--- title: "PrairieSky Royalty Q4 Earnings Call Highlights" type: "News" locale: "en" url: "https://longbridge.com/en/news/275564094.md" description: "PrairieSky Royalty (TSE: PSK) reported a successful year in its Q4 and year-end 2025 results, highlighting record oil royalty production of 13,940 barrels per day, a 6% increase. The company announced a dividend increase to C$1.06 per share and noted strong drilling activity, particularly in Clearwater, Mannville Stack, and Duvernay plays. Royalty revenue reached C$102.9 million for the quarter and C$441.7 million for the year, with 94% from liquids. PrairieSky also executed C$100 million in acquisitions and plans to repurchase shares post-blackout periods." datetime: "2026-02-11T07:07:13.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/275564094.md) - [en](https://longbridge.com/en/news/275564094.md) - [zh-HK](https://longbridge.com/zh-HK/news/275564094.md) --- # PrairieSky Royalty Q4 Earnings Call Highlights PrairieSky Royalty TSE: PSK outlined what management described as a “successful year on all fronts” during its fourth-quarter and year-end 2025 results call, pointing to record oil royalty production, growing reserves, and continued third-party drilling activity across its land base. The company also announced a dividend increase and discussed how shifting activity in faster-growing plays is contributing to more quarter-to-quarter variability in reported volumes. Get **PrairieSky Royalty** alerts: ## Record oil production and reserves growth in 2025 President and CEO Andrew Phillips said PrairieSky delivered 6% oil growth in 2025, reaching a record **13,940 royalty oil barrels per day**, and expects further records in 2026. Phillips also said proved developed producing (PDP) reserves grew “alongside our oil production” at **over 7% year-over-year**. Chief Financial Officer Pam Kazeil added that fourth-quarter oil royalty volumes averaged **13,750 barrels per day**. She said growth was concentrated in the Clearwater, Mannville Stack, and Duvernay oil plays, which now represent **29%** of PrairieSky’s oil royalty production, up from **25%** in the prior year. ## Drilling activity highlights: Clearwater, Mannville Stack, and Duvernay Vice President, Geosciences and Capital Markets Mike Murphy said 2025 drilling activity was strong, with an estimated **C$2 billion of gross third-party capital** spent on PrairieSky lands. Murphy said this represented about **8.3%** of total industry conventional capital spending in the basin, up from **6.9%** in 2024. Murphy highlighted increased activity across key oil growth plays: - **Clearwater spuds up 9%** year-over-year - **Mannville Stack up 11%** - **Duvernay up 67%** He also pointed to the continuing rise of multilaterals, with **80** multilateral wells spud in the fourth quarter and **285** in all of 2025. Murphy said multilaterals represented about **40%** of all drilling activity on PrairieSky lands, up from **36%** in 2024. In the Clearwater, Murphy said PrairieSky now estimates **half of its Clearwater volumes** are under waterflood support, contributing to a “highly sustainable, low-decline production base.” Improved recovery contributed to a **42% increase in Clearwater P reserve volumes** year-over-year. Murphy said Clearwater royalty oil production has grown at a **20% compound annual growth rate since 2022**, and management expects double-digit growth again in 2026. In the Duvernay, Murphy said royalty production increased **90% year-over-year**, driven primarily by activity in the West Shale Basin. With sizable third-party operator budgets there in 2026, he said the Duvernay is expected to remain PrairieSky’s fastest-growing play next year. ## Financial results, liquids mix, and tax position Kazeil reported royalty revenue of **C$102.9 million** for the quarter and **C$441.7 million** for the year, with **94%** of royalty revenue coming from liquids. “Other revenues” contributed an additional **C$8.8 million** in the quarter and **C$36.5 million** for the year, which she said was driven by **C$22.6 million** in bonus consideration. Funds from operations totaled **C$80.5 million** (or **C$0.35 per share**) in the fourth quarter and **C$353 million** (or **C$1.50 per share**) for 2025. On product mix, Kazeil said total royalty production was **64% liquids** for the year. She also noted stronger NGL volumes in the fourth quarter, with **17% growth** to **2,915 barrels per day**, driven by Duvernay and Montney volumes. Pentanes and condensate made up about **35%** (or more than **1,000 barrels per day**) of NGL volumes, which she said positively affected realized NGL pricing. With the fourth-quarter performance, NGL royalty production grew **5% year-over-year**. PrairieSky entered 2026 with **C$1.18 billion** of tax pools, which Kazeil said can shelter future taxable income at approximately **10% per year**. She said this implies the first **C$118 million** of cash flow in 2026 is tax-free, with incremental cash flow taxed at **23.5%**. Kazeil also said PrairieSky prepared its 2025 U.S. tax information, and that 2025 dividends will be **44% return of capital** for U.S. investors. ## Capital returns, acquisitions, and 2026 outlook themes Phillips said PrairieSky executed on **C$100 million** of acquisitions in 2025, canceled **2.6%** of its outstanding shares, and paid **C$243.4 million** in dividends. PrairieSky also announced a **2% increase** to its annual dividend to **C$1.06 per share**. The first quarterly dividend under the higher rate will be **C$0.265**, payable effective **March 31, 2026**. In response to a question about buybacks, Phillips said PrairieSky plans to repurchase shares after blackout periods and that management views the shares as offering “good value” across current trading ranges when assessing the business and terminal values. On 2026 production characteristics, Phillips said Duvernay growth is expected to be strong, but he cautioned that the timing of new pads coming onstream can create “volatility” in quarterly reported volumes. He told analysts that PrairieSky saw a substantial pad come on in the third quarter that drove a spike, followed by high declines that were visible in fourth-quarter results. He said similar patterns could continue as more Duvernay volumes are added. Phillips also addressed royalty rates, noting the average royalty rate on wells spud in the fourth quarter was down roughly **0.2%**, but he expects the annual average to remain “north of **6%**,” with variability depending on drilling seasonality and well locations. On specific plays, Phillips said Mannville Stack royalty volumes have grown from about **200 net royalty barrels** in 2022 to just under **1,000**, with continued programs by private operators and planned activity from Canadian Natural Resources on licensed wells that have not yet come onstream. He also said the Basal Quartz play was added as a segregated play in PrairieSky’s corporate presentation for the first time, and that PrairieSky expects “pretty strong growth” there, citing operator quality, economics, and processing capacity, while describing it as a light-oil play with liquids-rich gas. ## About PrairieSky Royalty TSE: PSK PrairieSky Royalty Ltd is the owner of subsurface mineral rights on a variety of royalty properties in western Canada. The company encourages third parties to develop these properties, while also seeking additional petroleum and natural gas royalty assets. Once PrairieSky has given a third party the right to explore, develop, or produce on its properties, the company collects royalty revenue from the development of petroleum and natural gas. Property arrangements can be contracted as lease issuances, farmouts, drilling commitments, or seismic option agreements. ## Further Reading - Five stocks we like better than PrairieSky Royalty - Nvidia CEO Issues Bold Tesla Call - Your Bank Account Is No Longer Safe - Buy this Gold Stock Before May 2026 - The day the gold market broke - What a Former CIA Agent Knows About the Coming Collapse _This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com._ ## Should You Invest $1,000 in PrairieSky Royalty Right Now? Before you consider PrairieSky Royalty, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and PrairieSky Royalty wasn't on the list. While PrairieSky Royalty currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys. 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