Petrus Resources Announces First Quarter 2025 Financial and Operating Results

Core Viewpoint - Petrus Resources Ltd. reported its financial and operational results for Q1 2025, highlighting stable production levels, strategic capital investments, and a focus on maintaining financial stability through hedging and infrastructure development [1][2][4]. Financial Performance - Average production for Q1 2025 was 8,929 boe/d, slightly down from 9,066 boe/d in Q4 2024 [6][8]. - The total realized price increased by 11% to $29.35/boe from $26.45/boe in the previous quarter, primarily due to improved natural gas pricing [6][8]. - Funds flow generated was $12.5 million, or $0.10 per share, maintaining gains from Q4 2024 [6][9]. - The company paid a regular monthly dividend of $0.01 per share, totaling $3.8 million, with $2.6 million reinvested under the dividend reinvestment plan [6][9]. Capital Expenditures - Petrus invested $17.3 million in capital during the quarter, with approximately 60% directed towards drilling, completing, and tying in 7 gross (4.1 net) wells [6][8]. - The remaining capital expenditures were focused on the construction of a 12-kilometer expansion of the North Ferrier pipeline, aimed at enhancing access to undeveloped lands and cost-effective transportation of natural gas [6][8]. Debt and Financial Stability - Net debt increased to $66.0 million as of March 31, 2025, with a net debt to annualized funds flow ratio of 1.3x, attributed to high capital spending [6][9]. - The company anticipates a decline in net debt in the second half of the year, forecasting a return to the 2025 guidance target of $60 million by year-end [4][6]. Production and Pricing Details - Natural gas production averaged 35,689 mcf/d, while oil and condensate production averaged 1,202 bbl/d, and NGLs averaged 1,777 bbl/d [8][9]. - The realized price for natural gas was $2.25/mcf, while oil and condensate realized $92.73/bbl, and NGLs realized $39.54/bbl [8][9]. Outlook - The 2025 capital program is on schedule, with drilling operations continuing through spring breakup and production expected to come online later in May [3][4]. - Approximately 56% of forecasted production for 2025 is hedged at an average price of $2.67/GJ for natural gas and CAD$94.75/bbl for oil, positioning the company to achieve guidance targets [4][6].