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Overview
* PrairieSky Q2 oil royalty production rises 8% yr/yr, setting a record high
* Funds from operations fell 9% yr/yr due to lower US$ WTI pricing
* Company repurchased 84,020 shares
Outlook
* Company expects royalty production from Duvernay wells in West Shale Basin in Q3
* PrairieSky anticipates continued annual oil royalty production growth
* Company expands credit facility to C$600 mln for increased liquidity
* PrairieSky sees sustained third-party drilling activity on royalty lands
Result Drivers
* RECORD OIL PRODUCTION – Achieved record oil royalty production of 14,376 barrels per day, an 8% increase over Q2 2024
* LOWER WTI PRICES – Funds from operations decreased 9% due to lower US$ WTI benchmark pricing despite record production
* NATURAL GAS REVENUE – Natural gas royalty production revenue increased by 80% due to improved benchmark pricing
Key Details
Metric Beat/Mis Actual Consensus Estimate
Q2 C$123.60 Revenue mln Q2 Net C$56.30 Income mln Q2 FFO C$96.70
mln Q2 Net C$242 Debt mln
Analyst Coverage
* The current average analyst rating on the shares is “hold” and the breakdown of recommendations is 5 “strong buy” or “buy”, 6 “hold” and 1 “sell” or “strong sell”
* The average consensus recommendation for the oil & gas exploration and production peer group is “buy.”
* Wall Street’s median 12-month price target for Prairiesky Royalty Ltd is C$28.00, about 16.6% above its July 11 closing price of C$23.34
* The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 22 three months ago
Press Release:
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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