Q3 2025 HIGHLIGHTS:
Production up 7%, Production for the third quarter of 2025 averaged 9,817 boe/d(1), up 7% from 9,155 boe/d in the second quarter of 2025. Oil and condensate(1) production was up 23% from the second quarter of 2025 with six (3.3 net) wells brought on production during the current quarter. Third quarter production was impacted by a planned turnaround at the Ferrier plant. Revenue was not materially affected due to low gas prices during the turnaround.
Funds flow(2) up 21%, Generated funds flow of $12.9 million ($0.10 per share(3)) in the third quarter of 2025, a 21% increase from $10.7 million ($0.09 per share) reported in the third quarter of 2024. The increase is due to higher production volume, increased realized gains from risk management activities and lower royalty expenses, despite a 9% decrease in total realized price.
Net debt(2) down 5%, Net debt was $64.9 million, down $3.1 million from the second quarter of 2025.
Capital activity, Capital spending in the third quarter of 2025 was $8.3 million, 81% of which was spent on drilling, completing and tying in new wells in Ferrier.
Operating expense down 4%, Operating expense averaged $5.86/boe in the third quarter of 2025, down 4% from $6.10/boe in the third quarter of 2024.
Dividends, Paid a regular monthly dividend of $0.01 per share, for a total of $3.9 million, during the third quarter of 2025. Shareholders chose to reinvest $2.8 million under the Company's Dividend Reinvestment Plan resulting in the issuance of 1.8 million common shares.
OUTLOOK(4)
Drilling activity resumed in October with two (1.3 net) new wells expected to come on stream in the fourth quarter. Full-year capital investment is forecast to remain within the 2025 capital budget range of $40 to $50 million, with net debt at approximately $60 million and within guidance. The Company also expects average annual production to meet guidance of 9,000 to 10,000 boe/d, and funds flow of $45 to $55 million to align with guidance.
For 2026, Petrus has hedged approximately 50% of its forecasted production at an average price of $2.89/GJ for natural gas and CAD$87.23/bbl for oil. This disciplined risk management strategy positions the Company to achieve its guidance targets and maintain financial stability. As always, Petrus is prepared to adapt its capital program in response to market dynamics, remaining focused on delivering sustainable returns to shareholders.
THIRD QUARTER 2025 CONFERENCE CALL
Date and Time: November 7, 2025, 9:00 a.m. (Mountain Time)Please refer to the events page on Petrus' website for conference call details and links: www.petrusresources.com/events
For further information, please contact:Ken Gray, P.Eng.President and Chief Executive OfficerT: (403) 930-0889E:
(1)Disclosure of production on a per boe basis consists of the constituent product types and their respective quantities. Refer to "BOE Presentation" and "Production and Product Type Information" for further details.(2)Non-GAAP financial measure. Refer to "Non-GAAP and Other Financial Measures"(3)Non-GAAP ratio. Refer to "Non-GAAP and Other Financial Measures".(4)Refer to "Advisories - Forward-Looking Statements".
SELECTED FINANCIAL INFORMATION
OPERATIONS
Three months endedSept. 30, 2025
Three months endedSept. 30, 2024
Three months endedJun. 30, 2025
Three months endedMar. 31, 2025
Three months endedDec. 31, 2024
Average Production
Natural gas (mcf/d)
38,406
37,368
35,738
35,689
36,178
Oil and condensate(1)(bbl/d)
1,523
1,522
1,243
1,202
1,226
NGLs (bbl/d)
1,892
1,465
1,955
1,777
1,810
Total (boe/d)(1)
9,817
9,215
9,155
8,929
9,066
Total (boe)(1)
903,165
847,760
833,038
803,498
834,111
Liquids weighting
35
%
32
%
35
%
33
%
33
%
Realized Prices
Natural gas ($/mcf)
0.92
0.80
2.11
2.25
1.61
Oil and condensate(1)($/bbl)
81.46
90.80
83.31
92.73
93.60
NGLs ($/bbl)
29.49
36.81
29.07
39.54
36.90
Total realized price ($/boe)
21.90
24.07
25.77
29.35
26.45
Royalty income
0.04
0.05
0.05
0.06
0.03
Royalty expense
(1.70
)
(3.06
)
(2.41
)
(3.36
)
(3.85
)
Net oil and natural gas revenue ($/boe)
20.24
21.06
23.41
26.05
22.63
Operating expense
(5.86
)
(6.10
)
(6.10
)
(6.76
)
(5.89
)
Transportation expense
(1.45
)
(1.46
)
(1.73
)
(1.65
)
(1.44
)
Operating netback(2)($/boe)
12.93
13.50
15.58
17.64
15.30
Realized gain on financial derivatives
4.26
2.49
2.31
1.14
3.04
Other cash income (expense)
0.18
0.09
(0.07
)
0.02
1.19
General & administrative expense
(1.05
)
(1.43
)
(0.96
)
(1.41
)
(2.10
)
Cash finance expense
(1.80
)
(1.95
)
(1.77
)
(1.68
)
(1.83
)
Decommissioning expenditures
(0.22
)
(0.12
)
(0.27
)
(0.19
)
(0.61
)
Funds flow & corporate netback(2)($/boe)
14.30
12.58
14.82
15.52
14.99
FINANCIAL (000s except $ per share)
Three months endedSept. 30, 2025
Three months endedSept. 30, 2024
Three months endedJun. 30, 2025
Three months endedMar. 31, 2025
Three months endedDec. 31, 2024
Oil and natural gas sales
19,816
20,446
21,506
23,630
22,085
Net income (loss)
(2,677
)
5,302
10,380
(3,088
)
(4,004
)
Net income (loss) per share
Basic
(0.02
)
0.04
0.08
(0.02
)
(0.03
