Prairiesky Royalty Ltd. ( (PREKF) ) has released its Q4 earnings. Here is a breakdown of the information Prairiesky Royalty Ltd. presented to its investors.
PrairieSky Royalty Ltd. is a Canadian company that specializes in oil and natural gas royalties, with a prominent portfolio of independently-owned fee simple mineral titles.
The company recently announced its fourth quarter and year-end results for 2024, highlighting record annual oil royalty production and a 4% increase in its annual dividend policy to $1.04 per common share.
For the fourth quarter of 2024, PrairieSky reported oil royalty production volumes averaging 13,317 barrels per day, marking a 4% increase compared to the same period in 2023, while total royalty production saw a slight decline due to decreased natural gas and NGL production. The company generated $135.6 million in total revenues for the quarter and declared a $59.9 million dividend. On an annual basis, PrairieSky achieved record oil royalty production volumes, averaging 13,125 barrels per day, and total revenues of $509.2 million. Despite a 1% decrease in funds from operations compared to 2023, the company reduced its net debt significantly by $87.2 million.
PrairieSky completed $57.3 million in acquisitions focusing on light and heavy oil plays and saw a 3.5% increase in proved plus probable oil reserves due to drilling extensions. The company’s strategic investments in low-cost oil plays and acquiring additional royalty interests are expected to continue bolstering its production and revenue.
Looking ahead, PrairieSky’s management expresses confidence in the company’s strategy of investing in low-cost oil plays and expects continued momentum in oil royalty production from the Clearwater and Mannville Stack plays, along with growth in light oil volumes from new well licenses in the Duvernay play. The company is also optimistic about providing sustainable returns to shareholders through its high-margin, low-cost business model.