Canada's PrairieSky reports 8% y/y jump in Q2 oil royalty production

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

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: ID:nGNX2B0Hsf