CALGARY, Alberta, April 22, 2024 (GLOBE NEWSWIRE) -- PrairieSky Royalty Ltd. ("PrairieSky" or the "Company") (TSX:PSK) is pleased to announce its first quarter ("Q1 2024") operating and financial results for the three-month period ended March 31, 2024. First Quarter Highlights: Royalty production volumes averaged 26,027 BOE per day and included record oil royalty production of 13,142 barrels per day, an 8% increase over Q1 2023 and a 2% increase over Q4 2023. Quarterly revenues totaled $120.7 million, comprised of royalty production revenues of $113.2 million and other revenues of $7.5 million, including bonus consideration of $4.2 million earned on entering into 50 new leasing arrangements primarily for Mannville medium and heavy oil and Duvernay light oil acreage. Quarterly funds from operations totaled $83.0 million ($0.35 per share basic and diluted). Declared a quarterly dividend of $0.25 per share. Acquired gross overriding royalty interests primarily in lands prospective for Mannville heavy and light oil for $8.8 million. Net debt decreased to $208.3 million as at March 31, 2024, as excess funds from operations over the dividend and acquisitions were used to reduce net debt. President's Message PrairieSky's positive oil royalty production momentum continued into Q1 2024 delivering a record 13,142 barrels per day. Oil royalty production increased 8% above Q1 2023 and 2% over Q4 2023 with growth primarily generated from the Mannville Stack and Clearwater heavy oil plays which have highly competitive full-cycle economics and have been the focus area of many well-capitalized private and public company operators on our royalty lands. We have positioned ourselves in the most economic conventional oil plays in Western Canada and are pleased with the level of oil royalty production growth we have seen on our lands, adding almost 2,000 barrels of oil per day since Q1 2022, the first quarter following the Heritage Royalty acquisition. Oil royalty production generated $92.3 million in royalty revenue in the quarter, 82% of total royalty revenue. NGL royalty volumes added an incremental $10.2 million of royalty revenue and natural gas royalty volumes added $10.7 million as AECO benchmark pricing remained weak in the quarter. Royalty revenue totaled $113.2 million in the quarter generated from total average royalty production volumes of 26,027 BOE per day (60% liquids). Other revenues added $7.5 million, including lease rentals, bonus consideration, water disposal fees and potash royalty revenues. Leasing activity remained strong in Q1 2024. PrairieSky entered into 50 new leases with 42 different counterparties earning an aggregate of $4.2 million in bonus consideration. Leasing was primarily focused on Mannville medium and heavy oil targets with 40 wells spud as well as the Duvernay where drilling activity more than doubled from Q1 2023 with 14 wells spud. Activity was slower in the Viking and the Clearwater year over year with Clearwater activity focused on secondary recovery schemes. We are seeing early-stage success in waterflood and polymer floods on our Clearwater assets which we expect to lead to increased recoveries and lower declines on our royalty properties. Based on third-party producer budgets and current commodity pricing, we anticipate strong Clearwater activity throughout 2024. There were also 14 Montney and 6 Mannville liquids-rich natural gas wells spud in Northwest Alberta and British Columbia in the quarter. PrairieSky generated quarterly funds from operations of $83.0 million or $0.35 per share (basic and diluted). Funds from operations were in line with Q1 2023 as increased oil royalty production and a narrower heavy oil differential offset the negative impacts of lower natural gas benchmark pricing and a wider light oil differential on royalty revenues. Funds from operations were lower than Q4 2023 primarily as a result of weaker benchmark pricing for oil, lower bonus consideration following a strong Q4 2023 and the annual payment of employee and officer long-term incentive compensation. PrairieSky declared a dividend of $0.25 per share or $59.7 million in the quarter. Excess funds from operations were used to reduce net debt, with $8.8 million used to acquire gross overriding royalty interests that are complementary to PrairieSky's existing asset base and are primarily targeting Mannville heavy and light oil. PrairieSky exited Q1 2024 with net debt of $208.3 million, down $13.8 million from December 31, 2023. We would like to thank our dedicated staff for their efforts and our shareholders for the continued support. Andrew Phillips, President & CEO ACTIVITY ON PRAIRIESKY'S ROYALTY PROPERTIES Third-party operators spud 174 wells (84% oil) on PrairieSky's royalty acreage in Q1 2024, down from 214 wells (87% oil) in Q1 2023. Spuds included 83 wells on our Fee Lands, 83 wells on our GORR acreage, and 8 unit wells. There were 147 oil wells spud which included 40 Mannville light and heavy oil wells, 40 Viking wells, 21 Mississippian wells, 12 Clearwater wells, 12 Bakken wells, 8 Duvernay wells, 5 Cardium wells, and 9 additional oil wells spud in the Belly River, Dunvegan, Jurassic, Montney and Triassic formations. There were 26 natural gas wells spud in Q1 2024, including 14 Montney gas wells, 6 Mannville gas wells and 6 Duvernay gas wells. There was also 1 helium well spud in the quarter. PrairieSky's average royalty rate for wells spud in Q1 2024 was 6.0% (Q1 2023 - 8.2%). FINANCIAL AND OPERATIONAL INFORMATION The following table summarizes select operational and financial information of the Company for the periods noted. All dollar amounts are stated in Canadian dollars unless otherwise noted. A full version of PrairieSky's management's discussion and analysis ("MD&A") and unaudited interim condensed consolidated financial statements and notes thereto for the fiscal period ended March 31, 2024 is available on SEDAR+ at www.sedarplus.ca and PrairieSky's website at www.prairiesky.com.       Three Months Ended (millions, except per share or as otherwise noted)   March 312024 December 312023 March 312023   FINANCIAL             Revenues     $ 120.7   $ 136.6   $ 126.1                   Funds from Operations       83.0     111.1     86.3     Per Share - basic and diluted(1)       0.35     0.46     0.36                   Net Earnings       47.5     67.4     56.8     Per Share - basic and diluted(1)       0.20     0.28     0.24                   Dividends declared(2)       59.7     57.3     57.3     Per Share       0.25     0.24     0.24     Dividend payout ratio(3)       72%     52%     66%                   Acquisitions - including non-cash consideration(4)       8.8     22.2     5.4     Net debt at period end(5)       208.3     222.1     292.4                   Shares Outstanding             Shares outstanding at period end       239.0     239.0     238.9