Prairiesky Royalty (PSK) Q1 2026 earnings summary

Executive summary

• Production averaged 26,293 BOE/d, up 4% year-over-year; oil volumes rose 2% and NGL volumes 6%.

• Funds from operations increased 11% year-over-year to $94.9 million, or $0.41 per share.

• Total revenue was $133.8 million, including $118.5 million in royalty production revenue and $15.3 million in other revenue.

• 48 new leasing arrangements generated $12.3 million in bonus consideration, with activity concentrated in Duvernay and Mannville.

• Third-party operators spud 201 wells on royalty acreage; multilateral drilling increased 61% year-over-year.

Financial highlights

• Total revenue was $133.8 million versus $128.1 million in Q1 2025; royalty production revenue was $118.5 million versus $119.9 million, and other revenue was $15.3 million versus $8.2 million.

• Funds from operations were $94.9 million, or $0.41 per share, versus $85.8 million, or $0.36 per share, in Q1 2025.

• Net earnings were $55.8 million, or $0.24 per share, versus $58.4 million, or $0.26 per share, in Q1 2025.

• Dividends declared totaled $61.6 million; the payout ratio was 65%, down from 71% year-over-year.

• Net debt was $257.7 million, versus $276.5 million at Q4 2025; trailing 12-month debt/EBITDA was 0.6x.

Outlook and guidance

• Material debt reduction by year-end 2026 is anticipated based on current strip pricing.

• Leasing activity is expected to support operator activity across key plays through 2026 and beyond.

• Duvernay is expected to be the fastest-growing play in 2026, with new wells coming online mid-year and activity supporting meaningful second-half oil growth.

• Continued strong third-party drilling and oil and NGL royalty production growth are anticipated at current commodity prices.

• Long-term growth potential includes infill and step-out drilling, new discoveries, improved completions, waterfloods and enhanced oil recovery on royalty lands.