Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on PRAIRIESKY ROYALTY LTD. We currently have 21 research reports from 1 professional analysts.
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PRAIRIESKY ROYALTY LTD
PRAIRIESKY ROYALTY LTD
28 Jul 16
2Q16 net production was flat sequentially but better than expected, while cash flow missed our forecasts by $0.01/share as gas price realizations were weak due to accrual adjustments for the prior quarter. In our view the shares appear reasonably valued in the context of other oil & gas royalty peers. $29.00/share target price unchanged, but we are upgrading to Outperform.
2Q16e Quarterly Preview
26 Jul 16
Some Recovery on Segmented Cash Flow Generation Over Q1 Though Still Down 56% Y/Y. In aggregate, the Intermediate, Mid, and Small Cap groups are expected to generate 2Q16e cash flow of $1,281 mm, $183 mm, and $53 mm, or $1.517 billion in total, that while depressed relative to the same period last year (~$2.647 billion combined), is up 17% sequentially from the prior quarter, largely on the strength of crude oil price recovery in the period. Severely weak natural gas pricing picture markedly reversed into summer, market likely to ignore financials for natural gas producers and look ahead to winter and formalization of sell-side 2018e estimates in coming months. Spot AECO natural gas prices recently crested C$2.60/mcf, and with a reasonable alignment of previously distressed NE BC Stn2 differentials, augmented by a withdrawal expected next week, view the market psyche as constructive and looking ahead, with the analogy that this market is shaping up to mirror 2012 still holding. That said, with crude oil poised to retest support levels, combined with strong stock price performance broadly observed YTD, we would characterize sentiment as slightly pessimistic in the near-term which could reduce or unwind momentum-based investment strategies that have worked thus far in 2016.
25 Jul 16
Market Impact: Neutral. Funds flow of $0.19/share was slightly behind our $0.20/share estimate, which was also the survey median. Relative to our estimates, realized prices for natural gas were weaker than expected (actual $0.67/mcf, FirstEnergy $1.25/mcf), which more than offset higher than expected net production, which once again benefitted significantly from positive prior period adjustments.
$25 MM ACQUISITION OF ROYALTY ASSETS
28 Jun 16
PrairieSky purchased the royalty assets that Pine Cliff Energy (TSX: PNE, covered by analyst Michael Hearn) announced on Monday that it was selling for $25 mm. PNE's Based on PNE's press release, PSK paid ~9.3x run rate EBITDAX of $2.7 mm ($2.7 mm royalty revenue expected over the next 12 months, assuming current commodity prices remain flat), which, assuming a low decline rate, seems quite reasonable and accretive to PSK.
High Margin Business With Multiple Layers of Torque
02 May 16
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.
19 Apr 17
We take a look at the supply and demand dynamics of the world’s largest diamonds. Less than 200 very large (>200 carat) gem quality diamonds have ever been found, yet 23 of these have been found in the past three years. This dramatic increase is being driven by a combination of the rapid increase in the number of billionaires and hence price and demand, combined with technological developments that have improved large diamond recovery and a certain amount of geological good luck.
Small Cap Breakfast
19 Apr 17
Global Ports Holding—Intention to float on Standard List. International cruise ports operator. Seeking $250m raise including $75m primary offer. Dorcaster—Schedule One Update. Admission now expected 3 May. RTO of Escape Hunt raising £14m at 135p Verditek— Intention to float on AIM. On Admission, the Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Raising £3.5m. Admission in May. Eddie Stobart Logistics— Schedule 1. Admission expected 25 April but capital raising details TBC. ADES International Holding— Intends to join the Standard List in May raising up to $170m plus a vendor sale. Provider of offshore and onshore oil and gas drilling and production services in the Middle East and Africa. Admission expected in May. Tufton Oceanic Assets– Offer extended to 9 May to enable investors to complete further due diligence.