PrairieSky Royalty Snapshot 6.3 Positive TSX Working capital PSK Billion Enterprise Value(1) No Debt Annual Dividend 235.5 50 0.78 Million Million Per Common Share Shares Outstanding NCIB 7.8 7.5 4 Million Million…
Introduction to PrairieSky Royalty 7.8 million acres of Fee Lands(1) Business model supports dividend payments 7.5 million acres of GORR lands(1) Operating margin(2) of 98% Lands located throughout the heart of the oil and gas…
Types of Royalties Crown Royalties The following figure Fee Simple Mineral Title - outlines the royalty PrairieSky owns 7.8 million acres hierarchy. As you Gross Overriding Royalties - PrairieSky owns 7.5 million acres move down…
Royalty Advantage Ownership in PrairieSky provides a long duration cash flow stream and the optionality associated with perpetual land title ownership. Exposure to: No exposure to: High margin cash flow streams Capital costs New…
Higher Margin, Lower Risk Margin Summary (/boe) Illustrative Working Interest Operator PrairieSky Royalty Revenue (53% Gas Production)(1) 30.26/boe PrairieSky Royalty offers higher margins Production & Mineral Tax than…
Recycling the Land Base The perpetual nature of Fee Lands allows PrairieSky Royalty to continually recycle lands and grow its revenue base. PrairieSky leases At the end of the primary lease lands by zone same term, any lands/rights…
Production History on our Fee Lands Cumulative production of Historical Gross Production on PSK Fee Lands 4.3 billion boe 300,000 250,000 200,000 150,000 100,000 50,000 - CD Avg. Oil (bbl/d) CD Avg. Gas…
PrairieSky Royalty Per Share Metrics Production per Million Shares Acres per Million Shares(1) 140 80,000 120 60,000 100 80 40,000 60 40 20,000 20 0 - IPO Today (1)Acres per share based on number of common shares…
Revenues Generated from Royalty Properties PrairieSky generates revenues through Royalty Compliance analysis focuses on leasing its Fee Lands and its GORR capturing mispaid royalties through Interests, which includes Royalty…
Shareholder Alignment Board & Management invested 80 million in PSK Shares Shareholder All staff are shareholders Pay for performance long-term incentives Alignment and maximize participation in Employee Stock Purchase…
Total Shareholder Return Since IPO From IPO to March 31, 2018, PrairieSky has Total shareholder return from IPO returned 712 million in dividends and 84 to April 20, 2018 is 24% million in share buybacks to shareholders 110.00…
Capital-Free Returns and Diversification PrairieSky Royalty E&Ps Midstream Capital-Free Returns No capital investment required x Requires significant capital x Requires significant capital or acquisitions for growth for growth…
HIGH QUALITY ROYALTIES = OPTIONALITY
Future Potential Optionality Expansion of productive trends Material new pool discoveries Improvements in drilling and completions technologies: incremental recovery Optionality Beyond via optimized completions, tighter inter-well…
Development of an Economic Resource Play Saskatchewan Viking Wells Drilled Before 2010 2,650 vertical wells drilled (in this map area) 36 horizontal wells drilled Horizontal lateral length 1 mile or 0.5 mile PrairieSky Drilling…
Central Alberta Duvernay Over 1 million acres of royalty lands in an emerging shale resource play. Pembina / Thorsby 180 miles Crown land sales totaled Potential for 25 million in 2016 and significant royalty production…
Investing in Future Growth Opportunities PrairieSky has re-invested its cash lease bonus consideration into new emerging oil 600,000 resource play opportunities to provide acres of 15 year oil sands leases liquids growth in the…
Diversity in Top Payers Top 10 payers represent 49% Exposure to various operators with of product revenue, while the diverse expertise ranging from top 25 payers represent 72% private companies to Majors of product revenue 12…
10 Year Free Cash Flow Generation 2017 free cash flow 290.2 million 2017 royalty production 25,259 boe/d 10 Year Average Annual Production (boe/d) FX AECO WTI (US / 22,000 26,000 28,000 30,000 32,000 (/Mcf) (/bbl) CAD) 10…
APPENDIX
Financial Highlights Three months ended Year ended March 31 December 31 millions, unless otherwise noted 2018 2017 2017 2016 Production Volumes Crude Oil (bbls/d) 8,731 10,214 9,565 8,455 NGLs (bbls/d) 2,388 2,998 2,677 2,403…
Leadership Team Executive Team Board of Directors James M. Estey, Chair of the Board Andrew M. Phillips, President & CEO / Director Retired Chairman of UBS Securities Canada Inc., and has more than Previously, President, CEO &…
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