Canada's PrairieSky Q2 revenue rises on higher oil prices

Prairiesky Royalty

13/07/2026 21:16

Overview
Canada oil and gas royalty firm's Q2 revenue rose yr/yr on record royalty production
Funds from operations for Q2 increased 38% yr/yr, driven by higher oil production and prices
Net debt fell 28% in Q2 as funds supported debt reduction
PrairieSky declares Q3 2026 dividend of C$0.265 per share

Outlook
PrairieSky expects oil royalty growth through the second half of 2026
Company expects continued third-party drilling and leasing activity in H2 2026

Result Drivers
RECORD ROYALTY PRODUCTION - Q2 royalty production reached a record 27,479 BOE per day, led by higher oil and NGL volumes
STRONG OIL PRICES - Higher US-dollar WTI benchmark pricing supported increased funds from operations and revenue
ELEVATED THIRD-PARTY ACTIVITY - Increased third-party drilling and leasing activity contributed to bonus consideration and supported production growth

Company press release: ID:nGNX6vpxlN

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Net Income
 
C$95.40 mln
 
Q2 FFO
 
C$133.10 mln
 
Q2 FFO Per Share
 
C$0.57
 
Q2 Net Debt
 
C$186.60 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 5 "hold" and 1 "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$35.25, about 8.9% above its July 10 closing price of C$32.36

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(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.)