Prairie Provident Resources Announces Second Quarter 2026 Results

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Postmedia has not reviewed the content. by GlobeNewswire Prairie Provident Resources Announces Second Quarter 2026 ResultsAuthor of the article: You can save this article by registering for free here. Or sign-in if you have an account.CALGARY, Alberta, Aug. 12, 2026 (GLOBE NEWSWIRE) — Prairie Provident Resources Inc. (“Prairie Provident” or the “Company”) (TSX:PPR) announces its financial and operating results for the second quarter of 2026. The Company’s interim financial statements for the three and six months ended June 30, 2026, and related Management’s Discussion and Analysis (“MD&A”) are available on the Company’s website at www.ppr.ca and filed on SEDAR+ at www.sedarplus.ca.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountQ2 2026 REVIEW AND UPDATEProduction averaged 2,153 boe/d (57% liquids)1 for Q2 2026 as Prairie Provident has continued to focus spending on well and facility optimization. In the first half of 2026, with no new wells drilled, the capital efficient optimization work has flattened corporate decline at 2,178 boe/d (59% oil and natural gas liquids)1;Operating expenses were $38.88/boe for Q2 2026, a 30% increase relative to the $29.86/boe in Q1 2026 and a 53% increase relative to the $25.37/boe in Q2 2025 due to higher workover spending to maintain production in Q2 2026;Operating netback2 for Q2 2026 was $3.9 million ($19.73/boe), a $0.4 million increase from Q1 2026 and a $1.0 million decrease from Q2 2025. The increase relative to Q1 2026 was as a result of higher realized commodity prices due to the ongoing Middle East conflict;Net loss of $6.3 million for Q2 2026, a $0.2 million reduction compared to Q2 2025. This decrease was driven by non-cash impairment reversals and lower depletion and depreciation expense in the current quarter; andAt June 30, 2026, the Company was in breach of its financial debt covenants as described in the MD&A. In such case, the First Lien Loan and the Second Lien Notes lenders have the right to demand immediate repayment of all amounts owed under both facilities. As a result of this breach, the First Lien Loan and Second Lien Notes debt is classified as current at June 30, 2026. The Company continues to have discussions with its lenders.1 Comprised of medium crude oil, natural gas liquids (NGLs) and conventional natural gas in the volumes indicated as crude oil and condensate, NGLs and natural gas in the “Financial and Operating Summary” table below.2 Operating netback is a Non-GAAP financial measure and is defined below under “Advisories – Non-GAAP and Other Financial Measures”.FINANCIAL AND OPERATING SUMMARY ($000s, except per unit amounts or as indicated)Q2 2026Q1 2026Q2 2025YTD 2026YTD 2025FINANCIAL Revenue Petroleum and natural gas sales12,999 10,554 12,554 23,553 23,627 Royalties(1,514)(1,173)(1,292)(2,687)(2,764)Revenue11,485 9,381 11,262 20,866 20,863 Realized loss on derivatives– – – – – Unrealized gain on derivatives– – – – – Revenue, net of gains (losses) on derivatives11,485 9,381 11,262 20,866 20,863 Net loss(6,312)(3,014)(6,501)(9,326)(12,638)$ per share – Basic(0.14)(0.06)(0.14)(0.20)(0.28)$ per share – Diluted(0.14)(0.06)(0.14)(0.20)(0.28)Adjusted Funds Flow(1)2,232 (1,422)3,117 810 4,899 $ per share – Basic0.05 (0.03)0.07 0.02 0.11 $ per share – Diluted0.05 (0.03)0.07 0.02 0.11 Capital expenditures(1)1 306 2,923 307 10,946 Net capital expenditures(1)(79)306 2,923 227 11,022 Adjusted working capital (deficit)(1)5,971 4,279 (6,182)5,971 (6,182)Adjusted net debt(1)(73,320)(71,876)(74,312)(73,320)(74,312)Common Shares outstanding (000s)(3) End of period(3)46,759 46,747 46,719 46,759 46,719 Weighted average – Basic(3)46,755 46,738 46,715 46,747 44,601 Weighted average – Diluted(3)46,755 46,738 46,715 46,747 44,601 OPERATING ProductionVolumes Crude oil and condensate (bbl/d)1,140 1,261 1,616 1,200 1,410 Natural gas liquids (bbl/d)86 75 102 81 96 Natural gas (Mcf/d)5,566 5,195 6,260 5,382 5,919 Total (boe/d)(2)2,153 2,202 2,762 2,178 2,493 % Liquids57%61%62%59%60%Realized Prices Crude oil and condensate ($/bbl)110.77 79.92 74.97 94.65 80.02 Natural gas liquids ($/bbl)56.79 49.54 1.96 53.44 2.18 Natural gas ($/Mcf)2.11 2.46 44.07 2.28 49.91 Total ($/boe)(2)66.33 53.26 49.96 59.76 52.36 Operating Netback ($/boe) Realized price66.33 53.26 49.96 59.76 52.36 Royalties(7.72)(5.92)(5.14)(6.82)(6.13)Operating expenses(38.88)(29.86)(25.37)(34.34)(27.26)Operating netback(1)19.73 17.48 19.45 18.60 18.97 Realized loss on derivatives– – – – – Operating netback, after realized loss on derivatives(1)19.73 17.48 19.45 18.60 18.97 This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.1 This is a Non-GAAP measure. For further information, refer to “Advisories – Non-GAAP and Other Financial Measures” below.2 The term barrels of oil equivalent (“boe”) may be misleading, particularly if used in isolation. Boe amounts have been calculated by using the conversion ratio of six thousand cubic feet (6 Mcf) of natural gas to one barrel (1 bbl) of crude oil. Refer to “Advisories – Oil and Gas Reader Advisories – Barrels of Oil Equivalent” below.3 On December 31, 2025, a share consolidation was effected on a 30-to-1 basis. Per share numbers have been adjusted on a retroactive basis.Prairie Provident is a Calgary-based company engaged in the development of oil and natural gas properties in Alberta. The Company’s strategy is to optimize cash flow from its existing assets to fund low-risk development and maintain stable cash flow while limiting its production decline.For further information, please contact: Dale Miller, Executive ChairmanPhone: (403) 292-8150Email: investor@ppr.caOil and Gas Reader AdvisoriesBarrels of Oil EquivalentTheoilandgasindustrycommonlyexpressesproductionvolumesandreservesona“barrelofoilequivalent”(“boe”) basis whereby natural gas volumes are converted at the ratio of six thousand cubic feet to one barrel of oil. The intention is to sum oil and natural gas measurement units into one basis for improved analysis of results and comparisonswith other industryparticipants. Aboe conversionratioofsixthousand cubic feettoonebarrelofoilis based on an energy equivalency conversion method primarily applicable at the burner tip. It does not represent a valueequivalencyatthewellheadnorattheplantgate,whichiswherePrairieProvidentsellsitsproductionvolumes. Boemay,therefore,beamisleadingmeasure,particularlyifusedinisolation.Giventhatthevalueratiobasedonthe current price of crude oil as compared to natural gas is significantly different from the energy equivalency ratio of 6:1, utilizing a 6:1 conversion ratio may be misleading as an indication of value.Non-GAAP and Other Financial MeasuresThis news release discloses certain financial measures thatare ‘non-GAAP financial measures’, ‘non-GAAP ratios’ or ‘supplementaryfinancialmeasures’withinthemeaningofapplicableCanadiansecuritieslaws.Suchmeasuresdonot have a standardized or prescribed meaning under International Financial Reporting Standards (IFRS) and, accordingly, may not be comparable to similar financial measures disclosed by other issuers. Non-GAAP and other financialmeasuresareprovidedassupplementaryinformationbywhichreadersmaywishtoconsidertheCompany’s performancebutshouldnotberelieduponforcomparativeorinvestmentpurposes.ReadersmustnotconsiderNon- GAAP and other financial measures in isolation or as a substitute for analysis of the Company’s financial results as reportedunderIFRS.Forareconciliationofeachnon-GAAP measureto its nearest IFRSmeasure, pleasereferto the “Non-GAAP and Other Financial Measures” section of the MD&A.Followingisadditionalinformationonnon-GAAPandotherfinancialmeasuresusedinthisnewsrelease.Adjusted Funds Flow (“AFF”) – AFF is a Non-GAAP financial measure calculated based on net cash from operating activitiesbeforechangesinnon-cashworkingcapital,transactioncosts,restructuringcostsand othernon-recurring items. The Company believes that AFF provides a useful measure of the Company’s operational performance on a continuing basis by eliminating certain non-cash charges and charges that are non-recurring or discretionary. Management utilizes the measure to assess the Company’s ability to finance capital expenditures and debt repayments.AFFaspresentedisnotintendedtorepresentcashflowfromoperatingactivities,netearningsorother measures of financial performance calculated in accordance with IFRS. AFF per share is calculated based on the weightedaveragenumberofcommonsharesoutstandingconsistentwiththecalculationofearningspershare.AFF per share is a Non-GAAP ratio.Operating Netback–OperatingnetbackisaNon-GAAPfinancialmeasurecommonlyusedintheoilandgasindustry, which the Company believes is a useful measure to assist management and investors to evaluate operating performance.Operatingnetbackincludedinthisreportweredeterminedbytakingoilandgasrevenueslessroyalties and operating expenses. Operating netback, afterrealized gains (losses) on derivatives, adjusts the operating netback foronlytherealizedportionofgainsandlossesonderivatives.Operatingnetbackmaybeexpressedinabsolutedollar terms or on a per boe basis. Per boe amounts are determined by dividing the absolute value by working interest production.Operatingnetbackperboeandoperatingnetback,afterrealizedgains(losses)onderivativesperboeare Non-GAAP ratios.Capital Expenditures and Net Capital Expenditures–CapitalexpendituresandnetcapitalexpendituresareNon-GAAP financialmeasurescommonlyusedinthepetroleumandnaturalgasindustry,whichtheCompanybelievesareuseful measurestoassistmanagementandinvestorstoassessPrairieProvident’sinvestmentinitsexistingassetbase.Capital expenditures is calculated as the sum of property and equipment expenditures and exploration and evaluation expenditures from the consolidated statements of cash flowsthat is most directly comparable to cash flows used in investing activities. Net capital expenditures is calculated as capital expenditures, plus acquisitions from business combinations,whichistheoutflowcashconsiderationpaidtoacquireoilandgasproperties,lessassetdispositions(net ofacquisitions),whichisthecashproceedsfromthedispositionofproducingpropertiesandundevelopedlands.Working Capital (Deficit) and Adjusted Working Capital (Deficit)–Workingcapital(deficit),alsoknownasnetcurrent assets (liabilities), is a Non-GAAP financial measure, calculated as current assets less current liabilities. Adjustedworking capital (deficit) used in conjunction with debt and the calculation of “Adjusted Net Debt” below for the purpose of determining TotalLeverageRatiocovenantandcertaindefinedtermsundertheCompany’sFirstLienLoanandSecond LienNotesdebtagreements(see“CapitalResourcesandLiquidity–Debt”sectionintheMD&A),isaNon-GAAPfinancial measure.Adjustedworkingcapital(deficit)iscalculatedascurrentassetsexcludingderivativeassetsandassets-held- for-sale and current liabilities, excluding the current portions of long-term debt, lease liabilities, decommissioning obligations,derivativeliabilities,othernon-cashliabilitiesandliabilitiesheldforsale.Inadditiontomeasuringcovenant compliance,thismeasureisusedtoassistmanagementandinvestorsinunderstandingliquidityataspecificpointin time.Net Debt and Adjusted Net Debt–NetdebtisaNon-GAAPmeasure,definedasdebt,plusworkingcapital(deficit).Net debtisameasurecommonlyusedintheoilandgasindustryforassessingtheliquidityofacompany.Adjustednetdebt isaNon-GAAPmeasureandusedinconjunctionwithadjustedworkingcapital(deficit)forthepurposeofdetermining Total LeverageRatio covenant and certain defined terms under the Company’s debt agreements (see “Capital Resources andLiquidity–Debt”sectionintheMD&A).Adjustednetdebtiscalculatedastheprincipaldebtamountfromlenders, plusadjustedworkingcapital(deficit)determinedinaccordancewiththeCompany’sdebtagreements.Theprincipal debtamountfromlendersdiffersfromthecarryingamountofthedebtinthefinancialstatementsasreportedunder IFRS as outlined in the “Debt” section in the MD&A.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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