Q1 2026 HIGHLIGHTS:
Completed Oil-weighted Acquisition - Closed the acquisition of long-life, oil-weighted Cardium assets in the Harmattan area of Central Alberta. The acquisition added approximately 2,000 boe/d(4) of production and increased the liquids weighting of the Company's production base. As the transaction closed on February 19, 2026, our reported production only reflects production from the acquired assets for a portion of the quarter. The acquisition was financed through a combination of an equity offering of common shares and a term loan.
Production up 13%, Production for the first quarter of 2026 averaged 10,054 boe/d(1)(6), up 13% from 8,929 boe/d(7) in the first quarter of 2025. Oil and condensate(1) production increased 37% and NGL production increased 23% from the first quarter of 2025. The increase in total liquids production was due to a combination of the Harmattan acquisition, liquids-weighted drilling opportunities and strategic efforts to increase NGL recoveries.
Funds flow(2) up 7%, Generated funds flow of $13.3 million in the first quarter of 2026, a 7% increase from $12.5 million reported in the first quarter of 2025. The increase is due to higher oil and NGL production volumes.
Commodity prices, Total realized prices averaged $30.66/boe in the first quarter of 2026, an increase of 4% from $29.35/boe in the first quarter of 2025.
Capital activity, In addition to the Harmattan acquisition, capital spending on drilling and other activities in the first quarter of 2026 was $21.5 million, with approximately 70% directed to drilling, completing, and tying in new wells in Ferrier. The balance was primarily spent on land acquisitions and facility upgrades.
Dividends, Paid a regular monthly dividend of $0.01 per share, totaling $4.1 million, during the first quarter of 2026. Shareholders chose to reinvest $2.9 million under the Company's Dividend Reinvestment Plan, resulting in the issuance of 1.6 million common shares.
2026 OUTLOOK(3)
Petrus entered 2026 with strong operational momentum, advancing its capital program through the first quarter and completing the Harmattan acquisition on February 19, 2026. The acquired assets are expected to contribute meaningfully to production and funds flow over the balance of the year.
The Company continued to execute its Ferrier-focused development program during the quarter, with drilling progressing as planned and eight (7.1 net) wells drilled. Completion operations commenced in March, and four (3.1 net) wells were brought on production near the end of the first quarter, with the remaining wells expected to be completed after breakup and onstream before the end of the second quarter. Drilling is anticipated to resume in the second quarter, with the balance of the 2026 capital program focused primarily on continued development in Ferrier and the drilling of the Company's initial wells on the newly acquired Harmattan assets.
Net debt(2) increased in the first quarter due to the acquisition financing and the timing of capital spending under the 2026 program. The Company expects to reduce net debt in the second half of the year as new production comes on stream, capital spending moderates and the full contribution of the acquired assets is realized. Petrus continues to target net debt to funds flow(2) of approximately 1.2x by year end.
Petrus remains focused on disciplined execution across its expanded asset base and continues to expect 2026 average production of 11,000 to 12,000 boe/d(1)(5), annual funds flow(2) of $60 million to $65 million, and year-end net debt(2) of $75 million to $80 million.
(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 March 2026 consisted of approximately 640 bbl/d of crude oil and condensate, 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 and condensate, 41,400 mcf/d of natural gas and 2,400 bbl/d of NGLs.(6) Production consisted of approximately 1,646 bbl/d of crude oil and condensate, 37,315 mcf/d of natural gas and 2,188 bbl/d of NGLs.(7) Production consisted of approximately 1,202 bbl/d of crude oil and condensate, 35,689 mcf/d of natural gas and 1,777 bbl/d of NGLs.
FIRST QUARTER 2026 CONFERENCE CALL Date and Time: May 7, 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. Please refer to the Events page on Petrus' website for details on the location and timing:www.petrusresources.com/events
For further information, please contact:Ken Gray, P.Eng.President and Chief Executive OfficerT: (403) 930-0889E: [email protected]
SELECTED FINANCIAL INFORMATION
OPERATIONS
Three months endedMarch 31, 2026
Three months endedMarch 31, 2025
Three months endedDec. 31, 2025
Three months endedSept. 30, 2025
Three months endedJun. 30, 2025
Average Production
Natural gas (mcf/d)
37,315
35,689
36,981
38,406
35,738
Oil and condensate(1)(bbl/d)
1,646
1,202
1,475
1,523
1,243
NGLs (bbl/d)
2,188
1,777
1,929
1,892
1,955
Total (boe/d)(1)
10,054
8,929
9,568
9,817
9,155
Total (boe)(1)
904,880
803,498
880,280
903,165
833,038
Liquids weighting
38
%
33
%
36
%
35
%
35
%
Realized Prices
Natural gas ($/mcf)
2.42
2.25
2.45
0.92
2.11
Oil and condensate(1)($/bbl)
92.18
92.73
72.49
81.46
83.31
NGLs ($/bbl)
30.24
39.54
25.19
29.49
29.07
Total realized price ($/boe)
30.66
29.35
25.74
21.90
25.77
Royalty income
0.08
0.06
0.03
0.04
0.05
Royalty expense
(2.81
)
(3.36
)
(2.30
)
(1.70
)
(2.41
)
Net oil and natural gas revenue ($/boe)
27.93
26.05
23.47
20.24
23.41
Operating expense
(6.91
)
(6.76
)
(5.33
)
(5.86
)
(6.10
)
Transportation expense
(1.71
)
(1.65
)
(1.72
)
(1.45
)
(1.73
)
Operating netback(2)($/boe)
19.31
17.64
16.42
12.93
15.58
Realized gain (loss) on financial derivatives
(0.40
)
1.14
3.73
4.26
2.31
Other cash income (expense)
0.08
0.02
0.10
0.18
(0.07
)
General & administrative expense
(1.48
)
(1.41
)
(2.49
)
(1.05
)
(0.96
)
Cash finance expense
(1.65
)
(1.68
)
(1.91
)
(1.80
)
(1.77
)
Decommissioning expenditures
(1.14
)
(0.19
)
