Petrus Resources Ltd. ("
Petrus" or the
"
Company") (TSX: PRQ) is pleased to announce its
2024 capital guidance.
2024 BUDGET GUIDANCE
Petrus’ 2024 budget prioritizes our commitment
to generating sustainable shareholder returns and maintaining a
healthy balance sheet. Given the current commodity price
environment, and consistent with the Company’s strategy of
discipline and flexibility, the 2024 capital budget is designed to
sustain production, maintain debt at less than 1.0X funds flow and
generate free funds flow that will be used to continue distributing
dividends to shareholders.
The 2024 capital budget will see capital
spending of $40 million to $50 million, of which approximately 90%
will be allocated toward drilling new wells in our Ferrier and
North Ferrier areas. The budget was established using an average
price forecast of US$75/bbl WTI for oil, an AECO gas price of
CAD$2.50/GJ and a foreign exchange rate of US$0.74. Under these
pricing and exchange rate assumptions, through the successful
execution of the capital plan, Petrus expects to:
- Achieve 2024 annual average daily production of 9,000 to 10,000
boe1 per day
- Generate $55 million to $65 million in annual funds flow2 for
2024
- Create free funds flow2 of $15 million to $20 million for
2024
- Pay a monthly dividend of $0.01/share - annually this
represents approximately 10% of the current share price
- Maintain net debt2 in the range of $55 million to $60 million
in 2024
The Company remains optimistic on the long-term
outlook for commodity prices and is strategically positioned to
take full advantage of the next constructive pricing cycle. As
always, Petrus will closely monitor changing market conditions and
is ready to adjust its capital program accordingly with a
commitment to delivering sustainable returns to shareholders
remaining the foundation of the Company’s long-term strategy.
ABOUT PETRUSPetrus is a public
Canadian oil and gas company focused on property exploitation,
strategic acquisitions and risk-managed exploration in Alberta.
For further information, please contact:
Ken GrayPresident and Chief Executive OfficerT: 403-930-0889E:
kgray@petrusresources.com
_____________________________
1 Disclosure of production on a per boe basis consists of the
constituent product types and their respective quantities. Refer to
"BOE Presentation" and "Production and Product Type Information"
for further details.
2 Non-GAAP financial measure. During the year ended December 31,
2022, funds flow was $87.7 million and free funds flow was ($ 9.0)
million. As at September 30, 2023, net debt was $42.6 million.
Refer to "Non-GAAP and Other Financial Measures".
READER ADVISORIES
Non-GAAP and Other Financial MeasuresThis press
release refers to the term "funds flow", "free funds flow" and "net
debt". These non-GAAP and other financial measures are not
recognized measures under GAAP (IFRS) and do not have a
standardized meaning prescribed by GAAP (IFRS). Accordingly, the
Company's use of these terms may not be comparable to similarly
defined measures presented by other companies. These non-GAAP and
other financial measures should not be considered to be more
meaningful than GAAP measures which are determined in accordance
with IFRS as indicators of our performance. Management uses these
non-GAAP and other financial measures for the reasons set forth
below.
Funds FlowFunds flow is a common non-GAAP
financial measure used in the oil and natural gas industry that
evaluates the Company’s profitability at the corporate level.
Management believes that funds flow provides information to assist
a reader in understanding the Company's profitability relative to
current commodity prices. The most directly comparable financial
measure that is disclosed in the Company's primary financial
statements is oil and natural gas revenue, which was $152.4 million
for the year ended December 31, 2022. For additional information
regarding funds flow (including a reconciliation of funds flow to
oil and natural gas revenue), see the disclosure under "Non-GAAP
and Other Financial Measures – Corporate Netback and Funds Flow" in
the Company's Management's Discussion & Analysis for the year
ended December 31, 2022 which is available on SEDAR+ at
www.sedarplus.ca, which disclosure is incorporated by reference
herein.
Free Funds Flow Free funds flow is a common
non-GAAP financial measure used in the oil and natural gas industry
that evaluates the Company’s efficiency and liquidity. Free funds
flow represents the funds after capital expenditures available to
manage debt levels and pay dividends. Petrus calculates free funds
flow as funds flow generated during the period less capital
expenditures. The most directly comparable financial measure that
is disclosed in the Company's primary financial statements is oil
and natural gas revenue, which was $152.4 million for the year
ended December 31, 2022. Following is a reconciliation of free
funds flow to oil and natural gas revenue for the year ended
December 31, 2022:
|
Twelve months ended December 31, 2022 |
$000s |
|
Oil and
natural gas revenue |
152,350 |
Royalty
expense |
(24,161) |
Loss on risk management activities |
(6,029) |
Net oil and natural gas revenue |
122,160 |
Transportation expense |
(5,772) |
Operating expense |
(20,665) |
Operating netback |
95,723 |
Realized
gain (loss) on financial derivatives |
(1,601) |
Other
income |
291 |
General
& administrative expense |
(3,389) |
Cash finance
expense |
(3,171) |
Decommissioning expenditures |
(137) |
Funds flow and corporate netback |
87,716 |
Capital expenditures |
(96,744) |
Free funds flow |
(9,028) |
|
|
Net DebtNet debt is a non-GAAP financial measure
and is calculated as the sum of long-term debt and working capital
(current assets and current liabilities), excluding the current
financial derivative contracts and current portion of the lease
obligation. Petrus uses net debt as a key indicator of its leverage
and strength of its balance sheet. As at September 30, 2023,
long-term debt was $25 million. For additional information
regarding net debt (including a reconciliation of net debt to
long-term debt), see the disclosure under "Non-GAAP and Other
Financial Measures – Net Debt" in the Company's Management's
Discussion & Analysis for the three- and nine-month periods
ended September 30, 2023 which is available on SEDAR+ at
www.sedarplus.ca, which disclosure is incorporated by reference
herein.
Forward-Looking Statements and FOFI Certain
information regarding Petrus set forth in this press release
contains forward-looking statements within the meaning of
applicable securities law, that involve substantial known and
unknown risks and uncertainties. Such statements represent Petrus’
internal projections, estimates, beliefs, plans, objectives,
assumptions, intentions or statements about future events or
performance. These statements are only predictions and actual
events or results may differ materially. Although Petrus believes
that the expectations reflected in the forward-looking statements
are reasonable, it cannot guarantee future results, levels of
activity, performance or achievement since such expectations are
inherently subject to significant business, economic, competitive,
political and social uncertainties and contingencies. Many factors
could cause Petrus’ actual results to differ materially from those
expressed or implied in any forward-looking statements made by, or
on behalf of, Petrus. In particular, forward-looking statements
included in this press release include, but are not limited to,
statements with respect to: our commitment to generating
sustainable shareholder returns and maintaining a healthy balance
sheet; our strategy of discipline and flexibility; that the 2024
capital budget is designed to sustain production, maintain debt at
less than 1.0X cash flow and generate free cash flow that will be
used to continue distributing dividends to shareholders; the range
of our 2024 capital budget; how the 2024 capital budget will be
allocated, and the intention to focus our capital spending and
operational efforts on further development of our Ferrier and North
Ferrier areas; our forecasts for commodity prices and US/CAD
exchange rate for 2024; our forecast ranges of annual average daily
production, funds flow, free cash flow and net debt for 2024; our
forecast monthly and annualized dividend level for 2024; that we
are strategically positioned to take full advantage of the next
constructive pricing cycle; that we will closely monitor changing
market conditions and will be ready to adjust our capital program
accordingly; and that our commitment to delivering sustainable
returns to shareholders is the foundation of the Company’s
long-term strategy. These forward-looking statements are subject to
numerous risks and uncertainties, most of which are beyond the
Company’s control, including: the risk that we do not generate
sufficient funds flow and free funds flow to maintain our dividend
at current levels and/or to reduce debt; the impact of general
economic conditions; volatility in market prices for crude oil, NGL
and natural gas; industry conditions; currency fluctuation; changes
in interest rates and inflation rates; imprecision of reserve
estimates; liabilities inherent in crude oil and natural gas
operations; environmental risks; incorrect assessments of the value
of acquisitions and exploration and development programs;
competition; the lack of availability of qualified personnel or
management; changes in income tax laws or changes in tax laws and
incentive programs relating to the oil and gas industry; hazards
such as fire, explosion, blowouts, cratering, and spills, each of
which could result in substantial damage to wells, production
facilities, other property and the environment or in personal
injury; stock market volatility; ability to access sufficient
capital from internal and external sources; and the other risks and
uncertainties described in our Annual Information Form. With
respect to forward-looking statements contained in this press
release, Petrus has made assumptions regarding: future commodity
prices (including as disclosed herein) and royalty regimes;
availability of skilled labour; timing and amount of capital
expenditures; future exchange rates (including as disclosed
herein); the impact of increasing competition; conditions in
general economic and financial markets; availability of drilling
and related equipment and services; effects of regulation by
governmental agencies; the effects of inflation on our
profitability; future interest rates; and future operating costs.
Management has included the above summary of assumptions and risks
related to forward-looking information provided in this press
release in order to provide investors with a more complete
perspective on Petrus’ future operations and such information may
not be appropriate for other purposes. Petrus’ actual results,
performance or achievement could differ materially from those
expressed in, or implied by, these forward-looking statements and,
accordingly, no assurance can be given that any of the events
anticipated by the forward-looking statements will transpire or
occur, or if any of them do so, what benefits that the Company will
derive therefrom. Readers are cautioned that the foregoing lists of
factors are not exhaustive. This press release contains
future-oriented financial information and financial outlook
information (collectively, "FOFI") about Petrus' prospective
results of operations including, without limitation, our forecasts
for our 2024 debt to cash flow ratio, 2024 capital spending
program, 2024 annual average daily production rate, 2024 annual
funds flow, 2024 annual free cash flow, 2024 monthly dividend, and
2024 net debt, which are subject to the same assumptions, risk
factors, limitations, and qualifications as set forth above.
Readers are cautioned that the assumptions used in the preparation
of such information, although considered reasonable at the time of
preparation, may prove to be imprecise and, as such, undue reliance
should not be placed on FOFI. Petrus' actual results, performance
or achievement could differ materially from those expressed in, or
implied by, these FOFI, or if any of them do so, what benefits
Petrus will derive therefrom. Petrus has included the FOFI in order
to provide readers with a more complete perspective on Petrus'
future operations and such information may not be appropriate for
other purposes.
These forward-looking statements and FOFI are
made as of the date of this press release and the Company disclaims
any intent or obligation to update any forward-looking statements
and FOFI, whether as a result of new information, future events or
results or otherwise, other than as required by applicable
securities laws.
BOE Presentation The oil and natural gas
industry commonly expresses production volumes and reserves on a
barrel of oil equivalent (“boe”) basis whereby natural gas volumes
are converted at the ratio of six thousand cubic feet to one barrel
of oil. The intention is to sum oil and natural gas measurement
units into one basis for simplified measurement of results and
comparisons with other industry participants. Petrus uses the 6:1
boe measure which is the approximate energy equivalence of the two
commodities at the burner tip. Boe’s do not represent an economic
value equivalence at the wellhead and therefore may be a misleading
measure if used in isolation.
Production and Product Type Information The
Company's forecast 2024 annual average daily production rate
disclosed in this press release (9,000 to 10,000 boe per day)
consists of the following product types, as defined in National
Instrument 51-101 and using the conversion ratio described above,
where applicable: 18% light oil and condensate, 16% natural gas
liquids and 66% conventional natural gas.
Petrus Resources (TSX:PRQ)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Petrus Resources (TSX:PRQ)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024