PrairieSky Royalty Snapshot TSX 5.4 Balance Sheet PSK Billion Strength Enterprise Value(1) 1.6 Annual Dividend 238.9 0.96 Million Billion Per Common Share Returned to Shares Outstanding Shareholders Paid Quarterly…
Returns to Shareholders 3.0 2.5 From IPO to March 31, 2023, PrairieSky has returned 1.4 billion in dividends and 246 million in share buybacks 2.0 to shareholders. billions 1.5 High conversion 1.0 of revenues to…
PrairieSkys Dominant Land Position Acquisitions included: PrairieSky has more than All Saskatchewan Fee Lands and GORR acreage, including Viking acreage tripled its land base 1.3 million Clearwater acres since IPO Montney and Deep…
Accretive Acquisitions Acres per Million Shares(1) 130 million 100,000 common shares issued on IPO 80,000 Currently generating 30% 92% increase in of funds from operations acreage per 60,000 share 109 million 40,000…
PrairieSky per Share Metrics Production per Million Shares(1) Acres per Million Shares(2) 100,000 140 120 80,000 100 60,000 92% 80 60 40,000 40 20,000 20 - - Q2/14 Q3/14 Q4/14 Q4/15 Q1/16 Q2/16 Q3/16…
Reserves Replacement Third-party capital on PrairieSky lands has historically replaced produced reserves. Reserves fully replaced in 2022 after production of 9,200 MBOE in the year. In a royalty business with undeveloped…
Future Optionality 9
Playbook Methodology Expansion of Development Area Over Time. 2017 2023 Booked Reserves Playbook Valuation Future Optionality 10
Royalty Asset Summary Undisc. Booked Undisc. Future Future Future Total Undisc. Future Region / Play Reserves Booked Value Fee GORR Potential Volume Total Value Potential (MBOE) (MM) Locations Locations (MBOE) (MBOE) (MM) (MM)…
Highlights of Changes from 2021 Royalty Playbook 12
Methodology & Summary of Changes Summary of Changes Consistent Methodology Future Future Future Undisc. Future Total Undisc. Total Value - Price Fee GORR Potential Potential Volume Total Value Sensitivity Region / Play Locations…
FEATURE PLAY: CLEARWATER DECADES OF SUSTAINABLE GROWTH
Conventional Oil Production in Canada Total oil production in Alberta climbed to 3.96 million barrels per day (bbl/d) in November, a new peak and 2.2% higher than the previous monthly high set in September 2022. Oil sands output…
Feature Plays Introduction - Clearwater Oil Well-Positioned for Future Growth Over 55% of PrairieSkys Future Potential Value in 5 feature plays: Viking Oil 22% (AB,SK) Clearwater Oil Mannville Heavy Oil 13% (AB Only) Duvernay…
Clearwater Oil PrairieSky has the largest Clearwater royalty acreage position with over 1,300,000 acres throughout the entire Clearwater trend. Clearwater royalty production showing sustainable organic growth and reaching record…
Clearwater Return on Invested Capital (ROIC) PSKs initial investment in the Clearwater was in 2016, with the largest investment in undeveloped land in 2017. There have been incremental additions to our undeveloped land holdings…
Clearwater Overview Clearwater Royalty Lands Over 1.3 million acres of royalty land in the Clearwater 2022 royalty production averaged 1,567 BOE/d (91% oil) Undiscounted Total Value of 1.9 billion (4.7x previous book) Future…
Clearwater Growth Nipisi Area 2019 Investor Day 2021 Investor Day 2023 Update Significant Future Growth potential to come from: Expansion of future development acreage (currently only 24% of total Clearwater acreage) Actual…
CLEARWATER OVERVIEW The Clearwater is now the largest conventional (i.e. nonoilsands) play in Canada, having grown from effectively zero in 2017 Spur accounts for about a third of total production and more land and derisked drilling…
CLEARWATER PAYOUTS Clearwater wells have low capital costs, strong IPs and fast payouts, but this is only part of the story o The moderate declines mean that wells continues to generate strong cash flow for years Marten Hills Median…
WHERE IT BELONGS IN THE BASIN (high) ColdFlow Heavy Oil Sands/Thermal (high op costs, high water cuts, (huge capital investment, Conventional Production sand production) steady production profile) (the ideal, but not much left in…
EVOLUTION OF THE MULTILATERAL Drilling techniques have evolved over the past five years Wells are now finetuned for the reservoir and surface constraints Escoba (broom) layout Sixleg, onemile multilaterals Fishbone well…
TIMELINE McMullen Discovery 40,000 McLeod Lake & 35,000 Utikuma Discovery Production (boe per day) Cadotte Discovery 30,000 Nipisi Discovery 25,000 2017 Land Sale 20,000 Bought 390,000 acres 15,000 with PSK backing…
LAND OVERVIEW McLeod Lake Utikuma McMullen Cadotte Marten Hills PrairieSky has overriding royalties on Nipisi/Cabin Creek effectively all land except 2022 McMullen acquisition (highlighted in light green) MAY 2023 31
SPUR MOVING FORWARD We believe that we can grow the current, derisked asset base to 75,000 boe per day by 2027 while paying out substantial distributions to shareholders 2023(1) 2024 2025 2026 2027 80,000 Average Production…
SUMMARY Spurs path forward: Continue to grow production and delineate reservoirs Pursue organic exploration initiatives Return capital to shareholders MAY 2023 33
QUESTIONS MAY 2023 34
FEATURE PLAY: MANNVILLE HEAVY OIL STACK EXPANSION OF TECHNOLOGY BEYOND THE CLEARWATER
Feature Play - Mannville Heavy Oil Implementation of Modern of Drilling Techniques over Established Fields Over 55% of PrairieSkys Future Potential Value in 5 feature plays: Viking Oil 22% (AB,SK) Mannville Heavy Oil 13% (AB Only)…
Central Alberta Mannville Heavy Oil Overview Mannville Heavy Oil Royalty Lands Lindbergh Over 1.1 million acres of royalty land in the Central Alberta Mannville heavy oil play 2022 royalty production averaged Elk Point 3,091 BOE/d…
Emerging Mannville Heavy Oil Development Area - Elk Point, AB Muriel Lake Located in east central Alberta, near both PSK Thermal assets (Lindbergh and Onion Lake) Multilateral drilling technology unlocking new Lindbergh horizons…
Elk Point, AB - Stacked Pay Potential Elk Point Type Log Stacked pay potential, up to 5 separate zones in areas Seismic and existing well control reduces reservoir risk Preliminary results support a stronger type curve: booked…
Elk Point, AB - Type Curve Review The Elk Point heavy oil area is seeing accelerated development with high-leg count multilaterals in areas traditionally exploited with vertical/directional wells. Initial oil rates range from 100-200…
Provost Area Activity - Focused Leasing Strategy PSK Leasing Activity and Industry Drilling in Provost PrairieSky land analysis and GIS mapping completed immediately post acquisition and distributed to industry Over 30 new leasing…
Provost Area Activity Industry Activity Fracture stimulated Sparky horizontals represent majority of recent drilling over the last 3 years Multilateral drills targeting GP, Rex can have significantly higher IPs and EURs than…
Provost Area - Multi-zone Potential Industry Activity Waseca Type Log 100/16-23-039-03W4 Regional Sparky Type Log 102/12-08-040-02W4 GP Type Log 100/16-31-038-02W4 Lloyd Type Log 100/16-31-038-02W4 43
BREAK
FEATURE PLAYS: DUVERNAY, VIKING, MONTNEY, OTHER PLAYS
Duvernay Summary PrairieSky Duvernay Royalty Wells Strategic Fee Land position across East Shale Basin Central Alberta Duvernay Royalty production averaged 419 BOE/d (84% liquids) in 2022 946,000 acres (86% Fee) within Play Area…
Duvernay Inventory Snapshot Play Area Locations Duvernay % Developed Fee GORR Total 2021 Royalty Playbook 50% 1,120 210 1,330 2023 Royalty Playbook 40% 960 150 1,110 Example Future Development (wells/year) 50 Remaining Development…
Viking Summary Low risk, light oil targets with significant location inventory Viking Regional Hydrocarbon Trends PrairieSkys Viking oil assets averaged 2,604 BOE/d (87% liquids) in 2022 from Central Alberta and Western…
Viking Technology Advancements Provost, AB Continued Waterflood expansions in Alberta and Saskatchewan Dodsland, SK Plato, SK AB SK Waterfloods provide pressure support to Viking oil reservoirs, extending the life of…
Viking Inventory Snapshot Locations Central Western Total AB SK 2021 Royalty Playbook 3,670 6,400 10,070 2021-2022 New Drills (121) (375) (496) 2021 Royalty Playbook Remaining 3,549 6,025 9,574 Incremental Future Locations 471 125 596…
Montney Oil & Gas Montney royalty production averaged 1,480 BOE/d (25% liquids) in 2022 290,000 acres of predominantly GORR Lands within Play Areas 39 wells drilled on Royalty Lands from 2021-2022 1,450 future locations in…
Condensate-Rich Montney GORR Land - Karr In March 2023, operator licensed first Montney Gas well on PrairieSky GORR section 12.5% GORR, acquired from Range Royalty in 2015 2-mile horizontal licensed location, 47% of production…
Additional Considerations - Other Plays Gross Production - Recent Charlie Lake Royalty Well PrairieSky has 231 million of Booked Reserves in Other Plays, with no future locations assigned in the Royalty Playbook From 2015-2022,…
ESG & OTHER OPPORTUNITIES
ESG Approach We are committed to operating our business in an economically, socially, and environmentally responsible and sustainable manner for the benefit of shareholders and relevant stakeholders. We conduct our business…
PrairieSky ESG Snapshot Ranked 1 Governance of global oil and gas Net Zero producers, 51 out of 15,061 companies The Globe and Mail, Report on Business Board Games - Scope 1 & 2 globally across all PrairieSky ranked in the top…
Global ESG Rankings Source: Scotiabank Cutting through the Noise of ESG: How Numbers (Not Rhetoric) Inform Narrative (March 2023) pages 82 and 85. 57
In-Situ Resource Gasification, Elnora Area Lease Bonus, Royalties Down the Value Chain; Carbon Credits Project anchored by PrairieSky leases, along with access to seismic. AMI area includes a GORR on any non- PrairieSky rights…
Current Hydrogen & CCUS Leasing Transactions Three Focus Transactions: Proximity to abundant PrairieSky natural gas Integrated solution with identified PrairieSky reservoirs for reinjection of CO2 for CCUS and longer-term…
CCUS Partnership - Meadowbrook PrairieSky uniquely situated to partner on stand-alone CCUS (non-EOR) projects. PrairieSky has established partnerships with CCUS project proponents in Alberta PSK contributing zonal leases,…
CCUS Partnership - Meadowbrook Contd Location, Location, Location PrairieSky fee lands situated along railways, electricity right of ways, and industrial corridors Proximity to emissions: within 100 km radius 65 identified…
CCUS Partnership - Meadowbrook Contd Location, Location, Location Can be developed in phases depending on demand, availability of commercial arrangements Near term priority is to identify an anchor partner/emitter in the project…
Helium Opportunities Helium Lease Option, Lethbridge Area Agreement covered 47 townships of PrairieSky Fee Lands Seismic review over an AMI and natural gas/helium leasing Options to extend leasing on specific lands for additional…
Helium Opportunities, Contd Helium Lease Option, Lethbridge Area Update Extended Option on 433 sections for 0.6 million of bonus consideration Ability to earn PrairieSky leases by drilling and additional bonus consideration and…
Helium Opportunities Contd Helium Lease Option, Medicine Hat Area Helium Well Commitment & Option on 35 sections of PrairieSky Fee Lands Well to be drilled by December 15, 2023 to earn option on PrairieSky Fee Land and ability to…
Helium Opportunities, Contd Helium Lease Option, Provost Area Helium Option on 122 sections of PrairieSky Fee lands Seismic review over an AMI and natural gas/helium leasing Options to earn PrairieSky leases by drilling and payment…
Lithium Opportunities Lithium Lease Issuance, Kindersley Area Agreement covers 192 sections of PrairieSky Fee Lands Options to extend leasing on specific lands by drilling and paying additional bonus consideration and lease rentals…
Mines & Minerals Title Mines & Minerals In Alberta, minerals have been defined by statute (Sec 56 of the Law of Property Act) to include: Understanding Mines & Minerals Title Estate in fee simple is largest and greatest estate…
FINANCIAL UPDATE: PRODUCTION, REVENUES & EXPENSES
Revenue Generation Oil Royalty Production Commodity Geology 70
Revenue Generation Natural Gas Royalty Production PrairieSky has a perpetual call option on natural gas. In Q1 2023: Natural gas contributed 19% of royalty revenue and 40% of royalty production NGL royalty production added an…
Higher Margin, Lower Risk, Low Impact of Cost Inflation Margin Summary (/BOE) PrairieSky Royalty Illustrative Working Interest PrairieSky Royalty offers higher margins Operator Revenue than conventional working (60% Liquids…
Other Revenues Generated from Royalty Properties Other Revenues cover approximately all administrative expenses on an annual basis. Since IPO our strategy to leasing has evolved to maximize value and opportunities: Zonal…
Expenses PrairieSky has a simple cost structure which includes Production and Mineral Tax and Administrative Expenses. Production and mineral taxes are calculated based on production volumes and price in Alberta and on a per…
Bank Debt In 2021, PrairieSky completed 986 million of acquisitions, issuing shares for 220 million of the cost and using bank debt for the remainder. Credit Facility is 725 million, with an accordion PrairieSky exited 2021 with…
Taxes PrairieSkys tax pool balances primarily deplete at 10% per year, providing tax shelter in 2023 over the first 156.7 million of taxable income. 76
VALUATION & RETURNS TO SHAREHOLDERS
Adding Value Through The Cycles Peers need to acquire on the cyclical highs and lows PSK can acquire at the lows, and grow through Land Leasing in the highs Build balance sheet strength to cancel shares or buy quality assets…
Canadas Largest Undeveloped Land Bank 79
Leasing and Spud Activity 80
Taking Advantage of the Cycles 81
PrairieSkys Competitive Advantage Peers need to acquire on the cyclical highs and lows. PSK can acquire at the lows, and grow through Land Leasing in the highs Q1 2023 was the sixth quarter of record leasing for PrairieSky…
PrairieSky Call Options PrairieSky has a bigger bundle of Call Options than any peers. 1. Duvernay worth 0 in the stock Over 59 million in lease bonus Revenue of 14 million per year 2. Viking can stay flat for 25 more years No…
PrairieSky Valuation What do you pay for decades of: Optionality Technologies New Discoveries Secondary Recoveries Massive Undeveloped Land Lowest Cost Play 84
Value of Fee Lands 310 lessees paying royalties on PrairieSky Royalty lands Operators on PrairieSky Royalty Fee Third Party Lands include Majors, Independents, Mid Cap and Small Cap producers Operators Commodity Geology…
Shareholder Returns 310 lessees paying royalties on PrairieSky Royalty Perpetual ownership lands provides optionality to shareholders in an asset Operatorsfor and the opportunity on PrairieSky steady growth Third Royalty Fee at…
Share Performance versus XEG 310 lessees paying royalties on PrairieSky Royalty lands Third Party Operators on PrairieSky Royalty Fee Lands include Majors, Independents, Mid Cap and Small Cap producers Operators Commodity…
PrairieSky versus Midstream & Pipeline Companies (1) Average of Enbridge Inc., TC Energy, Gibson Energy, Keyera Corp. and Pembina Pipelines. Source: Scotiabank Aitken Creek Sale a Win for Enbridge and Fortis (May 1, 2023). (2)…
PrairieSky versus REITS 310 lessees paying royalties on PrairieSky Royalty lands Operators on PrairieSky Royalty Fee Third Party Lands include Majors, Independents, Mid Cap and Small Cap producers Operators (1) Net debt is bank…
10 Year Free Cash Flow Generation Q1 2023 Average Royalty Production 24,809 BOE/d 90
Capital Allocation Share Buyback Example Third Party Operators Commodity Geology 91
Outcomes - 2021 Investor Day Below is the Outcomes slide presented at 2021 Investor Day and where we are today. PrairieSky March 31, share price of 2021 22.65 + dividends of 6.73 100.00 = 29.38 per share 90.00 80.00 70.00…
Outcomes - 2023 Investor Day March 31, 2023 140.00 120.00 100.00 Share Price 80.00 60.00 PSK including 6.73 in 40.00 dividends 20.00 PSK excluding dividends - 2014 2015 2016 2017 2018 2019 2020 2021…
310 lessees paying royalties on PrairieSky Royalty lands Third Party Operators on PrairieSky Royalty Fee Lands include Majors, Independents, Mid Cap and Small Cap producers Operators QUESTIONS Commodity Geology 94
Leadership Team Board of Directors James M. Estey, Chair of the Board Sheldon Steeves Corporate Director, Retired Chairman of UBS Securities Canada Inc., and has Corporate Director, Previously President & CEO of EchoEx; Executive…
Assumptions 310 lessees The following flat pricing assumptions paying were used in royalties preparingon the Undiscounted Booked Value(1) and Undiscounted Future Potential in the 2023 PrairieSky Royalty lands PrairieSky Royalty…
Non-GAAP Measures & Ratios Certain measures and ratios in this 310 lessees Investor Daypaying royalties on Presentation do not have any standardized meaning as prescribed by IFRS and therefore, are considered non-GAAP measures and…
Disclosure & Cautionary Statements Third-Party and Public Information Except where otherwise stated, the disclosure in this Investor Day Presentation relating to the Royalty Properties and operations on such properties is based on…
Disclosure & Cautionary Statements business of exploration and development on any of the properties in which PrairieSky holds a royalty interest, including, but not limited to unusual or unexpected geological conditions, natural…
CONTACT INFORMATION PRAIRIESKY ROYALTY LTD. 1700, 350 7 Avenue SW Calgary, AB T2P 3N9 T 587.293.4000 E Investor.relationsprairiesky.com WWW.PRAIRIESKY.COM
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