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

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 C$123.60

Revenue mln

Q2 Net C$56.30

Income mln

Q2 FFO C$96.70

mln

Q2 Net C$242

Debt mln

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 ( PREKF ) 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:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)