PrairieSky Q1 2025

PrairieSky Royalty announced earnings (financials, MD&A, presentation) for the first quarter of 2025. Some highlights:

Oil royalty production volumes averaged a record 13,502 barrels per day, a 3% increase over Q1 2024.

Funds from operations totaled $85.8 million or $0.36 per share, an increase of 3% over Q1 2024 primarily due to increased oil royalty revenue with higher oil royalty production volumes combined with narrowed oil price differentials.
 
Realized oil pricing averaged $83.16 per barrel, an increase of 8% over Q1 2024, as the 7% decrease in average WTI crude oil benchmark pricing was more than offset by narrowed light and heavy oil price differentials and a weaker Canadian dollar relative to the US dollar. 

Purchased and cancelled 3,415,900 common shares under the Company's normal course issuer bid ("NCIB") for $90.0 million.

Completed acquisitions of both producing and non-producing royalty interests for $63.6 million. 

PrairieSky generated cash from operations of $65.5 million, they spent $46 million on acquisitions, $66 million on share repurchase, $43 million on dividends, and borrowed $90 million on their bank loan. (They took net debt from $110 million the prior quarter to $195 million.) Interest rate on the loan is floating, currently 5.9%.

The market capitalization is $4 billion so the CFO/EV yield is 6.6%.