EarningsQ3 2026 Earnings Report
DE:7PS Q3 2026 EPS Results
Actual EPS€0.23
Consensus EPS€0.23
Beat/MissBeat by +<€0.01
One Year Ago EPS€0.13
DE:7PS Q3 2026 Revenue Results
Actual Revenue€105.50M
Expected Revenue―
Beat/Miss―
YoY Revenue Growth+43.73%
Earnings Announcement Details
QuarterQ3 2026
Date10/26/2026
TimeAfter Close
Conference CallMonday, October 26, 2026
DE:7PS Upcoming Earnings
PrairieSky Royalty's next earnings date is estimated for February 8, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
DE:7PS Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, with broad-based production growth, record drilling and leasing activity, higher funds from operations, significant debt reduction, and a visible thermal and conventional growth pipeline. The main challenges were that many Duvernay wells were not yet producing, conventional growth remains dependent on supportive oil prices, some SAGD opportunities require regulatory changes, and attractive acquisitions are difficult to find.Company Guidance
Organic Production Growth
Compared with Q3 2025, natural gas production increased 2%, oil increased 4%, and NGLs increased 20% as higher-liquids gas replaced dryer gas.
Strong Leasing Activity
PrairieSky entered into 30 new lease arrangements with 41 oil companies. Leasing was described as pervasive across the entire land base and included numerous modular SAGD leases with qualified operators.
Lease Bonus Revenue
The company generated $7.9 million of lease issuance bonus revenue during the quarter.
Higher Drilling Activity and Royalty Rates
PrairieSky spud 230 wells in Q3 at a 6.5% average royalty rate. New well spuds were up 14% over 2025, while the average royalty rate increased from 5.1% last year to 6.5%.
Record Duvernay Activity
The company recorded a quarterly record of 30 Duvernay spuds, bringing the year-to-date total to 81, including 65 in the West Shale Basin. Duvernay activity is expected to support light oil growth through Q4 and early 2027 as additional wells are completed.
Resurgence in Light Oil Plays
PrairieSky reported a resurgence in other light oil plays, including the Viking, where the spud count was up 49% year-to-date.
Heavy Oil and Mannville Growth
Multilateral drilling activity in heavy oil was up 57% through the first nine months of the year versus the same period in 2025. This translated into 26% year-over-year production growth in the Mannville stack, which averaged more than 1,100 barrels per day year-to-date.
Clearwater Production Growth and Waterflood Expansion
Clearwater maintained a 20% growth rate and exceeded 3,200 barrels per day of oil royalty production in the quarter. Waterflood operations continued to expand, with an estimated 60% of Clearwater production under waterflood support.
Higher Royalty Production and Liquids Volumes
Total royalty production averaged 26,936 BOE per day, up 5% from Q3 2025. Growth was driven by more than 1,000 barrels per day of additional liquids royalty production, including a 4% increase in oil royalty volumes to 14,739 barrels per day and a 20% increase in NGL royalty production to 2,647 barrels per day.
Revenue and Funds from Operations Growth
Royalty production revenue was $153.4 million versus $107.7 million in Q3 2025. Total revenue was $165 million, including $11.6 million of other revenue and $7.9 million of bonus consideration. Funds from operations were $127.9 million, or $0.55 per share, up 42% from Q3 2025.
Debt Reduction and Capital Allocation
PrairieSky declared $61.6 million of dividends, representing a 48% payout ratio, and completed $1 million of acquisitions targeting incremental Mannville heavy oil royalty interest. Excess funds from operations after dividends and acquisitions were directed toward debt repayment.
Material Net Debt Reduction
Net debt decreased by $63.6 million during the quarter to $123 million at September 30. Year-to-date, net debt was reduced by $153.5 million, or 56%, and net debt was also reported as down 34% from the prior quarter.
Fourth-Quarter Dividend Approved
The Board approved a fourth-quarter dividend of $0.265 per share, payable January 15, 2027, to shareholders of record on December 31, 2026.
Thermal Royalty Growth Pipeline
The Lindbergh expansion with Strathcona is expected to reach 45,000 to 47,000 barrels by 2031 and is expected to approximately double PrairieSky's net thermal royalty oil production from about 1,200 barrels per day to approximately 2,500 barrels per day.
Long-Term Western Saskatchewan Opportunities
From leasing in Western Saskatchewan, PrairieSky expects to add another incremental 4,000 to 5,000 new royalty barrels over the longer term, beginning around 2030 and extending to 2040. Management said many of these opportunities have been substantially derisked.
Return of Grassroots Exploration
Management said grassroots exploration in the basin has returned for the first time since 2013 or 2014 as the capital cycle turns and teams restart, and stated that PrairieSky is positioned to capitalize on the trend through its mineral title land base.
Shareholder Returns and M&A Track Record
Management said it intends to show dividend increases every year while also considering share repurchases and acquisitions. In 2025, PrairieSky completed $100 million of M&A at high-teens returns, reduced its share count by 3% over the last five years, paid $1 billion in dividends, and approximately doubled royalty oil production.
Potential Benefit from Government Incentives
Management said federal tax and depreciation incentives are putting more capital into the system and positively impacting PrairieSky. It also identified potential relaxation of water-recycling regulations for modular SAGD as a significant incentive for certain opportunities.
DE:7PS Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed