Key Points – PrairieSky posted record Q2 production of 27,479 boe/d, with funds from operations up 38% year over year to CAD 133.1 million.
Management said stronger oil activity, especially in the Clearwater, Mannville Stack and Duvernay, is supporting growth. – Leasing and drilling activity remain strong, with 57 leases signed across 46 operators and activity continuing to build in the Duvernay and other core plays
PrairieSky said higher rig counts and expanded third-party capital programs should support more royalty growth through the rest of 2026. – The company is using excess cash to reduce debt, cutting net debt to CAD 186.6 million while paying dividends and making small acquisitions. Management said PrairieSky could be net cash by this time next year. PrairieSky Royalty (TSE:PSK) reported stronger second-quarter 2026 production, cash flow and leasing activity, with management pointing to higher oil activity across Western Canada and continued development in the Duvernay, Clearwater and Mannville Stack as drivers for the remainder of the year.
On the company’s earnings call, President and Chief Executive Officer Andrew Phillips said oil production increased 7% from the first quarter, supported by “stronger activity levels across the basin.” He said spot activity on PrairieSky lands during the quarter was encouraging for the balance of the year, noting that a CAD 0.71 dollar and U.S. WTI crude above $70 placed Canadian light oil near CAD 100 per barrel. Phillips also compared the company’s current position with its pre-pandemic profile.