{"success":true,"data":{"pressRelease":{"id":"112325","rtpr_id":"nGNX8cP26c","ticker":"PRQ","exchange":"TSX","all_tickers":["PRQ"],"title":"Petrus Resources Announces Second Quarter 2026 Financial and Operating Results","author":"Globe Newswire","published_at":"2026-08-06T21:30:00.282Z","article_body":"CALGARY, Alberta, Aug. 06, 2026 (GLOBE NEWSWIRE) -- Petrus Resources Ltd.\n(“Petrus” or the “Company”) (TSX: PRQ) is pleased to report financial\nand operating results as at and for the three and six months ended June 30,\n2026.\n\nQ2 2026 HIGHLIGHTS:\n* Operating netback up 92%((2)) – Operating netback increased 92% to $24.9\nmillion ($24.73/boe) in the second quarter of 2026 from $13.0 million\n($15.58/boe) in the prior year comparative period, primarily due to higher oil\nproduction and stronger oil and NGL prices.\n \n* Funds flow((2)) – Generated funds flow of $16.3 million in the second\nquarter of 2026, an increase of 32% from $12.3 million in the prior year\ncomparative period and 23% from $13.3 million in the first quarter of 2026.\n \n* Record Production in June – Average production in the second quarter of\n2026 was 11,070 boe/d((1)), an increase of 21% from the prior year comparative\nperiod and 10% from the first quarter of 2026. Production was impacted by a\nplanned third-party facility turnaround in Harmattan during April and May.\nFollowing completion of the turnaround, June production averaged approximately\n12,000 boe/d((4)), representing the highest monthly production in Petrus’\nhistory. \n \n* Increased Oil and Condensate Production – Oil and condensate((1))\nproduction increased 61% to 1,998 bbl/d from 1,243 bbl/d in the second quarter\nof 2025. Total liquids (oil, condensate, and NGLs) for the quarter represented\n39% of production, compared with 35% in the second quarter of 2025.\n \n* Commodity prices – The total realized price increased 46% to $37.66/boe in\nthe second quarter of 2026 from $25.77/boe in the prior year comparative\nperiod. Realized oil/condensate and NGL prices increased 52% and 39%,\nrespectively, partially offset by an 18% decrease in realized natural gas\nprices.\n \n* Capital activity – Capital expenditures were $11.7 million in the second\nquarter and $33.2 million for the first six months of 2026. Approximately 74%\nor $24.6 million was allocated to drilling, completions and tie-ins, and the\nCompany spud 10 gross (9.13 net) wells.\n \n* Dividends – Paid regular monthly dividends of $0.01 per share, totaling\n$4.4 million during the second quarter of 2026. Shareholders reinvested $3.0\nmillion under the Company's Dividend Reinvestment Plan resulting in the issue\nof 1.7 million common shares, with the remaining $1.4 million paid in cash.\nOUTLOOK((3))\n\nThe outlook for the second half of the year is for continued production and\ncash flow growth with the Harmattan assets contributing fully and additional\ndevelopment activity adding new volumes. Petrus remains on track to meet the\ntargets set out in its February 2026 guidance of:\n* 11,000 to 12,000 boe/d((1)(5)) of annual average production weighted 40%\nliquids,\n* capital spending of $50 to $60 million,\n* funds flow((2)) of $60 to $65 million, and\n* exit 2026 with net debt((2)) of approximately $75 to $80 million, or 1.2x to\n1.3x net debt to funds flow((2)).\nPetrus enters the second half of 2026 with strong operational momentum and\nremains focused on disciplined execution, delivering on its 2026 guidance and\ncreating long-term shareholder value.\n\nSECOND QUARTER 2026 CONFERENCE CALL      \n\nDate and Time: August 7, 2026, 9:00 a.m. (Mountain Time)\nPlease refer to the events page on Petrus' website for conference call details\nand links: www.petrusresources.com/events\n\nFor further information, please contact:\nKen Gray, P.Eng.\nPresident and Chief Executive Officer\nT: (403) 930-0889\nE: kgray@petrusresources.com\n\n((1))Disclosure of production on a per boe basis consists of the constituent\nproduct types and their respective quantities. Refer to \"BOE Presentation\" and\n\"Production and Product Type Information\" for further details.\n((2))Non-GAAP financial measure or non-GAAP ratio. During the year ended\nDecember 31, 2025, funds flow was $51.2 million. Refer to \"Non-GAAP and Other\nFinancial Measures\".\n((3))Refer to \"Advisories - Forward-Looking Statements\".\n((4))Production for the month of June 2026 consisted of approximately 1,989\nbbl/d of crude oil and condensate, 46,039 mcf/d of natural gas and 2,348 bbl/d\nof NGLs.\n((5))At mid-point of 11,500 boe/d, forecast to consist of approximately 2,200\nbbl/d of crude oil and condensate, 41,400 mcf/d of natural gas and 2,400 bbl/d\nof NGLs.\n\nSELECTED FINANCIAL INFORMATION\n\n OPERATIONS Three months ended Jun. 30, 2026 Three months ended Jun. 30, 2025 Three months ended Mar. 31, 2026 Three months ended Dec. 31, 2025 Three months ended Sept. 30, 2025 \n Average Production \n Natural gas (mcf/d) 40,432 35,738 37,315 36,981 38,406 \n Oil and condensate ((1) )(bbl/d) 1,998 1,243 1,646 1,475 1,523 \n NGLs (bbl/d) 2,333 1,955 2,188 1,929 1,892 \n Total (boe/d) ((1)) 11,070 9,155 10,054 9,568 9,817 \n Total (boe) ((1)) 1,007,421 833,038 904,880 880,280 903,165 \n Liquids weighting 39 % 35 % 38 % 36 % 35 % \n Realized Prices \n Natural gas ($/mcf) 1.72 2.11 2.42 2.45 0.92 \n Oil and condensate ((1) )($/bbl) 126.62 83.31 92.18 72.49 81.46 \n NGLs ($/bbl) 40.44 29.07 30.24 25.19 29.49 \n Total realized price ($/boe) 37.66 25.77 30.66 25.74 21.90 \n Royalty income 0.15 0.05 0.08 0.03 0.04 \n Royalty expense (5.42 ) (2.41 ) (2.81 ) (2.30 ) (1.70 ) \n Net oil and natural gas revenue ($/boe) 32.39 23.41 27.93 23.47 20.24 \n Operating expense (6.05 ) (6.10 ) (6.91 ) (5.33 ) (5.86 ) \n Transportation expense (1.61 ) (1.73 ) (1.71 ) (1.72 ) (1.45 ) \n Operating netback ((2) )($/boe) 24.73 15.58 19.31 16.42 12.93 \n Realized gain (loss) on financial derivatives (4.79 ) 2.31 (0.40 ) 3.73 4.26 \n Other cash income (expense) 0.08 (0.07 ) 0.08 0.10 0.18 \n General & administrative expense (1.65 ) (0.96 ) (1.48 ) (2.49 ) (1.05 ) \n Cash finance expense (1.84 ) (1.77 ) (1.65 ) (1.91 ) (1.80 ) \n Decommissioning expenditures (0.32 ) (0.27 ) (1.14 ) (0.52 ) (0.22 ) \n Funds flow & corporate netback ((2) )($/boe) 16.21 14.82 14.72 15.33 14.30 \n \n FINANCIAL (000s except $ per share) Three months ended Jun. 30, 2026 Three months ended Jun. 30, 2025 Three months ended Mar. 31, 2026 Three months ended Dec. 31, 2025 Three months ended Sept. 30, 2025 \n Oil and natural gas sales 38,086 21,506 27,818 22,684 19,816 \n Net income (loss) 9,141 10,380 (14,481 ) 5,951 (2,677 ) \n Net income (loss) per share \n Basic 0.06 0.08 (0.10 ) 0.04 (0.02 ) \n Fully diluted 0.06 0.08 (0.10 ) 0.04 (0.02 ) \n Funds flow ((2)) 16,325 12,348 13,318 13,498 12,916 \n Funds flow per share ((2)) \n Basic 0.11 0.10 0.10 0.10 0.10 \n Fully diluted 0.11 0.09 0.10 0.10 0.10 \n Capital expenditures 11,708 13,202 21,509 10,244 8,268 \n Acquisitions (dispositions) (109 ) — 34,760 — — \n Weighted average shares outstanding \n Basic 147,943 128,252 139,522 132,265 130,342 \n Fully diluted 152,586 130,656 139,522 137,119 130,342 \n As at period end \n Common shares outstanding \n Basic 149,090 129,634 147,429 133,442 131,582 \n Fully diluted 161,314 141,456 159,019 145,762 142,774 \n Total assets 485,001 433,962 487,848 427,372 424,940 \n Non-current liabilities 121,279 64,837 90,675 61,556 64,586 \n Net debt ((2)) 84,343 67,987 87,100 62,502 64,860 \n \n\n((1))Disclosure of production on a per boe basis consists of the constituent\nproduct types and their respective quantities. Refer to \"BOE Presentation\" and\n\"Production and Product Type Information\" for further details.\n((2))Non-GAAP financial measure or non-GAAP ratio. Refer to \"Non-GAAP and\nOther Financial Measures\".\n\nNON-GAAP AND OTHER FINANCIAL MEASURES\n\nThis press release makes reference to the terms \"operating netback\" (on an\nabsolute and $/boe basis), \"corporate netback\" (on an absolute and $/boe\nbasis), \"funds flow\" (on an absolute, per share (basic and fully diluted) and\n$/boe basis), \"net debt\" and \"net debt to funds flow ratio\". These non-GAAP\nand other financial measures are not recognized measures under Canadian\ngenerally accepted accounting principles (\"GAAP\") (IFRS) and do not have a\nstandardized meaning prescribed by GAAP (IFRS). Accordingly, the Company's use\nof these terms may not be comparable to similarly defined measures presented\nby other companies. These non-GAAP and other financial measures should not be\nconsidered to be more meaningful than GAAP measures which are determined in\naccordance with International Financial Reporting Standards (\"IFRS\") as\nindicators of our performance. Management uses these non-GAAP and other\nfinancial measures for the reasons set forth below.\n\nOperating Netback\nOperating netback is a common non-GAAP financial measure used in the oil and\nnatural gas industry which is a useful supplemental measure to evaluate the\nspecific operating performance by product type at the oil and natural gas\nlease level. The most directly comparable GAAP measure to operating netback is\noil and natural gas sales. Operating netback is calculated as oil and natural\ngas sales less royalty expenses, operating expenses and transportation\nexpenses. Refer to the table below for a reconciliation of operating netback\nto oil and natural gas sales.\n\nOperating netback ($/boe) is a non-GAAP ratio used in the oil and natural gas\nindustry which is a useful supplemental measure to evaluate the specific\noperating performance by product type at the oil and natural gas lease level.\nIt is calculated as operating netbacks divided by weighted average daily\nproduction on a per boe basis. See below.\n\nCorporate Netback and Funds Flow\nCorporate netback or funds flow is a common non-GAAP financial measure used in\nthe oil and natural gas industry which evaluates the Company’s profitability\nat the corporate level. Corporate netback and funds flow are used\ninterchangeably. Petrus analyzes these measures on an absolute value and on a\nper unit (boe) and per share (basic and fully diluted) basis as non-GAAP\nratios. Management believes that funds flow and corporate netback provide\ninformation to assist a reader in understanding the Company's profitability\nrelative to current commodity prices. They are calculated as the operating\nnetback less general and administrative expense, cash finance expense and\ndecommissioning expenditures, plus or minus other income (expense) and the\nrealized gain (loss) on financial derivatives. See below for a reconciliation\nof funds flow and corporate netback to oil and natural gas sales.\n\nCorporate netback ($/boe) or funds flow ($/boe) is a non-GAAP ratio used in\nthe oil and natural gas industry which evaluates the Company’s profitability\nat the corporate level. Management believes that funds flow ($/boe) or\ncorporate netback ($/boe) provide information to assist a reader in\nunderstanding the Company's profitability relative to current commodity\nprices. It is calculated as corporate netbacks or funds flow divided by\nweighted average daily production on a per boe basis. See below.\n\nFunds flow per share (basic and fully diluted) is comprised of funds flow\ndivided by basic or fully diluted weighted average common shares outstanding.\n\n Three months ended June 30, 2026 Three months ended June 30, 2025 Six months ended June 30, 2026 Six months ended June 30, 2025 \n $000s $/boe $000s $/boe $000s $/boe $000s $/boe \n Oil and natural gas sales 38,086 37.81 21,506 25.82 65,904 34.46 45,136 27.58 \n Royalty expense (5,460 ) (5.42 ) (2,010 ) (2.41 ) (8,002 ) (4.18 ) (4,713 ) (2.88 ) \n Net oil and natural gas revenue 32,626 32.39 19,496 23.41 57,902 30.28 40,423 24.70 \n Transportation expense (1,619 ) (1.61 ) (1,438 ) (1.73 ) (3,170 ) (1.66 ) (2,762 ) (1.69 ) \n Operating expense (6,093 ) (6.05 ) (5,078 ) (6.10 ) (12,343 ) (6.45 ) (10,507 ) (6.42 ) \n Operating netback 24,914 24.73 12,980 15.58 42,389 22.17 27,154 16.59 \n Realized gain (loss) on financial derivatives (4,821 ) (4.79 ) 1,923 2.31 (5,180 ) (2.71 ) 2,835 1.73 \n Other income (expense) 78 0.08 (57 ) (0.07 ) 149 0.08 (41 ) (0.02 ) \n General & administrative expense (1,663 ) (1.65 ) (797 ) (0.96 ) (2,999 ) (1.57 ) (1,930 ) (1.18 ) \n Cash finance expense (1,856 ) (1.84 ) (1,473 ) (1.77 ) (3,352 ) (1.75 ) (2,824 ) (1.73 ) \n Decommissioning expenditures (327 ) (0.32 ) (228 ) (0.27 ) (1,363 ) (0.71 ) (380 ) (0.23 ) \n Funds flow and corporate netback 16,325 16.21 12,348 14.82 29,644 15.51 24,814 15.16 \n \n\n\n\n Three months ended June 30, 2026 Three months ended March 31, 2026 Three months ended December 31, 2025 Three months ended September 30, 2025 \n $000s $/boe $000s $/boe $000s $/boe $000s $/boe \n Oil and natural gas sales 38,086 37.81 27,818 30.74 22,684 25.77 19,816 21.94 \n Royalty expense (5,460 ) (5.42 ) (2,542 ) (2.81 ) (2,029 ) (2.30 ) (1,533 ) (1.70 ) \n Net oil and natural gas revenue 32,626 32.39 25,276 27.93 20,655 23.47 18,283 20.24 \n Transportation expense (1,619 ) (1.61 ) (1,551 ) (1.71 ) (1,514 ) (1.72 ) (1,312 ) (1.45 ) \n Operating expense (6,093 ) (6.05 ) (6,250 ) (6.91 ) (4,693 ) (5.33 ) (5,292 ) (5.86 ) \n Operating netback 24,914 24.73 17,475 19.31 14,448 16.42 11,679 12.93 \n Realized gain (loss) on financial derivatives (4,821 ) (4.79 ) (359 ) (0.40 ) 3,287 3.73 3,849 4.26 \n Other income 78 0.08 70 0.08 90 0.10 164 0.18 \n General & administrative expense (1,663 ) (1.65 ) (1,336 ) (1.48 ) (2,193 ) (2.49 ) (952 ) (1.05 ) \n Cash finance expense (1,856 ) (1.84 ) (1,496 ) (1.65 ) (1,677 ) (1.91 ) (1,623 ) (1.80 ) \n Decommissioning expenditures (327 ) (0.32 ) (1,036 ) (1.14 ) (457 ) (0.52 ) (201 ) (0.22 ) \n Funds flow and corporate netback 16,325 16.21 13,318 14.72 13,498 15.33 12,916 14.30 \n \n\nNet Debt \nNet debt is a non-GAAP financial measure and is calculated as the sum of long\nterm debt and working capital (current assets and current liabilities),\nexcluding the current financial derivative contracts and current portion of\nthe lease obligation and decommissioning obligation. Petrus uses net debt as a\nkey indicator of its leverage and strength of its balance sheet. Net debt is\nreconciled, in the table below, to long-term debt which is the most directly\ncomparable GAAP measure.\n\n ($000s) As at Jun. 30, 2026 As at Mar. 31, 2026 As at Dec. 31, 2025 As at Sept. 30, 2025 As at Jun. 30, 2025 \n Long-term debt 67,134 38,125 25,000 25,000 25,000 \n Current assets (17,766 ) (18,876 ) (22,424 ) (17,423 ) (23,466 ) \n Current liabilities 39,564 81,103 54,044 53,865 59,308 \n Current financial derivatives (1,852 ) (10,515 ) 8,360 5,073 7,993 \n Current portion of lease obligation (223 ) (223 ) (223 ) (160 ) (155 ) \n Current portion of decommissioning obligation (2,514 ) (2,514 ) (2,255 ) (1,495 ) (693 ) \n Net debt 84,343 87,100 62,502 64,860 67,987 \n \n\nNet debt to funds flow ratio\nNet debt to funds flow ratio is a non-GAAP ratio because each of its\ncomponents is a non-GAAP financial measure. This non-GAAP ratio is used by\nmanagement as a key indicator of our leverage and the strength of our balance\nsheet. It is calculated by dividing our net debt at the end of the applicable\nperiod by the funds flow for the applicable period. Net debt to funds flow\nratio is not a standardized measure and, therefore, may not be comparable with\nthe calculation of similar measures by other entities.\n\nADVISORIES\n\nBasis of Presentation\nFinancial data presented above has largely been derived from the Company's\nfinancial statements, prepared in accordance with GAAP which require publicly\naccountable enterprises to prepare their financial statements using IFRS.\nAccounting policies adopted by the Company are set out in the notes to the\naudited consolidated financial statements as at and for the year ended\nDecember 31, 2025. The reporting and the measurement currency is the Canadian\ndollar. All financial information is expressed in Canadian dollars, unless\notherwise stated.\n\nForward-Looking Statements\nCertain information regarding Petrus set forth in this press release contains\nforward-looking statements within the meaning of applicable securities law,\nthat involve substantial known and unknown risks and uncertainties. The use of\nany of the words \"anticipate\", \"continue\", \"estimate\", \"expect\", \"may\",\n\"will\", \"project\", \"should\", \"believe\", and similar expressions are intended\nto identify forward-looking statements. Such statements represent Petrus’\ninternal projections, estimates, beliefs, plans, objectives, assumptions,\nintentions or statements about future events or performance. These statements\nare only predictions and actual events or results may differ materially.\nAlthough Petrus believes that the expectations reflected in the\nforward-looking statements are reasonable, it cannot guarantee future results,\nlevels of activity, performance or achievement since such expectations are\ninherently subject to significant business, economic, competitive, political\nand social uncertainties and contingencies. Many factors could cause Petrus’\nactual results to differ materially from those expressed or implied in any\nforward-looking statements made by, or on behalf of, Petrus.\n\nIn particular, forward-looking statements included in this press release\ninclude, but are not limited to, statements with respect to: that the outlook\nfor the second half of the year is for continued production and cash flow\ngrowth; and the Company's 2026 outlook, including 2026 average daily\nproduction guidance, 2026 capital spending, 2026 funds flow guidance and\nforecast for 2026 year-end net debt.\n\nThese forward-looking statements are subject to numerous risks and\nuncertainties, most of which are beyond the Company's control, including: the\nrisk that (i) the tariffs that are currently in effect on goods exported from\nor imported into Canada continue in effect for an extended period of time, the\ntariffs that have been threatened are implemented, that tariffs that are\ncurrently suspended are reactivated, the rate or scope of tariffs are\nincreased, or new tariffs are imposed, including on oil and natural gas, (ii)\nthe U.S. and/or Canada imposes any other form of tax, restriction or\nprohibition on the import or export of products from one country to the other,\nincluding on oil and natural gas, and (iii) the tariffs imposed or threatened\nto be imposed by the U.S. on other countries and retaliatory tariffs imposed\nor threatened to be imposed by other countries on the U.S., will trigger a\nbroader global trade war which could have a material adverse effect on the\nCanadian, U.S. and global economies, and by extension the Canadian oil and\nnatural gas industry and the Company, including by decreasing demand for (and\nthe price of) oil and natural gas, disrupting supply chains, increasing costs,\ncausing volatility in global financial markets, and limiting access to\nfinancing; risks associated with the refusal of the U.S. to renew the\nCanada-United States-Mexico Agreement (\"CUSMA\") by the July 1, 2026 deadline,\nincluding the risk that the U.S. ultimately withdraws from CUSMA, which could\nresult in a significant increase in trade barriers, which could in turn have a\nmaterial adverse effect on the Canadian and U.S. economies, and by extension\nthe Canadian oil and natural gas industry and the Company; the impact of\ngeneral economic and business conditions and changes in international,\nnational and local macroeconomic and business conditions, as well as\nsociopolitical conditions in certain local and regional markets, including as\na result of conflicts in the Middle East (including Iran) and the conflict\nbetween Russia and Ukraine and the responses thereto from other countries and\ninstitutions (including trade sanctions and financial controls), which has\ncreated volatility in the global economy and could continue to adversely\nimpact economic and trade activity; volatility in market prices for crude oil,\nNGL and natural gas; industry conditions; currency fluctuation; changes in\ninterest rates and inflation rates; imprecision of reserve estimates;\nliabilities inherent in crude oil and natural gas operations; environmental\nrisks; incorrect assessments of the value of acquisitions and exploration and\ndevelopment programs; competition; the lack of availability of qualified\npersonnel or management; changes in income tax laws or changes in tax laws and\nincentive programs relating to the oil and gas industry; hazards such as fire,\nexplosion, blowouts, cratering, and spills, each of which could result in\nsubstantial damage to wells, production facilities, other property and the\nenvironment or in personal injury and/or increase our costs, decrease our\nproduction, or otherwise impede our ability to operate our business; extreme\nweather events, such as wildfires, floods, drought and extreme cold or warm\ntemperatures, each of which could result in substantial damage to our assets\nand/or increase our costs, decrease our production, or otherwise impede our\nability to operate our business; stock market volatility; ability to access\nsufficient capital from internal and external sources; that the amount of\ndividends that we pay may be reduced or suspended entirely; that we reduce or\nsuspend the repurchase of common shares under our NCIB; and the other risks\nand uncertainties described in our most recently filed Annual Information\nForm. With respect to forward-looking statements contained in this press\nrelease, Petrus has made assumptions regarding: the duration and impact of\ntariffs that are currently in effect on goods exported from or imported into\nCanada, and that other than the tariffs that are currently in effect, neither\nthe U.S. nor Canada (i) increases the rate or scope of such tariffs, reenacts\ntariffs that are currently suspended, or imposes new tariffs, on the import of\ngoods from one country to the other, including on oil and natural gas, and/or\n(ii) imposes any other form of tax, restriction or prohibition on the import\nor export of products from one country to the other, including on oil and\nnatural gas; the amount of dividends that we will pay; the number of common\nshares that we will repurchase under our NCIB; future commodity prices and\nroyalty regimes; availability of skilled labour; timing and amount of capital\nexpenditures; future exchange rates; the impact of increasing competition;\nconditions in general economic and financial markets; availability of drilling\nand related equipment and services; effects of regulation by governmental\nagencies; the effects of inflation on our costs and profitability; future\ninterest rates; and future operating costs. Management has included the above\nsummary of assumptions and risks related to forward-looking information\nprovided in this press release in order to provide investors with a more\ncomplete perspective on Petrus’ future operations and such information may\nnot be appropriate for other purposes. Petrus’ actual results, performance\nor achievement could differ materially from those expressed in, or implied by,\nthese forward-looking statements and, accordingly, no assurance can be given\nthat any of the events anticipated by the forward-looking statements will\ntranspire or occur, or if any of them do so, what benefits the Company will\nderive therefrom. Readers are cautioned that the foregoing lists of factors\nare not exhaustive.\n\nThis press release contains future-oriented financial information and\nfinancial outlook information (collectively, \"FOFI\") about Petrus' prospective\nresults of operations including, without limitation: our 2026 average daily\nproduction guidance (including liquids weighting), our 2026 capital spending\nguidance, our 2026 funds flow guidance and our forecast for 2026 year-end net\ndebt and net debt to funds flow ratio; which are subject to the same\nassumptions, risk factors, limitations, and qualifications as set forth above.\nReaders are cautioned that the assumptions used in the preparation of such\ninformation, although considered reasonable at the time of preparation, may\nprove to be imprecise and, as such, undue reliance should not be placed on\nFOFI. Petrus' actual results, performance or achievement could differ\nmaterially from those expressed in, or implied by, these FOFI, or if any of\nthem do so, what benefits Petrus will derive therefrom. Petrus has included\nthe FOFI in order to provide readers with a more complete perspective on\nPetrus' future operations and such information may not be appropriate for\nother purposes.\n\nThese forward-looking statements and FOFI are made as of the date of this\npress release and the Company disclaims any intent or obligation to update any\nforward-looking statements and FOFI whether as a result of new information,\nfuture events or results or otherwise, other than as required by applicable\nsecurities laws.\n\nBOE Presentation\nThe oil and natural gas industry commonly expresses production volumes and\nreserves on a barrel of oil equivalent (“boe”) basis whereby natural gas\nvolumes are converted at the ratio of six thousand cubic feet to one barrel of\noil. The intention is to sum oil and natural gas measurement units into one\nbasis for improved measurement of results and comparisons with other industry\nparticipants. Petrus uses the 6:1 boe measure which is the approximate energy\nequivalence of the two commodities at the burner tip. Boe’s do not represent\nan economic value equivalence at the wellhead and therefore may be a\nmisleading measure if used in isolation.\n\nProduction and Product Type Information\nReferences to crude oil (or oil), natural gas liquids (\"NGLs\"), natural gas\n(or gas) and average daily production in this document refer to the light and\nmedium crude oil, conventional natural gas, and NGLs product types, as\napplicable, as defined in National Instrument 51-101 (\"NI 51-101\"), except as\nnoted below.\n\nNI 51-101 includes condensate within the NGLs product type. The Company has\ndisclosed condensate as combined with crude oil and separately from other NGLs\nsince the price of condensate as compared to other NGLs is currently\nsignificantly higher and the Company believes that this crude oil and\ncondensate presentation provides a more accurate description of its operations\nand results therefrom. Crude oil therefore refers to light oil, medium oil,\nand condensate. NGLs refers to ethane, propane, butane and pentane plus\ncombined. Natural gas refers to conventional natural gas. Liquids refers to\nlight and medium oil, condensate and NGLs.\n\nDividend Advisory\nThe Company's future dividends, if any, and the level thereof is uncertain.\nAny decision to pay dividends on the common shares (including the actual\namount, the declaration date, the record date and the payment date in\nconnection therewith) will be subject to the discretion of the Board of\nDirectors and may depend on a variety of factors, including, without\nlimitation the Company's business performance, financial condition, financial\nrequirements, growth plans, expected capital requirements and other conditions\nexisting at such future time including, without limitation, contractual\nrestrictions and satisfaction of the solvency tests imposed on the Company\nunder applicable corporate law. There can be no assurance that the Company\nwill pay dividends in the future.\n\n Abbreviations \n $000’s thousand dollars \n $/bbl dollars per barrel \n $/boe dollars per barrel of oil equivalent \n $/GJ dollars per gigajoule \n $/mcf dollars per thousand cubic feet \n bbl barrel \n mbbl thousand barrels \n bbl/d barrels per day \n boe barrel of oil equivalent \n mboe thousand barrel of oil equivalent \n mmboe million barrel of oil equivalent \n boe/d barrel of oil equivalent per day \n GJ gigajoule \n GJ/d gigajoules per day \n mcf thousand cubic feet \n mcf/d thousand cubic feet per day \n mmcf/d million cubic feet per day \n bcf billion cubic feet \n NGLs natural gas liquids \n WTI West Texas Intermediate \n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/cf5942e3-9c98-4992-bc15-4ba200813bbf)\n\n\n\nGlobeNewswire, Inc. 2026","article_body_html":"","raw_payload":{"data":{"id":"nGNX8cP26c","title":"Petrus Resources Announces Second Quarter 2026 Financial and Operating Results","author":"Globe Newswire","ticker":"PRQ","created":"2026-08-06T21:30:00.282Z","tickers":["PRQ"],"exchange":"TSX","article_body":"CALGARY, Alberta, Aug. 06, 2026 (GLOBE NEWSWIRE) -- Petrus Resources Ltd.\n(“Petrus” or the “Company”) (TSX: PRQ) is pleased to report financial\nand operating results as at and for the three and six months ended June 30,\n2026.\n\nQ2 2026 HIGHLIGHTS:\n* Operating netback up 92%((2)) – Operating netback increased 92% to $24.9\nmillion ($24.73/boe) in the second quarter of 2026 from $13.0 million\n($15.58/boe) in the prior year comparative period, primarily due to higher oil\nproduction and stronger oil and NGL prices.\n \n* Funds flow((2)) – Generated funds flow of $16.3 million in the second\nquarter of 2026, an increase of 32% from $12.3 million in the prior year\ncomparative period and 23% from $13.3 million in the first quarter of 2026.\n \n* Record Production in June – Average production in the second quarter of\n2026 was 11,070 boe/d((1)), an increase of 21% from the prior year comparative\nperiod and 10% from the first quarter of 2026. Production was impacted by a\nplanned third-party facility turnaround in Harmattan during April and May.\nFollowing completion of the turnaround, June production averaged approximately\n12,000 boe/d((4)), representing the highest monthly production in Petrus’\nhistory. \n \n* Increased Oil and Condensate Production – Oil and condensate((1))\nproduction increased 61% to 1,998 bbl/d from 1,243 bbl/d in the second quarter\nof 2025. Total liquids (oil, condensate, and NGLs) for the quarter represented\n39% of production, compared with 35% in the second quarter of 2025.\n \n* Commodity prices – The total realized price increased 46% to $37.66/boe in\nthe second quarter of 2026 from $25.77/boe in the prior year comparative\nperiod. Realized oil/condensate and NGL prices increased 52% and 39%,\nrespectively, partially offset by an 18% decrease in realized natural gas\nprices.\n \n* Capital activity – Capital expenditures were $11.7 million in the second\nquarter and $33.2 million for the first six months of 2026. Approximately 74%\nor $24.6 million was allocated to drilling, completions and tie-ins, and the\nCompany spud 10 gross (9.13 net) wells.\n \n* Dividends – Paid regular monthly dividends of $0.01 per share, totaling\n$4.4 million during the second quarter of 2026. Shareholders reinvested $3.0\nmillion under the Company's Dividend Reinvestment Plan resulting in the issue\nof 1.7 million common shares, with the remaining $1.4 million paid in cash.\nOUTLOOK((3))\n\nThe outlook for the second half of the year is for continued production and\ncash flow growth with the Harmattan assets contributing fully and additional\ndevelopment activity adding new volumes. Petrus remains on track to meet the\ntargets set out in its February 2026 guidance of:\n* 11,000 to 12,000 boe/d((1)(5)) of annual average production weighted 40%\nliquids,\n* capital spending of $50 to $60 million,\n* funds flow((2)) of $60 to $65 million, and\n* exit 2026 with net debt((2)) of approximately $75 to $80 million, or 1.2x to\n1.3x net debt to funds flow((2)).\nPetrus enters the second half of 2026 with strong operational momentum and\nremains focused on disciplined execution, delivering on its 2026 guidance and\ncreating long-term shareholder value.\n\nSECOND QUARTER 2026 CONFERENCE CALL      \n\nDate and Time: August 7, 2026, 9:00 a.m. (Mountain Time)\nPlease refer to the events page on Petrus' website for conference call details\nand links: www.petrusresources.com/events\n\nFor further information, please contact:\nKen Gray, P.Eng.\nPresident and Chief Executive Officer\nT: (403) 930-0889\nE: kgray@petrusresources.com\n\n((1))Disclosure of production on a per boe basis consists of the constituent\nproduct types and their respective quantities. Refer to \"BOE Presentation\" and\n\"Production and Product Type Information\" for further details.\n((2))Non-GAAP financial measure or non-GAAP ratio. During the year ended\nDecember 31, 2025, funds flow was $51.2 million. Refer to \"Non-GAAP and Other\nFinancial Measures\".\n((3))Refer to \"Advisories - Forward-Looking Statements\".\n((4))Production for the month of June 2026 consisted of approximately 1,989\nbbl/d of crude oil and condensate, 46,039 mcf/d of natural gas and 2,348 bbl/d\nof NGLs.\n((5))At mid-point of 11,500 boe/d, forecast to consist of approximately 2,200\nbbl/d of crude oil and condensate, 41,400 mcf/d of natural gas and 2,400 bbl/d\nof NGLs.\n\nSELECTED FINANCIAL INFORMATION\n\n OPERATIONS Three months ended Jun. 30, 2026 Three months ended Jun. 30, 2025 Three months ended Mar. 31, 2026 Three months ended Dec. 31, 2025 Three months ended Sept. 30, 2025 \n Average Production \n Natural gas (mcf/d) 40,432 35,738 37,315 36,981 38,406 \n Oil and condensate ((1) )(bbl/d) 1,998 1,243 1,646 1,475 1,523 \n NGLs (bbl/d) 2,333 1,955 2,188 1,929 1,892 \n Total (boe/d) ((1)) 11,070 9,155 10,054 9,568 9,817 \n Total (boe) ((1)) 1,007,421 833,038 904,880 880,280 903,165 \n Liquids weighting 39 % 35 % 38 % 36 % 35 % \n Realized Prices \n Natural gas ($/mcf) 1.72 2.11 2.42 2.45 0.92 \n Oil and condensate ((1) )($/bbl) 126.62 83.31 92.18 72.49 81.46 \n NGLs ($/bbl) 40.44 29.07 30.24 25.19 29.49 \n Total realized price ($/boe) 37.66 25.77 30.66 25.74 21.90 \n Royalty income 0.15 0.05 0.08 0.03 0.04 \n Royalty expense (5.42 ) (2.41 ) (2.81 ) (2.30 ) (1.70 ) \n Net oil and natural gas revenue ($/boe) 32.39 23.41 27.93 23.47 20.24 \n Operating expense (6.05 ) (6.10 ) (6.91 ) (5.33 ) (5.86 ) \n Transportation expense (1.61 ) (1.73 ) (1.71 ) (1.72 ) (1.45 ) \n Operating netback ((2) )($/boe) 24.73 15.58 19.31 16.42 12.93 \n Realized gain (loss) on financial derivatives (4.79 ) 2.31 (0.40 ) 3.73 4.26 \n Other cash income (expense) 0.08 (0.07 ) 0.08 0.10 0.18 \n General & administrative expense (1.65 ) (0.96 ) (1.48 ) (2.49 ) (1.05 ) \n Cash finance expense (1.84 ) (1.77 ) (1.65 ) (1.91 ) (1.80 ) \n Decommissioning expenditures (0.32 ) (0.27 ) (1.14 ) (0.52 ) (0.22 ) \n Funds flow & corporate netback ((2) )($/boe) 16.21 14.82 14.72 15.33 14.30 \n \n FINANCIAL (000s except $ per share) Three months ended Jun. 30, 2026 Three months ended Jun. 30, 2025 Three months ended Mar. 31, 2026 Three months ended Dec. 31, 2025 Three months ended Sept. 30, 2025 \n Oil and natural gas sales 38,086 21,506 27,818 22,684 19,816 \n Net income (loss) 9,141 10,380 (14,481 ) 5,951 (2,677 ) \n Net income (loss) per share \n Basic 0.06 0.08 (0.10 ) 0.04 (0.02 ) \n Fully diluted 0.06 0.08 (0.10 ) 0.04 (0.02 ) \n Funds flow ((2)) 16,325 12,348 13,318 13,498 12,916 \n Funds flow per share ((2)) \n Basic 0.11 0.10 0.10 0.10 0.10 \n Fully diluted 0.11 0.09 0.10 0.10 0.10 \n Capital expenditures 11,708 13,202 21,509 10,244 8,268 \n Acquisitions (dispositions) (109 ) — 34,760 — — \n Weighted average shares outstanding \n Basic 147,943 128,252 139,522 132,265 130,342 \n Fully diluted 152,586 130,656 139,522 137,119 130,342 \n As at period end \n Common shares outstanding \n Basic 149,090 129,634 147,429 133,442 131,582 \n Fully diluted 161,314 141,456 159,019 145,762 142,774 \n Total assets 485,001 433,962 487,848 427,372 424,940 \n Non-current liabilities 121,279 64,837 90,675 61,556 64,586 \n Net debt ((2)) 84,343 67,987 87,100 62,502 64,860 \n \n\n((1))Disclosure of production on a per boe basis consists of the constituent\nproduct types and their respective quantities. Refer to \"BOE Presentation\" and\n\"Production and Product Type Information\" for further details.\n((2))Non-GAAP financial measure or non-GAAP ratio. Refer to \"Non-GAAP and\nOther Financial Measures\".\n\nNON-GAAP AND OTHER FINANCIAL MEASURES\n\nThis press release makes reference to the terms \"operating netback\" (on an\nabsolute and $/boe basis), \"corporate netback\" (on an absolute and $/boe\nbasis), \"funds flow\" (on an absolute, per share (basic and fully diluted) and\n$/boe basis), \"net debt\" and \"net debt to funds flow ratio\". These non-GAAP\nand other financial measures are not recognized measures under Canadian\ngenerally accepted accounting principles (\"GAAP\") (IFRS) and do not have a\nstandardized meaning prescribed by GAAP (IFRS). Accordingly, the Company's use\nof these terms may not be comparable to similarly defined measures presented\nby other companies. These non-GAAP and other financial measures should not be\nconsidered to be more meaningful than GAAP measures which are determined in\naccordance with International Financial Reporting Standards (\"IFRS\") as\nindicators of our performance. Management uses these non-GAAP and other\nfinancial measures for the reasons set forth below.\n\nOperating Netback\nOperating netback is a common non-GAAP financial measure used in the oil and\nnatural gas industry which is a useful supplemental measure to evaluate the\nspecific operating performance by product type at the oil and natural gas\nlease level. The most directly comparable GAAP measure to operating netback is\noil and natural gas sales. Operating netback is calculated as oil and natural\ngas sales less royalty expenses, operating expenses and transportation\nexpenses. Refer to the table below for a reconciliation of operating netback\nto oil and natural gas sales.\n\nOperating netback ($/boe) is a non-GAAP ratio used in the oil and natural gas\nindustry which is a useful supplemental measure to evaluate the specific\noperating performance by product type at the oil and natural gas lease level.\nIt is calculated as operating netbacks divided by weighted average daily\nproduction on a per boe basis. See below.\n\nCorporate Netback and Funds Flow\nCorporate netback or funds flow is a common non-GAAP financial measure used in\nthe oil and natural gas industry which evaluates the Company’s profitability\nat the corporate level. Corporate netback and funds flow are used\ninterchangeably. Petrus analyzes these measures on an absolute value and on a\nper unit (boe) and per share (basic and fully diluted) basis as non-GAAP\nratios. Management believes that funds flow and corporate netback provide\ninformation to assist a reader in understanding the Company's profitability\nrelative to current commodity prices. They are calculated as the operating\nnetback less general and administrative expense, cash finance expense and\ndecommissioning expenditures, plus or minus other income (expense) and the\nrealized gain (loss) on financial derivatives. See below for a reconciliation\nof funds flow and corporate netback to oil and natural gas sales.\n\nCorporate netback ($/boe) or funds flow ($/boe) is a non-GAAP ratio used in\nthe oil and natural gas industry which evaluates the Company’s profitability\nat the corporate level. Management believes that funds flow ($/boe) or\ncorporate netback ($/boe) provide information to assist a reader in\nunderstanding the Company's profitability relative to current commodity\nprices. It is calculated as corporate netbacks or funds flow divided by\nweighted average daily production on a per boe basis. See below.\n\nFunds flow per share (basic and fully diluted) is comprised of funds flow\ndivided by basic or fully diluted weighted average common shares outstanding.\n\n Three months ended June 30, 2026 Three months ended June 30, 2025 Six months ended June 30, 2026 Six months ended June 30, 2025 \n $000s $/boe $000s $/boe $000s $/boe $000s $/boe \n Oil and natural gas sales 38,086 37.81 21,506 25.82 65,904 34.46 45,136 27.58 \n Royalty expense (5,460 ) (5.42 ) (2,010 ) (2.41 ) (8,002 ) (4.18 ) (4,713 ) (2.88 ) \n Net oil and natural gas revenue 32,626 32.39 19,496 23.41 57,902 30.28 40,423 24.70 \n Transportation expense (1,619 ) (1.61 ) (1,438 ) (1.73 ) (3,170 ) (1.66 ) (2,762 ) (1.69 ) \n Operating expense (6,093 ) (6.05 ) (5,078 ) (6.10 ) (12,343 ) (6.45 ) (10,507 ) (6.42 ) \n Operating netback 24,914 24.73 12,980 15.58 42,389 22.17 27,154 16.59 \n Realized gain (loss) on financial derivatives (4,821 ) (4.79 ) 1,923 2.31 (5,180 ) (2.71 ) 2,835 1.73 \n Other income (expense) 78 0.08 (57 ) (0.07 ) 149 0.08 (41 ) (0.02 ) \n General & administrative expense (1,663 ) (1.65 ) (797 ) (0.96 ) (2,999 ) (1.57 ) (1,930 ) (1.18 ) \n Cash finance expense (1,856 ) (1.84 ) (1,473 ) (1.77 ) (3,352 ) (1.75 ) (2,824 ) (1.73 ) \n Decommissioning expenditures (327 ) (0.32 ) (228 ) (0.27 ) (1,363 ) (0.71 ) (380 ) (0.23 ) \n Funds flow and corporate netback 16,325 16.21 12,348 14.82 29,644 15.51 24,814 15.16 \n \n\n\n\n Three months ended June 30, 2026 Three months ended March 31, 2026 Three months ended December 31, 2025 Three months ended September 30, 2025 \n $000s $/boe $000s $/boe $000s $/boe $000s $/boe \n Oil and natural gas sales 38,086 37.81 27,818 30.74 22,684 25.77 19,816 21.94 \n Royalty expense (5,460 ) (5.42 ) (2,542 ) (2.81 ) (2,029 ) (2.30 ) (1,533 ) (1.70 ) \n Net oil and natural gas revenue 32,626 32.39 25,276 27.93 20,655 23.47 18,283 20.24 \n Transportation expense (1,619 ) (1.61 ) (1,551 ) (1.71 ) (1,514 ) (1.72 ) (1,312 ) (1.45 ) \n Operating expense (6,093 ) (6.05 ) (6,250 ) (6.91 ) (4,693 ) (5.33 ) (5,292 ) (5.86 ) \n Operating netback 24,914 24.73 17,475 19.31 14,448 16.42 11,679 12.93 \n Realized gain (loss) on financial derivatives (4,821 ) (4.79 ) (359 ) (0.40 ) 3,287 3.73 3,849 4.26 \n Other income 78 0.08 70 0.08 90 0.10 164 0.18 \n General & administrative expense (1,663 ) (1.65 ) (1,336 ) (1.48 ) (2,193 ) (2.49 ) (952 ) (1.05 ) \n Cash finance expense (1,856 ) (1.84 ) (1,496 ) (1.65 ) (1,677 ) (1.91 ) (1,623 ) (1.80 ) \n Decommissioning expenditures (327 ) (0.32 ) (1,036 ) (1.14 ) (457 ) (0.52 ) (201 ) (0.22 ) \n Funds flow and corporate netback 16,325 16.21 13,318 14.72 13,498 15.33 12,916 14.30 \n \n\nNet Debt \nNet debt is a non-GAAP financial measure and is calculated as the sum of long\nterm debt and working capital (current assets and current liabilities),\nexcluding the current financial derivative contracts and current portion of\nthe lease obligation and decommissioning obligation. Petrus uses net debt as a\nkey indicator of its leverage and strength of its balance sheet. Net debt is\nreconciled, in the table below, to long-term debt which is the most directly\ncomparable GAAP measure.\n\n ($000s) As at Jun. 30, 2026 As at Mar. 31, 2026 As at Dec. 31, 2025 As at Sept. 30, 2025 As at Jun. 30, 2025 \n Long-term debt 67,134 38,125 25,000 25,000 25,000 \n Current assets (17,766 ) (18,876 ) (22,424 ) (17,423 ) (23,466 ) \n Current liabilities 39,564 81,103 54,044 53,865 59,308 \n Current financial derivatives (1,852 ) (10,515 ) 8,360 5,073 7,993 \n Current portion of lease obligation (223 ) (223 ) (223 ) (160 ) (155 ) \n Current portion of decommissioning obligation (2,514 ) (2,514 ) (2,255 ) (1,495 ) (693 ) \n Net debt 84,343 87,100 62,502 64,860 67,987 \n \n\nNet debt to funds flow ratio\nNet debt to funds flow ratio is a non-GAAP ratio because each of its\ncomponents is a non-GAAP financial measure. This non-GAAP ratio is used by\nmanagement as a key indicator of our leverage and the strength of our balance\nsheet. It is calculated by dividing our net debt at the end of the applicable\nperiod by the funds flow for the applicable period. Net debt to funds flow\nratio is not a standardized measure and, therefore, may not be comparable with\nthe calculation of similar measures by other entities.\n\nADVISORIES\n\nBasis of Presentation\nFinancial data presented above has largely been derived from the Company's\nfinancial statements, prepared in accordance with GAAP which require publicly\naccountable enterprises to prepare their financial statements using IFRS.\nAccounting policies adopted by the Company are set out in the notes to the\naudited consolidated financial statements as at and for the year ended\nDecember 31, 2025. The reporting and the measurement currency is the Canadian\ndollar. All financial information is expressed in Canadian dollars, unless\notherwise stated.\n\nForward-Looking Statements\nCertain information regarding Petrus set forth in this press release contains\nforward-looking statements within the meaning of applicable securities law,\nthat involve substantial known and unknown risks and uncertainties. The use of\nany of the words \"anticipate\", \"continue\", \"estimate\", \"expect\", \"may\",\n\"will\", \"project\", \"should\", \"believe\", and similar expressions are intended\nto identify forward-looking statements. Such statements represent Petrus’\ninternal projections, estimates, beliefs, plans, objectives, assumptions,\nintentions or statements about future events or performance. These statements\nare only predictions and actual events or results may differ materially.\nAlthough Petrus believes that the expectations reflected in the\nforward-looking statements are reasonable, it cannot guarantee future results,\nlevels of activity, performance or achievement since such expectations are\ninherently subject to significant business, economic, competitive, political\nand social uncertainties and contingencies. Many factors could cause Petrus’\nactual results to differ materially from those expressed or implied in any\nforward-looking statements made by, or on behalf of, Petrus.\n\nIn particular, forward-looking statements included in this press release\ninclude, but are not limited to, statements with respect to: that the outlook\nfor the second half of the year is for continued production and cash flow\ngrowth; and the Company's 2026 outlook, including 2026 average daily\nproduction guidance, 2026 capital spending, 2026 funds flow guidance and\nforecast for 2026 year-end net debt.\n\nThese forward-looking statements are subject to numerous risks and\nuncertainties, most of which are beyond the Company's control, including: the\nrisk that (i) the tariffs that are currently in effect on goods exported from\nor imported into Canada continue in effect for an extended period of time, the\ntariffs that have been threatened are implemented, that tariffs that are\ncurrently suspended are reactivated, the rate or scope of tariffs are\nincreased, or new tariffs are imposed, including on oil and natural gas, (ii)\nthe U.S. and/or Canada imposes any other form of tax, restriction or\nprohibition on the import or export of products from one country to the other,\nincluding on oil and natural gas, and (iii) the tariffs imposed or threatened\nto be imposed by the U.S. on other countries and retaliatory tariffs imposed\nor threatened to be imposed by other countries on the U.S., will trigger a\nbroader global trade war which could have a material adverse effect on the\nCanadian, U.S. and global economies, and by extension the Canadian oil and\nnatural gas industry and the Company, including by decreasing demand for (and\nthe price of) oil and natural gas, disrupting supply chains, increasing costs,\ncausing volatility in global financial markets, and limiting access to\nfinancing; risks associated with the refusal of the U.S. to renew the\nCanada-United States-Mexico Agreement (\"CUSMA\") by the July 1, 2026 deadline,\nincluding the risk that the U.S. ultimately withdraws from CUSMA, which could\nresult in a significant increase in trade barriers, which could in turn have a\nmaterial adverse effect on the Canadian and U.S. economies, and by extension\nthe Canadian oil and natural gas industry and the Company; the impact of\ngeneral economic and business conditions and changes in international,\nnational and local macroeconomic and business conditions, as well as\nsociopolitical conditions in certain local and regional markets, including as\na result of conflicts in the Middle East (including Iran) and the conflict\nbetween Russia and Ukraine and the responses thereto from other countries and\ninstitutions (including trade sanctions and financial controls), which has\ncreated volatility in the global economy and could continue to adversely\nimpact economic and trade activity; volatility in market prices for crude oil,\nNGL and natural gas; industry conditions; currency fluctuation; changes in\ninterest rates and inflation rates; imprecision of reserve estimates;\nliabilities inherent in crude oil and natural gas operations; environmental\nrisks; incorrect assessments of the value of acquisitions and exploration and\ndevelopment programs; competition; the lack of availability of qualified\npersonnel or management; changes in income tax laws or changes in tax laws and\nincentive programs relating to the oil and gas industry; hazards such as fire,\nexplosion, blowouts, cratering, and spills, each of which could result in\nsubstantial damage to wells, production facilities, other property and the\nenvironment or in personal injury and/or increase our costs, decrease our\nproduction, or otherwise impede our ability to operate our business; extreme\nweather events, such as wildfires, floods, drought and extreme cold or warm\ntemperatures, each of which could result in substantial damage to our assets\nand/or increase our costs, decrease our production, or otherwise impede our\nability to operate our business; stock market volatility; ability to access\nsufficient capital from internal and external sources; that the amount of\ndividends that we pay may be reduced or suspended entirely; that we reduce or\nsuspend the repurchase of common shares under our NCIB; and the other risks\nand uncertainties described in our most recently filed Annual Information\nForm. With respect to forward-looking statements contained in this press\nrelease, Petrus has made assumptions regarding: the duration and impact of\ntariffs that are currently in effect on goods exported from or imported into\nCanada, and that other than the tariffs that are currently in effect, neither\nthe U.S. nor Canada (i) increases the rate or scope of such tariffs, reenacts\ntariffs that are currently suspended, or imposes new tariffs, on the import of\ngoods from one country to the other, including on oil and natural gas, and/or\n(ii) imposes any other form of tax, restriction or prohibition on the import\nor export of products from one country to the other, including on oil and\nnatural gas; the amount of dividends that we will pay; the number of common\nshares that we will repurchase under our NCIB; future commodity prices and\nroyalty regimes; availability of skilled labour; timing and amount of capital\nexpenditures; future exchange rates; the impact of increasing competition;\nconditions in general economic and financial markets; availability of drilling\nand related equipment and services; effects of regulation by governmental\nagencies; the effects of inflation on our costs and profitability; future\ninterest rates; and future operating costs. Management has included the above\nsummary of assumptions and risks related to forward-looking information\nprovided in this press release in order to provide investors with a more\ncomplete perspective on Petrus’ future operations and such information may\nnot be appropriate for other purposes. Petrus’ actual results, performance\nor achievement could differ materially from those expressed in, or implied by,\nthese forward-looking statements and, accordingly, no assurance can be given\nthat any of the events anticipated by the forward-looking statements will\ntranspire or occur, or if any of them do so, what benefits the Company will\nderive therefrom. Readers are cautioned that the foregoing lists of factors\nare not exhaustive.\n\nThis press release contains future-oriented financial information and\nfinancial outlook information (collectively, \"FOFI\") about Petrus' prospective\nresults of operations including, without limitation: our 2026 average daily\nproduction guidance (including liquids weighting), our 2026 capital spending\nguidance, our 2026 funds flow guidance and our forecast for 2026 year-end net\ndebt and net debt to funds flow ratio; which are subject to the same\nassumptions, risk factors, limitations, and qualifications as set forth above.\nReaders are cautioned that the assumptions used in the preparation of such\ninformation, although considered reasonable at the time of preparation, may\nprove to be imprecise and, as such, undue reliance should not be placed on\nFOFI. Petrus' actual results, performance or achievement could differ\nmaterially from those expressed in, or implied by, these FOFI, or if any of\nthem do so, what benefits Petrus will derive therefrom. Petrus has included\nthe FOFI in order to provide readers with a more complete perspective on\nPetrus' future operations and such information may not be appropriate for\nother purposes.\n\nThese forward-looking statements and FOFI are made as of the date of this\npress release and the Company disclaims any intent or obligation to update any\nforward-looking statements and FOFI whether as a result of new information,\nfuture events or results or otherwise, other than as required by applicable\nsecurities laws.\n\nBOE Presentation\nThe oil and natural gas industry commonly expresses production volumes and\nreserves on a barrel of oil equivalent (“boe”) basis whereby natural gas\nvolumes are converted at the ratio of six thousand cubic feet to one barrel of\noil. The intention is to sum oil and natural gas measurement units into one\nbasis for improved measurement of results and comparisons with other industry\nparticipants. Petrus uses the 6:1 boe measure which is the approximate energy\nequivalence of the two commodities at the burner tip. Boe’s do not represent\nan economic value equivalence at the wellhead and therefore may be a\nmisleading measure if used in isolation.\n\nProduction and Product Type Information\nReferences to crude oil (or oil), natural gas liquids (\"NGLs\"), natural gas\n(or gas) and average daily production in this document refer to the light and\nmedium crude oil, conventional natural gas, and NGLs product types, as\napplicable, as defined in National Instrument 51-101 (\"NI 51-101\"), except as\nnoted below.\n\nNI 51-101 includes condensate within the NGLs product type. The Company has\ndisclosed condensate as combined with crude oil and separately from other NGLs\nsince the price of condensate as compared to other NGLs is currently\nsignificantly higher and the Company believes that this crude oil and\ncondensate presentation provides a more accurate description of its operations\nand results therefrom. Crude oil therefore refers to light oil, medium oil,\nand condensate. NGLs refers to ethane, propane, butane and pentane plus\ncombined. Natural gas refers to conventional natural gas. Liquids refers to\nlight and medium oil, condensate and NGLs.\n\nDividend Advisory\nThe Company's future dividends, if any, and the level thereof is uncertain.\nAny decision to pay dividends on the common shares (including the actual\namount, the declaration date, the record date and the payment date in\nconnection therewith) will be subject to the discretion of the Board of\nDirectors and may depend on a variety of factors, including, without\nlimitation the Company's business performance, financial condition, financial\nrequirements, growth plans, expected capital requirements and other conditions\nexisting at such future time including, without limitation, contractual\nrestrictions and satisfaction of the solvency tests imposed on the Company\nunder applicable corporate law. There can be no assurance that the Company\nwill pay dividends in the future.\n\n Abbreviations \n $000’s thousand dollars \n $/bbl dollars per barrel \n $/boe dollars per barrel of oil equivalent \n $/GJ dollars per gigajoule \n $/mcf dollars per thousand cubic feet \n bbl barrel \n mbbl thousand barrels \n bbl/d barrels per day \n boe barrel of oil equivalent \n mboe thousand barrel of oil equivalent \n mmboe million barrel of oil equivalent \n boe/d barrel of oil equivalent per day \n GJ gigajoule \n GJ/d gigajoules per day \n mcf thousand cubic feet \n mcf/d thousand cubic feet per day \n mmcf/d million cubic feet per day \n bcf billion cubic feet \n NGLs natural gas liquids \n WTI West Texas Intermediate \n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/cf5942e3-9c98-4992-bc15-4ba200813bbf)\n\n\n\nGlobeNewswire, Inc. 2026"},"type":"article","timestamp":"2026-08-06T21:30:00.43122359Z","server_sent_at_ms":1786051800431},"received_at":"2026-08-06T21:30:00.680Z","source_url":"https://www.globenewswire.com/news-release/2026/08/06/3340865/0/en/petrus-resources-announces-second-quarter-2026-financial-and-operating-results.html"},"analysis":{"id":"101333","press_release_id":"112325","analysis_json":{"industry":{"label":"Oil, Gas & Consumable Fuels","sector":"Energy"},"redFlags":["Net debt increased to $84.3M from $68.0M year-over-year","Realized loss on financial derivatives of $4.8M negatively impacted net income compared to a gain in the prior year"],"eventType":"earnings","narrative":"Petrus Resources reported Q2 2026 operating netback of $24.9 million, up 92% year-over-year, driven by a 46% increase in realized prices to $37.66/boe. Funds flow increased 32% to $16.3 million, supported by record June production averaging approximately 12,000 boe/d.\n\nThe company generated $38.1 million in oil and natural gas sales, while net debt ended the period at $84.3 million, up from $68.0 million in the prior year due to capital activity and working capital changes.\n\nPetrus confirmed it is on track to meet its full-year 2026 guidance, targeting annual average production of 11,000 to 12,000 boe/d and funds flow of $60 to $65 million.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Petrus delivers 92% netback growth and record production, reaffirming strong full-year guidance."},"keyFigures":{"eps":0.06,"revenue":38086000,"customDimensions":{"net_debt":84343000,"funds_flow":16325000,"netback_per_boe":24.73,"operating_netback":24914000,"production_boe_pd":11070,"capital_expenditures":11700000,"realized_price_per_boe":37.66}},"quotedText":"Petrus enters the second half of 2026 with strong operational momentum and remains focused on disciplined execution, delivering on its 2026 guidance and creating long-term shareholder value.","namedEntities":{"people":[{"name":"Ken Gray","role":"President and Chief Executive Officer"}],"products":["Oil","Condensate","NGLs","Natural Gas","Harmattan"],"companies":[{"name":"Petrus Resources Ltd.","ticker":"PRQ"}],"dollarAmounts":[{"amount":"$24.9 million","context":"Q2 2026 operating netback"},{"amount":"$16.3 million","context":"Q2 2026 funds flow"},{"amount":"$4.4 million","context":"Q2 2026 dividends paid"},{"amount":"$50 to $60 million","context":"2026 capital spending guidance"},{"amount":"$60 to $65 million","context":"2026 funds flow guidance"},{"amount":"$37.66/boe","context":"Q2 2026 total realized price"}]},"materialImpact":{"score":4,"reasoning":"Significant operational beat with operating netback up 92% and funds flow up 32% year-over-year, driven by record production levels and stronger pricing. The reaffirmation of full-year guidance adds confidence to the outlook."},"tickerRelevance":{"others":[],"primary":"PRQ"},"globalImportance":25,"audienceRelevance":25,"eventTypeSecondary":["guidance_update","dividend"],"importanceComponents":{"tickerTier":"small-mid-cap","eventGravity":"strong-operational-beat","sectorWeight":"energy","guidanceReaffirmation":true}},"event_type":"earnings","event_type_secondary":["guidance_update","dividend"],"sentiment":"bullish","material_impact_score":4,"narrative":"Petrus Resources reported Q2 2026 operating netback of $24.9 million, up 92% year-over-year, driven by a 46% increase in realized prices to $37.66/boe. Funds flow increased 32% to $16.3 million, supported by record June production averaging approximately 12,000 boe/d.\n\nThe company generated $38.1 million in oil and natural gas sales, while net debt ended the period at $84.3 million, up from $68.0 million in the prior year due to capital activity and working capital changes.\n\nPetrus confirmed it is on track to meet its full-year 2026 guidance, targeting annual average production of 11,000 to 12,000 boe/d and funds flow of $60 to $65 million.","key_figures":{"eps":0.06,"revenue":38086000,"customDimensions":{"net_debt":84343000,"funds_flow":16325000,"netback_per_boe":24.73,"operating_netback":24914000,"production_boe_pd":11070,"capital_expenditures":11700000,"realized_price_per_boe":37.66}},"named_entities":{"people":[{"name":"Ken Gray","role":"President and Chief Executive Officer"}],"products":["Oil","Condensate","NGLs","Natural Gas","Harmattan"],"companies":[{"name":"Petrus Resources Ltd.","ticker":"PRQ"}],"dollarAmounts":[{"amount":"$24.9 million","context":"Q2 2026 operating netback"},{"amount":"$16.3 million","context":"Q2 2026 funds flow"},{"amount":"$4.4 million","context":"Q2 2026 dividends paid"},{"amount":"$50 to $60 million","context":"2026 capital spending guidance"},{"amount":"$60 to $65 million","context":"2026 funds flow guidance"},{"amount":"$37.66/boe","context":"Q2 2026 total realized price"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-08-07T09:31:46.588Z","global_importance":25,"audience_relevance":25,"importance_components":{"tickerTier":"small-mid-cap","eventGravity":"strong-operational-beat","sectorWeight":"energy","guidanceReaffirmation":true}},"durationMs":304602,"modelName":"glm-4.7"}}