Prairiesky Royalty (PSK) Q3 2025 earnings summary

Executive summary

• Q3 2025 oil royalty production grew 11% year-over-year to 14,127 bbl/d, with total royalty production up 5% to 25,687 BOE/d, driven by Duvernay and Clearwater drilling; Duvernay royalty production more than doubled and Clearwater volumes exceeded 2,500 bbl/d.

• Record 57 wells were spud in Clearwater and 20 in Mannville Stack, with robust leasing activity and 44 new leases signed with 37 counterparties.

• $9.9 million in acquisitions closed, including over 50,000 acres of fee mineral title in Saskatchewan and interests in Mannville heavy oil and Duvernay light oil.

• Board expanded with the addition of Ian Dundas, effective January 2026.

• Net earnings for the quarter were $45.9 million ($0.20 per share), compared to $47.3 million in Q3 2024.

Financial highlights

• Oil royalty production averaged 14,127 bbl/d, up 11% from Q3 2024, generating $97.8 million in revenue, while total royalty production revenue was $107.7 million.

• NGL royalty production of 2,210 bbl/d contributed $7.4 million, and natural gas royalty volumes averaged $56.1 million/d, adding $2.5 million.

• Other revenues totaled $7.1 million, including $4.8 million in bonus consideration; year-to-date bonus consideration reached $18.3 million.

• Funds from operations were $90 million or $0.38 per share, down 3% from Q3 2024 due to a 14% drop in US$ WTI benchmark pricing.

• Dividends declared totaled $60.5 million ($0.26 per share), with a payout ratio of 67%.

Outlook and guidance

• Management expects continued royalty production growth from Clearwater, Mannville Stack, and Duvernay plays, with further growth in Mannville Stack in the back half of the year.

• Increased allocation of third-party capital to Duvernay expected in 2026 due to improved capital efficiencies.

• Multilateral horizontal drilling anticipated to further increase activity and production.

• Operators in Clearwater and Mannville expected to maintain or grow activity despite challenging oil prices, supported by efficiency gains and new operators entering the play.

• Duvernay activity anticipated to remain strong or grow in 2026, with operators benefiting from improved economics and a favorable light oil price environment.