Prairiesky Royalty (PSK) Investor Day 2025 summary

Strategic overview and portfolio evolution

• Royalty land base expanded to 18.5 million acres, a 96% per-share increase since IPO, with major additions in Saskatchewan and the Mannville Stack since 2021.

• Per-share oil production has grown at a 6% CAGR since Q1 2022, outpacing the Western Canadian Sedimentary Basin due to investments in low-cost plays.

• 34,000 future drilling locations identified, providing a 42-year inventory at current pace; over 80,000 wells have paid royalties in the last decade.

• Asset book value is CAD 29.8 billion undiscounted at $65 WTI, with a 13% increase in undiscounted total value and 4,000+ new future locations in the 2025 Royalty Playbook.

• Ongoing diversification into CCS, helium, lithium, and potash, with new revenue streams emerging from these sectors.

Key play developments and technology

• Clearwater is Canada's largest conventional oil play, with 1.4 million acres, over 1 billion barrels of resource, 20% y/y royalty oil production growth in 2024, and 33% of volumes now under waterflood.

• Water flood technology has doubled or more the recovery factor in Clearwater, with 30% of production now under flood and plans to reach 50% by end of 2025.

• Mannville Stack: 70% y/y royalty oil production growth in 2024, 30-year drilling inventory, and multilateral drilling unlocking previously uneconomic resources.

• Duvernay: 55% y/y royalty production growth in 2024, 1,060 future development locations, and over 30 years of drilling inventory.

• Montney and SAGD: Over 2,000 future locations in Montney; SAGD volumes expected to grow to over 2,000 bbl/d by decade's end with Lindbergh expansion.

Financial performance and capital allocation

• Over CAD 3 billion in free cash flow generated since IPO, with over CAD 2.2 billion returned to shareholders; 98-99% operating margins maintained.

• 2024 funds from operations reached $380.5 million, supporting $239 million in dividends and a 39% net debt reduction.

• Quarterly dividend of $0.26 per share, with a 71% payout ratio in Q1 2025, and share buybacks executed during periods of low oil prices.

• Debt is used opportunistically, not as a permanent capital structure; current facility is CAD 350 million, extendable to CAD 600 million at 4.75%.

• Scenario analysis projects a 7% to 19.5% annualized return over the next 10 years, with potential share price outcomes of CAD 56 to CAD 137.