Prospera Energy (PEI) Q2 2026 earnings summary

Executive summary

• Q2 2026 delivered record quarterly revenue of $6.2 million, the highest in years, driven by stabilized production, higher oil prices, and reactivated wells.

• Strong operating cash flow and profitability were achieved, with significant contributions from Luseland reactivations and operating netback of $2.0 million, the best in 24 months.

• Maintained flat operating costs despite higher volumes, with field operating costs per boe falling 5% quarter over quarter.

• The company is scaling its strategy with a new equity raise to fund further well reactivations and production optimization.

• Monthly operating income in June 2026 was approximately four times January 2026 levels, reflecting strong operational momentum.

Financial highlights

• Q2 2026 revenue reached $6.2 million, up 37% from Q1 2026 and 26% year-over-year, with sales price at $91.17/boe.

• Operating netback rose to $2.0 million ($29.65/boe), a 170%–182% increase from Q1.

• Funds flow was $1.3 million and net operating cash flow $1.5 million, both firmly positive.

• Net loss narrowed to just over $1 million from almost $2.5 million in Q1.

• Trade and other payables reduced by $1.8 million (10%) since year-end, including $170,476 settled in shares and a $71,121 gain on debt settlements.

Outlook and guidance

• Forecasting a 4.3x return on investment and a 4.2x increase in production by December 2028, mainly from Luseland reactivations.

• Positioned for H2 2026 with elevated oil prices, a proven reactivation template, and a flat cost structure.

• If current price levels and WCS differential hold, operating netbacks are expected to remain above Q2 averages, supporting further growth and liability reduction.

• Over 140 reactivation candidates remain, providing a multi-year, low-risk growth runway.

• Netbacks anticipated to remain above 2025 levels if WTI holds at $70–75 for the rest of 2026.