Q2 beat includes record quarterly new lease activity

Canadian and U.S. morning comments

July 25, 2017

Leasing activity was up in the quarter, with 37 arrangements signed with 34 different producers, for record quarterly new lease consideration of $29.5 mm. Activity also remained high throughout breakup, with 104 wells spud on PSK’s land base, with operators primarily focused on the Western Saskatchewan Viking, the multi-zonal Deep Basin fairway, and Central Alberta light oil plays. Note that PrairieSky continues to maintain no debt on its balance sheet, despite acquisition activity earlier this year. Overall, we continue to favour the characteristics and opportunities of PrairieSky’s assets and business model, which we highlighted in our recent Investor Day and Royalty Playbook piece.

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