PrairieSky Royalty Ltd. (TSX: PSK) Q2 2025 Earnings | 07/15/2025

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PrairieSky Royalty Ltd. (TSX: PSK) reported its Q2 2025 results on July 15, 2025, achieving record oil royalty production of 14,376 barrels per day—an 8% year-over-year increase—driven by robust activity in the Clearwater, Mannville Stack, and Duvernay plays. Total royalty production averaged 26,457 BOE per day, up 4% from Q2 2024. Quarterly revenues totaled $123.6 million, composed of $111.2 million in royalty production revenue and $12.4 million in other revenue, including $8.5 million in bonus consideration from 47 new leasing arrangements with strong focus on the Duvernay light oil play. Funds from operations reached $96.7 million ($0.41 per share), down 9% from Q2 2024, primarily due to lower benchmark US$ WTI crude pricing, despite narrowed oil price differentials and a weaker Canadian dollar. Net income was $56.3 million ($0.24 per share). Natural gas royalty production averaged 58.4 MMcf per day—earning $7.9 million in royalty revenue, an 80% increase over the prior year—while NGL royalty production rose 2% to 2,348 barrels per day with revenue of $7.6 million. Cash from operating activities totaled $90.3 million, and the company declared a quarterly dividend of $0.26 per share (totaling $61.2 million, a payout ratio of 63%). During the quarter, PrairieSky repurchased and cancelled 84,020 common shares for $2 million and completed $6.5 million in acquisitions, focused on non-producing gross overriding royalty interests. Operational activity remained robust: 117 wells were spud on PrairieSky’s lands, led by heavy oil development and increased multilateral horizontal drilling in the Clearwater. The company exited the quarter with net debt of $242 million, a $16.8 million reduction from Q1, and subsequently expanded its unsecured, covenant-based credit facility to $600 million, ensuring enhanced liquidity and flexibility for future growth. Outlook: Management expects ongoing growth in oil royalty production, with initial production from multiple Duvernay wells anticipated in Q3 2025. Strong market activity, new lease arrangements, and focus on Mannville, Duvernay, and Clearwater plays continue to underpin future growth. Key priorities include disciplined capital allocation, continued dividend payments, NCIB share repurchases, and accretive acquisitions. About Inside Ticker: For more expert analysis and real-time updates on PrairieSky Royalty Ltd. (TSX: PSK) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #PrairieSky #PSK #Q22025 #Earnings #RoyaltyProduction #OilAndGas #Clearwater #Mannville #Duvernay #FinancialResults #Dividend #StockMarket #Investing #InsideTicker #NetIncome #RevenueGrowth #BOE #CanadianEnergy #ShareRepurchase #OperationalExcellence #CreditFacility #BusinessUpdate #Guidance #NaturalGas #NGL #EnergySector #AssetGrowth #DividendStock #ShareholderReturns #Q2Results #MarketUpdate