Petrus Resources Ltd. (PRQ) Q2 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good day, and thank you for standing by. Welcome to the Petrus Resources second quarter 2024 results conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you'll need to press star 11 on your telephone. You'll then hear an automated message advising your hand is raised. To answer your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to your speaker for today, Ken. Please go ahead. Welcome to Petrus Resources 2024 Q2 Earnings Call. My name is Ken Gray, and I am the CEO of Petrus. I'm joined here by our executive team of Matthew Wong, our CFO, Matt Scandrup, COO, and Lindsay Hatcher, VP Commercial and Corporate Development. The most notable thing to me in our Q2 results is the fact that we have held production relatively flat for the past 12 months, despite reducing our capital program in response to low gas prices. Production in Q2 averaged 9,471 DOE per day. It included production added from 2.3 net wells drilled in Q1 and brought on right at the end of that quarter. We did shut in about 200 BOE per day of production for economic reasons and had some turnarounds in maintenance in June, which negatively impacted production. Also of note in Q2, cash costs were down 17% from Q1. Some of this is due to increased gathering and processing fees from third parties generated by the north area pipeline we completed in late 2023. Cash flow came in at $10.6 million for the quarter. We distributed $3.7 million of it in dividends to our shareholders and spent $6.9 million in capital, primarily on completing the three operated wells we drilled back in Jan...