PrairieSky Royalty Ltd.

Ladies and gentlemen, thank you for standing by. Welcome to Prairie Sky Ruralty second quarter 2024 financial results. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you would need to press star 11 on your telephone. You would then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would like now to turn the conference over to Andrew Phillips, President and Chief Executive Officer. Please go ahead.

Thank you, Michelle, and good morning, everyone, and thank you for dialing into the Prairie Sky Q2 2024 earnings call. On the call from Prairie Sky are Pam Cazale, CFO, Dan Bertram, CCO, and Michael Murphy, VP Capital Markets, as well as myself. Before we begin, there's certain forward-looking information in my commentary today, so I'd ask investors to review the forward-looking statements qualifier in our press release in MD&A. Oil royalty volumes of 13,312 barrels per day are the result of strong operator drilling efficiencies across our vast land base. Continued improvements in fluid systems, drilling orientations, and geo-steering have resulted in better 90-day IPs and anticipated oil recoveries. Given we are still in the very early innings of development, further efficiencies will be recognized. Prairie Sky has decades of economic inventory for heavy oil. Approximately one-third of the wells drilled on our land this year will be unstimulated. These wells have lower decline rates than stimulated wellbores. Water and polymer flood implementation across our lands will have the benefit of both lowering our annual decline rate and significantly enhancing the ultimate recovery of oil volumes. In some cases, operators will recover more than double the oil that can be achieved with primary drilling. Selecting the right partners who share a long-term vision is important. Leasing remains at record levels with 55 new leasing arrangements with 46 distinct oil companies. We have a lean staff of Prairie Sky who are able to efficiently handle these large volumes of contracts and continue to execute. All of our employees are shareholders and get the benefit of their great executions. Our data room continues to be busy, and our technical group has developed some new play concepts that we believe have great economics. I will now turn the call over to Mike.

Thanks, Andrew. In terms of activity, well spuds were down quarter over quarter due to the seasonality of spring breakup, with a total of 115 well spuds on Prairie Sky Acreage in Q2 2024. Although spuds were down relative to the same period in 2023, this was offset by a higher average royalty rate of 6.6%, and improved well productivity driven by an increasing contribution from multilateral drilling. In the quarter, multilateral wells accounted for approximately 43% of drilling activity on prairie skylines, which is up from 30% in the second quarter of 2023 and 17% in the second quarter of 2022. We saw a significant increase in clearwater spuds quarter over quarter, and we anticipate robust activity to continue through the remainder of the year in this play, as well as the Manville stack, driving strong oil royalty production volumes. And I'll now pass it over to Pam to discuss the financials.