(All figures are in Canadian dollars)
CALGARY,
July 21, 2014 /CNW/ - PrairieSky
Royalty Ltd. ("PrairieSky") (TSX:PSK) is pleased to announce
its interim period results for the 35 day period ended June 30, 2014. PrairieSky commenced active
operations on May 27, 2014 following
the acquisition of its royalty business from Encana Corporation
("Encana"), and completed its initial public offering on
May 29, 2014.
Highlights
- Funds from operations was $31.0 million, or $0.24 adjusted per
share (basic)
- Production averaged 15,664 boe/d (44% crude oil, 10% NGLs and
46% natural gas)
- As at June 30, 2014 working capital was $57.4 million,
including $27.7 million of cash and cash equivalents and nil bank
debt
"The first several weeks of active operations have been very busy
and productive and I would like to thank all of our employees and
Directors for their contributions and hard work in ensuring a
successful start for PrairieSky" said Andrew Phillips, President
& Chief Executive Officer. "Going in to the third quarter of
2014, PrairieSky is well positioned to carry out its business plan
to organically grow royalty revenue, actively manage our royalty
assets to ensure compliance with lease terms and contractual
provisions, and pursue strategic opportunities that are low risk to
PrairieSky and accretive to shareholders" added Mr. Phillips. |
JULY 2014
DIVIDEND
In addition, PrairieSky is pleased to announce
that its Board of Directors has declared a dividend of CDN
$0.1058 per common share to be paid
on August 15, 2014 to shareholders of
record on July 31, 2014.
This dividend is designated as an "eligible
dividend" for Canadian income tax purposes.
MANAGEMENT'S DISCUSSION AND ANALYSIS AND
FINANCIAL STATEMENTS
PrairieSky has filed its Management's Discussion
and Analysis and Unaudited Interim Condensed Financial Statements
and Notes thereto as at and for the 35-day period ended
June 30, 2014 concurrently with this
press release. Additional information about PrairieSky,
including PrairieSky's Management's Discussion and Analysis and
Unaudited Interim Condensed Financial Statements and Notes thereto,
is available on SEDAR at www.sedar.com and PrairieSky's website at
www.prairiesky.com.
CONFERENCE CALL DETAILS
A conference call to discuss the June 30, 2014 interim period results will be held
for the investment community on Tuesday July
22, 2014 beginning at 6:30 a.m.
MT (8:30 a.m. ET). To
participate in the conference call, approximately 10 minutes prior
to the conference call, please dial (888) 390-0546 (toll-free in
North America) or (416) 764-8688
(Toronto & International).
JUNE 30, 2014
INTERIM PERIOD RESULTS
| ($
thousands, unless otherwise noted) |
|
|
For the period
from
May 27, 2014 to June
30, 2014 |
| Net Earnings and
Comprehensive Income |
|
|
$ |
23,907 |
| |
Per Share -
basic(2) |
|
|
|
1.01 |
| |
Per Share -
diluted(2) |
|
|
|
1.00 |
| |
Adjusted Per Share -
basic(1) |
|
|
|
0.18 |
| |
Adjusted Per Share -
diluted(1) |
|
|
|
0.18 |
| |
|
|
|
|
| Funds from
Operations(1) |
|
|
|
31,038 |
| |
Per Share -
basic(2) |
|
|
|
1.31 |
| |
Per Share -
diluted(2) |
|
|
|
1.30 |
| |
Adjusted Per Share -
basic(1) |
|
|
|
0.24 |
| |
Adjusted Per Share -
diluted(1) |
|
|
|
0.24 |
| |
|
|
|
|
| Revenues |
|
|
|
37,222 |
| |
|
|
|
|
|
Dividends(3) |
|
|
|
13,754 |
| |
Per Share |
|
|
|
0.1058 |
| |
|
|
|
|
| Production
Volumes |
|
|
|
|
| |
Natural Gas (MMcf/d) |
|
|
|
42.9 |
| |
Crude Oil (bbls/d) |
|
|
|
6,931 |
| |
NGL (bbls/d) |
|
|
|
1,582 |
| Total Crude Oil &
NGL (bbls/d) |
|
|
|
8,513 |
| Total
(BOE/d)(4) |
|
|
|
15,664 |
| |
|
|
|
|
| Realized
Pricing |
|
|
|
|
| |
Natural Gas ($/Mcf) |
|
|
$ |
4.51 |
| |
Crude Oil ($/bbl) |
|
|
|
98.50 |
| |
NGL ($/bbl) |
|
|
|
63.55 |
| Total Crude Oil and
NGL($/bbl) |
|
|
|
92.00 |
| Total
($/BOE)(4) |
|
|
$ |
62.35 |
| |
|
|
|
|
| Natural Gas Price
Benchmarks |
|
|
|
|
| AECO ($/Mcf) |
|
|
$ |
4.68 |
| |
|
|
|
|
| Oil Price
Benchmarks |
|
|
|
|
| West Texas
Intermediate (WTI) (US$/bbl) |
|
|
|
102.98 |
| Edmonton Light Sweet
($/bbl) |
|
|
|
104.53
|
|
(1) |
A Non-GAAP measure, which is defined under the
Non-GAAP Measures section in our MD&A. |
|
(2) |
Net Earnings and Comprehensive Income and Funds
from Operations per common share are calculated using the weighted
average number of PrairieSky common shares outstanding from January
1st to June 30, 2014 giving effect to stock options. |
|
(3) |
A dividend of $0.1058 per Common Share was
declared on June 18, 2014. The dividend was paid on July 15, 2014
to shareholders of record as at June 30, 2014. |
|
(4) |
See "Conversions of Natural Gas to BOE". |
Forward-looking Statements
This press release includes certain statements
regarding PrairieSky's future plans and operations and contains
forward-looking statements that we believe allow readers to better
understand our business and prospects. The use of any of the words
"expect", "anticipate", "continue", "estimate", "objective",
"ongoing", "may", "will", "project", "should", "believe", "plans",
"intends", "strategy" and similar expressions are intended to
identify forward-looking information or statements. Forward-looking
statements contained in this press release include our expectations
with respect to PrairieSky's business and growth strategy and the
payment of future dividends.
With respect to forward-looking statements
contained in this press release, we have made several assumptions
including those described in detail in our MD&A for the period
ended June 30, 2014. See
"Availability on SEDAR" above. Readers and investors are cautioned
that the assumptions used in the preparation of such forward
looking information and statements, although considered reasonable
at the time of preparation, may prove to be imprecise and, as such,
undue reliance should not be placed on forward-looking statements.
Our actual results, performance, or achievement could differ
materially from those expressed in, or implied by, these
forward-looking statements. We can give no assurance that any of
the events anticipated will transpire or occur, or if any of them
do, what benefits we will derive from them.
By their nature, forward-looking statements are
subject to numerous risks and uncertainties, some of which are
beyond our control, including the impact of general economic
conditions, industry conditions, volatility of commodity prices,
lack of pipeline capacity, currency fluctuations, imprecision of
reserve estimates, royalties, environmental risks, taxation,
regulation, changes in tax or other legislation, competition from
other industry participants, the lack of availability of qualified
personnel or management, stock market volatility, and our ability
to access sufficient capital from internal and external sources. In
addition, PrairieSky is subject to numerous risks and uncertainties
in relation to Encana, which owns a majority of PrairieSky's common
shares. These risks and uncertainties include risks relating to
Encana's shareholdings, the provision of certain transitional
services by Encana, the potential for conflicts of interest and
disputes to arise with Encana, limited ability to recover
indemnification from Encana under the PSA and certain other
agreements, and future changes in the relationship with
Encana. The foregoing and other risks are described in more
detail in PrairieSky's final prospectus dated May 22, 2014 under "Risk Factors" and in its
MD&A for the period ended June 30,
2014 under the heading "Risk Management", each of which is
available at www.sedar.com.
Further, any forward-looking statement is
made only as of the date of this press release, and PrairieSky
undertakes no obligation to update or revise any forward-looking
statement or statements to reflect events or circumstances after
the date on which such statement is made or to reflect the
occurrence of unanticipated events, except as required by
applicable securities laws. New factors emerge from time to time,
and it is not possible for PrairieSky to predict all of these
factors or to assess in advance the impact of each such factor on
PrairieSky's business or the extent to which any factor, or
combination of factors, may cause actual results to differ
materially from those contained in any forward looking
statements.
The forward-looking information contained in
this document is expressly qualified by this cautionary
statement.
Conversions of Natural Gas to BOE
To provide a single unit of production for
analytical purposes, natural gas production and reserves volumes
are converted mathematically to equivalent barrels of oil (BOE). We
use the industry-accepted standard conversion of six thousand cubic
feet of natural gas to one barrel of oil (6 Mcf = 1 bbl). The 6:1
BOE ratio is based on an energy equivalency conversion method
primarily applicable at the burner tip. It does not represent a
value equivalency at the wellhead and is not based on either energy
content or current prices. While the BOE ratio is useful for
comparative measures and observing trends, it does not accurately
reflect individual product values and might be misleading,
particularly if used in isolation. As well, given that the value
ratio, based on the current price of crude oil to natural gas, is
significantly different from the 6:1 energy equivalency ratio,
using a 6:1 conversion ratio may be misleading as an indication of
value.
SOURCE PrairieSky Royalty Ltd.
Image with caption: "PrairieSky Royalty Ltd. logo (CNW
Group/PrairieSky Royalty Ltd.)". Image available at:
http://photos.newswire.ca/images/download/20140721_C8375_PHOTO_EN_42209.jpg