PrairieSky Royalty Announces Strategic Acquisition of Range Royalty and Dividend Increase

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[{"type":"text","content":"\n\n\n\n\n\n\n\n\n\n\nCALGARY, Nov. 13, 2014 /CNW/ - PrairieSky Royalty Ltd. (\"PrairieSky\" or the \"Company\") (TSX:PSK) is pleased to announce that it has entered into an agreement (the \"Arrangement Agreement\") to acquire Range Royalty Limited Partnership (\"Range\"), a leading private oil and gas royalty company with approximately 3,000 boe/d (40% liquids) of high quality royalty production and 3.5 million acres of royalty lands.  Pursuant to the Arrangement Agreement, Range unitholders will receive 0.8 of a PrairieSky common share for each Range unit, resulting in approximately 19.33 million common shares of PrairieSky being issued on completion of the acquisition.  Based on the 20 day volume weighted average trading price of PrairieSky, total consideration for Range is approximately $699 million. Upon the successful completion of this acquisition, PrairieSky intends to increase its annual dividend from $1.27 per share to $1.30 per share.\n\nBenefits of the Acquisition\n\nThe key benefits of this strategic acquisition to PrairieSky shareholders are as follows:\n\n\nThe acquisition is approximately four percent accretive to free cash flow per share, six percent accretive to production per share and 39% accretive to acres per share. \nIncreases PrairieSky's royalty acreage position to 9.3 million acres, including approximately 5.3 million acres of Fee Land, 3.6 million acres of gross overriding royalties (\"GORRs\"), 0.2 million acres in Gross Royalty Trusts and 0.2 million acres of crown leases or licenses. \nProvides PrairieSky with a significant land position in the Viking light oil fairway of western Saskatchewan, one of the most economic resource plays in Western Canada. \nExpands PrairieSky's acreage position in active drilling areas of the Alberta Deep Basin, including 70,000 GORR acres of Duvernay rights contiguous with PrairieSky's existing Fee Land position and exposure to Wilrich drilling at Edson. \nPrairieSky maintains a strong financial position with cash on its balance sheet and no debt. \nAdds approximately $60 million of tax pools. \nAddition of highly skilled professionals with royalty knowledge while still achieving significant administrative and operational synergies through economies of scale.\n\"With the acquisition of Range, PrairieSky has consolidated a leading private oil and gas roya...

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