Petrus Resources Ltd., an energy company, engages in the acquisition, exploration, development, and exploitation of oil and gas development assets in western Canada.
The last earnings update was 49 days ago.
Discounted Cash Flow Calculation for DB:6P4 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
Note: Free cash flow to equity valuations ignore the company's cash or debt.
DB:6P4 DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Petrus Resources's share price is below the future cash flow value, and at a moderate discount (> 20%).
Petrus Resources's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Petrus Resources's earnings available for a low price, and how does
this compare to other companies in the same industry?
Petrus Resources's earnings are expected to grow significantly at over 20% yearly.
Petrus Resources's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Petrus Resources's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
Oil and Gas
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Petrus Resources's finances.
The net worth of a company is the difference between its assets and liabilities.
Petrus Resources's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Petrus Resources's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Petrus Resources's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is not covered by short term assets, assets are 0.1x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Neil Korchinski, P. Eng., has been the Chief Executive Officer, President of Petrus Resources Ltd. since November 7, 2016. Mr. Korchinski served as the Chief Operating Officer and Vice President of Engineering at Petrus Resources Ltd. since November 25, 2015 until November 7, 2016. Mr. Korchinski served as Vice President Engineering at Petrus Resources Corporation (formerly, Petrus Resources Ltd. (old)) since August 8, 2011 and served as its Chief Operating Officer since April 25, 2014. Mr. Korchinski served as Senior Exploitation Engineer for Peyto for a period of seven years, in that time more than $1 billion in capital was invested in Deep Basin drilling. Prior to that, he worked as a Professional Engineer for Renaissance Energy, Husky Energy and Crescent Point Energy in various exploitation, production and operation engineering roles. He served as Director of Petrus Resources Ltd. since November 7, 2016. He is a Professional Engineer with a BSc in Chemical Engineering in 2000 from the University of Calgary.
Neil's compensation has been consistent with company performance over the past year, both up more than 20%.
Neil's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure
Average tenure of the
management team in years:
The tenure for the Petrus Resources management team is about average.
CFO & VP of Finance
Vice President of Engineering
Vice President of Land
Manager of Facilities and Pipelines
Field Production Foreman
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Petrus Resources board of directors is about average.
Board of Directors
Independent Chairman of the Board
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Petrus Resources Ltd., an energy company, engages in the acquisition, exploration, development, and exploitation of oil and gas development assets in western Canada. It primarily explores for natural gas, natural gas liquids, and crude oil. The company primarily holds a 54% working interest in the Ferrier/Strachan Area, which include 28,931 net acres of undeveloped and 13,631 net acres of developed land located in west central Alberta near the town of Rocky Mountain House, Alberta. It also has an average of 63% working interest in the Thorsby/Pembina area covering 23,719 net acres of undeveloped land and 46,925 net acres of developed land located in southwest of Edmonton, Alberta; and an average of 50% working interest in the Foothills area that consists of 32,088 net acres of undeveloped land and 6,847 net acres of developed land located northwest of Rocky Mountain House, Alberta. Petrus Resources Ltd. is headquartered in Calgary, Canada.
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