PrairieSky Royalty Snapshot 1.9 TSX Balance Sheet PSK Billion Strength Enterprise Value(1) Quarterly Dividend 233.1 50 0.06 Million Million Per Common Share Shares Outstanding(1) NCIB Commencing Q2 2020 7.8 7.8 4…
Balance Sheet Strength PrairieSky has no long-term debt, PrairieSky has a unique business no operating costs, no mandatory model and balance sheet, ideally capital expenditures and no suited to paying dividends. environmental…
Dominant Land Position 3
Introduction to PrairieSky Royalty NW NE 7.8 million acres of Fee Lands(1) Business model supports dividend payments SW SE 7.8 million acres of GORR Lands(1) Operating margin(2) of 98% Lands located throughout the heart of the…
A Unique and Diversified Approach to Investing in Oil & Gas Third Party Operators 325 lessees paying royalties on PrairieSky Royalty lands Operators on PrairieSky Royalty Fee Lands include Majors, Independents, Mid Cap and…
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 (52% Liquids Production)(1) 30.84/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 4.4 billion BOE 300,000 250,000 200,000 150,000 100,000 50,000 - CD Avg. Oil (bbl/d) CD Avg. Gas…
Reserves Replacement Third-party capital on PrairieSky Funds from operations lands approximately replaces returned to shareholders as production annually. dividends and share repurchases or used to purchase additional royalty In…
Long-term Optionality PrairieSkys basket of call options includes: SAGD Lindbergh and Onion Lake projects have multiple phase expansion potential New leasing to integrated and independent SAGD specialists Emerging Clearwater…
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 - - IPO Today 2013 Q1/14 Q2/14 Q3/14 Q4/14 Q4/15…
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…
Returns to Shareholders From IPO to December 31, 2019, 1.8 WTI down PrairieSky has returned 1.0 37% 1.6 AECO down billion in dividends and 133 62% million in share buybacks to 1.4 shareholders 1.2 1.0 billions…
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…
ESG Policies and Practices All of PrairieSkys royalty Policies properties are in Canada which and provides the following advantages: Practices Environmental regulations are best-in class standards and reflect global leadership…
ESG Policies and Practices We are committed to operating our ESG Survey Results business in an economically, socially, and environmentally responsible and Received a B ranking from CDP in sustainable manner for the benefit of…
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…
10 Year Free Cash Flow Generation 2019 Average Royalty Production 21,757 BOE/d 10 Year Average Annual Production (boe/d) FX AECO WTI (US / 18,000 20,000 22,000 24,000 (/Mcf) (/bbl) CAD) 10 Year Free Cash Flow (Billions) %…
Why PrairieSky 7.8 million acres of Fee Lands Vast Land Base 7.8 million acres of GORR Lands Experienced Team Management and directors with an unparalleled understanding of the royalty business and are invested alongside…
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 69% private companies to Majors of product revenue 12 months of Revenue…
APPENDICES
HIGH QUALITY ROYALTIES = OPTIONALITY
FUTURE OPTIONALITY 29
INDUSTRY CAPITAL ON PSK LANDS Third-party operators invest capital on PrairieSkys lands to develop and produce oil and natural gas. 2014 2015 2016 2017 2018 2019 Industry Capital(1) (billions) 46.9 31.6 23.0 28.7 27.4 20.1(1)…
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…
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…
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 900,000 acres of royalty lands in the oil and volatile oil window of an emerging shale resource play. Duvernay is in early stages of contributing to PrairieSkys revenues: 180 miles 2019 average…
Investing in Future Growth Opportunities PrairieSky has re-invested its cash lease bonus consideration into new emerging oil An emerging resource play opportunities to provide capital efficient liquids growth in the medium to long…
Upper Montney Light Oil Exposure GORR on 90 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,…
Enhanced Oil Recovery Unit on single section of land first started producing in 1979 Production has increased dramatically with EOR scheme, delivering 65,000 per month in royalty revenue in Q4 2019 1,600 1,400 0 1 Mile…
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 (1) First horizontal well…
Technology NW NE Unit started producing in the 1950s. SW SE Horizontal, multi-stage fracture development started in 2012 increasing production to levels not seen since the 1960s. Increased horizontal drilling activity on a…
New Pool Discovery and Development The pool encompasses 32 sections of Fee Land, currently under natural gas flood 4,500 4,000 Gross Oil Production (bbl/d) 3,500 3,000 2,500 2,000 1,500 1,000 500 0 2012 2013…
UNDERSTANDING ROYALTIES
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…
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…
Active Management of Land Base PrairieSky actively License to 13,000 km2 of 3D manages its Fee seismic over 3.3 million acres & Lands: 46,000 km of 2D seismic PrairieSkys Seismic Coverage Meeting with operators and providing…
Leadership Team Board of Directors Robert Robotti Founder and Chief Investment Officer Robotti & Company Advisors, LLC James M. Estey, Chair of the Board On the board of directors of Pulse Seismic Inc., Panhandle Oil and Gas Corporate…
CONTACT INFORMATION WWW.PRAIRIESKY.COM PRAIRIESKY ROYALTY LTD. 1700, 350 7 Avenue SW Calgary, AB T2P 3N9 T 587.293.4000 E Investor.relationsprairiesky.com
Loading...
