Announcement • Nov 01
Perpetual Energy Shares Expects to Delist from TSX at Close of November 4, 2024 Rubellite Energy Inc. (‘Rubellite’) and Perpetual Energy Inc. (‘Perpetual’) jointly announced that they have completed their previously announced strategic recombination transaction (the ‘Recombination’) creating ‘Rubellite Energy Corp.’. The Recombination was effected by way of an arrangement under the Business Corporations Act (Alberta), pursuant to which holders of Rubellite common shares (‘Rubellite Shares’) received one (1) common share (‘New Shares’) of Rubellite Energy Corp. for each Rubellite Share held, holders of Perpetual common shares (‘Perpetual Shares’) received one (1) New Share for every five (5) Perpetual Shares held, and Perpetual's outstanding senior notes ($26.2 million in face value) were converted into 11.6 million New Shares at a conversion price of $2.25 per share. It is expected that the Perpetual Shares will be delisted on the Toronto Stock Exchange (the ‘TSX’) at the close of business on or after November 4, 2024 and the New Shares will begin trading on the TSX under Rubellite's trading symbol ‘RBY’ at the market open on or after November 5, 2024. Reported Earnings • Aug 04
Second quarter 2024 earnings released: EPS: CA$0.05 (vs CA$0.063 loss in 2Q 2023) Second quarter 2024 results: EPS: CA$0.05 (up from CA$0.063 loss in 2Q 2023). Revenue: CA$8.63m (down 36% from 2Q 2023). Net income: CA$3.34m (up CA$7.54m from 2Q 2023). Profit margin: 39% (up from net loss in 2Q 2023). The move to profitability was driven by lower expenses. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 82 percentage points per year, which is a significant difference in performance. Announcement • May 18
Perpetual Energy Inc. Announces Court Approval of Sequoia Litigation Settlement Agreement Perpetual Energy Inc. announced that the Alberta Court of King's Bench has approved the previously announced settlement agreement with PricewaterhouseCoopers Inc., LIT in its capacity as trustee in bankruptcy (the "Trustee") of Sequoia Resources Corp. (Sequoia) related to the Sequoia litigation (the Settlement). After several years of litigation, Perpetual previously announced that it had entered into the Settlement to resolve the Sequoia litigation without any party admitting liability, wrongdoing or violation of law, regulations, public policy or fiduciary duties. The Trustee has registered its second lien security for the Settlement obligations and the Company has entered into a new inter-creditor agreement between its existing first lien lenders, the Trustee, and the trustee for the holders of the third lien 2025 Senior Notes. The $10.0 million initial payment held in escrow since the execution of the Settlement agreement on March 22, 2024 has been released to the Trustee, plus all accrued interest has been applied against the Settlement amount owing, with a remaining obligation outstanding of $19.9 million. The Company currently has available liquidity of $29.7 million, comprised of the $30.0 million borrowing limit of Perpetual's first lien credit facility and cash on hand of $1.0 million less letters of credit of $1.3 million, which compares to the available liquidity as at March 31, 2024 of $31.7 million. The Settlement terminates what has been and would otherwise continue to be, a lengthy litigation process and allows Perpetual to advance its business plans with significantly improved access to capital, affording the financial flexibility to pursue value enhancing opportunities. The Company and Board of Directors are pleased to put this matter behind and move forward to unlock Perpetual's inherent value potential. Reported Earnings • May 09
First quarter 2024 earnings released: CA$0.36 loss per share (vs CA$0.004 loss in 1Q 2023) First quarter 2024 results: CA$0.36 loss per share (further deteriorated from CA$0.004 loss in 1Q 2023). Revenue: CA$6.14m (down 57% from 1Q 2023). Net loss: CA$24.6m (loss widened CA$24.3m from 1Q 2023). Over the last 3 years on average, earnings per share has fallen by 41% per year but the company’s share price has increased by 54% per year, which means it is well ahead of earnings. Reported Earnings • Mar 26
Full year 2023 earnings released: EPS: CA$0.08 (vs CA$0.69 in FY 2022) Full year 2023 results: EPS: CA$0.08 (down from CA$0.69 in FY 2022). Revenue: CA$76.9m (down 14% from FY 2022). Net income: CA$5.62m (down 87% from FY 2022). Profit margin: 7.3% (down from 50% in FY 2022). Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has increased by 60% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Mar 02
Perpetual Energy Inc., Annual General Meeting, May 15, 2024 Perpetual Energy Inc., Annual General Meeting, May 15, 2024. Announcement • Nov 23
Pointbreak Resources Inc. completed the acquisition of certain assets at Mannville in Eastern Alberta from Perpetual Energy Inc. (TSX:PMT). Pointbreak Resources Inc. entered into a definitive agreement to acquire certain assets at Mannville in Eastern Alberta from Perpetual Energy Inc. (TSX:PMT) for CAD 35.8 million on October 17, 2023. As reported, Perpetual Energy Inc will sell certain assets at Mannville in Eastern Alberta for gross proceeds of CAD 35.8 million in cash, prior to customary purchase price adjustments. The properties included in the transaction comprise substantially all of the production attributed to Perpetual Energy's Eastern Alberta cash-generating-unit which averaged 1,449 boe/d (65% conventional heavy oil) of sales production during the second quarter of 2023. The transaction is expected to close on or about November 22, 2023. Proceeds from the transaction will be used to reduce bank debt and manage future maturities on Perpetual Energy's Term Loan and Senior Notes and other obligations as they come due, as well as provide Perpetual with the liquidity to invest in its remaining assets at East Edson and pursue other new venture opportunities.
Pointbreak Resources Inc. completed the acquisition of certain assets at Mannville in Eastern Alberta from Perpetual Energy Inc. (TSX:PMT) on November 22, 2023. Reported Earnings • Nov 04
Third quarter 2023 earnings released: EPS: CA$0.06 (vs CA$0.13 in 3Q 2022) Third quarter 2023 results: EPS: CA$0.06 (down from CA$0.13 in 3Q 2022). Revenue: CA$19.8m (up 14% from 3Q 2022). Net income: CA$3.73m (down 55% from 3Q 2022). Profit margin: 19% (down from 48% in 3Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 54% per year but the company’s share price has increased by 322% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Oct 19
Pointbreak Resources Inc. entered into a definitive agreement to acquire certain assets at Mannville in Eastern Alberta from Perpetual Energy Inc. (TSX:PMT) for CAD 35.8 million. Pointbreak Resources Inc. entered into a definitive agreement to acquire certain assets at Mannville in Eastern Alberta from Perpetual Energy Inc. (TSX:PMT) for CAD 35.8 million on October 17, 2023. As reported, Perpetual Energy Inc will sell certain assets at Mannville in Eastern Alberta for gross proceeds of CAD 35.8 million in cash, prior to customary purchase price adjustments. The properties included in the transaction comprise substantially all of the production attributed to Perpetual Energy's Eastern Alberta cash-generating-unit which averaged 1,449 boe/d (65% conventional heavy oil) of sales production during the second quarter of 2023. The transaction is expected to close on or about November 22, 2023. Proceeds from the transaction will be used to reduce bank debt and manage future maturities on Perpetual Energy's Term Loan and Senior Notes and other obligations as they come due, as well as provide Perpetual with the liquidity to invest in its remaining assets at East Edson and pursue other new venture opportunities. Announcement • Oct 18
Perpetual Energy Inc. Revises Production Guidance for the Year 2023 Perpetual Energy Inc. revised production guidance for the year 2023. For the year, the company expected Average daily production to be 6,200 boe/d - 6,400 boe/d compared to previous guidance of 6,400 boe/d - 6,600 boe/d. New Risk • Aug 06
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 43% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (12% average weekly change). Minor Risks High level of debt (43% net debt to equity). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (33% net profit margin). Shareholders have been diluted in the past year (3.9% increase in shares outstanding). Market cap is less than US$100m (€28.9m market cap, or US$31.8m). Reported Earnings • Aug 06
Second quarter 2023 earnings released: CA$0.06 loss per share (vs CA$0.07 profit in 2Q 2022) Second quarter 2023 results: CA$0.06 loss per share (down from CA$0.07 profit in 2Q 2022). Revenue: CA$14.5m (down 46% from 2Q 2022). Net loss: CA$4.20m (down 194% from profit in 2Q 2022). Over the last 3 years on average, earnings per share has increased by 81% per year but the company’s share price has increased by 256% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Aug 05
Perpetual Energy Inc. Confirms Production Guidance for the Year 2023 Perpetual Energy Inc. confirmed production guidance for the year 2023. For the period, the company expects production to be stable year over year at 6,400 boe/d to 6,600 boe/d. New Risk • Jul 31
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 3.5% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (12% average weekly change). High level of non-cash earnings (25% accrual ratio). Minor Risks Profit margins are more than 30% lower than last year (45% net profit margin). Shareholders have been diluted in the past year (3.5% increase in shares outstanding). Market cap is less than US$100m (€31.0m market cap, or US$34.2m). New Risk • Jun 25
New major risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of German stocks, typically moving 10% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (25% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (10% average weekly change). Profit margins are more than 30% lower than last year (45% net profit margin). Shareholders have been diluted in the past year (4.0% increase in shares outstanding). Market cap is less than US$100m (€24.4m market cap, or US$26.5m). Reported Earnings • May 07
First quarter 2023 earnings released First quarter 2023 results: Revenue: CA$15.6m (down 28% from 1Q 2022). Net loss: CA$235.0k (down 103% from profit in 1Q 2022). Over the last 3 years on average, earnings per share has increased by 111% per year but the company’s share price has increased by 825% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Mar 03
Full year 2022 earnings released: EPS: CA$0.69 (vs CA$1.29 in FY 2021) Full year 2022 results: EPS: CA$0.69 (down from CA$1.29 in FY 2021). Revenue: CA$88.1m (up 72% from FY 2021). Net income: CA$44.4m (down 45% from FY 2021). Profit margin: 50% (down from 158% in FY 2021). Revenue is expected to decline by 9.0% p.a. on average during the next 2 years, while revenues in the Oil and Gas industry in Germany are expected to grow by 7.2%. Over the last 3 years on average, earnings per share has increased by 102% per year but the company’s share price has increased by 845% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Nov 09
Third quarter 2022 earnings released: EPS: CA$0.13 (vs CA$0.80 in 3Q 2021) Third quarter 2022 results: EPS: CA$0.13 (down from CA$0.80 in 3Q 2021). Revenue: CA$28.2m (up 118% from 3Q 2021). Net income: CA$8.23m (down 84% from 3Q 2021). Profit margin: 29% (down from 396% in 3Q 2021). Over the last 3 years on average, earnings per share has increased by 98% per year but the company’s share price has increased by 158% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Aug 05
Second quarter 2022 earnings released: EPS: CA$0.07 (vs CA$0.43 in 2Q 2021) Second quarter 2022 results: EPS: CA$0.07 (down from CA$0.43 in 2Q 2021). Revenue: CA$23.4m (up 112% from 2Q 2021). Net income: CA$4.47m (down 84% from 2Q 2021). Profit margin: 19% (down from 244% in 2Q 2021). Over the last 3 years on average, earnings per share has increased by 93% per year whereas the company’s share price has increased by 97% per year. Recent Insider Transactions • Jul 03
Insider recently sold €70k worth of stock On the 30th of June, Jeffrey Green sold around 72k shares on-market at roughly €0.98 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of €92k more than they bought in the last 12 months. Reported Earnings • May 07
First quarter 2022 earnings released: EPS: CA$0.11 (vs CA$0.044 loss in 1Q 2021) First quarter 2022 results: EPS: CA$0.11 (up from CA$0.044 loss in 1Q 2021). Revenue: CA$11.0m (up 14% from 1Q 2021). Net income: CA$7.16m (up CA$9.87m from 1Q 2021). Profit margin: 65% (up from net loss in 1Q 2021). Over the last 3 years on average, earnings per share has increased by 78% per year whereas the company’s share price has increased by 83% per year. Reported Earnings • Mar 17
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: CA$1.29 (up from CA$1.01 loss in FY 2020). Revenue: CA$50.9m (up 116% from FY 2020). Net income: CA$81.1m (up CA$142.7m from FY 2020). Oil reserves and sales price Proven reserves: 2.351 MMbbls Average sales price/bbl (hedged): US$57.36 Gas reserves and sales price Proven reserves: 91.92 Bcf Average sales price/mcf (hedged): US$3.15 LNG reserves and sales price Proven reserves: 1.169 MMbbls Average sales price/bbl (hedged): US$63.24 Combined production and costs Oil equivalent production: 1.969 MMboe (1.829 MMboe in FY 2020) Average production cost/Boe: US$6.54 (US$6.34/Boe in FY 2020) Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 56% per year but the company’s share price has only increased by 44% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 13
Third quarter 2021 earnings released: EPS CA$0.80 (vs CA$0.12 loss in 3Q 2020) Third quarter 2021 results: Revenue: CA$12.0m (up 111% from 3Q 2020). Net income: CA$51.1m (up CA$58.6m from 3Q 2020). Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has increased by 69% per year, which means it is tracking significantly ahead of earnings growth. Board Change • Oct 22
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 3 highly experienced directors. 3 independent directors (5 non-independent directors). Independent Director Geoff Merritt was the last independent director to join the board, commencing their role in 2010. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Aug 14
Second quarter 2021 earnings released: EPS CA$0.43 (vs CA$0.14 loss in 2Q 2020) Second quarter 2021 results: Revenue: CA$11.2m (up 264% from 2Q 2020). Net income: CA$27.0m (up CA$35.8m from 2Q 2020). Over the last 3 years on average, earnings per share has fallen by 8% per year whereas the company’s share price has fallen by 10% per year. Is New 90 Day High Low • Mar 03
New 90-day high: €0.21 The company is up 8,220% from its price of €0.0025 on 03 December 2020. The German market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Oil and Gas industry, which is up 9.0% over the same period. Reported Earnings • Feb 26
Full year 2020 earnings released The company reported a soft full year result with weaker revenues and control over costs, although losses reduced. Full year 2020 results: Revenue: CA$35.0m (down 45% from FY 2019). Net loss: CA$61.6m (loss narrowed 35% from FY 2019). Over the last 3 years on average, earnings per share has fallen by 67% per year but the company’s share price has only fallen by 43% per year, which means it has not declined as severely as earnings. Reported Earnings • Nov 11
Third quarter 2020 earnings released: CA$0.12 loss per share The company reported a decent third quarter result with reduced losses and improved control over expenses, although revenues were weaker. Third quarter 2020 results: Revenue: CA$5.69m (down 62% from 3Q 2019). Net loss: CA$7.49m (loss narrowed 63% from 3Q 2019). Over the last 3 years on average, earnings per share has fallen by 69% per year but the company’s share price has fallen by 82% per year, which means it is performing significantly worse than earnings.