PrairieSky Reports Second Quarter 2022 Results, Record Oil Royalty…

PrairieSky Reports Second Quarter 2022 Results, Record Oil Royalty…


CALGARY, Alberta, July 18, 2022 (GLOBE NEWSWIRE) — PrairieSky Royalty Ltd. (“PrairieSky” or the “company“) (TSX: PSK) is pleased to announce its second quarter (“Q2 2022”) Results for the three-month period ended 30 June 2022.

Second Quarter Highlights:

  • Record average royalty production of 25,992 BOE per day, up 9% from Q1 2022 and 32% from Q2 2021, with oil royalty production reaching a record 12,220 barrels per day.
  • Total revenue increased to $198.1 million, up 42% from Q1 2022 and 184% from Q2 2021, comprised of royalty production revenue of $190.2 million and other revenue of $7.9 million U.S. dollar.
  • Generated record quarterly funds from operations of $159.6 million ($0.67 per common share basic and diluted), up 52% ​​from Q1 2022 and 182% from Q2 2021, driven by Royalty production growth and strong commodity prices.
  • Declared a second-quarter dividend of $28.7 million ($0.12 per common share), a payout ratio of 18%, with excess cash flow used for royalty acquisitions of $15.6 million and the remainder was allocated to pay off bank debt.
  • Net debt was $453.9 million, a decrease of 20% or $115.0 million from March 31, 2022 as excess funds from operations were used to service debt incurred by the related to acquisitions completed in the second half of 2021.
  • PrairieSky completed $15.6 million in royalty acquisitions during the quarter and added approximately 360 BOE per day (86% natural gas) in incremental parent gross royalties in central Alberta and northeastern British Columbia and undeveloped land in the Clearwater oil field.

Message from the President

This is the third consecutive quarter of strong organic growth in royalty production as third party operators actively drilled new wells and completed workovers and recomplements at PrairieSky’s extensive land base. Increased royalty production, strong commodity prices for all products and higher lease premiums and other revenues combine to deliver record quarterly funding…


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