Prairiesky Royalty Ltd · TSX:PSK
Prairiesky Royalty — Investor Day (May 2021)
87 slides from Prairiesky Royalty's investor day presentation, May 18, 2021
Slide 1: Investor Day Presentation
MAY 18, 2021 INVESTOR DAY PRESENTATION
Slide 2: PrairieSky Investor Day Agenda
PrairieSky Investor Day Agenda 1
Slide 3: PrairieSky Royalty Snapshot
PrairieSky Royalty Snapshot TSX $3.1 Balance Sheet PSK Billion Strength Enterprise Value(1) Annual Dividend $0.26 222.4 NCIB Per Common Share Million Accelerated the repurchase of shares at cyclical lows Paid Quarterly Shares Outstanding(1) 8.0 8.1 Million Acres Million 4 Provinces of Fee Lands Acre
Slide 4: Returns to Shareholders
Returns to Shareholders 2.0 From IPO to March 31, 1.8 2021, PrairieSky has 1.6 returned $1.1 billion in dividends and $224 million 1.4 in share buybacks to 1.2 shareholders. $ billions 1.0 High conversion of 0.8 revenues to free cash 0.6 flow for distribution to shareholders through all 0.4 commodit
Slide 5: Dominant Land Position
Dominant Land Position PRAIRIESKY — ROYALTY LTD
Slide 6: PrairieSky and Other Fee Land Ownership
PrairieSky and Other Fee Land Ownership 5
Slide 7: Q1 2021 Deep Basin Acquisition
Q1 2021 Deep Basin Acquisition Disciplined approach to acquisitions Highlights of the acquisition: 640,000 net acres of producing and undeveloped royalty interests 170,000 net acres of fee mineral title Multizonal leasing, exploration and ~530 miles development potential 650 BOE/d of royalty product
Slide 8: Accretive Acquisitions
Accretive Acquisitions Acres per Million Shares(1) 130 million 80,000 common shares issued on IPO 80% increase in 60,000 acreage per share Currently generating ~35% of funds from operations 40,000 92 million common shares issued for acquisitions, net of 20,000 buybacks Currently generating ~65% of f
Slide 9: PrairieSky Royalty Per Share Metrics
PrairieSky Royalty Per Share Metrics Production per Million Shares Acres per Million Shares(1) 80,000 140 120 60,000 100 80 40,000 60 40 20,000 20 - - IPO Today Q1/14 Q2/14 Q3/14 Q4/14 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q
Slide 10: Reserves Replacement
Reserves Replacement Third-party capital on PrairieSky Funds from operations lands approximately replaces returned to shareholders as production annually. dividends and share repurchases or used to acquire complementary 2020 proved + probable reserves royalty interests. increased 5% over 2019. 9
Slide 11: Production History on our Fee Lands
Production History on our Fee Lands Cumulative production of Historical Gross Production on PSK Fee Lands 4.5 billion BOE 300,000 250,000 200,000 150,000 100,000 50,000 - CD Avg. Oil (bbl/d) CD Avg. Gas (BOE/d) Source: Accumap Additional royalty production is generated on GORR Lands (not included ab
Slide 12: 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-well spacing, and additional application of multi-leg horizo
Slide 13: Playbook Methodology
Playbook Methodology PLAY AREA > Royalty Properties in proximity to historically productive wells in the play > Royalty Properties within the Play Area were defined as Play Lands > Company Fee and GORR Land totals within the Play Area are included on play summary pages ADDITIONAL COMPANY LAND » Roya
Slide 14: Royalty Asset Summary
Royalty Asset Summary Undisc. Undisc. Booked Future Future Future Total Undisc. Booked Future Region / Play Reserves Fee GORR Potential Volume Total Value Value Potential (MBOE) Locations Locations (MBOE) (MBOE) ($MM) ($MM) ($MM) $15.6 billion total undiscounted value Central AB Shallow Gas 22,205 2
Slide 15: Highlights of Changes from 2019 Royalty Playbook
Highlights of Changes from 2019 Royalty Playbook +500 future +277,000 acres +100 future and +325 future locations in Sask Viking locations in Central oil play due to active Alberta Cardium oil drilling and play locations in Clearwater play due to acquisition expansion oil play & active development +
Slide 16: Methodology & Summary of Changes
Methodology & Summary of Changes Consistent Methodology Summary of Changes Undisc. Total Value - Future Future Future Future Total Undisc. Price Model type curves based on well Region / Play Fee Locations GORR Locations Potential (MBOE) Potential ($MM) Volume Total Value Sensitivity (MBOE) ($MM) ($M
Slide 17: Feature Plays: Optionality and Diversification
FEATURE PLAYS: Optionality and Diversification
Slide 18: Feature Plays Introduction
Feature Plays Introduction PrairieSky remains well-positioned for future growth across its extensive landbase Almost 50% of PrairieSky’s Future Potential Value is attributed to 4 feature plays: Montney Emerging - Intermediate Stage: Clearwater Clearwater Oil Duvernay Intermediate - Development Stage
Slide 19: Clearwater Overview
Clearwater Overview Early exposure to a low-cost, emerging oil resource play Clearwater Royalty Lands Over 1 million acres of royalty land in the Clearwater 2020 royalty production averaged 211 bbl/d (100% oil) Undiscounted Total Value of $407MM almost double from previous playbook, remains highly c
Slide 20: Clearwater Growth – Nipisi Area
Clearwater Growth – Nipisi Area 2019 Investor Day 2021 Update Significant Future Growth potential to come from: » Expansion of development acreage (currently only 16% of total acreage) » Actual drilling densities higher than current estimate of 4 multilaterals per section (per productive sand) » Wat
Slide 21: Clearwater Inventory Snapshot
Clearwater Inventory Snapshot Clearwater Locations 2019 Royalty Playbook (Nipisi Only) 725 2019-2020 New Drills (Nipisi Only) 65 2019 Royalty Playbook Remaining 660 Incremental Future Locations 390 2021 Royalty Playbook 1,050 2020 Royalty Revenue $2.2 million Undiscounted Total Value $407 million To
Slide 22: Duvernay Summary
Duvernay Summary PrairieSky Duvernay Royalty Wells Strategic Fee Land position will benefit from continued resource play development Central Alberta Duvernay Royalty production averaged 315 BOE/d (90% liquids) in 2020 950,000 acres (85% Fee) within Play Area 39 wells drilled on Royalty Lands from 20
Slide 23: Duvernay Upcoming Primary Term Expiries
Duvernay Upcoming Primary Term Expiries Primary term of Duvernay lease issued prior to formation of PrairieSky Royalty expires in Q2 2022 Over 110,000 acres of prospective lands included in this lease Only producing Drill Spacing Units (DSUs) will be eligible for continuation at the end of the prima
Slide 24: Duvernay Inventory Snapshot
Duvernay Inventory Snapshot Locations Duvernay Fee GORR Total 2019 Royalty Playbook 1,150 250 1,400 2021 Royalty Playbook 1,120 210 1,330 Example Future Development (wells/year) 50 Remaining Development (years) 27 2020 Royalty Revenue $4.5 million Undiscounted Total Value $2.1 billion Total Acreage
Slide 25: Viking Summary
Viking Summary Low risk, light oil targets with significant location inventory Viking Regional Hydrocarbon Trends PrairieSky’s Viking Oil assets averaged ~2,800 BOE/d (86% liquids) in 2020 from Central Alberta and Western Saskatchewan Over 1.2 million acres (~70% Fee) of Royalty Lands within Play Ar
Slide 26: Viking Technology Advancements
Viking Technology Advancements Provost, AB Continued Waterflood expansions in Alberta and Saskatchewan Dodsland, SK Plato, SK AB SK Waterfloods provide pressure support to Viking oil reservoirs, extending the life of producing wells and increasing ultimate recoveries. These initiatives are ongoing a
Slide 27: Viking Inventory Snapshot
Viking Inventory Snapshot Locations Central Western AB SK 2019 Royalty Playbook 3,650 5,900 2019-2020 New Drills -174 -324 2019 Royalty Playbook Remaining 3,476 5,576 Incremental Future Locations 194 824 2021 Royalty Playbook 3,670 6,400 Example Future Development (wells/year) 175 300 Remaining Deve
Slide 28: Montney Oil & Gas
Montney Oil & Gas Montney royalty production averaged ~2,100 BOE/d (30% liquids) in 2020, which was 11% of total production Almost 250,000 acres of predominantly GORR Lands within Play Areas 38 wells drilled on Royalty Lands from 2019-2020 1,400 future locations in inventory 27
Slide 29: Additional Considerations - Other Plays
Additional Considerations - Other Plays Gross Production - Recent Charlie Lake Royalty Well PrairieSky has $171MM of Booked Reserves in Other Plays, with no future locations 2020 Royalty Revenue: $370M assigned in the Royalty Playbook From 2015-2020, average 17 wells drilled/year on Royalty Lands in
Slide 30: The Canadian Advantage
The Canadian Advantage Source: Modified from Pembina Pipeline Corporate Presentation April 2021 (1) Based on the 19 largest Canadian and U.S. producers under Peters & Co. coverage. (2) Based on Scotiabank’s 2019 Playbook – Low Oil Price Case – Top plays by profit investment ratio (PIR). (3) Based on
Slide 31: Break
ee eee PRAIRIESKY NT
Slide 32: ESG: A Differentiated Model
—— PRAIRIESKY ESG: A Differentiated Model
Slide 33: ESG Approach
ESG Approach We are committed to operating our business in an economically, socially, and environmentally responsible and sustainable manner for the benefit of shareholders and relevant stakeholders. We conduct our business responsibly by: Incorporating sustainability factors into our strategy and a
Slide 34: PrairieSky ESG Snapshot
PrairieSky ESG Snapshot Ranked #1 Governance Net Zero of global oil and gas producers, #847 out of The Globe and Mail, Report on 13,651 companies Business Board Games - Scope 1 & 2 globally across all PrairieSky ranked in the top Emissions industries(1) quartile of Canadian companies Achieved in 201
Slide 35: 2020 Responsibility Report
2020 Responsibility Report Available on our website at https://www.prairiesky.com/responsibility/our-approach/ Highlights and Improvements Include: • Independent Verification of “Net Zero” and Carbon Neutrality (2019 & 2020) • Additional Independent Verification of Key Performance Indicators, includ
Slide 36: Safe and Reliable Energy for the World
Safe and Reliable Energy for the World Canadian Oil & Gas Environmental regulations and stewardship are best-in-class Focus on Health and Safety, Human Rights and Community Partnerships Energy firms are leading technological innovation, driving a rapid rate of change and continuous improvement align
Slide 37: Energy Transition Opportunities – Natural Gas
Energy Transition Opportunities – Natural Gas Natural gas will play a significant role in the energy transition. PrairieSky has natural gas production and untapped reserves across Western Canada, providing material exposure to near, medium and long-term opportunities. 36
Slide 38: Carbon Capture Utilization and Storage (CCUS)
Carbon Capture Utilization and Storage (CCUS) On a global scale, CCUS has accelerated in recent years which is partly a function of: Improved technology Financial and government incentives 45Q tax credit in the US (US$/t credit level varies ($35-50/t) between Dedicated Storage, EOR and Utilization)
Slide 39: Carbon Capture Utilization and Storage (CCUS), Cont’d
Carbon Capture Utilization and Storage (CCUS), Cont’d 38
Slide 40: CCUS Sequestration Limitations
Carbon Capture Utilization and Storage (CCUS), Cont’d Oil Reservoirs with > 1 Mt CO2 Storage Capacity Sequestration Limitations Sources of CO2, as well as infrastructure to purify (to 95% minimum) and transport CO2, make some CCUS sites unattractive. Distance between source emissions and injection s
Slide 41: PrairieSky Approach to Identifying Suitable Reservoirs
Carbon Capture Utilization and Storage (CCUS), Cont’d PrairieSky Approach to Identifying Screening Criteria Suitable Reservoirs Crude Oil Utilized Extensive PSK Seismic Library and Technical Gravity (API°) 27-48° Well Data from over 40,000 wells Reservoir Pressure >10.3mPa Reservoirs were identified
Slide 42: CCUS - Reservoir Mapping
CCUS - Reservoir Mapping Alberta Technical Criteria/Filter Current or Testing of Water/Gas Injection Pool Size (Meaningful Scale) On Trend with CO2 supply (including ACTL proximity) Fee Lands Only (leasing opportunities), excludes upside of GORRs on EOR) Grande Prairie Technical Criteria/Filter: Res
Slide 43: EOR and CCUS
EOR and CCUS Enhanced oil recovery (EOR) via the sequestration of carbon dioxide (CCUS) reduces GHG emissions and increases recovery factors of oil assets. Miscible CO2-EOR projects have shown incremental oil recovery rates of 7%-23%. CO2-EOR projects require: Source of CO2 Transportation for CO2, a
Slide 44: Application Example on PSK Lands
Application Example on PSK Lands CCUS via ACTL and Enhance Energy - Clive D-3A Unit No. 1 Enhance Energy is a privately-owned Alberta-based energy company established in 2008 focused on reducing carbon emissions through CCUS, and specifically utilizing CO2 for EOR. https://enhanceenergy.com/ Prairie
Slide 45: Alberta Carbon Trunk Line
Application Example on PSK Lands, Cont’d Alberta Carbon Trunk Line Provides the “spine” through Central Alberta for CO2 transportation. Provides access to a number of PrairieSky pools that have the ideal reservoir characteristics for CCUS. 44
Slide 46: Clive D-3A Unit No. 1 Phases
Application Example on PSK Lands, Cont’d Clive D-3A Unit No. 1 Phase 2 2-3 Years 7 Injection Wells 9 Production Wells Phase 1 1-2 Years 8 Injection Wells 8 Production Wells Phase 3 5-10 Years 2 Injection Wells 3 Production Wells 45
Slide 47: Clive D-3A Unit No. 1 Production Response
Application Example on PSK Lands, Cont’d Clive D-3A Unit No. 1 Start of Injection 710 bbl/d Production Response 46
Slide 48: The Next EOR – CCUS Candidate
The Next EOR – CCUS Candidate Fenn Big Valley – Nisku A Pool Fenn Big Valley Nisku A Pool has over 500 MMbbl OOIP, and has recovered approximately 60% of the oil to date. Next candidate for CO2 injection along ACTL line Large Nisku reef complex suitable ~14 miles for CO2 EOR Flood PrairieSky mineral
Slide 49: Additional EOR - CCUS Opportunity
Additional EOR - CCUS Opportunity Using PrairieSky data and seismic, along with Technical Filters, PrairieSky identified 100 pools that could be used for CCUS combined with EOR. All miscible reservoirs can provide PrairieSky potential future value from: Production and increased recovery factors = fu
Slide 50: PrairieSky CCUS and Energy Transition Transactions
PrairieSky CCUS and Energy Transition Transactions PrairieSky is uniquely situated to partner on stand-alone CCUS (non-EOR) projects as well as new technology and energy transition initiatives. We have focused on three primary areas for this presentation: In-Situ Resource Gasification (non-hydrogen)
Slide 51: In-Situ Resource Gasification (Feedstock) and CCUS
In-Situ Resource Gasification (Feedstock) and CCUS PrairieSky has completed a leasing and CCUS transaction with a well capitalized Alberta private company. The project is aimed at producing economically competitive and “carbon net negative” livestock and aquaculture feed using underground resource g
Slide 52: In-Situ Resource Gasification Cont’d
In-Situ Resource Gasification Cont’d Lease Bonus, Royalties Down the Value Chain; Carbon Credits Project anchored by PSK leases, along with access to seismic. AMI area includes a GORR on any non- PSK rights purchased. PrairieSky has received bonus and rentals on the up-front leasing arrangement. Pra
Slide 53: Early-Stage “Blue” Hydrogen
Early-Stage “Blue” Hydrogen Most energy models suggest that Hydrogen will be part of the mix on a path to net zero emissions Alberta is currently the largest producer of Hydrogen in Canada Low-Cost Natural Gas Feedstock is abundant, with technical expertise and some infrastructure in place CCUS expe
Slide 54: Early-Stage “Blue” Hydrogen SMR
Early-Stage “Blue” Hydrogen “Blue” Hydrogen Projects using Steam Methane Reforming (SMR) technology Proven and scalable industry with global production of >70 Mt/year Electrolysis uses 2x as much water and 5x-6x more energy than SMR Operating and capital costs are 4x–6x less than electrolysis produc
Slide 55: Current Hydrogen & CCUS Leasing Transactions
Current Hydrogen & CCUS Leasing Transactions Three Focus Transactions: Proximity to abundant PrairieSky natural gas Integrated solution with identified PrairieSky reservoirs for reinjection of CO2 for CCUS and longer-term potential EOR stimulation Centralized SMR production supports cost effective C
Slide 56: Hydrogen & CCUS Commercial Arrangements
Current Hydrogen & CCUS Leasing Transactions Commercial Arrangements Zonal Leasing for Natural Gas Current Bonus Consideration and Rentals Alberta Royalties (15%) on shallow zones, with option to take production further down the value chain as H2 CO2 Injection and Storage Agreement Leases to support
Slide 57: CCUS Partnerships, Cont’d
CCUS Partnerships, Cont’d PrairieSky uniquely situated to partner on stand-alone CCUS (non-EOR) projects. PrairieSky has established partnerships with CCUS project proponents in Alberta PSK contributing zonal leases, tenured buffer zones, and seismic for identified and suitable reservoirs. Partners
Slide 58: CCUS Partnerships
CCUS Partnerships PSK receives an equal interest in the partnership structure Alberta with an option to participate in funding the facility buildout (purification, compression, injection, and measurement) to maintain 50% partnership interest. Option to allow existing partners or new equity to fund b
Slide 59: Helium Opportunity
Helium Opportunity Agreement covers 47 townships of PrairieSky Fee Lands Seismic review over an AMI and natural gas leasing Options to extend leasing on specific lands for additional bonus consideration and lease rentals Standard Fee Land royalty rates including 4.25% for helium (consistent with Cro
Slide 60: Mines & Minerals Title
Mines & Minerals Title Estate in fee simple is largest and greatest estate or “bundle of rights” in land. An “owner of land” has all of the rights in or to a piece of real property (mineral or surface) that the law will recognize and protect. “Mines & Minerals” In Alberta, minerals have been defined
Slide 61: How do PrairieSky Shareholders Benefit?
How do PrairieSky Shareholders Benefit? PrairieSky’s current focus is on organic opportunities on the existing land base. None of the existing projects (whether discussed here or not) require PrairieSky to contribute capital. Current Benefits Bonus and Rentals from Leasing Royalties on Production Se
Slide 62: Financial Update: High Margins - Income Statement Review
FINANCIAL UPDATE: High Margins - Income Statement Review
Slide 63: Revenue Generation – Oil Royalty Production
Revenue Generation – Oil Royalty Production 2020 was a challenging year for activity, and we saw production declines due to the slow down. Commodity Geology 62
Slide 64: Revenue Generation – Natural Gas Production
Revenue Generation – Natural Gas Production PrairieSky has a perpetual call option on natural gas. In Q1 2021: Natural gas contributed 22% of royalty revenue and 50% of royalty production. NGL royalty production added an incremental 2,502 bbl/d (12%) and $7.5 million of royalty revenue. In the short
Slide 65: Other Revenue
Other Revenue Third Party Operators Other Revenues are generated primarily from Fee Lands and represent a meaningful annual contribution to cash flows. Commodity Geology 64
Slide 66: Expenses
Expenses PrairieSky has a simple cost structure which includes Production and Mineral Tax and Administrative Expenses. Production and mineral taxes are calculated based on production volumes and price in Alberta and on a per acre cost in Saskatchewan. Our business is scalable and we have been able t
Slide 67: Higher Margin, Lower Risk
Higher Margin, Lower Risk Q1 2021 Margin Summary ($/BOE) Royalty Production Revenue (50% Liquids Production)(1) $32.51/BOE PrairieSky Royalty offers higher margins than conventional working interest production Royalties ($3.30/BOE) Providing the same revenue per Royalty Revenue BOE, a royalty barrel
Slide 68: Taxes
Taxes Tax Pools at December 31, 2020 Third Party Operators Commodity Geology PrairieSky added $45 million of tax pools with its royalty acquisition in February, providing additional tax shelter in 2021 and beyond. 67
Slide 69: Financial Update: Returns to Shareholders
FINANCIAL UPDATE: Returns to Shareholders
Slide 70: Value of Fee Lands
Value of Fee Lands • 310 lessees paying royalties on PrairieSky Royalty lands • Operators on PrairieSky Royalty Fee Third Party Lands include Majors, Independents, Mid Cap and Small Cap producers Operators Commodity Geology (1) Cash flow estimate for TPL based on Stifel analyst report March 31, 2021
Slide 71: Valuation - PSK vs Texas Pacific Land Corporation
Valuation - PSK vs Texas Pacific Land Corporation Historical trading multiples of PSK vs TPL based on year-end share price except for 2021 which is based on the March 31, 2021 share price. 80.0 Third Party Operators 70.0 60.0 Valuation Share Price/FFO per Share 50.0 40.0 30.0 Commodity Geology 20.0
Slide 72: Shareholder Returns
Shareholder Returns Perpetual ownership • 310 lessees payingin an asset royalties on provides optionality to shareholders PrairieSky Royalty lands and the opportunity for steady growth at a lower risk. • Operators on PrairieSky Royalty Fee Third Party Lands include Majors, Independents, Mid Cap and
Slide 73: PSK Valuation vs Producer Valuations
PSK Valuation vs Producer Valuations • 310 lessees paying royalties on $1.00 Oil and gas producers require PrairieSky Royalty lands Third$0.90 • Operators on PrairieSky Royalty Fee maintenance/sustaining capital. Party Lands include Majors, Independents, Mid Cap and Small Cap producers Operators $0.
Slide 74: Share Performance vs. XEG
Share Performance vs. XEG 140 • 310 lessees paying royalties on PrairieSky Royalty lands • Operators on PrairieSky Royalty Fee Third Party Lands include Majors, Independents, 120 Mid Cap and Small Cap producers Operators 100 80 Index = 100 60 40 Commodity Geology 20 - Sep/14 Nov/14 Sep/18 Nov/18 May
Slide 75: PSK vs 10 Year Bond
PSK vs 10 Year Bond • 310 lessees paying royalties on PrairieSky Royalty lands 12.00% Third Party • Operators on PrairieSky Royalty Fee 12.000% Lands include Majors, Independents, Mid Cap and Small Cap producers Operators 10.00% 10.000% 8.00% 8.000% FCF Yield 6.00% 6.000% Spread 4.00% over 4.000% 5.
Slide 76: PSK vs REITS
PSK vs REITS • 310 lessees paying royalties on PrairieSky Royalty lands • Operators on PrairieSky Royalty Fee Third Party Lands include Majors, Independents, Mid Cap and Small Cap producers Operators (1) Based on RBC Capital Markets 2021 AFFO estimates (post year-end estimates). Debt at December 31,
Slide 77: 10 Year Free Cash Flow Generation
10 Year Free Cash Flow Generation Q4 2020 Average Royalty Production 19,281 BOE/d A $0.50/Mcf increase in AECO increases 10-year cash flow by $0.1 billion. 76
Slide 78: Capital Allocation – Share Buyback Example
Capital Allocation – Share Buyback Example Third Party Operators Commodity Geology 77
Slide 79: Outcomes
Outcomes $100.00 $90.00 $80.00 March 31, 2021 $70.00 $60.00 Share Price PSK Including $50.00 $5.60 dividends $40.00 $30.00 $20.00 PSK $10.00 Excluding dividends $- 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 17,000 boe, WTI $45 19,000 boe, WTI $55 21,000 boe,
Slide 80: Questions
• 310 lessees paying royalties on PrairieSky Royalty lands Third Party • Operators on PrairieSky Royalty Fee Lands include Majors, Independents, Mid Cap and Small Cap producers Operators QUESTIONS Commodity Geology 79
Slide 81: Leadership Team
Leadership Team Board of Directors James M. Estey, Chair of the Board Robert Robotti Corporate Director, Retired Chairman of UBS Securities Canada Inc., and more than 30 years Founder and Chief Investment Officer Robotti & Company Advisors, LLC of experience in financial markets Chair of Pulse Seism
Slide 82: Assumptions
Assumptions • 310 lessees The following flat pricing assumptions paying were used in royalties preparingonthe Undiscounted Booked Value(1) and Undiscounted Future Potential in the 2021 PrairieSky Royalty lands PrairieSky Royalty Playbook and this Investor Day Presentation (please see Pricing Assumpt
Slide 83: Non-GAAP Measures
Non-GAAP Measures Certain measures in this Investor• Day 310Presentation lessees payingdoroyalties not haveonany standardized meaning as prescribed by IFRS and therefore, are considered non- GAAP measures. These measures may PrairieSky not beRoyalty lands to similar measures presented by other issue
Slide 84: Other Disclosure
Other Disclosure CONVERSIONS OF NATURAL • 310GAS lesseesTO paying BOE royalties on PrairieSky Royalty lands To provide a single unit of • production Operators on for analytical PrairieSky Royaltypurposes, Fee natural gas production and reserves volumes are converted Third Party mathematically to equ
Slide 85: Disclosure & Cautionary Statements
Disclosure & 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 86: Disclosure & Cautionary Statements
Disclosure & Cautionary Statements business of exploration and development on any of the properties in which PrairieSky holds a royalty interest, including, but not limited to unusual or unexpected geological conditions, natural disasters, terrorism, civil unrest or a political change; and the integ
Slide 87: Contact Information
CONTACT INFORMATION WWW.PRAIRIESKY.COM PRAIRIESKY ROYALTY LTD. 1700, 350 – 7 Avenue SW Calgary, AB T2P 3N9 T 587.293.4000 E Investor.relations@prairiesky.com