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Canada's PrairieSky Royalty Q3 funds from operations up 42%

By Reuters News


Overview

  • Canada royalty oil and gas firm's Q3 revenue rose year-over-year

  • Q3 funds from operations grew 42% from a year earlier

  • Net debt fell 34% during the quarter


Outlook

  • PrairieSky declares Q4 2026 dividend of C$0.265 per share, payable Jan 15, 2027

  • Company anticipates continued growth in royalty production into 2027

  • Company expects strong third-party leasing and drilling activity to continue into 2027


Result Drivers

  • LIQUIDS ROYALTY PRODUCTION - Co said increased oil and NGL royalty production drove higher funds from operations

  • ACTIVE PLAYS - Growth in Clearwater, Mannville Stack and West Shale Duvernay contributed to royalty production increases

  • LEASING ACTIVITY - Elevated leasing activity and bonus consideration from new arrangements added to other revenue


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

C$165 mln

Q3 Net Income

C$84.50 mln

Q3 FFO

C$127.90 mln

Q3 FFO Per Share

C$0.55

Q3 Net Debt

C$123 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

  • Wall Street's median 12-month price target for Prairiesky Royalty Ltd. is C$37.00, about 0.8% above its October 23 closing price of C$36.69

  • The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 26 three months ago


Reuters Recommended Reads

  • Oct 26 - Ovintiv to buy Logan Energy for $890 million, expanding Montney oil position

  • Oct 26 - Arctic Gateway, CentrePort, DP World sign agreement to explore Churchill trade corridor

  • Oct 26 - ConocoPhillips to reduce workforce in Canada


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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