PrairieSky Royalty Ltd. (TSX – PSK) is a pure-play royalty company, generating royalty revenues as petroleum and natural gas are produced from our 16.2 million acres of royalty properties spanning Western Canada from Northeast British Columbia to Western Manitoba. We have the largest independently owned portfolio of fee simple(1) mineral title and oil and gas royalty interests in Canada.
PrairieSky owns approximately 8.0 million acres of fee simple mineral title lands and has 8.2 million acres of gross overriding royalty interests in Alberta, Saskatchewan, British Columbia and Manitoba. PrairieSky is focused on encouraging third parties to activity develop our Royalty Properties at no incremental cost or expense to PrairieSky. We do not directly conduct operations to explore for, develop or produce petroleum or natural gas.
PrairieSky’s objective is to generate significant cash flow and growth for shareholders through indirect crude oil and natural gas investment at relatively low risk and low cost to the Company. The Company seeks to achieve this objective by:
- focusing on leasing activity and organic growth of royalty production revenue from the Royalty Properties;
- proactively monitoring and managing the portfolio of Royalty Properties to ensure third-party adherence to lease terms and contractual provisions (including offset well obligations);
- managing controllable costs; and
- selectively pursuing strategic business development opportunities that are relatively low risk to the Company and accretive to shareholders.
The Company intends to distribute the majority of cash flow in the form of dividends and share repurchases and cancellations over time.