Petrus Resources announces first quarter 2024 financial and operating results – Canadian Energy News, Top Headlines, Commentaries, Features & Events – EnergyNow

Q1 2024 HIGHLIGHTS:

• Production – Production was 9,783 boe/d, up 3% from 9,474 boe/d⁽¹⁾ in the fourth quarter of 2023. Notably, oil production was up 26% quarter over quarter. The increase was due to a full quarter of production from the wells completed in the fourth quarter of 2023.
• Commodity Prices – Total realized price was $31.42/boe in the first quarter of 2024 compared to $30.60/boe in the fourth quarter of 2023, up 3% as higher oil weighting offset lower pricing.
• Funds Flow⁽²⁾ – Generated funds flow of $16.3 million ($0.13 per share⁽³⁾) for the first quarter of 2024 compared to $16.5 million ($0.13 per share) in the fourth quarter of 2023.
• Capital Activity – Invested $12.3 million of capital during the first quarter of 2024, drilling 10 gross (5.3 net) wells; of these, 3 gross (3.0 net wells) were operated. Due to the timing of capital activity, production from these 5.3 net wells was not realized in the first quarter.
• Dividends – Regular monthly dividend of $0.01 per share, for a total of $3.7 million, paid during the first quarter of 2024.
• Net Debt⁽²⁾ – Maintained net debt at $63.1 million at the end of the first quarter of 2024. The net debt to annualized funds flow ratio⁽³⁾ was 0.9x at March 31, 2024.

OUTLOOK⁽⁴⁾

The Company expects to realize a full quarter of production in the second quarter from the 2.3 net non-operated wells drilled in the first quarter that are now on stream. Petrus anticipates returning to the 2024 capital program in late spring with completion operations on the 3 operated wells drilled in January tentatively scheduled for June.

For the balance of 2024, the Company has hedged approximately 44% of forecasted production at $2.94/GJ for natural gas and CAD$97/bbl for oil. With this strategy, the Company is well positioned to continue its monthly dividend payment. As always, Petrus will closely monitor changing market conditions and is ready to adjust its capital program accordingly, guided by its commitment to delivering sustainable returns to shareholders.

⁽¹⁾Disclosure of production on a per boe basis consists of the constituent product types and their respective quantities. Refer to “BOE Presentation” for further details.
⁽²⁾Non-GAAP measure. Refer to “Non-GAAP and Other Financial Measures”.
⁽³⁾Non-GAAP ratio. Refer to “Non-GAAP and Other Financial Measures”.
⁽⁴⁾Refer to “Advisories – Forward-Looking Statements”.

SELECTED FINANCIAL INFORMATION

OPERATIONS	Three months ended   Mar. 31, 2024		Three months ended   Mar. 31, 2023		Three months ended   Dec. 31, 2023		Three months ended   Sept. 30, 2023		Three months ended    Jun. 30, 2023
Average Production
Natural gas (mcf/d)	40,174		45,237		39,891		42,045		44,010
Oil (bbl/d)	1,529		2,192		1,218		1,316		1,670
NGLs (bbl/d)	1,557		1,654		1,607		1,556		1,486
Total (boe/d)	9,783		11,385		9,474		9,880		10,492
Total (boe)(1)	890,267		1,024,645		871,567		908,985		954,738
Light oil weighting	16	%	19	%	13	%	16	%	18	%
Realized Prices
Natural gas ($/mcf)	2.54		3.78		2.76		2.81		2.64
Oil ($/bbl)	90.38		94.63		98.63		99.33		91.69
NGLs ($/bbl)	43.09		47.55		37.26		37.09		34.82
Total realized price ($/boe)	31.42		40.16		30.60		31.05		30.59
Royalty income	0.07		0.16		0.09		0.06		0.06
Royalty expense	(3.89	)	(6.38	)	(4.78	)	(3.37	)	(3.66	)
Gain on risk management activities	—		1.45		—		—		0.03
Net oil and natural gas revenue ($/boe)	27.60		35.39		25.91		27.74		27.02
Operating expense	(6.76	)	(7.26	)	(5.07	)	(6.70	)	(5.83	)
Transportation expense	(1.81	)	(2.05	)	(1.46	)	(1.54	)	(1.40	)
Operating netback(2) ($/boe)	19.03		26.08		19.38		19.50		19.79
Realized gain on financial derivatives ($/boe)	2.90		1.77		1.99		1.21		3.56
Other income (cash)	0.05		0.16		(0.18	)	0.04		0.04
General & administrative expense	(1.32	)	(1.20	)	(0.37	)	(1.27	)	(1.55	)
Cash finance expense	(1.78	)	(1.11	)	(1.43	)	(1.26	)	(1.33	)
Decommissioning expenditures	(0.61	)	(0.13	)	(0.43	)	(0.34	)	(0.58	)
Funds flow & corporate netback ($/boe)(2)	18.27		25.57		18.96		17.88		19.93
FINANCIAL (000s except $ per share)	Three months ended   Mar. 31, 2024		Three months ended   Mar. 31, 2023		Three months ended   Dec. 31, 2023		Three months ended   Sept. 30, 2023		Three months ended   Jun. 30, 2023
Oil and natural gas sales	28,039		41,319		26,747		28,273		29,266
Net income (loss)	(5,333	)	17,273		39,708		(11,293	)	5,043
Net income (loss) per share
Basic	(0.04	)	0.14		0.32		(0.09	)	0.04
Fully diluted	(0.04	)	0.14		0.32		(0.09	)	0.04
Funds flow(2)	16,272		26,216		16,525		16,243		19,040
Funds flow per share(2)
Basic	0.13		0.21		0.13		0.13		0.15
Fully diluted	0.13		0.21		0.13		0.13		0.15
Capital expenditures	12,343		29,820		32,029		21,617		3,380
Acquisitions (dispositions)	—		—		—		—		(100	)
Weighted average shares outstanding
Basic	124,299		123,416		123,812		123,743		123,752
Fully diluted	124,299		127,358		124,840		123,743		127,040
As at period end
Common shares outstanding
Basic	124,259		123,239		124,266		123,867		123,849
Fully diluted	134,484		133,377		134,542		134,436		134,423
Total assets	427,574		403,276		437,842		380,100		383,231
Non-current liabilities	59,995		68,056		60,926		59,687		62,630
Net debt(2)	63,114		51,754		62,596		42.251		36.186

⁽¹⁾Disclosure of production on a per boe basis consists of the constituent product types and their respective quantities. Refer to “BOE Presentation” for further details.

⁽²⁾Non-GAAP ratio or non-GAAP measure. Refer to “Non-GAAP and Other Financial Measures”.

OPERATIONS UPDATE

First quarter average production by area was as follows:

For the three months ended March 31, 2024	Ferrier	Foothills	Central Alberta	Total
Natural gas (mcf/d)	34,307	1,279	4,588	40,174
Oil (bbl/d)	1,204	84	241	1,529
NGLs (bbl/d)	1,409	3	145	1,557
Total (boe/d)	8,331	300	1,152	9,783

First quarter average production was 9,783 boe/d, up 3% quarter over quarter compared to 9,474 boe/d in the fourth quarter of 2023. With the North Ferrier to Ferrier pipeline complete, Petrus has combined the two areas to be one core Ferrier area.

Production was 11,385 boe/d in the first quarter of 2023. The decrease in production from the prior year comparative period was mainly due to a decrease in drilling and completion activity, natural declines and uneconomic wells shut-in due to low gas prices.

CAPITAL EXPENDITURES

Capital expenditures (excluding acquisitions) totaled $12.3 million in the first quarter of 2024, compared to $29.8 million in the prior year comparative period. The majority of the capital spending in the first quarter of 2024 was related to the drilling and completion of 10 gross (5.3 net) wells in the Ferrier area. Due to the timing of capital activity, production from these wells was not realized in the first quarter.

The following table shows capital expenditures (excluding acquisitions) for the reporting periods indicated. All capital is presented before decommissioning obligations.

Capital Expenditures ($000s)	Three months ended    March 31, 2024	Three months ended    March 31, 2023
Drill and complete	9,519	24,264
Oil and gas equipment	2,244	4,605
Geological	—	515
Land and lease	—	160
Office	6	17
Capitalized general and administrative expense	574	259
Total capital expenditures	12,343	29,820
Gross (net) wells drilled	10 (5.3)	7 (7.0)

 

FIRST QUARTER 2024 CONFERENCE CALL

Date: May 9, 2024
Time: 9:00am (mountain time)
Please refer the events page on Petrus’ website for further conference call details and links: www.petrusresources.com/events

ANNUAL GENERAL MEETING

The Company’s Annual General Meeting will be held at 240FOURTH (previously BP Centre) Conference Room A, 240, 4th Ave SW Calgary, Alberta, on Wednesday May 29, 2024 at 1:00 p.m. (mountain time).
Please refer the events page on Petrus’ website for further AGM details and links: www.petrusresources.com/events

An updated corporate presentation can be found on the Company’s website at www.petrusresources.com.