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Prairiesky Royalty (PSK) investor relations material
Prairiesky Royalty Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q3 2025 oil royalty production grew 11% year-over-year to 14,127 bbl/d, with total royalty production up 5% to 25,687 BOE/d, driven by Duvernay and Clearwater drilling; Duvernay royalty production more than doubled and Clearwater volumes exceeded 2,500 bbl/d.
Record 57 wells were spud in Clearwater and 20 in Mannville Stack, with robust leasing activity and 44 new leases signed with 37 counterparties.
$9.9 million in acquisitions closed, including over 50,000 acres of fee mineral title in Saskatchewan and interests in Mannville heavy oil and Duvernay light oil.
Board expanded with the addition of Ian Dundas, effective January 2026.
Net earnings for the quarter were $45.9 million ($0.20 per share), compared to $47.3 million in Q3 2024.
Financial highlights
Oil royalty production averaged 14,127 bbl/d, up 11% from Q3 2024, generating $97.8 million in revenue, while total royalty production revenue was $107.7 million.
NGL royalty production of 2,210 bbl/d contributed $7.4 million, and natural gas royalty volumes averaged $56.1 million/d, adding $2.5 million.
Other revenues totaled $7.1 million, including $4.8 million in bonus consideration; year-to-date bonus consideration reached $18.3 million.
Funds from operations were $90 million or $0.38 per share, down 3% from Q3 2024 due to a 14% drop in US$ WTI benchmark pricing.
Dividends declared totaled $60.5 million ($0.26 per share), with a payout ratio of 67%.
Outlook and guidance
Management expects continued royalty production growth from Clearwater, Mannville Stack, and Duvernay plays, with further growth in Mannville Stack in the back half of the year.
Increased allocation of third-party capital to Duvernay expected in 2026 due to improved capital efficiencies.
Multilateral horizontal drilling anticipated to further increase activity and production.
Operators in Clearwater and Mannville expected to maintain or grow activity despite challenging oil prices, supported by efficiency gains and new operators entering the play.
Duvernay activity anticipated to remain strong or grow in 2026, with operators benefiting from improved economics and a favorable light oil price environment.
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