CALGARY, Alberta, Oct. 20, 2025 (GLOBE NEWSWIRE) -- PrairieSky Royalty Ltd. ("PrairieSky" or the "Company") (TSX: PSK) is pleased to announce its third quarter operating and financial results for the period ended September 30, 2025. Third Quarter Highlights Oil royalty production increased 11% over Q3 2024(1) averaging 14,127 barrels per day. Total royalty production averaged 25,687 BOE per day, a 5% increase over Q3 2024.Royalty production revenue totaled $107.7 million and combined with other revenue of $ ...

CALGARY, Alberta, Oct. 06, 2025 (GLOBE NEWSWIRE) -- PrairieSky will release its Q3 2025 results on Monday, October 20, 2025 after markets close. The news release detailing PrairieSky’s Q3 2025 results will provide operating and financial information. Financial statements along with management’s discussion and analysis will be available on PrairieSky’s website at www.prairiesky.com and on SEDAR+ at www.sedarplus.com. A conference call to discuss the results will be held for the investment community on Tuesda ...

Core Viewpoint - Kimbell Royalty Partners, LP will release its third quarter 2025 financial results on November 6, 2025, before market opens, and will declare its distribution concurrently [1]. Group 1: Financial Results Announcement - Kimbell Royalty Partners will announce its third quarter 2025 financial results on November 6, 2025 [1]. - The company will declare its third quarter 2025 distribution at the same time as the earnings release [1]. - A conference call is scheduled for the same day at 10:00 a.m. Central (11:00 a.m. Eastern) to discuss the results [1]. Group 2: Company Overview - Kimbell Royalty Partners is a leading oil and gas mineral and royalty company based in Fort Worth, Texas [3]. - The company owns mineral and royalty interests in over 17 million gross acres across 28 states and in every major onshore basin in the continental United States [3]. - Kimbell has ownership in more than 131,000 gross wells [3].

Financial Data and Key Metrics Changes - Viper Energy reported strong oil production growth in Q2 2025 despite oil price volatility, with a focus on organic growth from Diamondback [5][6] - The company plans to return $0.56 per share to stockholders this quarter, representing 75% of cash available for distribution [7] - The pro forma net debt target is set at $1.5 billion, which represents approximately one turn of leverage at $50 WTI [7][8] Business Line Data and Key Metrics Changes - The expected year-over-year growth in Diamondback operated net oil production is over 15% [6] - Full year 2026 average production is anticipated to increase by a mid-single digit percentage from Q4 2025 production levels [7] Market Data and Key Metrics Changes - The company is experiencing increased activity from third-party operators, primarily large-cap companies like Exxon, Oxy, EOG, and Conoco, which is expected to remain consistent [18][19] - Current activity levels suggest potential upside to the mid-single digit growth outlook for 2026, driven by Diamondback operations [20] Company Strategy and Development Direction - Viper Energy is focused on maintaining a strong relationship with Diamondback, which is seen as a competitive advantage [9] - The company is pursuing organic growth while also considering accretive acquisitions, such as the SITIO royalties acquisition [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the organic growth trajectory continuing into 2026 at current prices [6] - The company aims to balance free cash generation with potential non-core asset sales to reach the net debt target [13][14] Other Important Information - The SITIO acquisition is expected to close shortly after the shareholder meeting on August 18, which will enhance Viper's production profile over the next decade [6] - The company emphasizes a commitment to returning excess cash to shareholders once the net debt target is achieved [8] Q&A Session Summary Question: Flexibility towards the $1.5 billion net debt target - Management indicated that the business can generate significant free cash flow, allowing for a mix of non-core asset sales and free cash generation to reach the target [12][13] Question: Mix of buybacks versus variable dividends - Management noted that they prefer to be a distribution vehicle but may lean towards buybacks given the current stock valuation [15] Question: Sustainability of third-party operator activities - Management highlighted that large-cap operators are expected to maintain their development plans, benefiting Viper's production [18][19] Question: Evaluation of non-core assets in the CTO portfolio - Management stated they will be patient with larger positions and may consider selling non-core assets when market conditions are favorable [24] Question: Strategy regarding dividends and buybacks post-acquisition - Management suggested that the board may consider increasing the base dividend in the next quarter, depending on free cash flow growth [49] Question: Availability of M&A opportunities - Management indicated a cautious approach to M&A, focusing on ensuring the success of recent acquisitions before pursuing new deals [52]

Viper Energy Investment Highlights - Viper's Q2 2025 cash available for distribution was $0.74 per share, with a total return of capital to Class A shareholders of $0.56 per share[14] - The company turned 302 total gross (6.5 net 100% royalty interest) horizontal wells to production during Q2 2025, with an average lateral length of 12,846 feet[14] - Viper closed a drop-down acquisition of Diamondback's mineral and royalty interests on May 1, 2025, for approximately $1 billion in cash and 69.6 million OpCo units[14] - Q3 2025 average production guidance is 46,000 - 49,000 bo/d (86,000 - 92,000 boe/d)[14] - Viper entered into a definitive agreement to acquire Sitio Royalties Corp in an all-equity transaction on June 3, 2025[14] - Post-Sitio Acquisition, estimated production for the balance of 2025 is 64,000 - 68,000 bo/d (122,000 - 130,000 boe/d)[14] Return of Capital - The base dividend of $0.33 per share implies a 3.6% annualized yield, representing approximately 45% of estimated cash available for distribution assuming $50 WTI[14] - A variable dividend for Q2 2025 of $0.20 per share was declared, bringing the total base-plus-variable dividend to $0.53 per share, implying a 5.8% annualized yield[14] - The board authorized a $750 million share repurchase program, with 13.7 million shares repurchased through August 1, 2025, for an aggregate of $326 million at an average price of $23.76 per share[14] Financial Position - Viper has a market capitalization of $10.9 billion, net debt of $1.1 billion, and liquidity of $1.2 billion[21] - The company has approximately 61,275 net royalty acres in the Permian Basin, with 69 rigs currently operating on its acreage[14, 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]

Core Insights - The ability to generate cash is more critical than net income for evaluating stocks, as non-cash expenses can distort the financial picture [1] - Free cash flow margin is a key profitability metric that indicates a company's ability to convert sales into cash available for shareholders [2] Company Summaries Altria Group - Altria Group leads the U.S. large-cap consumer staples sector with a free cash flow margin exceeding 42%, significantly higher than Philip Morris International's 28% [3] - The company's strong cash flow generation supports a high dividend yield of 6.9%, ranking it among the top 20 dividend yields in U.S. large-cap stocks [3] Airbnb - Airbnb has a free cash flow margin of just under 41%, leading the U.S. large-cap consumer discretionary sector [6] - The company's free cash flow increased by 108% from 2021 to 2024, reaching $4.5 billion, with a notable turnaround from a loss of $225 million in 2021 to a profit of $2.6 billion in 2024 [6][7] - A significant $1.9 billion difference exists between Airbnb's net income and free cash flow, primarily due to $1.4 billion in stock-based compensation [7] - Despite concerns about stock-based compensation diluting shares, Airbnb has engaged in $3.4 billion in buybacks to mitigate this effect, reducing its fully diluted share count by over 5% since December 2022 [8][9] Texas Pacific Land - Texas Pacific Land boasts a free cash flow margin of over 65%, the highest among U.S. large-cap stocks in the energy sector [10] - The company's royalty business model allows it to profit from leasing land rights for oil extraction without incurring the costs of extraction [11]

Financial Data and Key Metrics Changes - Kimbell Royalty Partners reported oil, natural gas, and NGL revenues of $69.1 million for Q4 2024, excluding acquired production, with record run-rate production of 25,946 BOE per day [14][15] - Consolidated adjusted EBITDA for Q4 2024 was $59.8 million, excluding acquired production [15] - The company announced a cash distribution of $0.40 per common unit for Q4 2024, equating to 75% of cash available for distribution [16] Business Line Data and Key Metrics Changes - The company maintained a strong drilling activity with 91 rigs actively drilling on its acreage, representing approximately 16% market share of all land rigs in the continental U.S. [10][14] - The five-year annual average PDP decline rate is 14%, requiring only an estimated 6.5% net wells annually to maintain flat production [11] Market Data and Key Metrics Changes - Kimbell Royalty Partners has a conservative balance sheet with net debt to trailing twelve-month consolidated adjusted EBITDA of approximately 0.8 times [17] - The company had approximately $310.8 million in undrawn capacity under its secured revolving credit facility as of December 31, 2024 [17] Company Strategy and Development Direction - Kimbell aims to continue as a major consolidator in the U.S. oil and gas royalty sector, which is estimated to be over $700 billion in size [20] - The company is focused on larger acquisitions, targeting $100 million-plus deals, to avoid increasing leverage from smaller transactions [73][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the prospects for continued robust development in 2025, supported by the number of rigs actively drilling on their acreage, especially in the Permian Basin [19] - The new administration's support for increased domestic energy output is seen as beneficial for the company as a mineral owner [30] Other Important Information - Kimbell has grown production from 3,116 BOE per day to 25,946 BOE per day since its IPO eight years ago, an increase of 733% [20] - The company plans to redeem about half of its preferred shares in May 2025, while continuing to use 25% of cash flow to pay down debt [44][50] Q&A Session Summary Question: Are there any particular basins where you're seeing an abundance of opportunity to add acreage? - Management noted that while the Permian continues to see the most consolidation, opportunities are being explored across the U.S. without targeting a specific basin [25][26] Question: Has the new administration's regulatory changes affected opportunities? - Management indicated that the administration has been supportive of increased domestic energy output, which benefits the company [30] Question: Can you discuss the 2025 guidance and the quality of acquired assets? - Management stated that the guidance reflects flat growth, with a strong line of sight inventory and confidence in the quality of acquired assets [38][41] Question: What are the plans for redeeming preferred shares? - Management confirmed plans to redeem about half of the preferred shares in May and will consider financing options for future acquisitions [44][50] Question: How does the competitive landscape for M&A look? - Management emphasized a focus on high-quality properties regardless of commodity price movements, and noted that consolidation tends to be a net positive for mineral owners [62][67]