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Thank you, Michelle, and good morning, everyone, and thank you for dialing into the PrairieSky Q1 twenty twenty five conference call. On the call from PrairieSky are Pam Cazell, Dan Bertram, Mike Murphy, and myself, Andrew Phillips. Before we begin, there are certain forward looking information and statements in our commentary today, I'd ask listeners and investors to review the forward looking statements qualified in our press release and MD and A. Which can be found on our website. PrairieSky achieved record oil volumes of 13,502 barrels per day of net royalty production the first quarter of twenty twenty five. Over 200 wells were spud, in Q1, an increase of 26 wells from the same period in 2024. The average royalty rate on these new wells was 6.9% versus 6% last year. 52 new leases with 39 counterparties were signed generating $5,000,000 in lease issuance bonus. Notably in the quarter, we closed the Petro Canada fee title package in SE for $50,000,000 This asset is only 20% leased, which represents an opportunity for the team to lease the asset and achieve leasing percentage similar to our corporate average. We also acquired 3,400,000.0 PrairieSky shares prior to the $0.26 dividend giving remaining shareholders an additional 1.4% interest in the business.

We view this as an acquisition of 259,000 royalty acres in the Best Of The Basin. We have also quietly added well over hundred thousand acres of oil sands leases over a three year period. Well below where current values sit at Crown Land Auctions. This has added years of new economic drilling inventory, on a two to three times recycle ratio heavy oil asset.

Subsequent to quarter end, oil prices declined and there has been significant market volatility. Our well capitalized counterparties and strong balance sheet will allow us to be resilient and take advantage of further disconnects in value. There's an advantage to owning hard assets with long duration at all parts of the cycle. With decades of economic inventory and 98% operating margins, short term price swings both up and down have less of an effect. On PrairieSky's value. Our Investor Day is on May 14 in Calgary at the Brookfield Building and will be available via webcast as well. We will publish our new royalty asset book, which details known asset values based on today's discovered resource. We will also provide owners with a range of outcomes for the next ten years. Thank you to our investors for their support and our employees for their continued execution and hard work. I'll now turn the call over to Pam to walk through the financials.

Thank you, Andrew. Good morning, everyone. PrairieSky's royalty production averaged 25,339 BOE per day in the quarter. Our percentage of liquids royalty production has been steadily climbing over the three years from 58% in Q1 twenty twenty two, to 63% today. It was another record quarter of oil royalty production, which averaged 13,502 barrels per day. And included 177 barrels per day of production from our $50,000,000 acquisition of Phelancer and Gore interest that closed on January 10. As Andrew mentioned, was an active quarter with 200 spuds on our land at an average rate of 6.9%. Activity was focused in the Clearwater, Duvernay and Mannville heavy and light oil plays. We've seen a decline in natural gas volumes, which averaged 55,900,000 a day as compared to Q1 twenty twenty four. Q1 twenty twenty five volumes included an estimate cold weather downtime in the quarter of 1,100,000 a day. There were 14 natural gas wells spud in the quarter, primarily in the Montney we anticipate will come on production later the year. Duvernay and Viking wells will also provide incremental solution gas volumes. Royalty production revenue totaled CAD119.9 million and with 93% from liquids. With narrowed heavy oil differential, differentials, our realized price for oil increased to 87% of Edmonton from 84% in Q1 twenty twenty four.

Other revenue totaled $8,200,000 and included $5,000,000 of bonus consideration. Leasing was primarily focused in the Duvernay light oil and Mannville heavy oil plays. During the quarter PrairieSky's funds from operations totaled 85,800,000.0 and we declared dividends of $61,200,000 or $0.26 per share. With the resulting payout ratio of 71%. We repurchased and canceled 3,400,000.0 shares in the quarter for $90,000,000 Our current NCIB expires in early June and we intend to apply to the TSX. To renew it. PrairieSky's balance sheet remains strong with net debt at March 31. Of $258,800,000 We will now turn it over to the moderator to proceed with the Q and A. Thank you. And our first question comes from Patrick O'Rourke with ATB Capital Markets. Your line is open.

Hey, guys. Good morning, thanks for the rundown. Just wanted to ask maybe first off, more of a broad philosophical question. But we saw a bit of a shift in free cash flow policy here with dipping into the NCIB in the quarter? And just sort of wondering how you think about where the net debt is here, sustainability, sort of breakeven prices on the dividend and then sort of the appetite to dig into the NCIB here over the rest of the year versus a focus on paying down debt? [indiscernible] Patrick, and good morning. I think the NCIB again, we view it more as an acquisition. We look at our business currently and it's outpacing the basin in terms of growth by 200 to 300% on any given year. And so again, we're effectively buying the best assets in the basin yet on the free cash flow yield, you're kind of in the teens for total returns. So that's our hurdle rate. So it's more challenging to find assets that look as good as the current PrairieSky suite of assets. And I think, again, know, no different than we were used a bit of leverage in COVID knowing we could pay it down in a short period of time.

We're willing to do that to use the NCIB and buy stock below intrinsic value. The opportunities arise. And just to follow-up on that, have you guys stress tested sort of your cash flows for breakeven oil prices in this choppy environment?

Yes, we have Patrick. And the dividend is sustainable well below $50 Excellent.

And then just second question here. You guys are typically at the cutting edge of trends that we're seeing in the basin. We have the multilateral development both in the Clearwater Manville, West Shale Duvernay has been successful for you. I think we've seen a little bit of CHOPS activity or renaissance there on some of your lands. Can you maybe walk through what's going on there from a technical perspective and what the volume of potential locations and opportunity set is?

Yeah, thanks for the question. It's a great question. Think it is one of the assets that we saw as a big resource, of course, when we acquired those heavy oil assets, from C and R and and then Heritage. And we have in the range of 600,000 acres in the broader area, including in the Saskatchewan side. And that stuff we didn't put any value on when we were acquiring it. Because it was cold flow heavy oil production and there's a lot of sand that comes along with it. Operators are now running horizontal single legs and they're running liners and they're putting in circulation strings. So effectively kind of circulating over the backside to clean out the sand, consistently and they're getting very good results. So What it really does is opens up an entire new fairway of opportunities We don't have a number, but it's in the hundreds, probably some days north of a thousand new locations over time. On our land. It won't be part of this current playbook because I think it's just being refined in terms of technological advancements. It it kinda really just steps back to the thesis. And one of the things we've always tried to do at Prairiesky is when we acquire assets.

We like big pay packages and lots of large oil and plates assets that we think can ultimately be exploited. Similar to what we talked about in Saskatchewan where we've done over seven different leases for steam assisted gravity drainage for these small modular type projects. On the Alberta side, we've actually identified a number of opportunities for small scale SAG B as well. In zones like the REX and Lloydminster. So I think as technology improves, we're believers that a lot of this large oil in place will be exploited Okay, thank you very much. Thanks for your question.

Thank you. Our next question comes from Erin Bilkoski with TD Cowen. Your line is open. Thanks.

I just wanted to follow-up on Patrick's question and get a little bit more clarity to make sure I understand what you said. Am I correct to assume that you're saying you're willing to take on a little bit of incremental debt to repurchase shares?

If they're at the right valuation? That's correct.

Perfect.

I have another question too.

Of the net wells for holding your lands in Q1, how many or what percentage of that would be from the Williston Green window at the Duvernay? And what would that have been a year ago?

Yeah, so probably the best thing to talk about is last year in the Wilson Green Duvernay, the Paramount, we had seven wells total drilled on the lands and this year we expect 19. They'll come on across the entire year. Again, when their spot is not necessarily indicative of when they'll go on production. So we did have an active program Mike, I think was the exact number.

Yeah. Hey, it's Mike here. Yeah, I believe approximately 14 Duvernay wells were spud in the Williston Green area in Q1 and that would been higher than last year. What's important about these 14 that the higher Royal interest as well compared to, you know, what we would have seen previously.

And of course, depending on the timing, Aaron, these could be these could drift all the way into Q3 just given the very large fracs and they typically do them as a big program. But but it's very positive. I think it's because they are such high rate wells and because we have high royalties. Some significant spikes in production throughout the year.

Perfect. Guys. I appreciate that. Thanks for the question. Our next question comes from Jamie Kubik with CIBC. Your line is open.

Yes, good morning. Thanks for taking my question here. Just a bit of a follow on to Aaron's question there. You did disclose 15 wells spud in the Duvernay light oil play. Based on based on my count, that's that's more than double what you've sorta ever reported. Can you just talk about where that you that to trend for the rest of the year as this bit of a onetime item in terms of ramp up for the different operators in the play?

Or how can you talk about, licensing activity and what you see going forward there? Thanks.

You bet. No, thanks for the thanks for the question. I think you know, it'll be very steady on the East Shale Basin so we should see five to seven new wells, perhaps even as high as 10 this year. On the Shale Basin side. But when you jump to the West Shale Basin where all the new leasing activity has been and where there's been some really exceptional results, We think that could ramp again next year. So in 2026, you could have a full doubling of that program just given the very economic wells and the high rate light oil wells have been drilled in the area. One of the producers to the north signed a take or pay with a midstreamer for their liquids. And then the central one, Spartan Delta, has had some excellent results and is in a very good part of the play. And then Paramount, of course, is upgrading their leaf line facility and getting their gas takeaway taken care of. So we do expect activity to continue to ramp. In the Duvernay in general.

Jamie?

That's great. And then on the Mandeville stack, you have a slide in your presentation just showing how substantial the growth has been from 2022 to 2024. But based on that chart as well, volumes have plateaued a little bit since Q2 of last year. Can you just talk a little bit about where you expect production from this play to move to in the coming years and perhaps some additional detail on things that are going on in that part of your asset base.

Yes, Jamie, it's Mike here. Yes, we see the Mandel stack is having potential to have volumes approaching down into clear water. In that chart that you saw, it did look like production is plateauing a bit. We still expect pretty strong growth. In 2025. It's not going to be the 70% we saw last year, but somewhere between 30% to 50% would be reasonable. We only saw probably seven or eight Mannville stacked spuds in Q1, but we expect a pretty active program for the rest of the year. Similar to last year or stronger.

And just one other comment on that. At our Investor Day on May 14, we're going have three CEOs present Fotis from Spartan Delta, Ian Curry from Spur and then also Tom Biesky from Keltx Trilogy. And it'll be a great opportunity to really get some color on the Mandlestack and just the amount and quantum of drilling locations that they've uncovered just in their general area. And then of [indiscernible] has a massive amount of drilling inventory on Prairiesky, sea mineral title, and Gore. So it's it'll be a good opportunity to kinda hear it from the producer that's grown the fastest in the region. That's less than one month away. So hopefully we can you you can ask the same question to someone who's actually spending the capital.

Great.

Thanks for the additional color. I'll hand it back.

Our next question comes from Jeremy McRae with BMO Capital Markets. Your line is open.

Guys. Just with the decline in oil prices here recently, have you seen any indications that you're seeing a bit of a slowdown? Like, I know most of your lands are in pretty economic plays and so there's a bit of a debate saying how much of a slowdown do we potentially see? And I'm just have any operators express that. And then kind of part two of that is with the rebound in natural gas prices, are you seeing any more operators express interest in developing more of the gas assets that you have here specifically maybe in the Montney Yes, so just to touch on the second question, on the gas side, we we have a significant mining development, both Pacific Cambium but also Coelacanth has some wells coming on. We do have some significant Montney volumes coming on and those are drilled in advance of this gas price run up. That will be positive for them assuming that hangs in there at the AECO basis level. And then on the oil side, think it's probably too early for operators to have made any shifts. We haven't been told of any shifts. I think some of our privates will drill right through this just given their net cash positions and very economic wells.

But certainly, you would expect to see some activity fall off somewhere throughout the year with the big drawdown in WTI prices. But we haven't, heard of anything yet. I think what makes it a little easier for operators is we're heading into spring breakup right now as we speak. So there's gonna be the the natural every year slowdown in as as rigs drop because of road bans. That'll give people a chance to regroup and really understand what they wanna do for the rest of the year. But interestingly enough, a lot of our producers are in exceptional shape going into this one. It was a different story going into COVID when they had, stretched balance sheets in some cases, going into it. So, we'll see how it we'll we'll see how the rest of the year kinda unfolds, but, we haven't heard of anything any major changes yet. [indiscernible] Perfect. Thanks, Andrew.

Thanks for the question, Jeremy.

Thank you. I'm showing no further questions at this time. Like to turn the call back over to Andrew Phillips. For any closing remarks.

Thank you all very much for dialing into the early morning conference call. Hope everyone has a great day and hope to see a number of you at our Investor Day.

Thank you for your participation. This does conclude the program. You may now disconnect. Good day.