PrairieSky Announces First Quarter 2026 Results

• PrairieSky reported Q1 2026 results with total revenues of $133.8 million and funds from operations (FFO) of $94.9 million ($0.41/share), up 11% year-over-year compared to Q1 2025.
• Total royalty production averaged 26,293 BOE per day, a 4% increase year-over-year. Oil royalty production was 13,733 barrels/day (up 2%).
• The company declared a dividend of $61.6 million ($0.265/share), maintaining the increased policy announced in February 2026.
• Net debt decreased to $257.7 million at March 31, 2026, down $18.8 million from December 31, 2025.
• Capital allocation included $4.2 million in acquisitions targeting heavy and light oil plays and $8.3 million in share repurchases under the NCIB program.
• Operational activity saw third-party operators spud 201 wells on PrairieSky acreage with an average royalty rate of 6.0%.

• The Q1 results confirm the dividend increase strategy announced in February 2026, validating management's commitment to shareholder returns without introducing new financial surprises.
• FFO growth of 11% YoY is positive but largely consistent with the trajectory established in previous quarters (Q4 2025 FFO was $80.5M; Q1 2026 is $94.9M), suggesting steady execution rather than a step-change improvement.
• Debt reduction of $18.8 million sequentially demonstrates disciplined capital management, reducing leverage risk but not eliminating it entirely given the absolute debt level remains significant relative to cash flow if commodity prices compress.
• The news does not contain "genuinely new" information that alters the valuation model significantly compared to the February announcement; therefore, it is categorized as Routine - Positive rather than Material.

• PrairieSky Royalty Ltd. operates as an oil and gas royalty company focused on acquiring producing and non-producing gross overriding royalty interests (GRIs) in Alberta and Saskatchewan.
• Flagship projects include the Clearwater play (heavy oil, water-flood expansion), Duvernay light oil play, and Mannville heavy oil plays.
• The business model relies on third-party operators drilling on their land base; PrairieSky collects royalties without direct operational risk or capital expenditure for drilling.
• Production is diversified across oil, NGLs, and natural gas, with oil being the primary revenue driver (13,733 bbl/d).