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Petrus Resources Second Quarter 2022 Results

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   |    Wednesday,August 10,2022

Petrus Resources Ltd. reported its second quarter 2022 results.

Q2 2022 Highlights:

  • Production up 15% – Production was up 15% from 6,309 boe/d in the second quarter of 2021 to 7,280 boe/d in the second quarter of 2022 due to the new wells drilled in late 2021 and the strategic acquisition of Cardium assets located in Petrus’ Ferrier area that closed in March 2022.
  • Funds flow(1) increased 188% – Generated funds flow of $23.2 million ($0.21 per share(2)) for the second quarter of 2022, 188% higher than funds flow of $8.1 million ($0.16 per share) for the second quarter of 2021.
  • Operating netback(2) up 118% – Operating netback increased by 118% from $20.55/boe in the second quarter of 2021 to $44.86/boe in the second quarter of 2022.
  • Commodity price improvement – Realized price per boe increased by 87% in the second quarter of 2022 compared to the second quarter of 2021; from $33.87/boe to $63.33/boe. The realized oil, natural gas and NGL prices increased by 75%, 136% and 88%, respectively.
  • Backstopped rights offering – Petrus closed a $20 million rights offering that was backstopped by the Company’s major shareholders. The rights offering was oversubscribed by 84%.
  • Net debt(1) reduction – Net debt was $13.9 million at June 30, 2022, an 87% decrease from the second quarter of 2021 and a 78% decrease from December 31, 2021. The Company continues to manage its balance sheet with the goal of maintaining a net debt to funds flow ratio(2) of under 1x.
  • Debt restructuring complete – The Company entered into agreements with new lenders providing two new credit facilities (“New Facilities”) totaling $55 million; at June 30, 2022, $18 million was drawn on the New Facilities. The refinancing completes the Company’s debt restructuring, moving forward with supportive lenders that provide stability and liquidity.

2022 Capital Program

The Company’s 2022 capital program resumed in the second quarter with 2 (1.6 net) operated wells spud and an additional 3 (0.15 net) non-operated wells spud in late June. Given the inherent volatility of commodity prices, the Company recognizes it is prudent to remain disciplined and flexible from an operational and financial perspective. Petrus will continue to monitor the price of Canadian light oil and natural gas and will evaluate capital investments on an ongoing basis.

Operations Update

Second quarter average production was 7,280 boe/d in 2022 compared to 6,309 boe/d in 2021. The increase in production is due to the capital activity in the second half of 2021, the strategic acquisition of Cardium assets located in Petrus’ Ferrier area that closed in March 2022, and certain wells in the Foothills area being brought back on-stream due to improved pricing.


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