Earnings call transcript: Petrus Resources Q2 2025 reports stable EPS, revenue

Petrus Resources Ltd reported its earnings for the second quarter of 2025, with earnings per share (EPS) at $0.08 and revenue reaching $21.51 million. The company maintained its net debt at last year’s level and continued its monthly dividend, currently yielding 8.28%. The stock, with a market capitalization of $137 million, is trading near its 52-week high after posting a strong 14.83% return over the past six months. According to InvestingPro analysis, the stock appears to be fairly valued at current levels.

Key Takeaways

• Petrus Resources reported stable EPS of $0.08 and revenue of $21.51 million for Q2 2025.
• The company successfully reduced well design costs by 30%.
• A consistent dividend yield of over 8% was maintained.
• The stock price remained stable at $1.45 post-earnings announcement.

Company Performance

Petrus Resources demonstrated resilience in Q2 2025 by maintaining stability in its financial performance. The company continued to focus on strategic infrastructure investments, particularly in the Cardium and Belly River oil regions, which are expected to unlock future production potential. While the drilling program has been paused, the company’s efforts in cost reduction and operational optimization are noteworthy.

Financial Highlights

• Revenue: $21.51 million
• Earnings per share: $0.08
• Net debt maintained at the previous year’s level
• Capital spending on track at $40-50 million for the year

Outlook & Guidance

Petrus Resources has set a production guidance of 9,010 barrels of oil equivalent (BOE) per day for the year. The company plans to continue its capital spending within the $40-50 million range and maintain its monthly dividend. The potential for further production growth in the third quarter remains a focal point for the company.

Executive Commentary

Ken Gray, CEO of Petrus Resources, highlighted several key achievements during the earnings call. "Early results from the five wells drilled are very positive," he stated, emphasizing the company’s success in reducing well costs by 30%. Gray also expressed confidence in meeting the company’s guidance targets, reinforcing a positive outlook for the coming quarters.

Risks and Challenges

• Maintaining net debt at previous levels may raise concerns about financial flexibility.
• The pause in the drilling program could impact future production growth.
• Market uncertainties and potential fluctuations in oil prices could affect revenue.

The earnings call did not provide specific details on analyst questions, leaving some aspects of the company’s strategic direction open to interpretation.

Full transcript - Petrus Resources Ltd (PRQ) Q2 2025:

Conference Operator: Good day, and thank you for standing by. Welcome to the Pectrus Resources Q2 twenty twenty five Results Call. At this time, all participants are in a listen only mode. Please be advised that today’s conference is being recorded. After the speakers’ presentation, there will be a question and answer session.

I would now like to hand the conference over to your speaker today, Ken Gray.

Ken Gray, CEO, Petrus Resources: Hello, and thanks for joining Tetris Resources twenty twenty five q two earnings call. My name is Ken Gray, CEO of Petrus, and I’m joined here by our executive team of Matthew Wong, CFO Matt Scandrea, COO and Lindsay Hatcher, VP Commercial and Corporate Development. Q2 results were quite robust as we started to see the results of our accelerated capital spending in the first half of the year. Production started to tick up as we brought on five two net wells in our North Ferry area in May. This was made possible by the completion of the North Ferry pipeline extension, connecting our Barrier gas plant to the furthest north of our Cardium acreage.

This is the area where we drilled the company’s best Cardium well back in 2021, but have not been able to follow it up due to lack of pipeline and processing capacity in the area. The North Barrier pipeline extension has eliminated that issue. Early results from the five wells drilled are very positive, and production is still being significantly choked on those wells as we balance and optimize our infrastructure. We also drilled and completed four two point o net wells in our core barrier area, which came on production in early July. These were two mile wells that employed a design that has evolved from our continuing efforts to lower costs while maintaining or improving well productivity.

And the average cost of the wells came in 30% below what we had been achieving over the last few years. Production from the wells is on tight curve and will contribute further to production growth in Q3. We completed drilling two one point three net additional Belly River wells in July. Completions have commenced on those wells, and they should be on production later this month. This makes three Valley River oil wells that we have drilled this year, and we have several more locations identified for future drilling.

As planned, we are pausing our drilling program for now after accelerating certain capital projects into the first half of the year for strategic reasons. Planned capital spending for the remainder of the year is expected to be within the guidance we provided earlier this year of 40,000,000 to $50,000,000 for the year. We are also confident we will meet our other areas of guidance with production averaging between 9,010 BOE per day, funds flow in the range of $45,000,000 to $55,000,000 and net debt unchanged from last year. And we will continue to provide our monthly dividend to our shareholders, currently generating a generous yield of over 8%. With that, I’ll open the floor to questions.

Conference Operator: Thanks for calling in and for your continued interest and support of Tetris. This concludes the conference. Thank you for your participation. You may now disconnect.

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