Prairiesky Royalty Ltd · TSX:PSK
Prairiesky Royalty — CAPP Conference (April 2024)
24 slides from Prairiesky Royalty's conference presentation, Apr 9, 2024
Slide 1: Corporate Presentation – CAPP Conference
Corporate Presentation – CAPP Conference April 9, 2024 1
Slide 2: PrairieSky Royalty Snapshot
PrairieSky Royalty Snapshot TSX $6.7 Balance Sheet PSK Billion Strength Enterprise Value(1) 0.6x 2023 D/CF Annual Dividend Oil & Liquids $1.8 $1.00 88% Billion Per Common Share of 2023 Royalty Production Paid Quarterly Returned to Revenue Shareholders since IPO 18.2 Canada’s Net Zero Largest Million
Slide 3: Why PrairieSky?
Why PrairieSky? • 9.7 million acres of Fee Lands Vast Land Base • 8.5 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 4: PrairieSky's Dominant Land Position
PrairieSky’s Dominant Land Position PrairieSky has more than tripled its Royalty Lands since inception, a 90% 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 5: PrairieSky Key Growth Metrics
PrairieSky Key Growth Metrics Production per Million Shares(1) Share of Industry Capital(2) 120 $2.5 8.0% 7.0% 100 $2.0 6.0% 80 5.0% $1.5 $ billions 60 4.0% $1.0 3.0% 40 2.0% $0.5 20 1.0% - $0.0 0.0% 2019 2020 2021 2022 2023 Gross Capital on PSK Land % of Industry Capital Oil NGL Natural Gas (boe) A
Slide 6: Strong quarterly activity with 197 spuds on PrairieSky lands – Q4 2023
Spuds on PrairieSky Lands – Q4 2023 With third-party activity across our royalty land base, PrairieSky has increased its oil royalty production by 6% in 2023 Strong quarterly activity with 197 versus 2022. wells spud across PrairieSky’s land base, including: ● 33 Viking light oil wells spud ● 44 Cle
Slide 7: Clearwater Royalties
Clearwater Royalties PrairieSky has the largest Clearwater royalty acreage position with ~1,400,000 acres throughout the entire Clearwater trend. Clearwater royalty production showing sustainable organic growth with average royalty production volumes of ~1,800 BOE/d in Q4 2023. Clearwater Royalty Pr
Slide 8: Mannville Stack Growth
Mannville Stack Growth PrairieSky has a significant Fee title position with a Royalty rate of 17.5% at Elk Point in the Cold Lake region, along with an extensive GOR position further to the north under Oil Sands tenure. Discoveries have been made in 9 discrete intervals within the Mannville Stack, u
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 2023, 2023 funds from operations of after annual production of 9,072 MB
Slide 10: Production & Revenues Generated from Royalty Properties
Production & Revenues Generated from Royalty Properties PrairieSky generates revenues through leasing its Fee Lands and its GORR Interests, which includes Royalty Production Revenue, Bonus Consideration and Lease Rental Income. Royalty Compliance focuses on capturing mispaid royalties through forens
Slide 11: Hedge to Inflation
Hedge to Inflation Low risk revenue base High margins No maintenance capital Strong revenue for upstream oil and gas producers and PrairieSky. None of the capital requirements, operating costs, abandonment liabilities or Unhedged royalty portfolio reclamation charges associated with working provides
Slide 12: Returns to Shareholders
Returns to Shareholders 3.5 From IPO to December 31, 3.0 2023, PrairieSky has returned 2.5 $1.6 billion in dividends and $246 million in share buybacks 2.0 to shareholders. $ billions 1.5 High conversion of revenues to funds from operations for distribution to 1.0 shareholders through all commodity
Slide 13: Shareholder Alignment
Shareholder Alignment Board & Management Ownership in PSK: ~2.8 million shares Shareholder “Pay for performance” long-term incentives Alignment All staff are shareholders and maximize participation in Employee Stock Purchase Plan Decisions focused on core strategy and creating long-term shareholder
Slide 14: 10 Year Funds from Operations Generation
10 Year Funds from Operations Generation 2023 Average Royalty Production 24,857 BOE/d(1) 10 Year Average Annual Production (BOE/d) FX AECO WTI ($US / $CAD) ($/Mcf) ($/bbl) 22,000 24,000 26,000 28,000 30,000 10 Year Funds from Operations (Billions) % Annual Growth Rate ~(2.5%) ~(1.0%) ~0.6% ~1.5% ~3.
Slide 15: ESG Survey Results & Rankings
ESG Survey Results & Rankings ESG Survey Results Ranked #1 by Sustainalytics for Global Oil and Gas Producers and #77 (top 0.5%) in Global Universe (February 5, 2024). Received the ESG Global 50 Top Rated Badge awarded to top 50 ranked companies in Sustainalytics' Global Universe. S&P Global CSA - I
Slide 16: Q4 2023 Activity Update & Financial Information
Q4 2023 ACTIVITY UPDATE & FINANCIAL INFORMATION 16
Slide 17: Quarterly Activity on PrairieSky Lands
Quarterly Activity on PrairieSky Lands Wells Spud Wells Spud 300 300 15.0% 200 200 10.0% 100 100 5.0% 0 0 0.0% LOR GORR UNIT OIL GAS RI Wells Rig Released Wells Rig Released 300 300 15.0% 200 200 10.0% 100 100 5.0% 0 0 0.0% LOR GORR UNIT OIL GAS RI Wells on Production* Wells On Production* 300 300 1
Slide 18: Financial Highlights
Financial Highlights Year Ended December 31, $millions, unless otherwise noted Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 2023 2022 Production Volumes Crude Oil (bbls/d) 12,844 12,084 12,607 12,212 12,166 11,376 12,438 11,739 NGLs (bbls/d) 2,697 2,702 1,943 2,664 2,681 2,660 2,502 2,684 Natural
Slide 19: Top Payors
Top Payors Top 10 payors represent 49% Exposure to various operators with of product revenue, while the diverse expertise ranging from Top 25 payors represent 72% private companies to Majors. of product revenue. Top 25 Payors Aspenleaf Energy Caltex Trilogy Cardinal Energy Cenovus Energy Ember Resou
Slide 20: Leadership Team
Leadership Team Board of Directors Glenn A. McNamara Corporate Director, Former President & Chief Executive Officer and Director of James M. Estey, Chair of the Board Heritage Resources LP, Former President of BG Canada and ExxonMobil Canada Energy Corporate Director, Retired Chairman of UBS Securit
Slide 21: Disclaimer & Cautionary Statements
Disclaimer & Cautionary Statements Cautionary Statement on Forward Looking Information This presentation contains “forward looking information” and “forward looking statements” within the meaning of applicable securities laws, which may include, but are not limited to: statements with respect to fut
Slide 22: 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 23: 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 24: 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