Skip to main content February 2019 Corporate Presentation – Prairiesky Royalty Ltd. | Shale Experts
Loading...
Pm

February 2019 Corporate Presentation – Prairiesky Royalty Ltd.

Prairiesky Royalty Ltd. · Feb 12, 2019 · 45 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 1
    CORPORATE FEBRUARY 2019 PRESENTATION
  2. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 2
    PrairieSky Royalty Snapshot 4.1 TSX Balance Sheet PSK Billion Strength Enterprise Value(1) Annual Dividend 234.2 50 0.78 Million Million Per Common Share Shares Outstanding(2) NCIB 7.8 7.8 4 Million Million Provinces…
  3. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 3
    Introduction to PrairieSky Royalty 7.8 million acres of Fee Lands(1) Business model supports dividend payments 7.8 million acres of GORR lands(1) Operating margin(2) of 98% Lands located throughout the heart of the oil and gas…
  4. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 4
    A Unique and Diversified Approach to Investing in Oil & Gas Third Party Operators 340 lessees paying royalties on PrairieSky Royalty lands Operators on PrairieSky Royalty Fee Lands include Majors, Independents, Mid Cap and…
  5. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 5
    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…
  6. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 6
    Higher Margin, Lower Risk Margin Summary (/boe) Illustrative Working Interest Operator PrairieSky Royalty Revenue (49% Liquids Production)(1) 29.09/boe PrairieSky Royalty offers higher margins Production & Mineral Tax than…
  7. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 7
    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…
  8. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 8
    Production History on our Fee Lands Cumulative production of Historical Gross Production on PSK Fee Lands 4.4 billion boe 300,000 250,000 200,000 150,000 100,000 50,000 - CD Avg. Oil (bbl/d) CD Avg. Gas…
  9. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 9
    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 - Q1/14 Q2/14 Q3/14 Q4/14 Q4/15 Q1/16 Q2/16 Q3/16…
  10. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 10
    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…
  11. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 11
    Returns to Shareholders From IPO to December 31, 1.4 WTI down 2018, PrairieSky has 28% AECO down returned 850 million in 1.2 65% dividends and 114 million in share buybacks to 1.0 shareholders 0.8 billions High…
  12. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 12
    Underlying Commodity Exposure without Liabilities PrairieSky provides unlevered, unhedged exposure to the underlying commodity without operational risk and working interest liabilities Pure royalty company, Franco Nevada, aligned…
  13. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 13
    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…
  14. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 14
    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…
  15. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 15
    HIGH QUALITY ROYALTIES = OPTIONALITY
  16. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 16
    Future Potential Optionality Crown Royalties Optionality Beyond Current Valuation Expansion of productive trends Material new pool discoveries Improvements in drilling and completions technologies: incremental recovery via…
  17. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 17
    Multi-Zone Potential Exploration and development has taken place since the 1950s in the form of new pool discoveries as well as through redevelopment with evolving technology 1950s Future Homeglen Rimbey Duvernay, Banff Leduc Oil…
  18. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 18
    Saskatchewan Viking Continues to Attract Capital Saskatchewan Viking remains a key play for many producers based on superior economics, short cycle times and low capital requirements < 1 million to bring well on-stream and…
  19. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 19
    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…
  20. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 20
    Central Alberta Duvernay Over 1 million acres of royalty lands in an emerging shale resource play. Pembina / Thorsby Pembina Pembina / Thorsby / Thorsby Crown land sales totaled Potential for 309.9 million in 2017 and…
  21. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 21
    Alberta Viking Growth in Activity Production PrairieSky Lands 14,000 Gross Oil Production (bbl/d) 12,000 10,000 8,000 6,000 4,000 2,000 0 2014 2015 2016 2017 2018 pre-2014 2014 2015 2016 2017 2018 Activity…
  22. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 22
    Investing in Future Growth Opportunities PrairieSky has re-invested its cash lease bonus consideration into new emerging oil 780,000 resource play opportunities to provide acres, 15 year oil sands leases liquids growth in the…
  23. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 23
    Upper Montney Light Oil Exposure GORR on 70 sections of prospective Upper Montney light oil lands in Two Rivers region of British Columbia PrairieSky will benefit from future development of play without capital expenditures,…
  24. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 24
    Enhanced Oil Recovery Unit on single section of land first started producing in 1979 Production has increased dramatically with EOR scheme, delivering over 60,000 per month in royalty revenue in 2018 1,600 0 1 Mile…
  25. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 25
    Multi-Zoned, Prolific Spirit River Exposure 35,000 30,000 Gross Production (boe/d) 25,000 20,000 15,000 10,000 5,000 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 Pre-2011 2011 2012 2013 2014 2015 2016 2017…
  26. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 26
    Legacy Production Unit was discovered in 1956 and developed vertically until 1965 Placed under a partial waterflood in 2003 Operator has an inventory of 166 net wells, 93 are booked locations First horizontal well drilled…
  27. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 27
    Technology Unit started producing in the 1950s. Horizontal, multi-stage fracture development started in 2012 increasing production to levels not seen since the 1960s. Increased horizontal drilling activity on a number of units…
  28. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 28
    New Pool Discovery and Development The pool encompasses 32 sections of Fee Land, currently under natural gas flood Production began in early 2012 and reached peak production of over 4,000 bbls/d Over 100 million in royalty…
  29. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 29
    Spuds on PrairieSky Lands Q4 2018 28
  30. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 30
    Spuds on PrairieSky Lands 2018 29
  31. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 31
    Quarterly Activity on PrairieSky Lands Wells Spud 300 Wells Spud 12.0% 300 250 10.0% 250 200 8.0% 200 150 150 6.0% 100 100 4.0% 50 50 2.0% 0 0 0.0% 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2017 Q1 2017…
  32. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 32
    10 Year Free Cash Flow Generation 2018 Funds from Operations 2018 Average Royalty Production 229.7 million 23,358 boe/d 10 Year Average Annual Production (boe/d) FX AECO WTI (US / 22,000 24,000 26,000 28,000 30,000 (/Mcf)…
  33. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 33
    Why PrairieSky 7.8 million acres of Fee Simple lands Vast Land Base 7.8 million acres of GORRs Management and directors with an unparalleled understanding of the Experienced Team royalty business and are invested alongside…
  34. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 34
    APPENDICES
  35. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 35
    UNDERSTANDING ROYALTIES
  36. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 36
    History of PrairieSkys Fee Lands 1676 1887 1958 2002 2014 Present King Charles II of Dominion of CPR creates Encana created PrairieSky completes PrairieSky is the largest England granted Canada stops Canadian Pacific through merger…
  37. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 37
    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 7.8 million acres move down…
  38. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 38
    Dominant Land Position 37
  39. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 39
    Active Management of Land Base PrairieSky actively License to 13,000 km2 of 3D manages its Fee seismic & 46,000 km of 2D seismic Lands: PrairieSkys Seismic Coverage Meeting with operators and providing updates on available…
  40. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 40
    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…
  41. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 41
    FINANCIAL INFORMATION
  42. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 42
    Financial Highlights Year Ended December 31, Q4 2018 Q3 2018 Q2 2018 Q1 2018 Q4 2017 Q3 2017 millions, unless otherwise 2018 2017 noted Production Volumes Crude Oil (bbls/d) 9,163 9,018 9,098 8,731 9,419 9,033 9,004 9,565 NGLs (bbls/d)…
  43. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 43
    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 70% private companies to Majors of product revenue 12…
  44. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 44
    Leadership Team Executive Team Board of Directors Andrew M. Phillips, President & CEO / Director James M. Estey, Chair of the Board Previously, President, CEO & Director of Home Quarter Resources Corporate Director, Retired Chairman of…
  45. February 2019 Corporate Presentation – Prairiesky Royalty Ltd. – slide 45
    CONTACT PrairieSky Royalty Ltd. 1700, 350 7 Avenue SW Calgary, AB T2P 3N9 www.prairiesky.com T 587.293.4000 E Investor.relationsprairiesky.com

From the store

Browse maps, data & reports in the Shale Experts store