Petrus Resources Announces 2024 Budget Guidance - Seite 2

² Non-GAAP financial measure. During the year ended December 31, 2022, funds flow was $87.7 million and free funds flow was ($ 9.0) million. As at September 30, 2023, net debt was $42.6 million. Refer to "Non-GAAP and Other Financial Measures".

READER ADVISORIES

Non-GAAP and Other Financial Measures
This press release refers to the term "funds flow", "free funds flow" and "net debt". These non-GAAP and other financial measures are not recognized measures under GAAP (IFRS) and do not have a standardized meaning prescribed by GAAP (IFRS). Accordingly, the Company's use of these terms may not be comparable to similarly defined measures presented by other companies. These non-GAAP and other financial measures should not be considered to be more meaningful than GAAP measures which are determined in accordance with IFRS as indicators of our performance. Management uses these non-GAAP and other financial measures for the reasons set forth below.

Funds Flow
Funds flow is a common non-GAAP financial measure used in the oil and natural gas industry that evaluates the Company’s profitability at the corporate level. Management believes that funds flow provides information to assist a reader in understanding the Company's profitability relative to current commodity prices. The most directly comparable financial measure that is disclosed in the Company's primary financial statements is oil and natural gas revenue, which was $152.4 million for the year ended December 31, 2022. For additional information regarding funds flow (including a reconciliation of funds flow to oil and natural gas revenue), see the disclosure under "Non-GAAP and Other Financial Measures – Corporate Netback and Funds Flow" in the Company's Management's Discussion & Analysis for the year ended December 31, 2022 which is available on SEDAR+ at www.sedarplus.ca, which disclosure is incorporated by reference herein.

Free Funds Flow 
Free funds flow is a common non-GAAP financial measure used in the oil and natural gas industry that evaluates the Company’s efficiency and liquidity. Free funds flow represents the funds after capital expenditures available to manage debt levels and pay dividends. Petrus calculates free funds flow as funds flow generated during the period less capital expenditures. The most directly comparable financial measure that is disclosed in the Company's primary financial statements is oil and natural gas revenue, which was $152.4 million for the year ended December 31, 2022. Following is a reconciliation of free funds flow to oil and natural gas revenue for the year ended December 31, 2022: