PrairieSky Royalty (TSE:PSK), a company that makes its money from oil & gas royalties across Canada, reported its Q4 2022 and Fiscal 2022 earnings results (which came in at record numbers) after market close today. PSK’s revenues beat expectations, while earnings per share came in lower than expected.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Revenues for the quarter ended December 31, 2022, was C$150.6 million compared to C$100.6 million in the same period last year, beating forecasts of C$147 million. Earnings per diluted share were C$0.28, higher than the C$0.19 EPS from last year but lower than the C$0.31 consensus estimate.
Additionally, funds from operations (a cash-flow metric) in Q4 were C$119.5 million, or C$0.50 per share, 17% higher year-over-year but 3.2% lower quarter-over-quarter. The quarter-over-quarter drop was due to lower oil prices and a “wider heavy oil differential.” Next, the company’s royalty production volumes increased 27% year-over-year in Q4 and 4% on a sequential basis.
On a full-year basis, PrairieSky experienced record results, including funds from operations of C$507.6 million (C$2.12 per diluted share compared to C$1.22 in 2021) and C$643.3 million in revenues, 109% higher year-over-year. Its record results were driven by higher commodity prices as well as production and acquisition royalty volume growth. Lastly, the company’s net debt position fell from C$635 million in 2021 to C$315.1 million by the end of 2022.
Is PSK Stock a Buy, According to Analysts?
PrairieSky stock has a Moderate Buy consensus rating from analysts based on two Buys and four Hold ratings assigned in the past three months. At $25.15, the average PSK stock price target implies 11.9% upside potential.
