Q4 2025 HIGHLIGHTS:
Funds flow(2) up 8%, Generated funds flow of $13.5 million(2) in the fourth quarter of 2025, an 8% increase from $12.5 million reported in the fourth quarter of 2024. The increase is due to higher production volumes, increased realized gains from risk management activities, and lower royalty expense, partially offset by lower realized oil and NGL prices.
Production up 6%, Production for the fourth quarter of 2025 averaged 9,568 boe/d(1), up 6% from 9,066 boe/d in the fourth quarter of 2024. Oil and condensate(1) production was up 20% along with a 7% increase in NGL production from the fourth quarter of 2024. The increase in total liquids production reflects a focus on liquids weighted drilling opportunities and strategic efforts to increase NGL recoveries.
Operating expense down 10%, Operating expense averaged $5.33/boe in the fourth quarter of 2025, down 10% from $5.89/boe in the fourth quarter of 2024. The lower operating expense per boe is due to fixed costs being allocated over a larger production base.
Net debt(2) down 4%, Net debt was $62.5 million at December 31, 2025, down $2.4 million from September 30, 2025.
Commodity prices, Total realized price was $25.74/boe in the fourth quarter of 2025, a decrease of 3% from $26.45/boe in the fourth quarter of 2024. Realized natural gas prices increased by 52% to $2.45/mcf from $1.61/mcf in the fourth quarter of 2024, offset by a 23% decrease in the realized oil price to $72.49/bbl from $93.60/bbl in the fourth quarter of 2024.
Capital activity, Capital spending in the fourth quarter of 2025 was $10.2 million, 63% of which was spent on drilling, completing, and tying in new wells in Ferrier, with the balance spent on land acquisitions and facility upgrades.
Dividends, Paid a regular monthly dividend of $0.01 per share, totaling $4.0 million, during the fourth quarter of 2025. Shareholders chose to reinvest $2.9 million under the Company's Dividend Reinvestment Plan, resulting in the issuance of 1.6 million common shares.
2025 ANNUAL HIGHLIGHTS:
Funds flow(2), Petrus generated funds flow of $51.2 million in 2025, up 2% from $50.1 million in 2024. Our annual funds flow was in line with the 2025 budget guidance of $45 million to $55 million.
Production, Production for 2025 averaged 9,371 boe/d(1), as compared to 9,382 boe/d in 2024. Our annual average daily production volumes were consistent with the 2025 budget guidance range of 9,000 to 10,000 boe/d.
Natural Gas Liquids (NGL) production(1), NGL production was higher by 16% in 2025, increasing to 1,890 bbl/d compared to 1,623 bbl/d in 2024. This is the result of operational efforts that increased higher value NGL yields by 21%.
Commodity prices, Total realized price was $25.58/boe in 2025, a decrease of 6% from $27.24/boe in 2024. Realized natural gas prices increased by 20% to $1.92/mcf in 2025 from $1.60/mcf in 2024, offset by a 13% decrease in realized oil price to $81.89/bbl in 2025 from $94.35/bbl in 2024.
Capital expenditures, Total capital expenditures were $49.0 million in 2025, up from $31.8 million in 2024. Drilling, completing, and tying in new wells in Ferrier accounted for 73% of capital, with the balance spent on land acquisitions and facility upgrades.
Dividends, Paid a regular monthly dividend of $0.01 per share, totaling $15.5 million, during 2025. Shareholders chose to reinvest $10.9 million under the Company's Dividend Reinvestment Plan, resulting in the issuance of 7.6 million common shares.
2026 OUTLOOK(3)
Petrus commenced its 2026 capital program in late December 2025 with drilling to continue into March. We are on schedule to start bringing on new production in mid-March.
In February, Petrus completed the acquisition of an oil-weighted Cardium property in the Harmattan area of Central Alberta. This transaction adds long-life assets and approximately 2,000 boe/d(4) of production. The acquisition was financed through a combination of equity and debt.
The previously announced 2026 capital budget includes planned capital investment of $50 million to $60 million, with expected year end net debt(2) of $75 million to $80 million.
The Company expects 2026 average daily production of 11,000 to 12,000 boe/d(1)(5) and annual funds flow(2) of $60 million to $65 million.
For 2026, Petrus has hedged approximately 50% of its forecasted production at an average price of $3.02/mcf for natural gas and CAD$86.76/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.
FOURTH QUARTER AND YEAR-END 2025 CONFERENCE CALL
Date and Time: March 19, 2026 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
ANNUAL GENERAL MEETING
The Company's Annual General Meeting will be held on Thursday, May 21, 2026. For details on the location and timing, please visit the events page on Petrus' website: www.petrusresources.com/events
For further information, please contact:Ken Gray, P.Eng.President and Chief Executive OfficerT: (403) 930-0889E: [email protected]
(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 or non-GAAP ratio. Refer to "Non-GAAP and Other Financial Measures".(3) Refer to "Advisories - Forward-Looking Statements".(4) Production for the month of January 2026 consisted of approximately 640 bbl/d of crude oil, 4,580 mcf/d of natural gas and 600 bbl/d of NGLs.(5) At mid-point of 11,500 boe/d, forecast to consist of approximately 2,200 bbl/d of crude oil, 41,400 mcf/d of natural gas and 2,400 bbl/d of NGLs.
SELECTED FINANCIAL INFORMATION
OPERATIONS
Year ended Dec. 31, 2025
Year ended Dec. 31, 2024
Three months ended Dec. 31, 2025
Three months ended Sept. 30, 2025
Three months ended Jun. 30, 2025
Three months ended Mar. 31, 2025
Average Production
Natural gas (mcf/d)
36,712
38,149
36,981
38,406
35,738
35,689
Oil and condensate(1) (bbl/d)
1,362
1,400
1,475
1,523
1,243
1,202
NGLs (bbl/d)
1,890
1,623
1,929
1,892
1,955
1,777
Total (boe/d)(1)
9,371
9,382
9,568
9,817
9,155
8,929
Total (boe)(1)
3,419,981
3,433,994
880,280
903,165
833,038
803,498
Liquids weighting
35
%
32
%
36
%
35
%
35
%
33
%
Realized Prices
Natural gas ($/mcf)
1.92
1.60
2.45
0.92
2.11
2.25
Oil and condensate(1) ($/bbl)
81.89
94.35
72.49
81.46
83.31
92.73
NGLs ($/bbl)
30.61
38.44
25.19
29.49
29.07
39.54
Total realized price ($/boe)
25.58
27.24
25.74
21.90
25.77
29.35
Royalty income
0.04
0.05
0.03
0.04
0.05
0.06
Royalty expense
(2.42
)
(3.66
)
(2.30
)
(1.70
)
(2.41
)
(3.36
)
Net oil and natural gas revenue ($/boe)
23.20
23.63
23.47
20.24
23.41
26.05
Operating expense
(5.99
)
(5.93
)
(5.33
)
(5.86
)
(6.10
)
(6.76
)
Transportation expense
(1.63
)
(1.55
)
(1.72
)
(1.45
)
(1.73
)
(1.65
)
Operating netback(2) ($/boe)
15.58
16.15
16.42
12.93
15.58
17.64
Realized gain on financial derivatives
2.92
2.02
3.73
4.26
2.31
1.14
Other cash income (expense)
0.06
0.34
0.10
0.18
(0.07
)
0.02
General & administrative expense
(1.48
)
(1.54
)
(2.49
)
(1.05
)
(0.96
)
(1.41
)
Cash finance expense
(1.79
)
(1.87
)
(1.91
)
(1.80
)
(1.77
)
(1.68
)
Decommissioning expenditures
(0.30
)
(0.52
)
(0.52
)
(0.22
)
(0.27
)
(0.19
)
Funds flow & corporate netback(2) ($/boe)
14.99
14.58
15.33
14.30
14.82
15.52
FINANCIAL (000s except $ per share)
Year ended Dec. 31, 2025
Year ended Dec. 31, 2024
Three months ended Dec. 31, 2025
Three months ended Sept. 30, 2025
Three months ended Jun. 30, 2025
Three months ended Mar. 31, 2025
Oil and natural gas sales
87,636
93,721
22,684
19,816
21,506
23,630
Net income (loss)
10,566
(1,246
)
5,951
(2,677
)
10,380
(3,088
)
Net income (loss) per share
Basic
0.08
(0.01
)
0.04
(0.02
)
0.08
(0.02
)
Fully diluted
0.08
(0.01
)
0.04
(0.02
)
0.08
(0.02
)
Funds flow(2)
51,229
50,058
13,498
12,916
12,348
12,467
Funds flow per share(2)
Basic
0.40
0.40
0.10
0.10
0.10
0.10
Fully diluted
0.39
0.40
0.10
0.10
0.09
0.10
Capital expenditures
48,993
31,814
10,244
