Core Insights - PrairieSky Royalty Ltd. reported a strong performance in Q3 2025, with oil royalty production volumes increasing by 11% compared to Q3 2024, averaging 14,127 barrels per day [4][6] - The company generated total royalty production revenue of $107.7 million, contributing to funds from operations of $90.0 million, or $0.38 per share, despite a 3% decrease from Q3 2024 due to lower benchmark pricing [5][6] - PrairieSky declared a dividend of $0.26 per share, totaling $60.5 million, with a payout ratio of 67% [6][7] Financial Performance - Total revenues for Q3 2025 reached $114.8 million, including $7.1 million from other revenues, which included $4.8 million from new leasing arrangements [5][6] - Oil royalty production revenue decreased by 3% from Q3 2024, while natural gas royalty production revenue fell by 4% due to lower production volumes and challenging pricing [5][6] - Net debt increased to $281.7 million, up by $39.7 million from June 30, 2025 [6][7] Operational Highlights - The company averaged total royalty production of 25,687 BOE per day, a 5% increase over Q3 2024 [5][6] - There were 201 wells spud on PrairieSky's royalty acreage during the quarter, with a majority being oil wells [8] - Multilateral horizontal drilling contributed significantly, with a record 105 multilateral wells spud in the quarter [4][8] Director Appointment - Ian Dundas has been appointed to the Board of Directors effective January 1, 2026, bringing over 25 years of experience in the oil and gas industry [3][9] Future Outlook - The company anticipates continued growth in royalty production driven by ongoing activity in the Duvernay and Clearwater plays [21]

Core Insights - PrairieSky Royalty Ltd. reported record oil royalty production volumes of 14,376 barrels per day in Q2 2025, an 8% increase compared to Q2 2024, contributing to year-to-date oil royalty production of 13,941 barrels per day [3][6] - The company generated funds from operations totaling $96.7 million ($0.41 per share) in Q2 2025, a 9% decrease from Q2 2024, primarily due to lower US$ WTI benchmark pricing despite record production volumes [4][6] - PrairieSky declared a dividend of $0.26 per share, totaling $61.2 million, with a payout ratio of 63% [5][13] Financial Performance - Total revenues for Q2 2025 amounted to $123.6 million, consisting of $111.2 million in royalty production revenue and $12.4 million in other revenue, including $8.5 million from new leasing arrangements [4][6] - Oil royalty production revenue decreased by 14% from Q2 2024, totaling $95.7 million, attributed to lower benchmark pricing and a weaker Canadian dollar [4][6] - Natural gas royalty production volumes averaged 58.4 MMcf per day, generating $7.9 million in revenue, an 80% increase from Q2 2024, driven by improved benchmark pricing [4][6] Operational Highlights - Third-party operators spud 117 wells on PrairieSky's royalty acreage in Q2 2025, with 97% being oil wells, compared to 115 wells in Q2 2024 [7] - The company expects initial royalty production from multiple Duvernay wells in the West Shale Basin in Q3 2025, indicating continued growth in annual oil royalty production [3][4] - PrairieSky's net debt as of June 30, 2025, was $242.0 million, a decrease of $16.8 million from March 31, 2025 [5][13] Strategic Initiatives - The company allocated excess funds from operations to acquire $6.5 million in incremental royalty interests and repurchased 84,020 common shares for $2.0 million [5][6] - PrairieSky expanded its credit facility by $250 million, increasing the total available credit limit to $600 million, enhancing liquidity and financial flexibility [5][7] - The normal course issuer bid (NCIB) remains a key part of PrairieSky's long-term capital allocation strategy to create shareholder value [5][6]