Prairiesky Royalty Ltd · TSX:PSK
Prairiesky Royalty — Investor Day (May 2025)
121 slides from Prairiesky Royalty's investor day presentation, May 14, 2025
Slide 1: Investor Day Presentation
INVESTOR DAY PRESENTATION MAY 14, 2025
Slide 2: Agenda
Agenda A PRAIRIESKY ROYALTY DESCRIPTION ‘SPEAKER 9:30 Welcome Remarks & Introductions Y 9:35 Playbook Methodology & Summary of Changes Andrew Phillips, CEO 9:45 Feature Play: Clearwater 9:50 Spur Petroleum Ltd. Presentation lan Currie, CEO of Spur Petroleum Ltd. 10:05 Feature Play: Mannville Stack |
Slide 3: PrairieSky Royalty Snapshot
PrairieSky Royalty Snapshot TSX $5.7 Balance Sheet PSK Billion Strength Enterprise Value(1) 0.5x D/EBITDA(2) Sustainable Annual Oil & Liquids $2.2 Dividend $1.04 93% Billion of Q1 2025 Royalty Returned to Per Common Share Production Revenue Shareholders since IPO Paid Quarterly 18.5 6% Canada’s Mill
Slide 4: Why PrairieSky?
Why PrairieSky? • 9.8 million acres of Fee Lands Vast Land Base • 8.7 million acres of GORR Lands Experienced Team • Management and directors with an unparalleled understanding of the royalty business and are invested alongside shareholders Resource Play • Upside from resource play development on em
Slide 5: PrairieSky's Dominant Land Position
PrairieSky’s Dominant Land Position PrairieSky has more than tripled its Royalty Lands since inception, a 96% increase on a per share basis(1), including the addition of: • All Saskatchewan Fee Lands and GORR acreage • 1.4 million Clearwater acres • Mannville Stack position through acquisition from
Slide 6: PrairieSky Key Growth Metrics
PrairieSky Key Growth Metrics Production per Million Shares(1) Share of Industry Capital(2) 120 $2.5 9.0% 8.0% 100 $2.0 7.0% 80 6.0% $1.5 $ billions 5.0% 60 4.0% $1.0 40 3.0% 2.0% $0.5 20 1.0% - $0.0 0.0% 2020 2021 2022 2023 2024 Gross Capital on PSK Land % of Industry Capital Oil NGL Natural Gas (b
Slide 7: Oil Production Growth Decoupled from Western Canada
Oil Production Growth Decoupled from Western Canada Following the acquisition from Oil Production Growth (from Q1/22 Baseline) Heritage Royalty in December 2021, 25.0% PrairieSky has organically exceeded 20.0% the growth rate of the Western Canadian Sedimentary Basin on oil 15.0% volumes through: 10
Slide 8: Returns to Shareholders
Returns to Shareholders 4.0 3.5 From IPO to March 31, 2025, PrairieSky has returned 3.0 $1.9 billion in dividends and $336 million in share buybacks 2.5 to shareholders (average price $ billions of $16.74/share). 2.0 High conversion 1.5 of revenues to funds from operations for distribution to 1.0 sh
Slide 9: Reserves Replacement
Reserves Replacement Third-party capital on PrairieSky lands In a royalty business with undeveloped has historically replaced produced land, all funds from operations can be reserves. returned to shareholders. Reserves steady in 2024, 2024 funds from operations of after annual production of 9,218 MB
Slide 10: Future Optionality
Future Optionality Optionality Beyond Current Valuation Expansion of productive trends Material new pool discoveries Improvements in drilling and completions technologies: incremental recovery via optimized completions, tighter inter-wells spacing, and additional application of multi-leg horiz
Slide 11: Playbook Methodology – Expansion of Development Area with Time
Playbook Methodology – Expansion of Development Area with Time 2017 2025 Booked Reserves Playbook Valuation Future Optionality 11
Slide 12: Royalty Asset Summary
Royalty Asset Summary Undisc. Booked Undisc. Future Future Future Total Undisc. Future Region / Play Reserves Booked Value Fee GORR Potential Volume Total Value Potential (MBOE) ($MM) Locations Locations (MBOE) (MBOE) ($MM) $29.8 billion total undiscounted value Central AB 31,114 $1,480 8,480 7,890
Slide 13: Highlights of Changes from 2023 Royalty Playbook
Highlights of Changes from 2023 Royalty Playbook 13
Slide 14: Methodology and Summary of Changes
Methodology and Summary of Changes Undisc. Total Value Future Future Future Total Undisc. Future Price Consistent Methodology Region / Play Fee Locations GORR Locations Potential (MBOE) Potential ($MM) Volume (MBOE) Sensitivity ($MM) Total Value ($MM) Central AB 150 1,070 40,524 $2,013 41,160 -$548
Slide 15: Five Feature Plays – Reserve and Upside Value
Five Feature Plays – Reserve and Upside Value Booked Reserves ($MM) vs Future Potential ($MM) 5,000 Mannville Heavy Oil 4,000 (AB & SK) ~45% of PrairieSky’s Future Potential Value in 5 Future Potential ($MM) Clearwater Oil feature plays: 3,000 Duvernay Oil Clearwater (12%) Mannville Heavy Oil (14%)
Slide 16: Feature Play: Clearwater
FEATURE PLAY: CLEARWATER WATERFLOOD ENHANCING SUSTAINABLE GROWTH
Slide 17: Clearwater - Overview
Clearwater - Overview PrairieSky has the largest Clearwater royalty acreage position with ~1,400,000 acres throughout the entire Clearwater trend. Clearwater royalty oil production averaged ~2,000 bbl/d in 2024, delivering 20% growth y/y. Clearwater Royalty Oil Production 2,500 2,000 1,500 bbl/d 1,0
Slide 18: Clearwater – Exploration Upside
Clearwater – Exploration Upside CADOTTE Significant OOIP and multi-zone inventory upside in exploratory region of Clearwater fairway. Development underway following discoveries at Utikuma, Cadotte, and McLeod Lake. Waterflood pilots initiated at Cadotte and Utikuma. Polymer pilots underway at Utikum
Slide 19: Waterflood Introduction – Increasing Recovery, Shallowing Declines
Waterflood Introduction – Increasing Recovery, Shallowing Declines Secondary Recovery Oil Production Distribution 24% 24% Central AB Mannville Heavy Central AB Clearwater Southern AB Mannville Secondary recovery of oil through waterflooding has Central AB Nisku been proven to be an effective way of
Slide 20: Clearwater – Waterflood Overview
Clearwater – Waterflood Overview Clearwater reservoir at Nipisi and Marten Hills shows ideal characteristics for secondary recovery application. Recovery factors in the Clearwater anticipated to double from 5% of OOIP on primary development, to 10% under waterflood. First waterflood pilots initiated
Slide 21: Clearwater – Waterflood Patterns
Clearwater – Waterflood Patterns At Nipisi, both the Clearwater ‘C’ and ‘B’ reservoirs utilize a lateral ‘line-drive’ waterflood, with stacked injectors where both sands are present. At Marten Hills, the reservoir is significantly thicker, and a stacked ‘bottoms -up’ method is used, where an injecto
Slide 22: Inventory Snapshot – Clearwater
Inventory Snapshot – Clearwater 2024 Royalty Revenue: $58 million Clearwater Locations 2023 Royalty Playbook 2,670 Undiscounted Total Value: $3.6 billion 2023-2024 New Drills -292 Incremental Future Locations 992 Acreage Included in Future Development: 31% 2025 Royalty Playbook 3,370 Development Loc
Slide 23: Spur Petroleum Ltd. Investor Day May 2025
PRAIRIE ROYALTY PETROLEUM LTD INVESTOR DAY May 2025
Slide 24: Advisory Regarding Forward Looking Statements
ADVISORY REGARDING FORWARD LOOKING STATEMENTS In the interest of providing readers with information regarding Spur Petroleum Ltd. (“Spur”), including management's assessment of Spur's future plans and operations, this presentation contains certain forward-looking statements and other information (co
Slide 25: Other Advisory Regarding Forward Looking Statements
OTHER ADVISORY REGARDING FORWARD LOOKING STATEMENTS Barrel of oil equivalent (“boe”) amounts may be misleading, particularly if used in isolation. A boe conversion ratio has been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel. This conversion ratio of six
Slide 26: Other Advisory Regarding Forward Looking Statements
OTHER ADVISORY REGARDING FORWARD LOOKING STATEMENTS This presentation contains several metrics commonly used in the oil and natural gas industry, such as "payout" and internal rate of return ("IRR"). These terms do not have a standardized meaning and may not be comparable to similar measures present
Slide 27: Spur Overview
SPUR OVERVIEW • Spur was founded in 2017 and has Cadotte been focused on the Clearwater oil 1,200 boe/d play in northern Alberta • We currently hold 1.7 million acres • PrairieSky holds overriding royalty interests on most of the land and virtually all the McMullen/ McLeod Lake production 3,500 boe/
Slide 28: Spur Performance
SPUR PERFORMANCE • Spur has grown production at a 50% Spur Production and Adjusted Funds from Operations compounded growth rate since 80,000 $800 inception, practically all through the Annual Production (boe/d) drill bit 70,000 $700 Adjusted FFO ($million) • The company has distributed $855 60,000 $
Slide 29: Waterflood History
WATERFLOOD HISTORY • Provost Veteran Viking C South Unit o Unitized in 1973 o Unit documents show expectations for 5% recovery under primary and 35% under waterflood o The unit operators only did primary development plus select waterflood and produced 2.5 million barrels 29
Slide 30: Waterflood History
WATERFLOOD HISTORY • Provost Veteran Viking C South Unit o Unitized in 1973 o Unit documents show expectations for 5% recovery under primary and 35% under waterflood o The unit operators only did primary development plus select waterflood and produced 2.5 million barrels • Waterflood was pursued aga
Slide 31: Waterflood Design
WATERFLOOD DESIGN SUCCESS IS HIGHLY DEPENDENT ON RESERVOIR CHARACTERISTICS • The best waterfloods have Oil Producer homogeneous rock, which (plan view) enables a steady bank of water to push the oil towards the producer well • It should function like a piston Water Injector 31
Slide 32: Waterflood – The Past Decade
WATERFLOOD – THE PAST DECADE MULTI-STAGE FRACKED WELLS • Various operators attempted waterfloods in multi-stage fracked reservoirs, with Oil Producer generally poor results (plan view) o Alternating fracked wells were converted to water injectors o The problem: hydraulic fractures are not uniform an
Slide 33: Clearwater Waterflood
CLEARWATER WATERFLOOD RESERVOIR CHARACTERISTICS • The Clearwater is different from most conventional reservoirs due to its homogenous sand • Predictable, consistent results and low risk of water breakthrough • The graphic shows a core sample from upper Nipisi sand 33
Slide 34: Clearwater Waterflood
CLEARWATER WATERFLOOD EVOLVING WELL DESIGNS • Historically, the most common waterflood well design was a line drive, with alternating producer/injector single-leg wells • The “Texas Three Step” design combines a six-leg multilateral and a water injector in the center • The multiple tightly-spaced le
Slide 35: Nipisi 03/2-30-76-6 W5 – Impact on Production
CLEARWATER WATERFLOOD NIPISI 03/2-30-76-6 W5 – IMPACT ON PRODUCTION 350 300 This well (a Texas Three 250 Step) has shown a dramatic response to Barrels per day 200 water injection - current production is higher 150 than IP rate, four years later! 100 Oil Production 50 Water Injection - 2021 2022 202
Slide 36: Nipisi 03/2-30-76-6 W5 – Impact on Reserves
CLEARWATER WATERFLOOD NIPISI 03/2-30-76-6 W5 – IMPACT ON RESERVES 250 Water Injection Started Oil Production (actual) Barrels per day 200 150 PDP forecast has increased from 153mbbl on primary to 100 325mbbl with waterflood 50 PDP Forecast – 2024 PDP Forecast - 2021 0 36
Slide 37: The Impact of Waterflood
THE IMPACT OF WATERFLOOD • 30% of Spur’s oil production is now under waterflood Well Count • Waterflood wells that were on stream as of December 2024 have Oil Production (bbl/d) shown zero decline in five months Oil Production Well Count • Some of these wells have been on production for 4+ years 37
Slide 38: Nipisi Double Down Waterflood
NIPISI DOUBLE DOWN WATERFLOOD • Concurrent waterflood development of stacked Current sands enables us to leverage existing infrastructure Nipisi Sand waterfloods highlighted in to reduce development costs blue • Expected to double recovery and NPV compared to primary • Double Down NPV per section -
Slide 39: Marten Hills Stacked Waterflood
MARTEN HILLS STACKED WATERFLOOD • Marten Hills is very thick; wells are drilled in a three stacked layers Triple Stack Waterflood • Injection is into a multilateral well drilled in the lower third of the reservoir; the lower producer (i.e. middle layer) sees the initial benefit of the flood • Eventu
Slide 40: Summary
SUMMARY • Waterflood will continue to have a huge impact on the value of the Clearwater play • Spur’s corporate decline rate is below 20% and we hope to get it to 15% over the next few years • This would rival SAGD companies’ decline rates, but with our far better capital efficiencies and higher net
Slide 41: Feature Play: Mannville Stack
FEATURE PLAY: MANNVILLE STACK TECHNOLOGY UNLOCKING MASSIVE RESOURCE
Slide 42: Mannville Stack – Overview
Mannville Stack – Overview PrairieSky defines the Mannville Stack as a conventional heavy oil play (non-thermal) in nine formations of the Mannville Group, located within the area bounded by 51-23W3 and 66-10W4, in the broader Cold Lake Oil Sands region. This is a subset of PrairieSky’s Central Albe
Slide 43: Mannville Stack – Production Trends
Mannville Stack – Production Trends Conventional heavy oil production, primarily from vertical wells, in the heavy oil belt peaked in 2014/15 at close to 350,000 bbl/d, followed by a steady decline in the 6 years following. Within the Mannville Stack subset area, peak volumes were ~175,000 bbl/d as
Slide 44: Mannville Stack – Growing Exposure
Mannville Stack – Growing Exposure The Mannville Stack became a core growth asset for PrairieSky following an acquisition from Heritage Royalty in December 2021, which added significant Fee Land in the Lindbergh/Elk Point region PrairieSky continues to augment its exposure in the Mannville Stack thr
Slide 45: Stacked Pay Example – La Corey
Stacked Pay Example – La Corey 24.5 section block of Mannville oilsands rights at La Corey. PSK 10% GORR. 15 MMbbl produced from 313 vertical wells since 1997. Vertical targets were the cleanest, highest quality sandstone reservoirs. Other formations were recognized as heavy oil bearing, but sands h
Slide 46: Inventory Snapshot – Central Alberta Mannville Heavy Oil
Inventory Snapshot – Central Alberta Mannville Heavy Oil Mannville Heavy Oil Play Acreage 2024 Royalty Revenue: $108 million 1,400 1,200 335 Undiscounted Total Value: $4.2 billion 1,000 Thousand Acres 800 Development Locations: 2,590 600 1,137 962 Including Mannville Stack: 747 400 706 200 0 Over 30
Slide 47: PrairieSky Royalty Ltd. Investor Day
PrairieSky Royalty Ltd. Investor Day May 2025
Slide 48: Caltex Trilogy is a Fast-Growing Private E&P
Caltex Trilogy is a Fast-Growing Private E&P Team’s 4th Privateco and 3rd Iteration of Caltex Operations started 2 ½ years ago A trilogy is a set of three works of art that are connected and can be seen either as a single work or as three individual works 48 May 2025
Slide 49: Thank you PrairieSky!
95k Thank you Net acres with Caltex/PSK partnership 78 Wells drilled by Caltex with PSK as a PrairieSky! stakeholder PrairieSky has been a great partner to the Caltex team since PSK started up in 2014
Slide 50: Caltex Trilogy Snapshot
Caltex Trilogy Snapshot A Fast-Growing Private E&P Co. Focused on the Mannville Stack $85MM ~$205MM Off to a great start so far, Equity Raised Est. Operating Income 2025 and lots of running room to go with 1.6MM 10 Zones Tested multi-zonal pay. Meters Drilled ~12,300 187% ~214 Boepd in April Prod Gr
Slide 51: What is Caltex Doing?
What is Caltex Doing? Multi-Lateral Drilling in the Multiple Zones in the Mannville Stack Multiple-well pads at Drill laterally multiple surface to limit footprint times from the same and improve cost vertical to maximize efficiencies reservoir contact with the wellbore Drill vertically to target re
Slide 52: What is the Mannville Stack?
What is the Mannville Stack? A stack like this has >75MMbo developable A Caltex Example OOIP per section!! A Series of Mannville-Aged Sands: • Separate Oil-charged sands saturated with lower-viscosity heavy oil in our fairway • Mostly non-commercial historically • Minimal water saturations with high
Slide 53: "The Stack"
“The Stack” As you Know This Business is Hard… • Consolidated/Perm? • Fishbone/Lined/Multi? Slot Sizes? • Circ String? • Oil quality? • API?/Viscosity?/Circ String?/EOR? Sand?/Liner? • Mud properties? • Hole cleaning/centrifuges • KCL/Amine/OBM? • Clays? Swelling? • OBM/KCL/Amine? • Wellbore Geometr
Slide 54: The Profitability of the Stack
The Profitability of the Stack 100% Oil + Low costs = Strong Netbacks! Q4/24 Op. Netback per BOE C$75.00/bbl WCS (Excl. Hedging) Caltex Median Well - Payouts vs Rate $3.00 Blend/Quality (Source: Peters & Co. (2025-03) and Company Reports) 250 C$75 WCS $60 $5.70 Transportation Heavy Oil Weighted Ligh
Slide 55: The Power of the Stack
The Power of the Stack One section of land producing >1,500 BOPD from ~400m depth Ft Kent Sec 7-62-04W4 Multi-Zones Compound the Profitability 2,000 • 3 zones tested and developed in the 1,800 last 2 years on this section 1,600 • $20.1mm invested* (Full cycle) 1,400 1,200 • $27.7mm Op Income to date
Slide 56: The Power of the Stack
The Power of the Stack Currently Three Anchor Zones with Multiple other Growth Opportunities Growth TO DATE Net Corp Prod by Zone 14,000 • Caltex has now rig-released 135 horizontal wells 12,000 • We have 3 anchor zones producing the lion’s 10,000 share of corp production with significant inventory
Slide 57: New Plays/Zones Drive Growth
New Plays/Zones Drive Growth 10 Zones Tested to Date Recently Testing New Opportunities 16,000 Fort Kent 2H25 Charlotte Lake Acquisition & Future 14,000 Upper Sparky & Upcoming Fort Kent Waseca Tests 12,000 Fort Kent Upper Sparky Tested/Lindbergh Acquisition 10,000 Lindbergh/Reita BOEPD 8,000 Fort K
Slide 58: Outlook
Outlook • Busy capital program for 2H’25 that will efficiently grow volumes and test new opportunities • The team will continue to look to grow lands thru farm-in, landsales, and acquisitions • Will continue to be opportunistic for other acquisition opportunities that fit the team’s skillsets 58 May
Slide 59: Legal Disclaimer
Legal Disclaimer FORWARD-LOOKING STATEMENTS This presentation (“Presentation”) of Caltex Trilogy Ltd. (the “Corporation”) contains certain forward-looking statements or forward-looking information (including future-oriented financial information or financial outlooks) under applicable securities law
Slide 60: Legal Disclaimer
Legal Disclaimer CAUTIONARY STATEMENT FOR US INVESTORS This Presentation does not constitute or form part of, and should not be construed as, an offer to sell or the solicitation of an offer to purchase or subscribe for any securities. Any securities of the Corporation to be offered or sold will be
Slide 61: Legal Disclaimer
Legal Disclaimer The following is a summary of rights of rescission or damages, or both, available to purchasers resident in the province of Ontario, New Brunswick, Nova Scotia and Saskatchewan. If there is a misrepresentation herein and you are a purchaser under securities legislation in Ontario, N
Slide 62: Feature Play: Duvernay
FEATURE PLAY: DUVERNAY LIGHT OIL ACTIVITY ACCELERATING
Slide 63: Duvernay – Overview
Duvernay – Overview PrairieSky has a meaningful Fee Land position within the Duvernay oil window in both the East and West Shale Basins, with total royalty exposure of 909,000 acres. The play boasts large resource in place, high netback light oil, depth of inventory, and access to infrastructure. In
Slide 64: Duvernay – Driving Growth
West Shale Basin Duvernay – Driving Growth PrairieSky’s acreage in the West Shale Basin at Pembina/Willesden Green is ideally situated in an area of relatively thick Duvernay shale, and within the volatile oil thermal maturity window. Operators have seen a recent step-change improvement in overall c
Slide 65: Inventory Snapshot – Duvernay
Inventory Snapshot – Duvernay Duvernay Type Curve 2024 Royalty Revenue: $16 million 900 800 82% 81% Liquids Undiscounted Total Value: $2.5 billion 700 Liquids 600 88% Acreage Included in Future Development: 43% 500 Liquids 84% Liquids 400 699 681 Development Locations: 1,060 300 498 200 377 100 Over
Slide 66: Spartan Delta Corp.
SPARTAN DELTA CORP. P R A I R I E S K Y R OYA LT Y I N V E S TO R D AY May 14, 2025
Slide 67: Spartan Delta Corporate Strategy
SPARTAN DELTA CORPORATE STRATEGY Three Pillar Strategy I . D U V E R N AY D E V E LO P M E N T I I . D E E P B A S I N O P T I M I Z AT I O N I I I . D E E P B A S I N C O N S O L I D AT I O N LARGE INVENTORY ESTABLISHED LIQUIDS-RICH GAS TECHNICAL EXPERTISE OIL AND CONDENSATE RICH RESOURCE PLAY FREE
Slide 68: Corporate Summary
CORPORATE SUMMARY Building a Sustainable Energy Company S PA R TA N D E LTA C O R P. C A P I TA L I Z AT I O N 39,000-41,000 BOE/D 2025E PRODUCTION SPARTAN DELTA CORP TSX SDE $300-325 MM 2025E CAPITAL Share Price (1) $/sh 2.75 DEEP BASIN ~130,000 NET ACRES (>200 SECTIONS) Common Shares Outstanding (
Slide 69: Spartan's Strategic Milestones
SPARTAN’S STRATEGIC MILESTONES Continuously Generating Shareholder Value C O R P O R AT E H I G H L I G H T S S I N C E I N C E P T I O N ( 1 ) T R A C K R E C O R D O F E X E C U T I N G S T R AT E G Y $635 MM $1,788 MM $1,173 MM Growth Through Targeted Strategic Acquisitions in a Depressed 1 Marke
Slide 70: 2025 Guidance
2025 GUIDANCE Optimizing the Deep Basin and Growing the Duvernay A CTUALS GUIDANCE G U I D A N C E (1) FY 2024 FY 2025 GUIDANCE HIGHLIGHTS Crude Oi l & Condens a te Na tura l Ga s Li qui ds (NGLs ) bbls/d bbls/d 3,297 9,209 5,600 9,700 70% 57% Na tura l Ga s MMcf/d 154 148 INCREASE IN OIL & INCREASE
Slide 71: Duvernay Development
DUVERNAY DEVELOPMENT Prolific Liquids-Rich Shale Asset Offers Significant Scalability and Commerciality W E S T S H A L E B A S I N D U V E R N AY CARROT CREEK DUVERNAY Spartan has established one of the largest positions in the oil and condensate rich West Shale Basin Duvernay, consolidating frag
Slide 72: Duvernay Development
DUVERNAY DEVELOPMENT Expansive Position Across the Willesden Green & Pembina Fairway 5 - Y E A R P R O D U C T I O N TA R G E T SDE W.I. Lands SDE Operated Duvernay Wells SDE 2025 Drilled SDE 2025 Upcoming Drills Industry Duvernay Wells Joint Venture Area 16-12-044-04W5 • ~1,394 BOE/D IP30 • 82% liq
Slide 73: www.SpartanDeltaCorp.com
www.SpartanDeltaCorp.com 73
Slide 74: Disclaimer
DISCLAIMER Forward Looking Statements: the risk that the new U.S. administration imposes tariffs on Canadian goods, including crude oil and natural gas, and that such tariffs (and/or the Canadian government’s response to such tariffs) adversely affect the demand Certain information included in thi
Slide 75: Disclaimer
DISCLAIMER Oil and Gas Advisories: "NPV10" is the anticipated net present value of the future net operating income after capital expenditures, discounted at a rate of 10% (before tax). BOE Disclosure. The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation
Slide 76: Disclaimer
DISCLAIMER Non-GAAP M easures and Ratios: property, plant and equipment, before acquisitions and dispositions. The directly comparable GAAP measure to capital expenditures is cash used in investing activities. This presentation contains certain financial measures and ratios, as described below, wh
Slide 77: Guest Speaker Questions?
A PRAIRIESKY ROYALTY GUEST SPEAKER QUESTIONS?
Slide 78: Break
IN PRAIRIES! ROYALTY BREAK TSX | PSK
Slide 79: Feature Plays: Montney and SAGD
FEATURE PLAYS: MONTNEY AND SAGD + SE SASKATCHEWAN LIGHT OIL & OTHER OPPORTUNITIES
Slide 80: Montney Oil & Gas - Overview
Montney Oil & Gas - Overview Montney royalty production averaged ~1,690 BOE/d (27% liquids) in 2024. ~300,000 acres of predominantly GORR Lands within Play Areas 72 wells drilled on Royalty Lands from 2023-2024 2,180 future locations in inventory 80
Slide 81: Two Rivers Montney Oil – Near Term Growth with Running Room
Two Rivers Montney Oil – Near Term Growth with Running Room PSK holds a GORR on ~114,000 acres of Montney rights in the Two Rivers area of Northeast British Columbia. The Montney is 325m thick with development potential in both the Upper and Lower Montney, and future upside in the Middle and Basal M
Slide 82: Wembley Montney – High Impact Oil Growth
Wembley Montney – High Impact Oil Growth PSK holds a GORR on 6.5 sections of Montney rights close to the boundary of the oil and liquids-rich gas windows of the Montney in the Wembley region of Alberta. A total of 4 sections of Montney have been developed, which contributed ~530 BOE/d (44% liquids)
Slide 83: Kakwa/Karr Condensate-Rich Gas – Realizing Future Potential
Kakwa/Karr Condensate-Rich Gas – Realizing Future Potential 2023 Investor Day 2025 Investor Day PSK holds a 12.5% GORR on a single section of Montney rights at Kakwa/Karr, acquired from Range Royalty in 2015. In 2023, a single Montney well was licensed. Today, the operator has recently finished dril
Slide 84: SAGD Exposure - Low Decline, Long Reserve Life
SAGD Exposure - Low Decline, Long Reserve Life PrairieSky’s producing SAGD assets are focused in two core areas, Lindbergh in East Central Alberta, PSK SAGD Royalty Production and Onion Lake in West Central Saskatchewan. 1,400 Both projects are low decline, long life assets with expansion potential.
Slide 85: Lindbergh Expansion
Lindbergh Expansion Expansion underway to grow Lindbergh volumes to 43,000 bbl/d by 2030, from a current ~20,000 bbl/d. This is expected to add ~920 bbl/d of royalty oil volumes net to PrairieSky. With OOIP of 680 MMbbl, the operator estimates a Reserve Life Index of ~30 years following the completi
Slide 86: Small Scale SAGD
Small Scale SAGD SPRUCE LAKE Focused in West Central Saskatchewan, PrairieSky has exposure to future modular SAGD projects with production potential in the 5,000-10,000 bbl/d range. Delineation of thick, heavy-oil bearing Colony, Waseca and Lloyd channel complexes is underway on PSK acreage at Kelfi
Slide 87: SE Saskatchewan – Multilaterals Targeting Light Oil
SE Saskatchwan – Multilaterals Targeting Light Oil SE Saskatchewan and Manitoba contribute $2.3 billion of undiscounted total value in the 2025 Royalty Playbook (+118% from 2023). Play areas in the Bakken and Mississippian STEELMAN light oil plays have expanded and well densities have increased with
Slide 88: CCS and Other Opportunities – Future Optionality
CCS and Other Opportunities – Future Optionality Meadowbrook CCS Meadowbrook Project Area PSK is a 28.5% JV partner in the CO2 sequestration and storage project at Meadowbrook, located near Morinville, Alberta, in the province’s industrial heartland. The project is anticipated to be developed in pha
Slide 89: Financial Update
IN PRAIRIES! ROYALTY FINANCIAL TSX | PSK
Slide 90: Revenue Generation – Oil Royalty Production
Revenue Generation – Oil Royalty Production PSK has continued to see strong royalty production growth in its heavy oil portfolio. Based on operator budgets, PSK expects growth to continue. Duvernay production will add light oil production volumes with strong netbacks. Oil royalty production is shown
Slide 91: Revenue Generation – Natural Gas Royalty Production
Revenue Generation – Natural Gas Royalty Production PSK has a perpetual call option on natural gas. PSK benefits directly from an increase in AECO natural gas pricing through increased royalty revenue and increased activity on our Royalty lands. With PSK’s significant natural gas reserves and resour
Slide 92: Higher Margin, Lower Risk, Low Impact of Cost Inflation
Higher Margin, Lower Risk, Low Impact of Cost Inflation Margin Summary ($/BOE) Revenue (63% Liquids Production)(1) $52.58/boe PrairieSky Royalty offers Illustrative Working higher margins Interest Operator PrairieSky Royalty than conventional working Production interest production & Mineral Tax Roya
Slide 93: Other Revenues Generated From Royalty Properties
Other Revenues Generated From Royalty Properties PrairieSky generates other revenues primarily from upfront bonus consideration and lease rentals, both earned from leasing Fee Lands. Bonus consideration has grown steadily since 2020 due to active leasing. Since IPO, our leasing strategy has evolved
Slide 94: Expenses
Expenses PSK’s simple cost structure includes production and mineral taxes and administrative expenses. Production and mineral expenses are calculated based on production volumes and price in Alberta and on a per acre basis in Saskatchewan. PrairieSky continues to adopt technology to scale our busin
Slide 95: Bank Debt
Bank Debt PrairieSky’s credit facility is $350 million with a syndicate of Canadian banks. Credit facility provides for a permitted increase up to $600 million. At March 31, 2025, PrairieSky’s bank debt totaled $220.1 million. Currently borrowing at ~4.75%; interest is deductible for tax purposes. 9
Slide 96: Taxes
Taxes PrairieSky's tax pool balances are deductible at ~10% per year, providing tax shelter in 2025 to the first $131 million of taxable income. 96
Slide 97: Valuation & Shareholder Returns
VALUATION & SHAREHOLDER RETURNS
Slide 98: Adding Value Through the Cycles
Adding Value Through the Cycles How do you manage a counter-cyclical business and take advantage of disconnects? Peers need to acquire at all points in the cycle. PSK can acquire at cycle lows and grow through leasing land at the highs. Strong balance sheet maintained for optionality at cycle lows,
Slide 99: Leasing Activity – Make Hay When the Sun Shines
Leasing Activity – Make Hay When the Sun Shines 99
Slide 100: Countercyclical Capital Deployment
Countercyclical Capital Deployment History of acquiring assets near low points of the commodity cycle, with major acquisitions completed between US$44-70/bbl WTI. Share buybacks have been completed across a time period when WTI averaged US$57/bbl including ~$86 million of share repurchases in Q2/Q3
Slide 101: PrairieSky Call Options
PrairieSky Call Options PrairieSky has a larger bundle of Call Options than any of its peers. 1. Duvernay – light oil growth West Shale oil development underway, huge growth potential High proportion of Fee Lands in the core of the play 2. Clearwater – secondary recovery upside Declines trending low
Slide 102: Optionality Through Technology
Optionality Through Technology Decades of Optionality through future technology developments: WhaleSharkTM Downhole Separator multilateral configurations and application to new formations/plays small scale SAGD, and thermal application expansion in heavy oil drilling fluid systems, pump designs, int
Slide 103: Value of Fee Ownership
Value of Fee Ownership (1) Cash flow estimate for TPL based on published estimates from Texas Capital Securities. Cash flow estimate for PSK based on average of analyst estimates of funds from operations post Q1/25 reporting. 103
Slide 104: Shareholder Returns
Shareholder Returns PSK’s perpetual ownership in royalty assets provides the opportunity for optionality and growth at a lower risk. 104
Slide 105: Share Price Performance Relative to Capped Energy Index
Share Price Performance Relative to Capped Energy Index 105
Slide 106: PrairieSky versus Other Industries
PrairieSky versus Other Industries (1) Midstream group includes ALA, ENB, KEY, PPL, SOBO, and TRP. (2) Rails group includes CNR and CP. (3) Mining Royalty group includes FNV and WPM. (4) Source: Bloomberg, SNL Financial, Factset, company reports, and CIBC World Markets as of April 30, 2025. See Non-
Slide 107: PrairieSky versus REITs
PrairieSky versus REITs PrairieSky could repurchase all of its common shares in the time it takes for the REITs to repay debt. REITs trade at an average 17x 2025E EV/EBITDA versus PSK at 12x(1). (1) Source: Bloomberg, SNL Financial, Factset, company reports, and CIBC World Markets as of April 30, 20
Slide 108: 10 Year Funds from Operations Generation
10 Year Funds from Operations Generation 2024 Average Royalty Production 25,186 BOE/d(1) With no capex requirements, Funds from Operations are fully available for shareholder returns. A $0.50/Mcf increase in AECO increases 10-year cash flow by $0.1 billion. (1) For the year ended December 31, 2024.
Slide 109: Capital Allocation – Share Buyback Example
Capital Allocation – Share Buyback Example The following chart outlines scenarios where PrairieSky allocates 100% of its Funds from Operations to repurchase and cancel its shares. At the end of 10 years, using conservative production and pricing scenarios, PSK could buy back the majority of its shar
Slide 110: Outcomes – 2023 Investor Day
Outcomes – 2023 Investor Day March 31, 2023 $140 $120 $100 PrairieSky $80 share price of Share Price $23.25 + dividends of $8.66 = $31.91 per share $60 PSK including $6.68 in dividends $40 $20 PSK excluding dividends $- 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Slide 111: Outcomes – 2025 Investor Day
Outcomes – 2025 Investor Day March 31, $140 2025 $120 $100 $80 Share Price PSK $60 including $8.66 in dividends $40 $20 PSK excluding dividends $- 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Year Flat Production, WTI US$60 Production Growt
Slide 112: Questions?
A PRAIRIESKY ROYALTY QUESTIONS? 112 TSX <x ==
Slide 113: Leadership Team
Leadership Team Board of Directors Executive Team Margaret A. McKenzie, Chair of the Board Andrew M. Phillips, President & CEO / Director Corporate Director, Former VP, Finance and Chief Financial Officer of Range Royalty Previously, President, CEO & Director of Home Quarter Resources (acquired by a
Slide 114: Assumptions
Assumptions The following flat pricing assumptions were used in preparing the Undiscounted Booked Value(1) and Undiscounted Future Potential in the 2025 PrairieSky Royalty Playbook and this Investor Day Presentation (please see Pricing Assumptions on page 26 and Assumptions & Terminology on page 47
Slide 115: Disclaimer & Cautionary Statements
Disclaimer & Cautionary Statements Third-Party and Public Information Except where otherwise stated, the disclosure in this Investor Day Presentation relating to the Royalty Properties and operations on such properties is based on information publicly disclosed by the operators of these properties a
Slide 116: Disclaimer & Cautionary Statements
Disclaimer & Cautionary Statements Cautionary Statement Regarding Future-Oriented Financial Information This Investor Day Presentation also contains future-oriented financial information and financial outlook information (collectively, "FOFI") about our prospective results, funds from operations, fu
Slide 117: Non-GAAP Measures and Ratios
Non-GAAP Measures and Ratios Certain measures and ratios in this presentation do not have any standardized meaning as prescribed by IFRS and therefore, are considered non-GAAP measures and ratios. These measures and ratios may not be comparable to those presented by other issuers. These measures and
Slide 118: Non-GAAP Measures and Ratios
Non-GAAP Measures and Ratios 5) Cash G&A is defined as cash administrative expenses in PrairieSky’s Management’s Discussion and Analysis for the year ended December 31, 2024 and 2023 on pages 10 under the sections Administrative Expenses and Non-GAAP Measures and Ratios section starting on page 27.
Slide 119: Non-GAAP Measures and Ratios
Non-GAAP Measures and Ratios Supplementary Financial Measures 8) Enterprise value (EV) is a supplementary financial measure and is calculated as market capitalization plus net debt. It is a useful measure of the market value of a Company's debt and equity. 9) EV/EBITDA ratio measures a company’s ent
Slide 120: Other Disclosure
Other Disclosure CONVERSIONS OF NATURAL GAS TO BOE To provide a single unit of production for analytical purposes, natural gas production and reserves volumes are converted mathematically to equivalent barrels of oil (boe). We use the industry-accepted standard conversion of six thousand cubic feet
Slide 121: Contact Information
CONTACT INFORMATION PRAIRIESKY ROYALTY LTD. 1700, 350 – 7 Avenue SW Calgary, AB T2P 3N9 T 587.293.4000 E Investor.relations@prairiesky.com PRAIRIESKY.COM