Prairiesky Royalty (PSK) Q2 2026 earnings summary

Executive summary

• Achieved record royalty production of 27,479 BOE per day in Q2 2026, up 4% year-over-year, with oil royalty production at 14,740 barrels per day and NGL royalty production at 2,706 barrels per day, driven by strong third-party activity and multilateral drilling.

• Oil production increased 7% sequentially from Q1 2026, with significant liquids growth.

• Maintained a sustainable annual dividend of $1.06 per share, with $2.6 billion returned to shareholders since IPO.

• High-margin, inflation-insulated business model with no maintenance capital, operating costs, or environmental liabilities.

• Board and management are highly aligned with shareholders, with all staff participating in equity ownership.

Financial highlights

• Q2 2026 royalty production revenue was $167.1 million, up from $111.2 million in Q2 2025, with total revenues reaching $178.0 million.

• Funds from operations totaled $133.1 million ($0.57/share), up 38% year-over-year.

• Net earnings for Q2 2026 were $95.4 million ($0.41/share), and net debt stood at $186.6 million, down 28% at quarter-end.

• Dividend payout ratio was 46% in Q2 2026, with dividends declared totaling CAD 61.6 million.

• Royalty operating margin for the first half of 2026 was 99%, with operating netback per BOE at $62.54.

Outlook and guidance

• Expectation of continued high leasing and drilling activity through summer, supported by 215 active rigs, up from 170 a year ago.

• Anticipates continued oil royalty growth in H2 2026, supported by high-impact Duvernay completions and ramp-up of thermal heavy oil volumes.

• Positioned for continued funds from operations and dividend growth over the next decade, supported by a low payout ratio and perpetual land base.

• 10-year cumulative funds from operations projected to range from $2.4 to $7.0 billion depending on commodity prices.

• Ongoing focus on countercyclical capital deployment and opportunistic acquisitions.