The following is a summary of the PrairieSky Royalty Ltd. (PREKF) Q3 2024 Earnings Call Transcript:

Financial Performance:

• PrairieSky reported a Q3 total production of 24,422 BOE per day, with oil royalty volumes at 12,733 barrels per day, marking a 5% increase from Q3 2023.

• Royalty production revenue reached $111.5 million in Q3, with additional revenue of $5.8 million.

• Funds from operations stood at $92.4 million or $0.39 per share, sightly below Q3 2023, and a declared dividend of $59.7 million or $0.25 per share resulted in a payout ratio of 65%.

• Net debt decreased 33% from year-end to $149.6 million.

Business Progress:

• Q3 saw strong licensing with 247 well spots, indicating sustained momentum in oil growth through upcoming quarters.

• New leasing activity involved 54 new leases with 41 different counterparties, broadly spread across oil plays.

• Continuous improvements in drilling techniques and fluid systems have expanded economical opportunities within the Mannville stack.

• Clearwater waterflood activity continued to enhance declines and increase recovery factors, contributing positively to the sustainability of production volumes.

Opportunities:

• Increased drilling and production in the Clearwater and Mannville stack plays are projected to significantly contribute to the company's production output.

• Technological refinements and robust leasing activity provide a foundation for sustained operational growth and market expansion.

Risks:

• Declines in natural gas and NGL volumes were experienced due to weak pricing, with an undetermined timeline for these volumes' reactivation.

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