From recent lows, we see PSK offering three factors of one-sided torque to increased commodity prices: price, drilling activity, and sliding scale royalty rates. We believe all three of these factors have bottomed and are likely to move higher over time. If not, PSK can still fund its recently revised dividend at strip pricing without drawing on cash.
02 May 2016
High Margin Business With Multiple Layers of Torque
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High Margin Business With Multiple Layers of Torque
PrairieSky Royalty Ltd (PSK:TSE) | 0 0 0.0% | Mkt Cap: 6,860m
- Published:
02 May 2016 -
Author:
Michael P. Dunn -
Pages:
7
From recent lows, we see PSK offering three factors of one-sided torque to increased commodity prices: price, drilling activity, and sliding scale royalty rates. We believe all three of these factors have bottomed and are likely to move higher over time. If not, PSK can still fund its recently revised dividend at strip pricing without drawing on cash.