Latest news with #NGL
Globe and Mail
5 hours ago
- Business
- Globe and Mail
Can Energy Transfer Gain From BIS' Current Stance on Ethane Export?
Energy Transfer LP ET, a midstream energy firm, is well-positioned for long-term value creation through its extensive pipeline network, diversified asset base and strong exposure to the natural gas liquids ('NGL') export market. The recent decision by the U.S. Bureau of Industry and Security ('BIS') to remove the license requirement for ethane exports to China can act as a catalyst for Energy Transfer's long-term growth. This regulatory change significantly reduces trade barriers and uncertainty prevailing over the ethane expor t to China and opens a major global demand center for U.S. ethane. Energy Transfer, which already exports ethane through its Marcus Hook terminal and operates pipelines connected to export hubs, is well-equipped to meet this rising demand and benefit from increased throughput volumes and export margins. The company operates more than 140,000 miles of pipelines and has a strategic footprint across key producing regions such as the Permian, Eagle Ford and Marcellus. This robust infrastructure enables efficient transportation and export of hydrocarbons, particularly ethane, which is vital for petrochemical production. The new regulatory development enhances Energy Transfer's competitiveness in the global ethane market, supporting higher utilization rates across its NGL infrastructure. This reinforces Energy Transfer's strategic vision of expanding international energy partnerships while capitalizing on its cost-advantaged U.S. supply position. How the Removal of the License Requirement Impacts Other Ethane Exporters This decision of BIS to revoke the licensing requirement can boost the prospects of other ethane exporters to China. Enterprise Products Partners EPD, which exports a large volume of ethane to China, will benefit and continue to export as BIS rescinded licensing requirements. Phillips 66 PSX has a significant presence in the global ethane market and China is a key destination for the U.S. ethane exports. PSX too will benefit from BIS' decision. ET Stock's Price Performance Units of ET have risen 3.9% in the past three months compared with the Zacks Oil and Gas - Production Pipeline - MLB industry's growth of 2.8%. Image Source: Zacks Investment Research ET's Earnings Estimates The Zacks Consensus Estimate for Energy Transfer's 2025 earnings per unit ('EPU') indicates a decline of 1.33% in the past 60 days, while the same for 2026 EPU indicates an increase of 2.56% in the same time period. Image Source: Zacks Investment Research ET's Units Are Trading at a Discount Energy Transfer's units are somewhat inexpensive relative to the industry. ET's current trailing 12-month Enterprise Value/Earnings before Interest, Tax, Depreciation and Amortization (EV/EBITDA) TTM is 10.16X compared with the industry average of 11.54X. This indicates that the firm is presently undervalued compared with its industry. ET's Zacks Rank Energy Transfer currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Enterprise Products Partners L.P. (EPD): Free Stock Analysis Report Phillips 66 (PSX): Free Stock Analysis Report Energy Transfer LP (ET): Free Stock Analysis Report
Yahoo
a day ago
- Business
- Yahoo
Dorian LPG (LPG): Among the Energy Stocks that Gained This Week
The share price of Dorian LPG Ltd. (NYSE:LPG) surged by 9.17% between July 7 and July 11, 2025, putting it among the Energy Stocks that Gained the Most This Week. An aerial view of a VLGC docked in port, surrounded by cranes and roadways. Dorian LPG Ltd. (NYSE:LPG) is a liquefied petroleum gas shipping company and a leading owner and operator of modern very large gas carriers. As of the close of July 11th, Dorian LPG Ltd. (NYSE:LPG) has gained more than 25% over the last month following a recovery in the global energy industry, particularly due to a tariff truce between China and the United States. American LPG specifications are particularly attractive for Chinese PDH plants, so the recent trade developments between the two countries mark a strong tailwind for the industry. Dorian LPG Ltd. (NYSE:LPG) remains bullish on the future of the industry, with Chairman and CEO John Hadjipateras stating in the company's Q4 earnings call: "We are confident in the long-term fundamentals of LPG demand, which are underpinned by growing petrochemical and residential consumption, particularly in Asia and by infrastructure expansions in the U.S., which will support steady growth in NGL output." Despite falling short on estimates in both profits and revenue, Dorian LPG Ltd. (NYSE:LPG) announced a dividend of $0.50 per share in May, totaling $21.3 million, reflects its commitment to returning capital to shareholders. While we acknowledge the potential of LPG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the . READ NEXT: 10 Best Nuclear Energy Stocks to Buy Right Now and The 5 Energy Stocks Billionaires are Quietly Piling Into. Disclosure: None.
Yahoo
a day ago
- Business
- Yahoo
Is Targa Resources (TRGP) Well Positioned to Grow?
Oakmark Funds, advised by Harris Associates, released its 'Oakmark Equity and Income Fund' Q2 2025 investor letter. A copy of the letter can be downloaded here. The equity portfolio returned 4.67% in the second quarter compared to 10.94% for the S&P 500 Index. An underweight in technology stocks and an overweight in value and mid-cap stocks led to the underperformance of the fund. The fixed income portfolio returned 1.97% compared to 1.21% for the Bloomberg U.S. Aggregate Bond Index. In addition, you can check the fund's top 5 holdings to determine its best picks for 2025. In its second quarter 2025 investor letter, Oakmark Equity and Income Fund highlighted stocks such as Targa Resources Corp. (NYSE:TRGP). Targa Resources Corp. (NYSE:TRGP) owns, operates, acquires, and develops a portfolio of complementary domestic infrastructure assets. The one-month return of Targa Resources Corp. (NYSE:TRGP) was 1.66%, and its shares gained 27.92% of their value over the last 52 weeks. On July 14, 2025, Targa Resources Corp. (NYSE:TRGP) stock closed at $172.46 per share with a market capitalization of $37.412 billion. Oakmark Equity and Income Fund stated the following regarding Targa Resources Corp. (NYSE:TRGP) in its second quarter 2025 investor letter: "Targa Resources Corp. (NYSE:TRGP) is a leading midstream natural gas and natural gas liquids (NGL) company. Targa is a part of a group that controls 90% of the fractionation capacity in the largest hub for NGLs in the world, known as Mont Belvieu. Thanks to the region's unique topography and proximity to the Gulf Coast, Targa benefits from meaningful cost advantages and significant barriers to entry. We like that Targa generates ~90% of its earnings through multi-year fee-based arrangements with its customer base, which provides protection against oversupply or re contracting. Uncertainty around Permian oil pro duction growth has recently weighed on share price. However, in our view, Targa remains well-po sitioned to grow, even if the Permian slows dramatically. We were happy to purchase shares at a dis count to peers based on normalized earnings power and our estimate of intrinsic value." An oil tanker at sunset, symbolizing the company's supply of global crude oil. Targa Resources Corp. (NYSE:TRGP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held Targa Resources Corp. (NYSE:TRGP) at the end of the first quarter, which was 61 in the previous quarter. While we acknowledge the potential of TRGP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Targa Resources Corp. (NYSE:TRGP) and shared the list of best high growth dividend stocks. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Citizen
2 days ago
- The Citizen
Meta ordered to shutdown Instagram and WhatsApp posting sex
Content included a grade 12 boy having sex with a grade 9 girl in a school bathroom apparently filmed by another pupil. The Gauteng High Court in Johannesburg has ordered tech giant Meta to shut down certain anonymous Instagram accounts and WhatsApp Channels distributing explicit child pornography involving South African schoolchildren. Judge Mudunwazi Makamu handed down the judgment in order sought by Digital Law Company, directed by social media law expert Emma Sadlier, on Monday. In the ruling, Makamu agreed with the arguments by advocate Ben Winks that children have been victimised by the publication of lurid material. Shutdown Makamu ordered Meta to shut down all the accounts and channels linked to the distribution of sexual content involving schoolchildren and to 'permanently disable the creator of the WhatsApp channels and Instagram profiles listed… from creating any further WhatsApp channels and Instagram profiles'. Meta has been ordered to furnish Digital Law Company 'all information' in its possession details of the creators. ALSO READ: Parents, use these Instagram tools to keep your teens safe online 'The respondents shall, before 12h00 on 15 July 2025, furnish to the applicant all information in the first respondent's possession pertaining to the creator(s) of the WhatsApp channels and Instagram profiles.' Ruling Sadlier welcomed the ruling. 'Tonight The Digital Law Company obtained a High Court order against Meta to shut down certain anonymous Instagram accounts and WhatsApp Channels distributing child pornography and degrading and humiliating content concerning children – and to hand over all identifying information. 'We count our lucky stars to be able to work with such extraordinary legal minds who understand how important it is to protect our children in this damn crazy world,' Sadlier said. Sadlier told The Citizen the signed order will be sent to the registrar on Tuesday morning. Porn material In court papers, Sadlier said the pornographic material of children was sourced from the community by sharing links to an anonymous uploading service titled 'NGL' (Not Gonna Lie). Sadlier added that the creator and operator of the Instagram profiles and WhatsApp channels sharing porn content of these schoolchildren 'appears to be the same person using many similar aliases'. ALSO READ: Instagram makes all teen accounts private in push for child safety [VIDEO] She said the person uploaded whatever intimate content they received onto the Instagram pages and WhatsApp channels. 'It goes without saying that the uploading and distribution of this content is a crime, a flagrant disregard of the law and an egregious violation of constitutional rights, including, among others, the rights to dignity, privacy, the best interests of a child and the right to psychological integrity.' School children According to Sadlier, the content on the channel included several explicit images and videos including that of a grade 11 pupil from a school south of Johannesburg having sex with a girl in a room, while another video shows a grade 12 boy having sex with a grade 9 girl in a school bathroom apparently filmed by another pupil. 'From time to time, it appears that Meta administrators will delete or block some of the pages and channels (presumably in response to user complaints). However, not long after, the same page or channel will be active again, or another channel will crop up replicating the previous channel – and the distribution of illegal content continues unabated,' Sadlier said. The Citizen has contacted Meta for a response. This will be included in the story once received. Urgent legal action On Monday, the Digital Law Company launched urgent legal action to compel Meta to stop an anonymous WhatsApp and Instagram user from further publishing private and pornographic material involving South African schoolchildren. The company's attorney, Rupert Candy, in a letter of demand to Meta, said the need for the urgency was that the live WhatsApp channel, which has over 11 000 followers (mostly children), issued a threat to publish 'everything' (with reference to pornographic images and videos, as well as private information, involving children) at 8pm on Monday evening, 14 July 2025. 'If you do not ensure the deletion of the WhatsApp channels and Instagram profiles before then, the lives of numerous South African children will be irreparably harmed, with potentially suicidal consequences. You have the power to prevent this,' Candy wrote. Mass distribution In papers filed at the Gauteng High Court, Sadlier said investigations revealed that the person behind the profiles was soliciting sexual content from school children. 'They involve the mass distribution of unlawful material involving children to large unidentified audiences who are members of so-called WhatsApp 'community channels', as well as Instagram profiles,' Sadlier said. 'The content comprises explicit pornographic images and videos depicting children. The images and videos are often accompanied by other information relating to the individual child depicted, including their name, grade, school, as well as lewd or otherwise offensive descriptions relating to the individual's purported behaviour 'The affected individuals face the imminent and irreparable dissemination of their most sensitive and intimate information, which constitutes graphic child pornography, deeply invasive personal details, and profoundly defamatory content relating to numerous identifiable minors,' she said. Warning to parents Sadlier warned parents to check their children's phones. 'I just want to alert parents to one of the biggest issues, and that is that these kids are all joining WhatsApp Channels… The kind of content being circulated on these channels is horrific, child sexual abuse images, child pornography. 'I can't tell you how harmful this content is. Please log in to your child's WhatsApp account. At the bottom left, there is an icon labelled 'Updates.' If you click on that and go to the top, if your child is following any WhatsApp channel, it will come up. I want you to go and have a look at that channel and see what kind of content is being posted,' Sadlier warned. ALSO READ: NAG magazine launches winter edition with Doom: The Dark Ages on cover [VIDEO]
Yahoo
2 days ago
- Business
- Yahoo
PrairieSky Announces Second Quarter 2025 Results
CALGARY, Alberta, July 14, 2025 (GLOBE NEWSWIRE) -- PrairieSky Royalty Ltd. ("PrairieSky" or the "Company") (TSX: PSK) is pleased to announce its second quarter operating and financial results for the period ended June 30, 2025. Second Quarter Highlights: President's Message Oil royalty production volumes reached a record 14,376 barrels per day in Q2 2025, an 8% increase over Q2 2024, bringing year-to-date oil royalty production to 13,941 barrels per day. We continue to see growth in our heavy oil portfolio with the Clearwater and Mannville Stack(2) approaching 25% of oil royalty production as third-party operators continue to execute on their drilling programs in these plays. Multilateral horizontal drilling reached a record 52% of spuds (61 wells) in the quarter which included 47 wells in the Clearwater. Year-to-date activity has been particularly strong in the Duvernay with 30 wells spud compared to 33 spud in all of 2024. We expect to see initial royalty production from multiple Duvernay wells in the West Shale Basin(2) in the third quarter and this level of third-party activity to continue to drive annual oil royalty production growth. Funds from operations totaled $96.7 million ($0.41 per share) in the quarter driven by strong royalty production volumes of 26,457 BOE per day which generated royalty revenue of $111.2 million, 93% attributed to oil and NGL. Oil royalty production revenue totaled $95.7 million, a 14% decrease from Q2 2024, with lower US$ WTI benchmark pricing offsetting record oil royalty production volumes of 14,376 barrels per day, narrowed light and heavy oil differentials and a weaker Canadian dollar. Natural gas royalty production volumes averaged 58.4 MMcf per day in the quarter, earning $7.9 million in royalty revenue which represented an 80% increase over Q2 2024. The increase in natural gas royalty production revenue was primarily due to improved benchmark pricing with daily AECO index pricing averaging $1.69 per Mcf in the quarter, an increase of 43% over Q2 2024. NGL royalty production averaged 2,348 barrels per day, an increase of 2% from Q2 2024 and generated total NGL royalty production revenue of $7.6 million in the quarter. It was a strong quarter for other revenues which totaled $12.4 million, including bonus consideration of $8.5 million earned on entering into 47 new leases with 37 separate counterparties. PrairieSky declared a dividend of $0.26 per share or $61.2 million in the quarter with a resulting payout ratio of 63%. Excess funds from operations after payment of the dividend were allocated to the acquisition of $6.5 million of incremental royalty interests focused on non-producing gross overriding royalty interests targeting Mannville heavy oil targets and share repurchases. The NCIB remains an important part of our long-term capital allocation strategy to create value for shareholders. During the quarter, 84,020 common shares were repurchased and cancelled with an incremental $11.0 million(3) allocated to share repurchases to be settled subsequent to June 30, 2025. PrairieSky exited the quarter with net debt of $242.0 million at June 30, 2025. Subsequent to Q2 2025, PrairieSky exercised the accordion feature of its unsecured, covenant-based credit facility with the existing syndicate of Canadian banks, increasing the commitment of lenders by $250 million, bringing the aggregate credit limit available to PrairieSky to $600 million. There were no other amendments made to the credit facility. The expanded facility provides increased liquidity and financial flexibility moving forward. Thank you to our staff for their hard work in the quarter and our shareholders for their continued support. Andrew Phillips, President & CEO ACTIVITY ON PRAIRIESKY'S ROYALTY PROPERTIES Third-party operators spud 117 wells on PrairieSky's royalty acreage at an average royalty rate of 4.8%, as compared to the 115 wells spud in Q2 2024 at an average royalty rate of 6.6%. Drilling activity generally slows in the second quarter across the Western Canadian Sedimentary Basin as a result of spring break-up. Spuds were comprised of 74 wells on gross overriding royalty acreage, 33 wells on fee lands and 10 unit wells. There were a total of 113 oil wells (97% of wells) spud during the quarter which included 47 Clearwater wells, 17 Mannville light and heavy oil wells, 13 Duvernay wells, 11 Viking wells, 11 Mississippian wells and 14 additional oil wells across Alberta and Saskatchewan. There were 3 Mannville natural gas wells and 1 Duvernay natural gas well spud in Q2 2025. NOTES AND REFERENCES (1) In this press release, the financial reporting periods are referred to as follows: "Q2 2025", "the quarter" or the "the second quarter" refers to the three months ended June 30, 2025; "Q2 2024" refers to the three months ended June 30, 2024. (2) For further details on the "Mannville Stack" and "West Shale Basin", we refer you to PrairieSky's most recent Corporate Presentation contained on PrairieSky's website at (3) Included in accounts payable and accrued liabilities at June 30, 2025 is $11.0 million related to common share repurchases of which $1.0 million related to common share repurchases that were pending settlement at June 30, 2025 and the remaining $10.0 million related to a provision for share repurchases under the Company's automatic share purchase plan with an independent broker. Unless otherwise indicated or the context otherwise requires, terms used in this press release but not defined above are as defined in in the Company's Annual Information Form for the year ended December 31, 2024 which is available on SEDAR+ at and PrairieSky's website at FINANCIAL AND OPERATIONAL INFORMATION The following table summarizes select operational and financial information of the Company for the periods noted. All dollar amounts are stated in Canadian dollars unless otherwise noted. A full version of PrairieSky's management's discussion and analysis ("MD&A") and unaudited interim condensed consolidated financial statements and notes thereto for the fiscal period ended June 30, 2025 are available on SEDAR+ at and PrairieSky's website at Three months ended Six months ended June 30 March 31 June 30 June 30 June 30 ($ millions, except $ per share or as otherwise noted) 2025 2025 2024 2025 2024 FINANCIAL Royalty production revenue 111.2 119.9 125.5 231.1 238.7 Other revenue 12.4 8.2 10.1 20.6 17.6 Revenues 123.6 128.1 135.6 251.7 256.3 Funds from operations 96.7 85.8 106.1 182.5 189.1 Per share - basic and diluted(1) 0.41 0.36 0.44 0.77 0.79 Net earnings 56.3 58.4 60.3 114.7 107.8 Per share - basic and diluted(1) 0.24 0.25 0.25 0.48 0.45 Dividends declared(2) 61.2 61.2 59.7 122.4 119.4 Per share 0.26 0.26 0.25 0.52 0.50 Dividend payout ratio(3) 63% 71% 56% 67% 63% Acquisitions(4) 6.5 63.6 12.3 70.1 21.1 Net debt(5) 242.0 258.8 174.6 242.0 174.6 Common share repurchases, inclusive of all costs 2.0 91.8 - 93.8 - Shares outstanding (millions) Shares outstanding at period end 235.5 235.5 239.0 235.5 239.0 Weighted average - basic and diluted 235.5 238.3 239.0 236.9 239.0 OPERATIONAL Royalty production volumes Crude oil (bbls/d) 14,376 13,502 13,312 13,941 13,227 NGL (bbls/d) 2,348 2,520 2,308 2,433 2,421 Natural gas (MMcf/d) 58.4 55.9 58.2 57.1 60.1 Royalty Production (BOE/d)(6) 26,457 25,339 25,320 25,891 25,665 Realized pricing Crude oil ($/bbl) 73.16 83.16 91.75 77.98 84.51 NGL ($/bbl) 35.47 44.51 47.20 40.13 45.62 Natural gas ($/Mcf) 1.50 1.73 0.84 1.61 1.38 Total ($/BOE)(6) 46.19 52.58 54.47 49.31 51.10 Operating netback per BOE ($)(7) 43.04 42.85 51.39 42.95 45.43 Funds from operations per BOE ($) 40.16 37.62 46.05 38.94 40.48 Oil price benchmarks West Texas Intermediate (WTI) (US$/bbl) 63.76 71.39 80.57 67.59 78.76 Edmonton light sweet ($/bbl) 84.24 95.20 105.16 89.78 98.66 Western Canadian Select (WCS) crude oil differential to WTI (US$/bbl) (10.27 ) (12.67 ) (13.60 ) (11.47 ) (16.47 ) Natural gas price benchmarks AECO Monthly Index ($/Mcf) 2.07 2.02 1.44 2.05 1.74 AECO Daily Index ($/Mcf) 1.69 2.16 1.18 1.93 1.84 Foreign exchange rate (US$/CAD$) 0.7228 0.6976 0.7315 0.7096 0.7364 (1) Funds from operations and net earnings per share are calculated using the weighted average number of basic and diluted common shares outstanding. (2) A dividend of $0.26 per share was declared on June 3, 2025. The dividend will be paid on July 15, 2025 to shareholders of record as at June 30, 2025. (3) Dividend payout ratio is defined under the "Non-GAAP Measures and Ratios" section of this press release. (4) Excluding right-of-use asset additions. (5) See Note 12 "Capital Management" in the interim condensed consolidated financial statements for the three and six months ended June 30, 2025 and 2024 and Note 13 "Capital Management" in the interim condensed consolidated financial statements for the three months ended March 31, 2025 and 2024. (6) See "Conversions of Natural Gas to BOE". (7) Operating netback per BOE is defined under the "Non-GAAP Measures and Ratios" section of this press release. CONFERENCE CALL DETAILS A conference call to discuss the results will be held for the investment community on Tuesday, July 15, 2025, beginning at 6:30 a.m. MST (8:30 a.m. EST). To participate in the conference call, you are asked to register at one of the links provided below. Details regarding the call will be provided to you upon registration. Live call participant registration URL: Live webcast participant registration (listen in only)URL: FORWARD-LOOKING STATEMENTS This press release includes certain forward-looking information and forward-looking statements (collectively, "forward-looking statements") which may include, but are not limited to PrairieSky's future plans, current expectations and views of future operations and contains forward-looking statements that the Company believes allow readers to better understand the Company's business and prospects. All statements other than statements of historical fact may be forward-looking statements. The use of any of the words "expect", "expected to", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "could", "likely", "believe", "plans", "intends", "strategy" and similar expressions (including negative variations) are intended to identify forward-looking information or statements. Forward-looking statements contained in this press release include, but are not limited to, our expectations with respect to PrairieSky's business and growth strategy and trajectory, including the expectation of receiving royalty production from multiple royalty interest wells in the West Shale Basin in the third quarter; management's expectation that the level of third-party activity on PrairieSky's royalty lands will continue to drive annual royalty production growth; and PrairieSky's expectations to execute on the NCIB as part of our long-term capital allocation strategy to create value for shareholders. With respect to forward-looking statements contained in this press release, PrairieSky has made several assumptions including those described in detail in our MD&A and the Annual Information Form for the year ended December 31, 2024. Readers and investors are cautioned that the assumptions used in the preparation of such forward-looking statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. PrairieSky's actual results, performance, or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. PrairieSky can give no assurance that any of the events anticipated will transpire or occur, or if any of them do, what benefits the Company will derive from them. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond PrairieSky's control, including but not limited to the impact of general economic conditions including inflation, industry conditions, volatility of commodity prices, lack of or access to sufficient pipeline capacity, currency fluctuations, interest rates, imprecision of reserve estimates, competitive factors impacting royalty rates, environmental risks, taxation, regulation, changes in tax or other legislation, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility, political and geopolitical instability, the risks and impacts of tariffs imposed between Canada and the United States (and other countries) or other restrictive trade measures, retaliatory or countermeasures implemented by such governments affecting trade between Canada and the United States (and other countries), including the potential introduction of regulatory barriers to trade and the effect on the demand and/or market price for commodities, inaccurate expectations for industry drilling levels on our royalty lands and the Company's ability to access sufficient capital from internal and external sources. In addition, PrairieSky is subject to numerous risks and uncertainties in relation to acquisitions. These risks and uncertainties include risks relating to the potential for disputes to arise with counterparties, and limited ability to recover indemnification under certain agreements. The foregoing and other risks, uncertainties and assumptions are described in more detail in PrairieSky's MD&A and the Annual Information Form for the year ended December 31, 2024 under the headings "Risk Management" and "Risk Factors", respectively, each of which is available on SEDAR+ at and PrairieSky's website at Further, any forward-looking statement is made only as of the date of this press release, and PrairieSky undertakes no obligation to update or revise any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events, except as required by applicable securities laws. New factors emerge from time to time, and it is not possible for PrairieSky to predict all of these factors or to assess, in advance, the impact of each such factor on PrairieSky's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. CONVERSIONS OF NATURAL GAS TO BOE To provide a single unit of production for analytical purposes, natural gas production and reserves volumes are converted mathematically to equivalent barrels of oil (BOE). PrairieSky uses the industry-accepted standard conversion of six thousand cubic feet of natural gas to one barrel of oil (6 Mcf = 1 bbl). The 6:1 BOE ratio is based on an energy equivalency conversion method primarily applicable at the burner tip. It does not represent a value equivalency at the wellhead and is not based on either energy content or current prices. While the BOE ratio is useful for comparative measures and observing trends, it does not accurately reflect individual product values and might be misleading, particularly if used in isolation. As well, given that the value ratio, based on the current price of crude oil to natural gas, is significantly different from the 6:1 energy equivalency ratio, using a 6:1 conversion ratio may be misleading as an indication of value. NON-GAAP MEASURES AND RATIOS Certain measures and ratios in this press release do not have any standardized meaning as prescribed by IFRS and, therefore, are considered non-GAAP measures and ratios. These measures and ratios may not be comparable to similar measures and ratios presented by other issuers. These measures and ratios are commonly used in the oil and natural gas industry and by PrairieSky to provide potential investors with additional information regarding the Company's liquidity and its ability to generate funds to conduct its business. Non-GAAP measures and ratios include operating netback per BOE and dividend payout ratio. Management's use of these measures and ratios is discussed further below. Further information can be found in the Non-GAAP Measures and Ratios section of PrairieSky's MD&A for the three and six months ended June 30, 2025 and 2024 and PrairieSky's MD&A for the three months ended March 31, 2025 and 2024. "Operating netback per BOE" represents the cash margin for products sold on a BOE basis. Operating netback per BOE is calculated by dividing the operating netback (royalty production revenue less production and mineral taxes and cash administrative expenses) by the average daily production volumes for the period. Operating netback per BOE is used to assess the cash generating and operating performance per unit of product sold and the comparability of the underlying performance between years. Operating netback per BOE measures are commonly used in the oil and natural gas industry to assess performance comparability. Refer to the Operating Results table starting on page 6 of PrairieSky's MD&A for the three and six months ended June 30, 2025 and 2024 and page 6 of PrairieSky's MD&A for the three months ended March 31, 2025 and months ended Six months endedJune 30 March 31 June 30 June 30 June 30 ($ millions) 2025 2025 2024 2025 2024 Cash from operating activities 90.3 90.7 99.3 181.0 179.0 Other revenue (12.4 ) (8.2 ) (10.1 ) (20.6 ) (17.6 ) Amortization of debt issuance costs (0.1 ) (0.1 ) (0.1 ) (0.2 ) (0.2 ) Finance expense 3.0 2.9 3.5 5.9 7.2 Current tax expense 16.5 17.3 19.0 33.8 33.7 Interest on lease obligation (0.1 ) - - (0.1 ) - Net change in non-cash working capital 6.4 (4.9 ) 6.8 1.5 10.1 Operating netback 103.6 97.7 118.4 201.3 212.2 'Operating Margin' represents operating netback as a percentage of royalty production revenue. Management uses this measure to demonstrate the comparability between the Company and production and exploration companies in the oil and natural gas industry as it shows net revenue generation from months ended Six months endedJune 30 March 31 June 30 June 30 June 30 ($ millions) 2025 2025 2024 2025 2024 Royalty production revenue 111.2 119.9 125.5 231.1 238.7 Operating netback 103.6 97.7 118.4 201.3 212.2 Operating margin 93% 81% 94% 87% 89% "Dividend payout ratio" is calculated as dividends declared as a percentage of funds from operations. Payout ratio is used by dividend paying companies to assess dividend levels in relation to the funds generated and used in operating activities. Three months ended Six months endedJune 30 March 31 June 30 June 30 June 30 ($ millions, except otherwise noted) 2025 2025 2024 2025 2024 Funds from operations 96.7 85.8 106.1 182.5 189.1 Dividends declared 61.2 61.2 59.7 122.4 119.4 Dividend payout ratio 63% 71% 56% 67% 63% ABOUT PRAIRIESKY ROYALTY LTD. PrairieSky is a royalty company, generating royalty production revenues as oil and natural gas are produced from its properties. PrairieSky has a diverse portfolio of properties that have a long history of generating funds from operations and that represent the largest and most consolidated independently-owned fee simple mineral title position in Canada. PrairieSky's common shares trade on the Toronto Stock Exchange under the symbol PSK. FOR FURTHER INFORMATION PLEASE CONTACT: Andrew M. PhillipsPresident & Chief Executive Officer PrairieSky Royalty Ltd.(587) 293-4005 Michael T. MurphyVice-President, Geosciences & Capital MarketsPrairieSky Royalty Ltd.(587) 293-4056 Investor Relations(587) Pamela P. KazeilSenior Vice-President, Finance & Chief FinancialOfficerPrairieSky Royalty Ltd.(587) 293-4089 PDF available: in to access your portfolio
