were impacted by the scheduled 2.5 day turnaround at the Ferrier 2-25 gas plant in late September as well as turnaround work at a partner operated facility in the Foothills area; management estimates the impact on third quarter volumes to be approximately 170 boe/d. Petrus' ownership and control of critical processing facilities enables the Company to respond and continually optimize its production revenue streams. To improve operating netback, during 2019, Petrus ceased sending certain natural gas for additional third party deepcut processing to extract additional NGLs. This resulted in lower NGL production volume, however, the heating value of natural gas sales increased and processing fees decreased. Petrus continues to monitor NGL market pricing and is able to modify its operations accordingly.The Company did resume drilling activity late in the third quarter as management accelerated a planned fourth quarter drilling operation to take advantage of favorable fall weather conditions. The completion and tie in of this well will comprise the majority of the $2.5 million in capital spending planned for the remainder of the year. With the high level of control afforded by operated assets and ownership of key infrastructure, the Company can adjust liquids content in the natural gas stream to maximize profitability of all products as well as adjust production rates quickly to respond to changing market conditions. With current pricing, new wells drilled in Petrus' core area of Ferrier can deliver payouts in under one year.Petrus received support benefits from the Canada Emergency Wage Subsidy program and has made successful applications for grants under the Alberta Site Rehabilitation Program. The Company will continue to pursue programs announced by the Federal and Provincial Governments to support Canadian businesses, and the oil and gas industry specifically through the COVID-19 pandemic.(1) Refer to "Non-GAAP Financial Measures" . (2) Refer to "Advisories - Forward-Looking Statements". SELECTED FINANCIAL INFORMATIONOPERATIONSThree months ended Sept. 30, 2020Three months ended Sept. 30, 2019Three months ended Jun. 30, 2020Three months ended Mar. 31, 2020Three months ended Dec. 31, 2019 Average Production      Natural gas (mcf/d)26,181 30,998 27,630 30,604 32,641  Oil (bbl/d)1,103 1,247 867 1,134 1,834  NGLs (bbl/d)997 1,372 819 1,088 1,018  Total (boe/d)6,463 7,785 6,291 7,323 8,292  Total (boe)594,599 716,220 572,440 666,361 762,874  Light oil weighting17%16%14%15%22% Realized Prices      Natural gas ($/mcf)2.51 1.12 2.35 2.40 2.65  Oil ($/bbl)46.46 65.64 27.18 50.02 65.16  NGLs ($/bbl)22.05 11.49 12.87 23.19 20.62  Total realized price ($/boe)21.48 16.99 15.73 21.23 27.39  Royalty revenue0.12 0.48 0.06 0.30 0.13  Royalty expense(2.09)(1.65)(1.51)(2.85)(2.91) Net oil and natural gas revenue ($/boe)19.51 15.82 14.28 18.68 24.61  Operating expense(4.05)(4.44)(4.44)(4.55)(4.47) Transportation expense(1.63)(1.25)(1.40)(1.05)(1.30) Operating netback(1) ($/boe)13.83 10.13 8.44 13.08 18.84  Realized gain (loss) on derivatives ($/boe)2.20 0.50 6.39 1.76 (1.86) Other income0.04 0.03 0.17 0.07 —  General & administrative expense(1.07)(1.08)(1.43)(1.35)(1.91) Cash finance expense(2.16)(3.11)(3.20)(3.13)(2.54) Decommissioning expenditures(0.13)(0.29)(0.15)(0.56)(0.41) Funds flow & corporate netback(1)(2) ($/boe)12.71 6.18 10.22 9.87 12.12  FINANCIAL (000s except $ per share)Three months ended Sept. 30, 2020Three months ended Sept. 30, 2019Three months ended Jun. 30, 2020Three months ended Mar. 31, 2020Three months ended Dec. 31, 2019 Oil and natural gas revenue 12,840 12,517 9,041 14,344 20,998  Net loss(3,678)(29,569)(6,281)(87,444)(3,332) Net loss per share           Basic(0.07)(0.60)(0.13)(1.77)(0.06) Fully diluted(0.07)(0.60)(0.13)(1.77)(0.06) Funds flow7,551 4,427 5,855 6,566 9,260  Funds flow per share           Basic0.15 0.09 0.12 0.13 0.19  Fully diluted0.15 0.09 0.12 0.13 0.19  Capital expenditures2,543 2,734 305 8,655 4,351  Net dispositions— 651 — — —  Weighted average shares outstanding           Basic49,469 49,469 49,469 49,469 49,469  Fully diluted49,469 49,469 49,469 49,469 49,469  As at period end           Common shares outstanding           Basic49,469 49,469 49,469 49,469 49,469  Fully diluted49,469 49,469 49,469 49,469 49,469  Total assets179,895 296,367 184,532 193,679 289,225  Non-current liabilities44,471 82,650 43,017 38,533 42,346  Net debt(1)116,717 128,553 120,570 125,974 123,744  (1)Refer to "Non-GAAP Financial Measures". (2)Corporate netback is equal to funds flow which is a directly comparable GAAP measure. Petrus analyzes these measures on an absolute value and per unit basis.NON-GAAP FINANCIAL MEASURES This press release makes reference to the terms "operating netback", "corporate netback" and "net debt". These indicators are not recognized measures under GAAP (IFRS) and do not have a standardized meaning prescribed by GAAP (IFRS). Accordingly, the Company's use of these terms may not be comparable to similarly defined measures presented by other companies. Management uses these terms for the reasons set forth below.Operating Netback Operating netback is a common non-GAAP financial measure used in the oil and natural gas industry which is a useful supplemental measure to evaluate the specific operating performance by product at the oil and natural gas lease level. The most directly comparable GAAP measure to operating netback is funds flow. Operating netback is calculated as oil and natural gas revenue less royalties, operating and transportation expenses. It is presented on an absolute value and per unit basis.Funds Flow and Corporate Netback Corporate netback is a common non-GAAP financial measure used in the oil and natural gas industry which evaluates the Company’s profitability at the corporate level. Corporate netback is equal to funds flow which is a directly comparable GAAP measure. Petrus analyzes these measures on an absolute value and per unit basis. Management believes that funds flow and corporate netback provide information to assist a reader in understanding the Company's profitability relative to current commodity prices. It is calculated, in the following table, as the operating netback less general and administrative expense, finance expense, decommissioning expenditures, plus other income and the net realized gain (loss) on financial derivatives.Net Debt Net debt is a non-GAAP financial measure and is calculated as current assets (excluding unrealized financial derivative assets) less current liabilities (excluding unrealized financial derivative liabilities, right-of-use lease obligations, and deferred share unit liabilities) and long term debt. Petrus uses net debt as a key indicator of its leverage and strength of its balance sheet. There is no GAAP measure that is reasonably comparable to net debt.ADVISORIES Basis of Presentation Financial data presented above has largely been derived from the Company’s financial statements, prepared in accordance with GAAP which require publicly accountable enterprises to prepare their financial statements using IFRS. Accounting policies adopted by the Company are set out in the notes to the consolidated financial statements as at and for the twelve months ended December 31, 2019. The reporting and the measurement currency is the Canadian dollar. All financial information is expressed in Canadian dollars, unless otherwise stated.Forward-Looking Statements In particular, forward-looking statements included in this MD&A include, but are not limited to, statements with respect to: revenue outlook for Petrus for the remainder of 2020 and into 2021; Petrus having adequate liquidity to execute the Company's business plan over the coming year; the Company continuing its efforts to divest certain non-core assets and evaluate other sources of capital to improve its balance sheet; capital spending planned for the remainder of 2020; the Company's ability to adjust liquids content in the natural gas stream to maximize profitability of all products as well as adjust production rates quickly to respond to changing market conditions; planned debt repayments; the Company's continued pursuit programs announced by the Federal and Provincial Governments; the Company's ability to modify its operations; expectations regarding the adequacy of Petrus' liquidity and the funding of its financial liabilities; the impact of the current economic environment on Petrus; the performance characteristics of the Company's crude oil, NGL and natural gas properties; future prospects; the focus of and timing of capital expenditures; access to debt and equity markets; Petrus' future operating and financial results; capital investment programs; supply and demand for crude oil, NGL and natural gas; future royalty rates; drilling, development and completion plans and the results therefrom; and treatment under governmental regulatory regimes and tax laws.In addition, statements relating to “reserves” are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described can be profitably produced in the future.This MD&A contains future-oriented financial information and financial outlook information (collectively, "FOFI") about Petrus' prospective results of operations including, without limitation, its revenue outlook for Petrus for the remainder of 2020 and into 2021, liquidity to execute the Company's business plan over the coming year and ability to repay debt, which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth above. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on FOFI. Petrus' actual results, performance or achievement could differ materially from those expressed in, or implied by, these FOFI, or if any of them do so, what benefits Petrus will derive therefrom. Petrus has included the FOFI in order to provide readers with a more complete perspective on Petrus' future operations and such information may not be appropriate for other purposes.These forward-looking statements and FOFI are made as of the date of this MD&A and the Company disclaims any intent or obligation to update any forward-looking statements and FOFI, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.BOE Presentation The oil and natural gas industry commonly expresses production volumes and reserves on a barrel of oil equivalent (“boe”) basis whereby natural gas volumes are converted at the ratio of six thousand cubic feet to one barrel of oil. The intention is to sum oil and natural gas measurement units into one basis for improved measurement of results and comparisons with other industry participants. Petrus uses the 6:1 boe measure which is the approximate energy equivalence of the two commodities at the burner tip. Boe’s do not represent an economic value equivalence at the wellhead and therefore may be a misleading measure if used in isolation.Abbreviations  $000’sthousand dollars $/bbldollars per barrel $/boedollars per barrel of oil equivalent $/GJdollars per gigajoule $/mcfdollars per thousand cubic feet bblbarrel bbl/dbarrels per day boebarrel of oil equivalent mboebarrel of oil equivalent mmboethousand barrel of oil equivalent boe/dmillion barrel of oil equivalent per day GJgigajoule GJ/dgigajoules per day mcfthousand cubic feet mcf/dthousand cubic feet per day mmcf/dmillion cubic feet per day NGLsnatural gas liquids WTIWest Texas Intermediate For further information, please contact: Neil Korchinski, P.Eng. President and Chief Executive Officer T: 403-930-0889 E: nkorchinski@petrusresources.com

  • Petrus Resources Announces Fourth Quarter Capital Budget and Market Update
    GlobeNewswire

    Petrus Resources Announces Fourth Quarter Capital Budget and Market Update

    Petrus Resources Ltd. Commodity Price ChangesCALGARY, Alberta, Oct. 01, 2020 (GLOBE NEWSWIRE) -- Petrus Resources Ltd. ("Petrus" or the "Company") (TSX: PRQ) announces its fourth quarter 2020 capital budget and provides a market update. Petrus' Board of Directors approved a fourth quarter 2020 capital budget of $4.7 million, which includes the drilling of 1.0 (1.0 net) well. As a result of favourable fall weather conditions, drilling of the well was commenced in late Q3. MARKET UPDATESince March 2020, there has been unprecedented stress on both oil and natural gas prices as the world adjusts to the global COVID-19 pandemic. Accordingly, many energy companies in North America, and around the world, have dramatically reduced their capital budgets. As debt repayment remains Petrus’ top priority, the Company reduced its second and third quarter capital budgets to only include non-discretionary maintenance capital.Over the past few months, commodity prices have been steadily strengthening. Since June 30, 2020, the future commodity prices of Alberta natural gas and Canadian dollar West Texas Intermediate oil have increased by approximately 22% and 3% respectively for 2021 as noted in the table below (Source: CIBC Daily Energy Update September 16, 2020). If the improved forecast prices are realized, Petrus' 2021 operating netback and funds flow would be expected to increase, which would potentially allow the Company to moderately increase future capital spending, while still prioritizing and expanding debt repayment.  To view the Commodity Price Change table visit https://www.globenewswire.com/NewsRoom/AttachmentNg/ffae665a-7e78-4c26-8c93-24a2d9334d30Over the past five years, Petrus has made significant efforts to reduce debt levels, decrease both operating and general and administrative costs and balance the production base between natural gas and light oil and liquids. Since the end of 2015, the Company has reduced net debt by $106 million or 47% to the end of June 2020, and continues to prioritize debt repayment and further balance sheet improvement. The Company is actively exploring opportunities to access government support programs put in place during the COVID-19 pandemic including increased debt facilities from the Export Development Canada, wage subsidies, and well abandonment and reclamation subsidies.Petrus is committed to maintaining its financial flexibility and the Company intends to determine 2021 capital spending as the year progresses. Petrus has designed its 2020 capital plan to invest capital systematically each quarter within funds flow, permitting excess funds each quarter to reduce debt.ABOUT PETRUS Petrus is a public Canadian oil and gas company focused on property exploitation, strategic acquisitions and risk-managed exploration in Alberta.For further information, please contact: Neil Korchinski, P.Eng. President and Chief Executive Officer T: 403-930-0889 E: nkorchinski@petrusresources.com READER ADVISORIES Forward-Looking StatementsThis press release contains forward-looking statements. More particularly, this press release contains statements concerning plans related to: (i) Petrus' ability to increase future capital spending, while still prioritizing and expanding debt repayment; (ii) the timing for Petrus to determine its 2021 capital spending; and (iii) Petrus' ability to repay debt. The forward-looking statements contained in this press release are based on certain key expectations and assumptions made by Petrus, including: the price forecasts noted above, the availability of adequate and secure sources of funding for Petrus' proposed capital expenditure program, realized commodity prices and the impact of the COVID-19 pandemic. Although Petrus believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Petrus can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; health, safety and environmental risks; the volatility of commodity prices; exchange rate fluctuations; and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures) and implications of the COVID-19 pandemic. Readers are cautioned that the foregoing list is not exhaustive of all possible risks and uncertainties.This press release also contains financial outlook information ("FOFI") about Petrus' prospective results of operations including, without limitation, operating netback and funds flow, its ability to maintain capital spending and to prioritize and expand debt repayment, which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth above. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on FOFI. Petrus' actual results, performance or achievement could differ materially from those expressed in, or implied by, these FOFI, or if any of them do so, what benefits Petrus will derive therefrom. Petrus has included the FOFI in order to provide readers with a more complete perspective on Petrus' future operations and such information may not be appropriate for other purposes.These forward-looking statements and FOFI are made as of the date of this MD&A and the Company disclaims any intent or obligation to update any forward-looking statements and FOFI, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.Non-GAAP Financial MeasuresThis press release makes reference to the terms "operating netback" and "net debt". These indicators are not recognized measures under GAAP (IFRS) and do not have a standardized meaning prescribed by GAAP (IFRS). Accordingly, the Company's use of these terms may not be comparable to similarly defined measures presented by other companies. Management uses these terms for the reasons set forth below.Corporate netback is a common non-GAAP financial measure used in the oil and natural gas industry which evaluates the Company's profitability at the corporate level. Corporate netback is equal to funds flow which is a directly comparable GAAP measure. Petrus analyzes these measures on an absolute value and per unit basis. Management believes that funds flow and corporate netback provide information to assist a reader in understanding the Company's profitability relative to current commodity prices. It is calculated as the operating netback less general and administrative expense, finance expense, decommissioning expenditures, plus other income and the net realized gain (loss) on financial derivatives.Net debt is a non-GAAP financial measure and is calculated as current assets (excluding unrealized financial derivative assets) less current liabilities (excluding unrealized financial derivative liabilities, right-of-use lease obligations, and deferred share unit liabilities) and long term debt. Petrus uses net debt as a key indicator of its leverage and strength of its balance sheet. There is no GAAP measure that is reasonably comparable to net debt. For a reconciliation of Net debt to its component measures please see the Company's Management's Discussion and Analysis for the three and six months ended June 30, 2020.