Petrus Resources Q2 Earnings Call Highlights

Strong second-quarter performance: Production rose 21% year over year to 11,070 BOE per day, while operating netback increased 92% to C$24.9 million and realized pricing climbed 46% to C$37.66 per BOE. Growth investment remains elevated: Petrus expects 2026 capital spending near the high end of its C$50 million–C$60 million guidance and aims to sustain production around 12,000 BOE per day or modestly higher. Harmattan is the key near-term catalyst: Two newly drilled oil wells began production on Aug. 1, with results still pending; stronger-than-expected performance could prompt accelerated development, despite ongoing natural gas weakness and commodity-price volatility.

Petrus Resources TSE: PRQ reported higher second-quarter production, operating netback and funds flow as increased liquids output and stronger liquids pricing more than offset weaker natural gas prices, Chief Executive Officer Ken Gray said during the company’s second-quarter 2026 results call. Gray said the company’s operating netback rose 92% from a year earlier to C$24.9 million. The increase reflected higher production, a greater proportion of liquids in the production mix and improved pricing for liquids. Hedging losses moderated the impact on reported funds flow, though quarterly funds flow still increased 32% year over year, according to Gray.

Second-quarter production averaged 11,070 barrels of oil equivalent per day, up 21% from the prior-year period. Petrus brought seven gross, or 6.1 net, new Ferrier wells on production during the quarter. Contribution from the company’s Harmattan acquisition was limited during part of the quarter because scheduled facility maintenance in April and May temporarily curtailed production. However, Gray said June represented the first month that included full contribution from Harmattan and the new wells. Corporate production exceeded 12,000 BOE per day in June, which Gray described as the highest average monthly production in Petrus’ history. Liquids represented 39% of production during the quarter. Oil prices increased 59% year over year and natural gas liquids prices rose 39%, Gray said, while natural gas prices declined 18%. The combined effect of pricing and the more liquids-weighted production mix resulted in a realized price of C$37.66 per BOE, up 46% from a year earlier.

In response to an analyst question regarding capital spending, Gray said Petrus had spent C$33 million during the first six months of the year and expects full-year capital expenditures to come in toward the high end of its C$50 million to C$60 million guidance range, but below C$60 million. He said the range was intended to provide flexibility for operational variability rather than reflecting a specific plan for additional spending. Under the current program, Petrus expects to maintain production at approximately 12,000 BOE per day or modestly higher through the remainder of 2026. Gray said reaching an exit rate of 13,000 BOE per day would be welcome but is not currently expected. He added that the company could potentially accelerate wells originally included in its 2027 program into 2026 if market conditions and operating results supported that decision.

Second-quarter production averaged 11,070 BOE per day, up 21% year over year. June production exceeded 12,000 BOE per day, a company record for average monthly output. Operating netback increased 92% year over year to C$24.9 million. Realized pricing rose 46% to C$37.66 per BOE. Full-year capital spending is expected near the upper end of C$50 million to C$60 million guidance.