Release Date: March 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Petrus Resources Ltd (PTRUF, Financial) generated strong cash flow of $12.5 million for Q4 and $50.1 million for the year 2024.
- The company maintained relatively flat production, averaging 9,066 BOE per day in Q4, despite a 4% decrease from Q4 2023.
- Improved capital efficiency allowed Petrus Resources Ltd (PTRUF) to generate more production and cash flow per dollar invested.
- The company achieved a 25% improvement in NGL yields in Q4 compared to Q4 2023.
- Petrus Resources Ltd (PTRUF) has already drilled as many operated wells in early 2025 as it did in all of 2024, indicating a strong start to the year.
Negative Points
- The company faced the lowest gas prices in 30 years, impacting revenue potential.
- Capital expenditure was cut by over 60% from 2023 due to low gas prices, potentially limiting growth opportunities.
- Production was slightly down by 4% compared to Q4 2023, indicating challenges in maintaining output levels.
- Political turmoil, including a federal election and potential US tariffs, presents uncertainty and potential risks for the business.
- The absence of questions during the Q&A session may suggest limited investor engagement or concerns about the company's future prospects.
Q & A Highlights
Q: Can you provide an overview of Petrus Resources' financial performance in Q4 2024?
A: Ken Gray, CEO, highlighted that Petrus Resources generated strong cash flow of $12.5 million for Q4 and $50.1 million for the year. The company maintained production levels, averaging 9,066 BOE per day in Q4, which was only a 4% decrease from Q4 2023, despite facing the lowest gas prices in 30 years and a 60% reduction in capital expenditure from 2023.
Q: How did Petrus Resources achieve improved capital efficiency in 2024?
A: Ken Gray explained that the improvement in capital efficiency was primarily due to advances in completion design, which resulted in better productivity at a lower cost. Additionally, the company improved operating efficiencies, notably increasing NGL recoveries by 25% compared to Q4 2023.
Q: What are the key developments in Petrus Resources' 2025 capital budget and guidance?
A: Ken Gray mentioned that the company has already drilled as many operated wells as it did in the entire previous year, with some wells already on production. The extension of the North Ferrier pipeline has been completed, which will facilitate production from newly drilled wells starting in Q2 2025.
Q: How is Petrus Resources planning to navigate the current political and economic uncertainties?
A: Ken Gray addressed concerns about political turmoil and potential US tariffs, emphasizing that Petrus produces high-demand commodities at competitive costs, allowing the company to generate strong cash flow even at low prices. He reassured that the company's strong fundamentals would help it withstand short-term disruptions.
Q: What is Petrus Resources' outlook for production and market conditions in 2025?
A: Ken Gray stated that the company plans to continue drilling through the breakup period, with production expected to increase in Q2 2025. This growth is anticipated to coincide with strong liquids prices and improving natural gas prices, positioning Petrus for a positive year ahead.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
