The following is a summary of the PrairieSky Royalty Ltd. (PREKF) Q4 2023 Earnings Call Transcript:

Financial Performance:

• PrairieSky Royalty Ltd. reported organic oil growth of 6% and spudded a total of 804 wells in 2023 with investment of $2 billion.

• There was a 38% year-on-year increase in net capital, contributing to strong royalty production growth.

• Land leasing activity generated $26 million in the year, with $11.2 million in Q4.

• A 4% dividend increase was announced, bringing the dividend to $1 per share and $0.25 per share quarterly.

• Q4 revenue totaled $122 million, 90% of which came from liquid volumes, leading to an annual total of $474.6 million.

• Realized oil pricing was $82.52 per barrel, 82% of Edmonton Par, and natural gas pricing was $2.60 per Mcf.

• Other revenue increased to $14.6 million in the quarter, achieving a yearly total of $38.6 million.

• The company's net debt was reduced by 30% to $222.1 million by the end of 2023.

Business Progress:

• Assets acquired previously resulted in industry-leading organic growth rates in the company's liquids portfolio, particularly in Clearwater wells, Manville heavy oil wells, and Viking wells.

• The company drilled its first helium well in 2023.

• PrairieSky has a substantial seismic database which it lends to third parties, helping to expand their drilling inventory.

• For 2024, the company plans to focus on cost control, compliance, leasing larger undeveloped land bases, and executing high-return acquisitions.

• With the aim to maintain financial health, any excess cash flow above dividend payouts will be used to retire bank debts.

More details: PrairieSky Royalty Ltd IR

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