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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