PrairieSky Royalty Q2 2026 Earnings Call Transcript

PrairieSky Royalty (TSX: PSK ) reported second-quarter financial results on Tuesday. The transcript from the company's second-quarter earnings call has been provided below. APIs provide real-time access to earnings call transcripts and financial data. Visit to learn more.

View the webcast at Summary PrairieSky Royalty Ltd. reported a 7% increase in oil production from Q1 2026, driven by heightened activity across its lands. The company executed 57 leases with 46 operators and anticipates a busy summer of leasing and drilling, despite some operational delays due to wet field conditions. Total production reached a record 27,479 boe per day, with notable increases in liquids and NGL volumes, primarily from Clearwater and Manville stack.

5 cents per share. Management expressed optimism about growth in Duvernay and other plays, highlighting the impact of technological advancements and robust commodity prices on future activities. Full Transcript OPERATOR Thank you for standing by. Welcome to the PrairieSky Royalty Ltd.

announces their second quarter 2026 financial results. At this time all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press Star 11 on your telephone and you will then hear an automated message of asking.

Your hand is raised and to withdraw your question, please press Star 11 again. Please be advised that today's conference is being recorded. I would like now to turn your conference over to Andrew Phillips, President and Chief Executive Officer. Please go ahead.

Andrew Phillips, President and CEO Thank you very much, Operator, and good morning. Thank you for dialing into the PrairieSky Q2 2026 conference call. On the call from PrairieSky are Dan Bertram, Pam Cazale, Mike Murphy, and myself, Andrew Phillips. Before we begin, there is certain forward-looking information and statements in our commentary today, so I would ask listeners and investors to review the forward-looking statements qualifier in our press release and MD&A, which can be found on our website.

Oil production increased 7% from Q1 this year. Stronger activity levels across the basin drove the increase. Strong spud activity on our lands throughout the quarter is encouraging for the balance of the year. 71 dollar and over $70 US WTI crude, we are close to $100 per barrel for Canadian light oil.

In 2019, pre-COVID, we had 234 million shares fully diluted outstanding with average annual royalty production of 8,633 barrels per day of oil and 46 million barrels of reserves. 4 million shares outstanding with average oil production of 14,740 barrels per day and 64 million barrels of reserves. We will be net cash by this time next year. Numerous newly formed oil companies have been founded over the past year.

This quarter we entered into 57 leases with 46 distinct operators. We continue to pursue leasing agreements with qualified, well-capitalized companies. PrairieSky expects another busy summer of both leasing and drilling activity with 215 rigs active in the field today, up from 170 a year ago. Wet field conditions have hindered operations in the Eastern Alberta heavy oil region, delaying some completion and drilling activity.

I will turn the call over to Mike to discuss activity on our lands. Mike Murphy, VP, Geosciences and Capital Markets Thanks, Andrew. Duvernay activity remains strong in Q2 with 51 spuds year to date compared to 55 in all of 2025. The first West Shale basin Duvernay wells from this year's programs were brought on production late in Q2, which should positively impact Q3 royalty oil production.

Expanded third-party capital programs in the Duvernay and continued completion activities over the summer should position PrairieSky for meaningful light oil growth through the remainder of the year. Multilateral activity continues to expand on PrairieSky lands with 137 spuds year to date relative to 100 over the same period last year. Beyond the Clearwater and Manville stack, we also saw multilateral spuds in the Charlie Lake, Ellerslie, Bakken, and Southeast Pask Mississippian in Q2. In the Clearwater, we now estimate 60% of our royalty oil volumes are under waterflood support, with declines in the mid-teens contributing to our highly sustainable production base.

Finally, thermal volumes from a new pad at Lindbergh began ramping up in Q2, which should support growth in our second half royalty oil production. A new south pad is currently drilling at Lindbergh, setting the asset up for incremental growth in 2027 and beyond. I'll now turn it over to Pam to discuss the financials. Pam Cazale Thank you, Mike.

Good morning, everyone. PrairieSky delivered strong second quarter results in cash flow, production, and leasing activity. Total production reached a record 27,479 boe per day, an increase of 4% as compared to Q2 2025, driven by liquids growth, with oil volumes up 3% and NGL volumes up 15%. The Clearwater provided our largest increase, up 27% over Q2 2025, and the Manville stack was up 19%.

NGL royalty production growth of 15% over Q2 2025 was driven by the Montney and the West Shale basin Duvernay. 30 per barrel. 1 million in the quarter. 4 million in bonus consideration year to date.

7 million is 39% ahead of year to date 2025. Once again this quarter, leasing was most active in the Duvernay Light oil and Manville Heavy oil pl