Petrus Resources Ltd.

Q2 operating netback was $24.9 million, up 92% from a year ago. Production averaged 11,070 BOE per day, up 21% year over year, with June corporate production over 12,000 BOE per day, the highest average monthly production in Petrus history. Realized price was $37.66 per BOE, up 46% year over year, while oil prices were up 59% and NGL prices up 39% and natural gas prices were down 18%. Funds flow for the quarter increased 32% from a year ago, though hedging losses partly masked the improvement. For 2026, management said capital spending should come in under $60 million and toward the high end of the $50 million to $60 million range, with production expected to hold around 12,000 BOE per day or slightly above through year-end; they said 13,000 BOE per day is possible but not yet expected.

CEO Ken Gray framed Q2 as a strong quarter with recent operational changes beginning to show up in the results. He emphasized better operating efficiency, disciplined capital investment, and consistent risk management, and said Petrus remains in a strong position to handle price volatility and still support a high-yield dividend. He also highlighted the Harmattan acquisition and new wells as important upcoming catalysts, while noting that results there are still being cleaned up and evaluated.

No detailed CFO remarks were given in the prepared comments, but management did provide several financial metrics that speak to the quarter’s performance: operating netback of $24.9 million, funds flow up 32% year over year, and realized pricing of $37.66 per BOE. On the capital side, management said they expect to land in the higher end of the $50 million to $60 million 2026 spend range, with no additional plans beyond normal forecast variability. They also noted there is flexibility to pull wells from the 2027 program into 2026 if results and conditions justify it.

An analyst asked about the implied extra spending between the low and high ends of the 2026 capital range and whether that could push exit production above 13,000 BOE per day. Ken Gray said the company currently expects to be in the higher end of the range but under $60 million, and that exit production should be around 12,000 BOE per day or a bit higher, though 13,000 is possible. He added that capital and production could change if Petrus decides to accelerate wells from the 2027 program into 2026. A second question asked whether any drilling results have come in materially better than forecast; Gray said results have mostly tracked forecasts so far, while the key unknown is how the newly drilled Harmattan wells perform after their August 1 startup.