Prairiesky Royalty Ltd · TSX:PSK
Prairiesky Royalty — Investor Day (May 2023)
101 slides from Prairiesky Royalty's investor day presentation, May 17, 2023
Slide 1: Investor Day Presentation
May 17, 2023 INVESTOR DAY PRESENTATION
Slide 2: Agenda
Agenda PRAIRIESKY — ROYALTY LTD Welcome Remarks & Introductions 9:05 “Corporate Overview = == 5 -) Andrew Phillips, CEO 9:15 | Playbook Methodology & Technical Concepts, Royalty Asset Summary & Summary of Changes 9:25 | Feature Play: Clearwater i _ lan Currie, CEO of Spur Petroleum Ltd. Andrew Phill
Slide 3: PrairieSky Royalty Snapshot
PrairieSky Royalty Snapshot TSX $5.4 Balance Sheet PSK Billion Strength Enterprise Value(1) $1.6 Annual Dividend 238.9 $0.96 Million Billion Per Common Share Returned to Shares Outstanding Shareholders Paid Quarterly since IPO 18.3 Net Million Zero 4 Provinces Acres of Royalty Lands Scope 1 and 2 Em
Slide 4: Returns to Shareholders
Returns to Shareholders 3.0 2.5 From IPO to March 31, 2023, PrairieSky has returned $1.4 billion in dividends and $246 million in share buybacks 2.0 to shareholders. $ billions 1.5 High conversion 1.0 of revenues to funds from operations for distribution to shareholders through all 0.5 commodity pri
Slide 5: PrairieSky's Dominant Land Position
PrairieSky’s Dominant Land Position Acquisitions included: PrairieSky has more than All Saskatchewan Fee Lands and GORR acreage, including Viking acreage tripled its land base 1.3 million Clearwater acres since IPO Montney and Deep Basin acreage Last remaining large oil-weighted fee mineral title ac
Slide 6: Accretive Acquisitions
Accretive Acquisitions Acres per Million Shares(1) 130 million 100,000 common shares issued on IPO 80,000 Currently generating ~30% 92% increase in of funds from operations acreage per 60,000 share 109 million 40,000 common shares issued for acquisitions, net of buybacks 20,000 Currently generating
Slide 7: PrairieSky per Share Metrics
PrairieSky per Share Metrics Production per Million Shares(1) Acres per Million Shares(2) 100,000 140 120 80,000 100 60,000 92% 80 60 40,000 40 20,000 20 - - 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 Q3/20 Q4/2
Slide 8: Reserves Replacement
Reserves Replacement Third-party capital on PrairieSky lands has historically replaced produced reserves. Reserves fully replaced in 2022 after production of 9,200 MBOE in the year. In a royalty business with undeveloped land, all funds from operations can be returned to shareholders. 8
Slide 9: Future Optionality
Future Optionality PSK PRAIRIESKY — ROYALTY LTD 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 applicat
Slide 10: Playbook Methodology
Playbook Methodology Expansion of Development Area Over Time…. 2017 2023 Booked Reserves Playbook Valuation Future Optionality 10
Slide 11: 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) ($MM) $26.3 billion total undiscounted value Central AB Shallow Gas 30,478 2
Slide 12: Highlights of Changes from 2021 Royalty Playbook
Highlights of Changes from 2021 Royalty Playbook 12
Slide 13: Methodology & Summary of Changes
Methodology & Summary of Changes Summary of Changes Consistent Methodology Future Future Future Undisc. Future Total Undisc. Total Value - Price Fee GORR Potential Potential Volume Total Value Sensitivity Region / Play Locations Locations (MBOE) ($MM) (MBOE) ($MM) ($MM) Model type curves based on we
Slide 14: Feature Play: Clearwater
FEATURE PLAY: CLEARWATER DECADES OF SUSTAINABLE GROWTH
Slide 15: Conventional Oil Production in Canada
Conventional Oil Production in Canada Total oil production in Alberta climbed to 3.96 million barrels per day (bbl/d) in November, a new peak and 2.2% higher than the previous monthly high set in September 2022. Oil sands output rose by 119 thousand bbl/d (+3.7%) from October, while conventional (in
Slide 16: Well-Positioned for Future Growth
Feature Plays Introduction - Clearwater Oil Well-Positioned for Future Growth Over 55% of PrairieSky’s Future Potential Value in 5 feature plays: Viking Oil 22% (AB,SK) Clearwater Oil Mannville Heavy Oil 13% (AB Only) Duvernay 9% Clearwater Oil 7% Montney Oil & Gas 5% Undiscounted Future Potential/B
Slide 17: Clearwater Oil
Clearwater Oil PrairieSky has the largest Clearwater royalty acreage position with over 1,300,000 acres throughout the entire Clearwater trend. Clearwater royalty production showing sustainable organic growth and reaching record average royalty volumes of ~1,700 BOE/d in Q1 2023. Clearwater Royalty
Slide 18: Clearwater Return on Invested Capital (ROIC)
Clearwater Return on Invested Capital (ROIC) PSK’s initial investment in the Clearwater was in 2016, with the largest investment in undeveloped land in 2017. There have been incremental additions to our undeveloped land holdings from 2018-2022. 47% of the investment has been returned and the lands a
Slide 19: Clearwater Overview
Clearwater Overview Clearwater Royalty Lands Over 1.3 million acres of royalty land in the Clearwater 2022 royalty production averaged 1,567 BOE/d (91% oil) Undiscounted Total Value of $1.9 billion (4.7x previous book) Future value remains conservative, significant upside beyond current Playbook val
Slide 20: Clearwater Growth – Nipisi Area
Clearwater Growth – Nipisi Area 2019 Investor Day 2021 Investor Day 2023 Update Significant Future Growth potential to come from: Expansion of future development acreage (currently only 24% of total Clearwater acreage) Actual drilling densities higher than current estimate of 6 multilaterals per sec
Slide 21: Clearwater Inventory Snapshot
Clearwater Inventory Snapshot Clearwater Locations 2021 Royalty Playbook 1,050 2021-2022 New Drills (243) Incremental Future Locations 1,863 2023 Royalty Playbook 2,670 2022 Royalty Revenue $48 million Undiscounted Total Value $1.9 billion Total Acreage (thousand acres) Acreage included in Future Pl
Slide 22: Spur Petroleum Investor Day May 2023
= spur PRAIRIESKY PETROLEUM LTD INVESTOR Day May 2023
Slide 23: 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 24: 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 25: 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 26: Clearwater Overview
CLEARWATER OVERVIEW • The Clearwater is now the largest conventional (i.e. non‐oil‐sands) play in Canada, having grown from effectively zero in 2017 • Spur accounts for about a third of total production and more land and de‐risked drilling inventory than all other operators combined Canadian Convent
Slide 27: Clearwater Payouts
CLEARWATER PAYOUTS • Clearwater wells have low capital costs, strong IPs and fast payouts, but this is only part of the story… o The moderate declines mean that wells continues to generate strong cash flow for years Marten Hills Median Well – Production and Payout 200 Production (bbl/d) 150 Shaded b
Slide 28: Where It Belongs in the Basin
WHERE IT BELONGS IN THE BASIN (high) Cold‐Flow Heavy Oil Sands/Thermal (high op costs, high water cuts, (huge capital investment, Conventional Production sand production) steady production profile) (the ideal, but not much left in the WCSB) Rock Quality Vertical Frac (also has limited opportunities
Slide 29: Evolution of the Multilateral
EVOLUTION OF THE MULTILATERAL • Drilling techniques have evolved over the past five years • Wells are now fine‐tuned for the reservoir and surface constraints Escoba (“broom”) layout Six‐leg, one‐mile multilaterals “Fishbone” well Two‐mile multilaterals MAY 2023 29
Slide 30: Timeline
TIMELINE McMullen Discovery 40,000 McLeod Lake & 35,000 Utikuma Discovery Production (boe per day) Cadotte Discovery 30,000 Nipisi Discovery 25,000 2017 Land Sale 20,000 Bought 390,000 acres 15,000 with PSK backing 10,000 5,000 0 2017 2018 2019 2020 2021 2022 2023 MAY 2023 30
Slide 31: Land Overview
LAND OVERVIEW McLeod Lake Utikuma McMullen Cadotte Marten Hills PrairieSky has overriding royalties on Nipisi/Cabin Creek effectively all land except 2022 McMullen acquisition (highlighted in light green) MAY 2023 31
Slide 32: Spur Moving Forward
SPUR MOVING FORWARD • We believe that we can grow the current, de‐risked asset base to 75,000 boe per day by 2027 while paying out substantial distributions to shareholders 2023(1) 2024 2025 2026 2027 80,000 Average Production 60,000 (boe per day) 40,000 20,000 ‐ WTI WCS Can fund base Excess Cash Fl
Slide 33: Summary
SUMMARY Spur’s path forward: • Continue to grow production and delineate reservoirs • Pursue organic exploration initiatives • Return capital to shareholders MAY 2023 33
Slide 34: Questions?
QUESTIONS? MAY 2023 34
Slide 35: Feature Play: Mannville Heavy Oil Stack
FEATURE PLAY: MANNVILLE HEAVY OIL STACK EXPANSION OF TECHNOLOGY BEYOND THE CLEARWATER
Slide 36: Feature Play - Mannville Heavy Oil
Feature Play - Mannville Heavy Oil Implementation of Modern of Drilling Techniques over Established Fields Over 55% of PrairieSky’s Future Potential Value in 5 feature plays: Viking Oil 22% (AB,SK) Mannville Heavy Oil 13% (AB Only) Elk Point Duvernay 9% Clearwater Oil 7% Viking Kinsella/ Montney Oil
Slide 37: Central Alberta Mannville Heavy Oil Overview
Central Alberta Mannville Heavy Oil Overview Mannville Heavy Oil Royalty Lands Lindbergh Over 1.1 million acres of royalty land in the Central Alberta Mannville heavy oil play 2022 royalty production averaged Elk Point 3,091 BOE/d (95% oil) Undiscounted Total Value of $3.5 billion (177% increase ove
Slide 38: Elk Point
Emerging Mannville Heavy Oil Development Area - Elk Point, AB Muriel Lake Located in east central Alberta, near both PSK Thermal assets (Lindbergh and Onion Lake) Multilateral drilling technology unlocking new Lindbergh horizons originally tested with conventional and thermal production methods Stac
Slide 39: Elk Point, AB - Stacked Pay Potential
Elk Point, AB - Stacked Pay Potential Elk Point Type Log Stacked pay potential, up to 5 separate zones in areas Seismic and existing well control reduces reservoir risk Preliminary results support a stronger type curve: booked reserves, location inventory and EURs all have significant growth potenti
Slide 40: Elk Point, AB - Type Curve Review
Elk Point, AB - Type Curve Review The Elk Point heavy oil area is seeing accelerated development with high-leg count multilaterals in areas traditionally exploited with vertical/directional wells. Initial oil rates range from 100-200 bbl/d and EURs are expected to range from 175- 225 Mbbl. Elk Point
Slide 41: Provost Area Activity - Focused Leasing Strategy
Provost Area Activity - Focused Leasing Strategy PSK Leasing Activity and Industry Drilling in Provost PrairieSky land analysis and GIS mapping completed immediately post acquisition and distributed to industry Over 30 new leasing arrangements with 20 different operators since acquiring assets at th
Slide 42: Provost Area Activity
Provost Area Activity Industry Activity Fracture stimulated Sparky horizontals represent majority of recent drilling over the last 3 years Multilateral drills targeting GP, Rex can have significantly higher IP’s and EURs than Playbook Type Curve PrairieSky Royalty Interest - Mannville Spuds by Forma
Slide 43: Provost Area - Multi-zone Potential
Provost Area - Multi-zone Potential Industry Activity Waseca Type Log 100/16-23-039-03W4 Regional Sparky Type Log 102/12-08-040-02W4 GP Type Log 100/16-31-038-02W4 Lloyd Type Log 100/16-31-038-02W4 43
Slide 44: Break
PRAIRIESKY — ROYALTY LTD
Slide 45: Feature Plays: Duvernay, Viking, Montney, Other Plays
FEATURE PLAYS: DUVERNAY, VIKING, MONTNEY, OTHER PLAYS
Slide 46: Duvernay Summary
Duvernay Summary PrairieSky Duvernay Royalty Wells Strategic Fee Land position across East Shale Basin Central Alberta Duvernay Royalty production averaged 419 BOE/d (84% liquids) in 2022 946,000 acres (86% Fee) within Play Area 29 wells drilled on Royalty Lands from 2021-2022 New activity spread ou
Slide 47: Duvernay Inventory Snapshot
Duvernay Inventory Snapshot Play Area Locations Duvernay % Developed Fee GORR Total 2021 Royalty Playbook 50% 1,120 210 1,330 2023 Royalty Playbook 40% 960 150 1,110 Example Future Development (wells/year) 50 Remaining Development (years) 22 2022 Royalty Revenue $14 million Undiscounted Total Value
Slide 48: Viking Summary
Viking Summary Low risk, light oil targets with significant location inventory Viking Regional Hydrocarbon Trends PrairieSky’s Viking oil assets averaged ~2,604 BOE/d (87% liquids) in 2022 from Central Alberta and Western Saskatchewan Over 1.3 million acres (~70% Fee) of Royalty Lands within Play Ar
Slide 49: 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 50: Viking Inventory Snapshot
Viking Inventory Snapshot Locations Central Western Total AB SK 2021 Royalty Playbook 3,670 6,400 10,070 2021-2022 New Drills (121) (375) (496) 2021 Royalty Playbook Remaining 3,549 6,025 9,574 Incremental Future Locations 471 125 596 2023 Royalty Playbook 4,020 6,150 10,170 Example Future Developme
Slide 51: Montney Oil & Gas
Montney Oil & Gas Montney royalty production averaged ~1,480 BOE/d (25% liquids) in 2022 ~290,000 acres of predominantly GORR Lands within Play Areas 39 wells drilled on Royalty Lands from 2021-2022 1,450 future locations in inventory 51
Slide 52: Condensate-Rich Montney GORR Land - Karr
Condensate-Rich Montney GORR Land - Karr In March 2023, operator licensed first Montney Gas well on PrairieSky GORR section 12.5% GORR, acquired from Range Royalty in 2015 2-mile horizontal licensed location, ~47% of production will be allocated to PrairieSky GORR Lands Proven Montney Production wit
Slide 53: Additional Considerations - Other Plays
Additional Considerations - Other Plays Gross Production - Recent Charlie Lake Royalty Well PrairieSky has $231 million of Booked Reserves in Other Plays, with no future locations assigned in the Royalty Playbook From 2015-2022, average ~20 wells drilled/year on Royalty Lands in Other Plays Similar
Slide 54: ESG & Other Opportunities
PRAIRIESKY ESG & OTHER OPPORTUNITIES
Slide 55: 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 56: PrairieSky ESG Snapshot
PrairieSky ESG Snapshot Ranked #1 of global oil and gas Governance Net Zero producers, #51 out of 15,061 companies The Globe and Mail, Report on Business Board Games - Scope 1 & 2 globally across all PrairieSky ranked in the top Emissions industries(1) quartile of Canadian companies Achieved in 2019
Slide 57: Global ESG Rankings
Global ESG Rankings Source: Scotiabank Cutting through the Noise of ESG: How Numbers (Not Rhetoric) Inform Narrative (March 2023) pages 82 and 85. 57
Slide 58: In-Situ Resource Gasification, Elnora Area
In-Situ Resource Gasification, Elnora Area Lease Bonus, Royalties Down the Value Chain; Carbon Credits Project anchored by PrairieSky leases, along with access to seismic. AMI area includes a GORR on any non- PrairieSky rights purchased. PrairieSky has received bonus and rentals on the upfront leasi
Slide 59: 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 60: CCUS Partnership - Meadowbrook
CCUS Partnership - Meadowbrook 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, minor pre-FID capital and seismic for identified and sui
Slide 61: CCUS Partnership - Meadowbrook Cont'd
CCUS Partnership - Meadowbrook Cont’d Location, Location, Location… PrairieSky fee lands situated along railways, electricity right of ways, and industrial corridors Proximity to emissions: within 100 km radius 65 identified parties with over 35 MMTpa of emissions. Meadowbrook initially proposed to
Slide 62: CCUS Partnership - Meadowbrook Cont'd
CCUS Partnership - Meadowbrook Cont’d Location, Location, Location… Can be developed in phases depending on demand, availability of commercial arrangements Near term priority is to identify an anchor partner/emitter in the project Meadowbrook can also serve as a proximal solution to small/medium emi
Slide 63: Helium Opportunities
Helium Opportunities Helium Lease Option, Lethbridge Area Agreement covered 47 townships of PrairieSky Fee Lands Seismic review over an AMI and natural gas/helium leasing Options to extend leasing on specific lands for additional bonus consideration and lease rentals Standard Fee Land royalty rates
Slide 64: Helium Opportunities, Cont'd
Helium Opportunities, Cont’d Helium Lease Option, Lethbridge Area Update Extended Option on 433 sections for $0.6 million of bonus consideration Ability to earn PrairieSky leases by drilling and additional bonus consideration and rentals Option expires Q4/23 - No wells to date 64
Slide 65: Helium Opportunities Cont'd
Helium Opportunities Cont’d Helium Lease Option, Medicine Hat Area Helium Well Commitment & Option on 35 sections of PrairieSky Fee Lands Well to be drilled by December 15, 2023 to earn option on PrairieSky Fee Land and ability to draw down leases with bonus consideration 7% royalty rate for helium
Slide 66: Helium Opportunities, Cont'd
Helium Opportunities, Cont’d Helium Lease Option, Provost Area Helium Option on 122 sections of PrairieSky Fee lands Seismic review over an AMI and natural gas/helium leasing Options to earn PrairieSky leases by drilling and payment of additional bonus consideration and lease rentals Standard Fee La
Slide 67: Lithium Opportunities
Lithium Opportunities Lithium Lease Issuance, Kindersley Area Agreement covers 192 sections of PrairieSky Fee Lands Options to extend leasing on specific lands by drilling and paying additional bonus consideration and lease rentals Standard Fee Land royalty rates including staggered 2.5% to 10% for
Slide 68: Mines & Minerals Title
Mines & Minerals Title “Mines & Minerals” In Alberta, minerals have been defined by statute (Sec 56 of the Law of Property Act) to include: Understanding 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
Slide 69: Financial Update: Production, Revenues & Expenses
FINANCIAL UPDATE: PRODUCTION, REVENUES & EXPENSES
Slide 70: Revenue Generation – Oil Royalty Production
Revenue Generation – Oil Royalty Production Commodity Geology 70
Slide 71: Revenue Generation – Natural Gas Royalty Production
Revenue Generation – Natural Gas Royalty Production PrairieSky has a perpetual call option on natural gas. In Q1 2023: Natural gas contributed 19% of royalty revenue and 40% of royalty production NGL royalty production added an incremental 2,664 bbl/d (11% of production) and $11.2 million of royalty
Slide 72: Higher Margin, Lower Risk, Low Impact of Cost Inflation
Higher Margin, Lower Risk, Low Impact of Cost Inflation Margin Summary ($/BOE) PrairieSky Royalty Illustrative Working Interest PrairieSky Royalty offers higher margins Operator Revenue than conventional working (60% Liquids Production)(1) interest production $52.31/BOE Production & Providing the sa
Slide 73: Other Revenues Generated from Royalty Properties
Other Revenues Generated from Royalty Properties Other Revenues cover approximately all administrative expenses on an annual basis. Since IPO our strategy to leasing has evolved to maximize value and opportunities: Zonal leasing Charging lease rentals by separate product Increasing rentals with infl
Slide 74: 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. PrairieSky leverages technology platforms and da
Slide 75: Bank Debt
Bank Debt In 2021, PrairieSky completed $986 million of acquisitions, issuing shares for ~$220 million of the cost and using bank debt for the remainder. Credit Facility is $725 million, with an accordion PrairieSky exited 2021 with $645 million of bank debt. At feature to $800 million. March 31, 20
Slide 76: Taxes
Taxes PrairieSky’s tax pool balances primarily deplete at 10% per year, providing tax shelter in 2023 over the first $156.7 million of taxable income. 76
Slide 77: Valuation & Returns to Shareholders
VALUATION & RETURNS TO SHAREHOLDERS
Slide 78: Adding Value Through The Cycles
Adding Value Through The Cycles Peers need to acquire on the cyclical highs and lows PSK can acquire at the lows, and grow through Land Leasing in the highs Build balance sheet strength to cancel shares or buy quality assets in the lows 78
Slide 79: Canada's Largest Undeveloped Land Bank
Canada’s Largest Undeveloped Land Bank 79
Slide 80: Leasing and Spud Activity
A Leasing and Spud Activity y PRAIRIESKY PrairieSky’s Competitive Advantage 100 8.9% 300 e@ 90 10.1% 6.4% 8.0% 3 3 g0 ° e = oy, pe oI oe ‘O 279 _ 7.0%7 40 6.0% 6 o 2 98% ee e 8.1% a 67% 6.1% 200 ¥ 5 60 9, 2% iz _@ 2 6° oe % 6. % e Sr 7.2% 4. Aa pe 150 3 40 10.3% E ae O : 5 30 3.5% = + 5 20 | ¥ 4 i f
Slide 81: Taking Advantage of the Cycles
Taking Advantage of the Cycles 81
Slide 82: PrairieSky's Competitive Advantage
PrairieSky’s Competitive Advantage Peers need to acquire on the cyclical highs and lows. PSK can acquire at the lows, and grow through Land Leasing in the highs Q1 2023 was the sixth quarter of record leasing for PrairieSky Build balance sheet strength to cancel shares or buy quality assets in the l
Slide 83: PrairieSky Call Options
PrairieSky Call Options PrairieSky has a bigger bundle of Call Options than any peers. 1. Duvernay – worth $0 in the stock Over $59 million in lease bonus Revenue of $14 million per year 2. Viking can stay flat for 25 more years No acquisitions Revenue of $98 million per year 3. Clearwater – PSK has
Slide 84: PrairieSky Valuation
PrairieSky Valuation What do you pay for decades of: Optionality • Technologies • New Discoveries • Secondary Recoveries Massive Undeveloped Land Lowest Cost Play 84
Slide 85: 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 Texas Pacific Land Corporation based on Stifel U.
Slide 86: Shareholder Returns
Shareholder Returns • 310 lessees paying royalties on PrairieSky Royalty Perpetual ownership lands provides optionality to shareholders in an asset • Operatorsfor and the opportunity on PrairieSky steady growth Third Royalty Fee at Party a lower risk. Lands include Majors, Independents, Mid Cap and
Slide 87: Share Performance versus XEG
Share Performance versus XEG • 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 Commodity Geology 87
Slide 88: PrairieSky versus Midstream & Pipeline Companies
PrairieSky versus Midstream & Pipeline Companies (1) Average of Enbridge Inc., TC Energy, Gibson Energy, Keyera Corp. and Pembina Pipelines. Source: Scotiabank Aitken Creek Sale a Win for Enbridge and Fortis (May 1, 2023). (2) Trailing net debt to EBITDA range provided for companies listed above. So
Slide 89: PrairieSky versus REITS
PrairieSky versus 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) Net debt is bank debt (current and long term) plus current liabilities less current a
Slide 90: 10 Year Free Cash Flow Generation
10 Year Free Cash Flow Generation Q1 2023 Average Royalty Production 24,809 BOE/d 90
Slide 91: Capital Allocation – Share Buyback Example
Capital Allocation – Share Buyback Example Third Party Operators Commodity Geology 91
Slide 92: Outcomes - 2021 Investor Day
Outcomes - 2021 Investor Day Below is the Outcomes slide presented at 2021 Investor Day and where we are today. PrairieSky March 31, share price of 2021 $22.65 + dividends of $6.73 $100.00 = $29.38 per share $90.00 $80.00 $70.00 $60.00 Share Price $50.00 PSK including $5.60 $40.00 dividends $30.00 $
Slide 93: Outcomes - 2023 Investor Day
Outcomes - 2023 Investor Day March 31, 2023 $140.00 $120.00 $100.00 Share Price $80.00 $60.00 PSK including $6.73 in $40.00 dividends $20.00 PSK excluding dividends $- 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Year 24,000 BOE/d, WTI US$60 26,000 B
Slide 94: 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 94
Slide 95: Executive Team
Leadership Team Board of Directors James M. Estey, Chair of the Board Sheldon Steeves Corporate Director, Retired Chairman of UBS Securities Canada Inc., and has Corporate Director, Previously President & CEO of EchoEx; Executive more than 35 years of experience in financial markets Vice President &
Slide 96: Assumptions
Assumptions • 310 lessees The following flat pricing assumptions paying were used in royalties preparingon the Undiscounted Booked Value(1) and Undiscounted Future Potential in the 2023 PrairieSky Royalty lands PrairieSky Royalty Playbook and this Investor Day Presentation (please see Pricing Assump
Slide 97: Non-GAAP Measures & Ratios
Non-GAAP Measures & Ratios Certain measures and ratios in this• 310 lessees Investor Daypaying royalties on Presentation do not have any standardized meaning as prescribed by IFRS and therefore, are considered non-GAAP measures and ratios. These PrairieSky Royalty measures andlands ratios may not be
Slide 98: Other Disclosure
Other Disclosure CONVERSIONS OF NATURAL • 310 GAS lesseesTOpaying 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 Lands include Majors,
Slide 99: 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 100: 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 101: 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 WWW.PRAIRIESKY.COM