Q1 2025 Prairiesky Royalty Ltd Earnings Call Transcript

Apr 15, 2025 / 12:30PM GMT

Release Date Price: €14.8 (+4.23%)

Transcript

Key Points

Positve

PrairieSky Royalty Ltd (PREKF) achieved record oil volumes of 13,502 barrels per day of net royalty production in Q1 2025.
The company signed 52 new leases with 39 counterparties, generating $5 million in lease issuance bonus.
PrairieSky Royalty Ltd (PREKF) closed the Petro-Canada fee title package in Southeast Saskatchewan for $50 million, with significant leasing potential.
The company repurchased 3.4 million shares, increasing remaining shareholders' interest by 1.4%.
PrairieSky Royalty Ltd (PREKF) maintains a strong balance sheet with net debt at $258.8 million as of March 31, 2025.

Negative

Subsequent to quarter end, oil prices declined, leading to significant market volatility.
Natural gas volumes declined, averaging 55.9 million a day compared to Q1 2024.
The company has a payout ratio of 71%, which may limit flexibility in capital allocation.
There is a potential risk of activity slowdown due to the recent decline in oil prices.
PrairieSky Royalty Ltd (PREKF) has taken on incremental debt to repurchase shares, which could impact financial stability if not managed carefully.

Operator

Good day, and welcome to PrairieSky Royalty Ltd., announce the first-quarter 2025 financial results. (Operator Instructions)

As a reminder, this call may be recorded. I would now like to turn the call over to Andrew Phillips, President and CEO. Please go ahead.

Andrew Phillips

Prairiesky Royalty Ltd - President, Chief Executive Officer, Director

Thank you, Michelle, and good morning, everyone, and thank you for dialing into the PrairieSky Q1 2025 conference call. On the call from PrairieSky are Pam Kazeil, Dan Bertram, Mike Murphy, and myself, Andrew Phillips.

Before we begin, there are certain forward-looking information and statements in our commentary today, so I'd ask listeners and investors to review the forward-looking statements qualified in our press release and MD&A, which can be found on our website.

PrairieSky achieved record oil volumes of 13,502 barrels per day of net royalty production in the first quarter of 2025. Over 200 wells were spud in Q1, an increase of 26 wells from the same period in 2024. The average

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