Petrus Resources: Balancing Growth and Financial Discipline in 2025

Petrus Resources Ltd. (TSX: PRQ) has announced its 2025 budget guidance, outlining a strategic plan that balances maintaining production, increasing liquids weighting, and enhancing capital efficiency. The company's disciplined approach to capital investment, coupled with a strong hedging strategy and commitment to financial sustainability, positions Petrus Resources for long-term growth and value creation.

Petrus Resources' 2025 capital program allocates approximately 70% of its $40 million to $50 million budget towards high-impact development drilling in its core Ferrier and North Ferrier areas. This targeted approach aims to maintain and potentially increase production, while the remaining capital will be invested in strategic infrastructure and land acquisitions to enhance capital efficiency. The budget is based on price assumptions of USD$68.50/bbl WTI for oil, CAD$2.04/GJ AECO for natural gas, and a USD/CAD exchange rate of $0.70.

Through the execution of this capital program, Petrus Resources expects to achieve the following outcomes in 2025:

* Annual average daily production of 9,000 to 10,000 boe1 per day, with a 65% gas and 35% total liquids mix.
* Annual funds flow2 of $45 million to $55 million, representing an increase from the $78.0 million generated in 2023.
* A monthly dividend of $0.01/share, which represents approximately 9% of the current share price.
* Maintaining net debt flat2 at $60 million, indicating the company's commitment to financial discipline and sustainability.

Petrus Resources' hedging strategy for 2025 involves protecting approximately 54% of its forecasted production at average prices of $2.78/GJ for natural gas and CAD $94.37/bbl for oil. This strategy contributes to the company's financial discipline and risk management by providing stable cash flows, mitigating risks, ensuring dividend sustainability, and maintaining operational flexibility. By remaining disciplined and flexible from an operational and financial perspective, Petrus Resources is well-positioned to navigate changing market dynamics and deliver consistent value to shareholders.



Petrus Resources' plan to maintain net debt flat at $60 million in 2025 reflects its commitment to financial sustainability and long-term growth. By leveraging operational efficiencies, maintaining financial discipline, and adapting to changing market conditions, the company aims to strengthen its financial position and reinforce long-term sustainability. This approach allows Petrus Resources to maintain a strong balance sheet while investing in growth opportunities and delivering consistent value to shareholders.

In conclusion, Petrus Resources' 2025 budget guidance demonstrates the company's commitment to balancing growth and financial discipline. By targeting high-impact development drilling, investing in strategic infrastructure, and maintaining a strong hedging strategy, Petrus Resources is well-positioned to maintain and grow its production, increase its liquids weighting, and enhance its capital efficiency. With a focus on financial sustainability and long-term growth, Petrus Resources is poised to deliver consistent value to shareholders in 2025 and beyond.

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