Prairiesky Royalty Ltd. ( (PREKF) ) has released its Q2 earnings. Here is a breakdown of the information Prairiesky Royalty Ltd. presented to its investors.
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PrairieSky Royalty Ltd. is a Canadian royalty company engaged in generating revenue from oil and natural gas production on its extensive portfolio of properties, boasting one of the largest independently-owned mineral title positions in the country.
In its second quarter of 2025, PrairieSky Royalty Ltd. reported a record oil royalty production of 14,376 barrels per day, marking an 8% increase from the previous year. The company also achieved total royalty production averaging 26,457 BOE per day, reflecting a 4% growth over the same period in 2024.
Key financial metrics for the quarter include revenues of $123.6 million, with $111.2 million derived from royalty production. Despite a 9% decrease in funds from operations to $96.7 million, the company maintained a strong dividend payout ratio of 63%, declaring dividends totaling $61.2 million. Additionally, PrairieSky executed share repurchases and acquisitions, reducing its net debt to $242.0 million by the end of the quarter.
The company continues to focus on strategic growth, with significant activity in the Duvernay and Clearwater plays, which are expected to contribute to future production increases. The expansion of its credit facility by $250 million further enhances its financial flexibility.
Looking ahead, PrairieSky Royalty Ltd. anticipates continued growth in oil royalty production, driven by third-party drilling activities on its lands and strategic acquisitions, positioning the company for sustained financial performance.