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Petrus Resources Ltd. First Quarter 2023 Results

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   |    Thursday,May 18,2023

Petrus Resources Ltd. announced first quarter 2023 results.

Highlights

  • Higher production – Production was up 54% from 7,379 boe/d(1) in the first quarter of 2022 to 11,385 boe/d in the first quarter of 2023. The increase was primarily due to a full quarter of production realized from the wells drilled in the fourth quarter of 2022 as well as one month of production from the 3 (3.0 net) new wells brought on stream this quarter. Production was up 25% quarter over quarter from 9,113 boe/d during the fourth quarter of 2022.
  • Funds flow increased 58% – Generated funds flow(2) of $26.2 million ($0.21 per share(3)) for the first quarter of 2023, 58% higher than funds flow of $16.6 million ($0.17 per share) in the first quarter of 2022, despite the realized price per boe being 23% lower.
  • Net income increased 58% – Petrus reported net income of $17.3 million ($0.14 per share) during the first quarter, up 58% from the first quarter of 2022 ($10.9 million; $0.11 per share).
  • Increased capital activity – Petrus invested $29.8 million of capital during the first quarter of 2023, a 484% increase from the first quarter of 2022. The majority of capital was allocated towards the drilling of 7 (7.0 net) new wells, of which 3 (3.0 net) were completed and brought on stream during the quarter.
  • Net debt to funds flow improvement – The net debt(2) to annualized funds flow ratio(3) was 0.51 at March 31, 2023 in comparison to 0.75 at March 31, 2022, despite higher capital spending in the current quarter. The Company will continue to strengthen its balance sheet by further reducing net debt and maintaining a net debt to funds flow ratio of under 1x.
Petrus Resources Ltd. is pleased to report financial and operating results as at and for the three months ended March 31, 2023.

2023 CAPITAL BUDGET AND GUIDANCE(4)

The current price environment and outlook for the remainder of the year is materially lower than the assumptions used to develop the 2023 capital budget. As a result, the Company is re-evaluating the budget and has already deferred some of the planned capital spending. Completion activities for the four wells drilled near the end of the first quarter will be delayed until there is a more constructive price environment, possibly until the winter gas season. Petrus has elected not to provide updated guidance during this reporting cycle, but would like to reiterate that it remains committed to keeping capital spending within cash flow and only investing capital where it will generate exceptional returns. We look forward to providing further updates with second quarter results, if not sooner.

 



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