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Prairiesky Royalty Ltd
TSX:PSK

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Prairiesky Royalty Ltd Logo
Prairiesky Royalty Ltd
TSX:PSK
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Price: 24.6 CAD 1.53% Market Closed
Updated: Mar 2, 2024

Intrinsic Value

PrairieSky Royalty Ltd. engages in the acquisition and management of royalty lands, in order to generate significant free cash flow through indirect third-party oil and gas investments. [ Read More ]

The intrinsic value of one PSK stock under the Base Case scenario is 13.27 CAD. Compared to the current market price of 24.6 CAD, Prairiesky Royalty Ltd is Overvalued by 46%.

Key Points:
PSK Intrinsic Value
Base Case
13.27 CAD
Overvaluation 46%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation Backtest
Prairiesky Royalty Ltd

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Fundamental Analysis

PrairieSky Confirms Strong 2023 Performance and Dividend Hike
2023-Q4 Earnings Call

PrairieSky Confirms Strong 2023 Performance and Dividend Hike

In 2023, PrairieSky experienced a solid year marked by 6% organic oil growth and drilling efforts replacing 4.5 million barrels of produced royalty oil. The company reported the drilling of 804 wells and continued leasing activities with 202 new leases. Fourth-quarter royalty production reached 25,608 barrels of oil equivalent per day (BOE/d), a 6% increase in oil volumes year-over-year, mainly from the Clearwater and Mannville heavy oil plays. Revenue for the fourth quarter hit $122 million, 90% from liquid royalties, and $474.6 million annually, predominantly from liquids. They announced a 4% increase in the annual dividend to $1 per share, effective March 29, 2024. Looking ahead, they project other revenues between $25 million to $30 million for 2024. PrairieSky plans to use excess cash flow to reduce bank debt and pursue high-return acquisitions.

Financials

Balance Sheet Decomposition
Prairiesky Royalty Ltd

Current Assets 62.3m
Receivables 61.6m
Other Current Assets 700k
Non-Current Assets 3.2B
PP&E 1.6B
Intangibles 1.6B
Current Liabilities 96.4m
Accounts Payable 2.6m
Accrued Liabilities 31.9m
Other Current Liabilities 61.9m
Non-Current Liabilities 444.9m
Long-Term Debt 188m
Other Non-Current Liabilities 256.9m
Efficiency
Fundamental Scores

PSK Profitability Score
Profitability Due Diligence

Prairiesky Royalty Ltd's profitability score is 56/100. The higher the profitability score, the more profitable the company is.

Exceptional 3-Years Revenue Growth
Positive Operating Income
Positive Net Income
ROE is Increasing
56/100
Profitability
Score

Prairiesky Royalty Ltd's profitability score is 56/100. The higher the profitability score, the more profitable the company is.

PSK Solvency Score
Solvency Due Diligence

Prairiesky Royalty Ltd's solvency score is 80/100. The higher the solvency score, the more solvent the company is.

High Interest Coverage
High Altman Z-Score
Long-Term Solvency
Low D/E
80/100
Solvency
Score

Prairiesky Royalty Ltd's solvency score is 80/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

PSK Price Targets Summary
Prairiesky Royalty Ltd

Wall Street analysts forecast PSK stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for PSK is 26.33 CAD with a low forecast of 23.23 CAD and a high forecast of 30.45 CAD.

Lowest
Price Target
23.23 CAD
6% Downside
Average
Price Target
26.33 CAD
7% Upside
Highest
Price Target
30.45 CAD
24% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

Shareholder Return

PSK Price
Prairiesky Royalty Ltd

1M 1M
+14%
6M 6M
-5%
1Y 1Y
+12%
3Y 3Y
+105%
5Y 5Y
+44%
10Y 10Y
-9%
Annual Price Range
24.6
52w Low
19.9739
52w High
26.76
Price Metrics
Average Annual Return 10.69%
Standard Deviation of Annual Returns 42.29%
Max Drawdown -66%
Shares Statistics
Market Capitalization 5.9B CAD
Shares Outstanding 238 900 000
Percentage of Shares Shorted 3.42%

PSK Return Decomposition
Main factors of price return

What is price return decomposition?

Company Profile

Prairiesky Royalty Ltd Logo
Prairiesky Royalty Ltd

Country

Canada

Industry

Energy

Market Cap

5.9B CAD

Dividend Yield

4.13%

Description

PrairieSky Royalty Ltd. engages in the acquisition and management of royalty lands, in order to generate significant free cash flow through indirect third-party oil and gas investments. The company is headquartered in Calgary, Alberta and currently employs 55 full-time employees. The company went IPO on 2014-05-29. The firm's asset base includes a geologically and geographically diverse portfolio of fee simple mineral title (Fee Lands) that encompasses approximately 8.2 million acres with petroleum and/or natural gas rights and approximately 8.1 million acres of gross overriding royalty interests in Alberta, Saskatchewan, British Columbia and Manitoba. PrairieSky is focused on encouraging third parties to activity develop its Royalty Properties through various arrangements, including lease issuance, farmouts , drilling commitments, and seismic options agreement. The firm's operations include royalty income earned through crude oil, natural gas liquids and natural gas produced on the Royalty Properties.

Contact

ALBERTA
Calgary
1700-350 7 Ave SW
+15872934000.0
https://www.prairiesky.com/

IPO

2014-05-29

Employees

55

Officers

President, CEO & Non-Independent Director
Mr. Andrew M. Phillips
VP of Finance & CFO
Ms. Pamela P. Kazeil
Controller
Mr. Daniel V. Riva Cambrin
VP of Business Development & Chief Commercial Officer
Mr. Daniel James Bertram CFA
Vice-President of Geosciences & Capital Markets
Mr. Michael Murphy P.Geo.

See Also

Discover More
What is the Intrinsic Value of one PSK stock?

The intrinsic value of one PSK stock under the Base Case scenario is 13.27 CAD.

Is PSK stock undervalued or overvalued?

Compared to the current market price of 24.6 CAD, Prairiesky Royalty Ltd is Overvalued by 46%.