PrairieSky Royalty Ltd. announces second quarter results for 2025, with record oil royalty production of 14,376 barrels per day, a 8% increase from 2024. Revenues totaled $123.6 million, including bonus consideration of $8.5 million from 47 new leasing arrangements. Funds from operations were $96.7 million, with a dividend payout ratio of 63%. Net debt decreased to $242.0 million.

President Andrew Phillips notes record oil royalty production volumes and growth in heavy oil portfolio. Multilateral horizontal drilling reached 52% of spuds, with activity strong in Duvernay. Funds from operations were $96.7 million, driven by strong royalty production volumes generating $111.2 million in royalty revenue, mostly from oil. Natural gas revenue increased by 80% over 2024.

PrairieSky declared a dividend of $0.26 per share in the quarter, with a payout ratio of 63%. Excess funds were allocated to acquisitions and share repurchases. Net debt decreased to $242.0 million. The expanded credit facility increased liquidity to $600 million. Third-party operators spudded 117 wells on PrairieSky’s royalty acreage in the quarter, with increased drilling activity in various oil and gas plays.

Financial highlights for the second quarter include royalty production revenue of $111.2 million, funds from operations of $96.7 million, and net earnings of $56.3 million. Dividends declared were $61.2 million, with a payout ratio of 63%. Acquisitions totaled $6.5 million, with net debt at $242.0 million. Operating netback per BOE was $43.04.

PrairieSky will hold a conference call on July 15, 2025, to discuss its results. Forward-looking statements in the press release outline the company’s future plans and growth strategy, cautioning investors on risks and uncertainties. Conversions of natural gas to BOE allow for a single unit of production analysis, while non-GAAP measures like operating netback per BOE and dividend payout ratio provide additional financial information.

PrairieSky Royalty Ltd. is a royalty company with a diverse portfolio of properties in Canada. Its common shares trade on the Toronto Stock Exchange under the symbol PSK. For more information, contact President & CEO Andrew M. Phillips or visit www.prairiesky.com.

Read more at GlobeNewswire: PrairieSky Announces Second Quarter 2025 Results