PrairieSky Royalty Ltd reported record total royalty production and increased revenue for the second quarter of 2026, driven by strong pricing and drilling activity. The company posted earnings of $0.41 per share, a 70.83% increase from $0.24 per share in the same period last year, meeting analyst consensus estimates. Revenues totaled $178.0 million for the quarter, a 44.01% increase from $123.6 million in the prior year, comprised of $167.1 million in royalty production revenue and $10.9 million in other revenue.

Funds from operations totaled $133.1 million ($0.57 per share), an increase of 38% from Q2 2025. This growth was attributed to strong US-denominated WTI benchmark pricing, which averaged $92.80 per barrel, increased oil royalty production volumes, and strong bonus consideration. Net earnings for the quarter were $95.4 million. The company completed minor incremental royalty interest acquisitions for $1.8 million during the period.

Operational Performance

Third-party operators spud 178 wells on PrairieSky’s royalty acreage during Q2 2026, an increase of 61 wells compared to the 117 wells spud in Q2 2025. The average royalty rate for wells spud in the quarter was 5.9%, up from 4.8% in the prior year. Drilling activity was concentrated in core growth plays such as Clearwater, Mannville Stack, and West Shale Basin Duvernay light oil play. Clearwater heavy oil royalty production averaged over 3,050 barrels per day, an increase of 27% over Q2 2025.

Financial Position and Dividends

PrairieSky declared a second quarter dividend of $61.6 million ($0.265 per share), representing a dividend payout ratio of 46%. The Board of Directors has approved a third quarter 2026 dividend of $0.265 per share, payable on October 15, 2026 to shareholders of record on September 29, 2026. Net debt decreased 28% or $71.1 million in the quarter to total $186.6 million at June 30, 2026. Year-to-date, net debt has decreased by $89.9 million or 33%.

Selected Financial Data

PrairieSky Royalty Ltd will release its Q2 2026 financial results after markets close on Monday, July 13, 2026. The news release will provide operating and financial information, including financial statements and management’s discussion and analysis. These documents will be available on PrairieSky’s website at www.prairiesky.com and on SEDAR+ at www.sedarplus.com .

A conference call to discuss the results is scheduled for Tuesday, July 14, 2026, beginning at 6:30 am MT (8:30 am ET). The call is intended for the investment community, and registration is required to participate. Details regarding the call will be provided upon registration.

Conference Call Details

PrairieSky is a royalty-focused company generating royalty revenues from oil and natural gas production on its properties. The company holds a diverse portfolio with a long history of generating free cash flow and represents the largest independently-owned fee simple mineral title position in Canada. PrairieSky common shares trade on the Toronto Stock Exchange under the symbol PSK.