Duyuru • 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. Price Target Changed • Sep 05
Price target decreased by 17% to CA$0.50 Down from CA$0.60, the current price target is provided by 1 analyst. New target price is 20% above last closing price of CA$0.41. Stock is down 26% over the past year. The company posted earnings per share of CA$0.084 last year. 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 74 percentage points per year, which is a significant difference in performance. Duyuru • 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 08
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 36% per year, which means it is well ahead of earnings. New Risk • Mar 26
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 7.3% Last year net profit margin: 50% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (15% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (7.3% net profit margin). Market cap is less than US$100m (CA$37.6m market cap, or US$27.7m). Duyuru • Mar 02
Perpetual Energy Inc., Annual General Meeting, May 15, 2024 Perpetual Energy Inc., Annual General Meeting, May 15, 2024. Price Target Changed • Feb 04
Price target decreased by 17% to CA$0.50 Down from CA$0.60, the current price target is an average from 2 analysts. New target price is 28% above last closing price of CA$0.39. Stock is down 42% over the past year. The company is forecast to post a net loss per share of CA$0.03 compared to earnings per share of CA$0.69 last year. Duyuru • 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 03
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 87% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Oct 19
Price target decreased by 12% to CA$0.55 Down from CA$0.63, the current price target is provided by 1 analyst. New target price is approximately in line with last closing price of CA$0.56. Stock is down 43% over the past year. The company is forecast to post a net loss per share of CA$0.14 compared to earnings per share of CA$0.69 last year. Duyuru • 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. Duyuru • 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. Price Target Changed • Oct 16
Price target increased by 8.3% to CA$0.65 Up from CA$0.60, the current price target is an average from 2 analysts. New target price is approximately in line with last closing price of CA$0.62. Stock is down 33% over the past year. The company is forecast to post a net loss per share of CA$0.14 compared to earnings per share of CA$0.69 last year. Duyuru • 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 • Aug 04
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: 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 (3.5% increase in shares outstanding). Market cap is less than US$100m (CA$46.3m market cap, or US$34.7m). Reported Earnings • Aug 04
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 91% per year, which means it is tracking significantly ahead of earnings growth. 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 Risk 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 (CA$45.0m market cap, or US$34.1m). Price Target Changed • Jun 01
Price target decreased by 13% to CA$0.70 Down from CA$0.80, the current price target is an average from 2 analysts. New target price is 43% above last closing price of CA$0.49. Stock is down 67% over the past year. The company is forecast to post a net loss per share of CA$0.13 compared to earnings per share of CA$0.69 last year. 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 whereas the company’s share price has increased by 115% per year. Reported Earnings • Mar 03
Full year 2022 earnings: EPS and revenues exceed analyst expectations 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 exceeded analyst estimates by 3.4%. Earnings per share (EPS) also surpassed analyst estimates by 64%. Revenue is expected to fall by 9.0% p.a. on average during the next 2 years compared to a 2.0% decline forecast for the Oil and Gas industry in Canada. 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 117% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Jan 14
Price target decreased to CA$1.35 Down from CA$1.88, the current price target is an average from 2 analysts. New target price is 88% above last closing price of CA$0.72. Stock is up 7.5% over the past year. The company is forecast to post earnings per share of CA$0.36 for next year compared to CA$1.29 last year. 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 whereas the company’s share price has increased by 96% per year. Duyuru • Nov 08
Perpetual Energy Inc. Provides Production Guidance for the Fourth Quarter and Full Year of 2022 Perpetual Energy Inc. provided production guidance for the fourth quarter and full year of 2022. For the quarter, the company expects average production volumes to exceed 7,000 boe/d as the seven (3.5 net) new wells come on production at East Edson and the three (3.0 net) wells at Mannville contribute to heavy oil production volumes. For the year, the company announces average production is on track to grow approximately 25% from 2021 levels in accordance with guidance on August 3, 2022, of 6,500 boe/d to 6,750 boe/d. Production mix to be 20% oil and NGL. 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 but the company’s share price has only increased by 68% per year, which means it is significantly lagging earnings growth. Price Target Changed • Aug 04
Price target decreased to CA$1.75 Down from CA$2.00, the current price target is provided by 1 analyst. New target price is 62% above last closing price of CA$1.08. Stock is up 192% over the past year. The company posted earnings per share of CA$1.29 last year. Duyuru • Aug 04
Perpetual Energy Inc. Provides Production Mix Guidance for 2022 Perpetual Energy Inc. provided production mix guidance for 2022. For the year the company expects the Production mix of 20% oil and NGL. Recent Insider Transactions • Jul 03
Insider recently sold CA$95k worth of stock On the 30th of June, Jeffrey Green sold around 72k shares on-market at roughly CA$1.33 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of CA$127k more than they bought in the last 12 months. Reported Earnings • May 06
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 but the company’s share price has only increased by 59% per year, which means it is significantly lagging earnings growth. Duyuru • May 05
Perpetual Energy Inc. Provides Consolidated Production Guidance for the Second Quarter and Full Year 2022 Perpetual Energy Inc. provided consolidated production guidance for the second quarter and full year 2022. Production is forecast to decline from first quarter levels through the second quarter of 2022 to an average of 5,900 boe/d to 6,200 boe/d, with oil and NGL expected to represent close to 22% of production as the two new multi-lateral heavy oil wells at Mannville begin to contribute to sales volumes. Average production volumes are forecast to grow to achieve 7,000 boe/d during the second half of 2022 as seven (3.5 net) new wells are drilled and come onstream at East Edson and assuming the four (4.0 net) well follow-up drilling program at Mannville is executed later in the third quarter. For the full year, the company forecast to grow approximately 25% from 2021 levels to the high end of previous March 15, 2022 guidance of 6,500 boe/d to 6,750 boe/d in 2022, with oil and NGL representing approximately 20% of the production mix. Price Target Changed • Apr 27
Price target increased to CA$1.10 Up from CA$0.95, the current price target is provided by 1 analyst. New target price is 34% above last closing price of CA$0.82. Stock is up 290% over the past year. The company posted earnings per share of CA$1.29 last year. Reported Earnings • Mar 18
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$51.3m (up 117% 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 37% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 14
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 44% per year, which means it is tracking significantly ahead of earnings growth. Recent Insider Transactions • Oct 16
Insider recently sold CA$69k worth of stock On the 13th of October, Linda McKean sold around 100k shares on-market at roughly CA$0.69 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of CA$53k more than they bought in the last 12 months. 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 4% per year. Duyuru • Mar 06
Perpetual Energy Inc., Annual General Meeting, May 18, 2021 Perpetual Energy Inc., Annual General Meeting, May 18, 2021. Reported Earnings • Feb 27
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 32% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Feb 25
New 90-day high: CA$0.21 The company is up 187% from its price of CA$0.075 on 26 November 2020. The Canadian 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 15% over the same period. Duyuru • Jan 28
Perpetual Energy Inc. Receives Alberta Court of Appeal Judgment Relating to the Sequoia Disposition Perpetual Energy Inc. received the Alberta Court of Appeal's judgment (the "Court of Appeal Judgment") with respect to the appeals heard by the Court of Appeal on December 10, 2020 relating to the sale by Perpetual of legacy shallow gas properties in October 2016 to an arm's length third party purchaser after an extensive and lengthy marketing, due diligence and negotiation process (the "Sequoia Disposition"). The Court of Appeal Judgment dismissed the appeal filed by Perpetual and granted certain aspects of the appeals filed by PricewaterhouseCoopers Inc. LIT ("PwC"), in its capacity as trustee in bankruptcy of Sequoia Resources Corp. ("Sequoia"), with respect to the Alberta Court of Queen's Bench judgments of August 15, 2019 and August 26, 2020 pertaining to the Sequoia Disposition. As previously disclosed, on January 14, 2021, the Court of Queen's Bench released its decision with respect to Perpetual's application to strike and summarily dismiss the claim brought under Section 96 of the Bankruptcy and Insolvency Act (the "BIA Claim") finding that PwC could not establish a necessary element of the BIA Claim as Sequoia was not insolvent at the time of, nor rendered insolvent by, the Sequoia Disposition. The Court of Queen's Bench therefore concluded there is "no merit" to the BIA Claim and it was summarily dismissed. On January 21, 2021, PwC filed a notice of appeal of this judgment to the Court of Appeal. Perpetual continues to believe that all of the outstanding claims brought by PwC in relation to the Sequoia Disposition are completely opportunistic and entirely without merit and it will continue to vigorously defend itself against them. The Company remains highly confident that it will be completely successful in defending the outstanding aspects of PwC's claims. Reported Earnings • Nov 12
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 only fallen by 58% per year, which means it has not declined as severely as earnings. Duyuru • Jul 31
An unknown buyer acquired 50% stake in East Edson property in West Central Albert from Perpetual Energy Inc. (TSX:PMT) for CAD 35 million. An unknown buyer acquired 50% stake in East Edson property in West Central Albert from Perpetual Energy Inc. (TSX:PMT) for CAD 35 million on April 1, 2020. The consideration includes CAD 35 million in cash the carried interest funding of the Company's remaining 50% working interest share in an eight-well drilling program. Perpetual Energy will use the cash proceeds to repay debt and fund profitable investment in the Clearwater play in Eastern Alberta.
An unknown buyer completed the acquisition of 50% stake in East Edson property in West Central Albert from Perpetual Energy Inc. (TSX:PMT) on April 1, 2020.