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PrairieSky Royalty
(TSX:PSK)
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Rating:79Outperform
Price Target:
C$42.00
▲(14.82% Upside)
Action:Reiterated
Date:10/29/26
Overall score is driven primarily by strong financial performance (high margins, low leverage, and solid free cash flow) and a positive earnings call with visible growth and improving balance sheet. Technicals are supportive but look overextended, and valuation (P/E ~30.9) is the main constraint on the score.
Positive Factors
High-margin, low-leverage model
PrairieSky combines very high profitability with minimal leverage, reflecting the cash-efficient economics of owning mineral rights while operators fund drilling and field operations. This structure supports resilience, preserves financial flexibility, and allows more cash to be directed toward dividends, debt reduction, or acquisitions.
Negative Factors
Cyclical revenue visibility
PrairieSky’s royalty revenue remains exposed to commodity prices and operator activity, so strong margins do not eliminate earnings variability. Historical revenue swings reduce forward visibility and can affect funds from operations, leasing economics, and the pace at which the company can sustain distributions or pursue acquisitions.
Read all positive and negative factors
Positive Factors
Negative Factors
High-margin, low-leverage model
PrairieSky combines very high profitability with minimal leverage, reflecting the cash-efficient economics of owning mineral rights while operators fund drilling and field operations. This structure supports resilience, preserves financial flexibility, and allows more cash to be directed toward dividends, debt reduction, or acquisitions.
Read all positive factors
PrairieSky Royalty (PSK) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$8.61B
Dividend Yield2.85%
Average Volume (3M)430.27K
Price to Earnings (P/E)30.9
Beta (1Y)0.23
Revenue Growth17.21%
EPS Growth29.29%
CountryCA
Employees71
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)1.20
Shares Outstanding232,442,550
10 Day Avg. Volume448,816
30 Day Avg. Volume430,266
Financial Highlights & Ratios
PEG Ratio-9.32
Price to Book (P/B)2.47
Price to Sales (P/S)13.15
P/FCF Ratio24.43
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$40.39Price Target Upside10.42% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)1.45
Revenue Forecast (FY)C$663.38M
PrairieSky Royalty Business Overview & Revenue Model
Company Description
PrairieSky Royalty Ltd., a Canadian company, holds royalty stakes in crude oil and natural gas assets across the provinces of Alberta, Saskatchewan, British Columbia, and Manitoba. Its extensive portfolio comprises an estimated 9.8 million acres f...
How the Company Makes Money
PrairieSky makes money primarily by monetizing its mineral ownership through leasing and royalty collection rather than by drilling and operating wells itself. (1) Royalty revenue from production: The largest and most recurring revenue stream is r...
PrairieSky Royalty Earnings Call Summary
Earnings Call Date:Oct 26, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 08, 2027
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.Positive Updates
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.
Negative Updates
Most West Shale Duvernay Wells Not Yet Producing
At quarter-end, only 22 of the 65 West Shale wells included in the year-to-date Duvernay total were on production. Management said upcoming completions are expected to support growth through Q4 and early 2027.
Read all updates
Q3-2026 Updates
Positive
Negative
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.
Read all positive updates
Company Guidance
Management said the Lindbergh expansion with Strathcona should get to 45,000 to 47,000 barrels in 2031, effectively doubling net royalty oil production from thermal from a current 1,200 barrels per day to just around 2,500 barrels per day; over the longer term kind of starting in 2030 out to 2040, Western Saskatchewan leasing should add another incremental 4,000 to 5,000 new royalty barrels, using about 50% of them effectively being evolved over time. The conventional portfolio could potentially grow sometime in the next 3 years, assuming oil price hangs in there, while upcoming completions are expected to continue to support Duvernay light oil growth through Q4 and early 2027. The Board will review the dividend in February, with the company looking to show dividend increases every year, but keeping them pragmatic and kind of smaller; management also cited a mid- single-digit growth rate, mid single-digit free cash flow yield, and higher return M&A taking returns to almost a mid-teens returns on an unlevered basis.PrairieSky Royalty Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 588.50M | 478.20M | 470.30M | 479.60M | 619.30M | 293.60M |
| Gross Profit | 434.00M | 323.30M | 466.40M | 473.20M | 612.70M | 290.00M |
| EBITDA | 530.90M | 432.80M | 439.80M | 455.50M | 580.20M | 264.60M |
| Net Income | 280.10M | 205.00M | 215.30M | 227.60M | 317.50M | 123.30M |
Balance Sheet | ||||||
| Total Assets | 3.07B | 3.15B | 3.21B | 3.31B | 3.42B | 3.51B |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Debt | 91.70M | 242.50M | 95.50M | 188.10M | 219.20M | 645.00M |
| Total Liabilities | 484.50M | 604.50M | 465.70M | 541.30M | 647.10M | 915.80M |
| Stockholders Equity | 2.58B | 2.54B | 2.74B | 2.77B | 2.77B | 2.59B |
Cash Flow | ||||||
| Free Cash Flow | 407.70M | 257.50M | 363.60M | 306.50M | 552.00M | -206.30M |
| Operating Cash Flow | 434.50M | 357.40M | 378.60M | 318.90M | 565.50M | 252.00M |
| Investing Cash Flow | -26.80M | -99.20M | -49.10M | -57.90M | -30.60M | -986.40M |
| Financing Cash Flow | -407.70M | -258.20M | -329.50M | -261.00M | -534.90M | 734.40M |
PrairieSky Royalty Technical Analysis
Positive
36.58
Price Trends
35.25
Positive
34.21
Positive
32.59
Positive
Market Momentum
0.66
Negative
71.19
Negative
68.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PSK, the sentiment is Positive. The current price of 36.58 is above the 20-day moving average (MA) of 34.99, above the 50-day MA of 35.25, and above the 200-day MA of 32.59, indicating a bullish trend. The MACD of 0.66 indicates Negative momentum. The RSI at 71.19 is Negative, neither overbought nor oversold. The STOCH value of 68.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PSK.
PrairieSky Royalty Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | C$8.61B | 30.88 | 10.96% | 2.85% | 17.21% | 29.29% | |
74 Outperform | C$5.77B | 25.27 | 12.57% | ― | -6.76% | -46.80% | |
73 Outperform | C$5.24B | 10.46 | 16.96% | 5.39% | 26.11% | 45.27% | |
71 Outperform | C$2.88B | 20.54 | 13.88% | 6.14% | 0.67% | 11.91% | |
68 Neutral | C$6.94B | 205.02 | 1.34% | 1.24% | 10.65% | ― | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | C$9.19B | 10.86 | 17.02% | 49.41% | -8.60% | 18.87% |
* Energy Sector Average
TSE:PSK
PrairieSky Royalty
37.02
12.70
52.25%
TSE:ATH
Athabasca Oil
11.94
5.07
73.80%
TSE:TVE
Tamarack Valley Energy
14.33
8.21
134.07%
TSE:FRU
Freehold Royalties
17.61
4.34
32.72%
TSE:PEY
Peyto Exploration & Dev
25.58
6.68
35.37%
TSE:SCR
Strathcona Resources
42.38
15.69
58.79%
PrairieSky Royalty Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
PrairieSky Boosts Q3 2026 Cash Flow as Liquids Growth Cuts Debt
Positive
Oct 26, 2026
PrairieSky reported strong third‑quarter 2026 results, with total royalty production rising to 26,936 BOE per day and liquids volumes driving a 42% year‑over‑year increase in funds from operations to $127.9 million. Oil and NGL r...
Financial DisclosuresRegulatory Filings and Compliance
PrairieSky Sets Date for Q3 2026 Results and Investor Call
Neutral
Oct 5, 2026
PrairieSky Royalty Ltd. plans to release its third-quarter 2026 financial and operating results after markets close on October 26, 2026, with full financial statements and management discussion to be posted on its website and on SEDAR+. The compan...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.