Prairiesky Royalty
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Prairiesky Royalty (PSK) investor relations material

Prairiesky Royalty Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary10 Feb, 2026

Executive summary

  • Achieved record oil royalty production of 13,940 barrels per day in 2025, up 6% year-over-year, with total royalty production of 25,855 BOE per day and expectations for further records in 2026.

  • Holds 18.6 million acres of royalty lands, the largest fee simple mineral title portfolio in Canada, with 94% of 2025 royalty production revenue from oil and liquids.

  • Returned $2.4 billion to shareholders since IPO, including $2.0 billion in dividends and $405 million in share buybacks.

  • Cancelled 2.6% of outstanding shares and paid $243.4 million in dividends in 2025, with a 2% increase to the annual dividend, now $1.06 per share for 2026.

  • Maintains a strong balance sheet with 0.7x net debt/EBITDA and a conservative 69% dividend payout ratio in 2025.

Financial highlights

  • 2025 total revenues were $478.2 million, with $441.7 million from royalty production revenue and $22.6 million in bonus consideration from leasing.

  • Funds from operations for 2025 were $353.0 million ($1.50/share), with Q4 at $80.5 million ($0.35/share).

  • Net earnings for 2025 were $205.0 million ($0.87/share), compared to $215.3 million in 2024.

  • Average 2025 production was 25,855 BOE/d, with 64% liquids.

  • Royalty operating margin was 99% and overall operating margin 88% for 2025.

Outlook and guidance

  • Expect continued strong oil and NGL production growth in 2026, with double-digit growth anticipated in Clearwater and Duvernay plays.

  • 10-year funds from operations projections range from $2.4 to $7.0 billion depending on commodity prices.

  • Funds from operations are highly sensitive to commodity prices and FX rates; a $5/bbl WTI change impacts FFO by $24.5 million.

  • Tax pools of $1.18 billion will shelter the first $118 million of 2026 cash flow from tax.

  • Low payout ratio and no maintenance capex position the company for future dividend and FFO growth.

FFO impact from WTI decline vs. production growth
P+P reserves NPV decline despite oil reserves growth?
Capital allocation impact on YE 2025 net debt
How will Duvernay pad timing affect 2026 volumes?
What is the share buyback philosophy?
Outlook for Mannville Stack and Basal Quartz growth?
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Frequently asked questions

PrairieSky Royalty Ltd is a Canadian company that owns a portfolio of royalty interests in crude oil and natural gas properties. The company generates revenue by leasing lands and collecting royalties from production by third-party operators. It is headquartered in Calgary, Canada, and its shares are listed on the TSX.

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