PrairieSky Royalty Ltd.

Good day and thank you for standing by. Welcome to Prairie Sky Royalty announces their fourth quarter 2024 financial results conference call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you'll need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised today's conference is being recorded. I would now like to hand the comments over to your speaker today. Andrew Phillips, President and CEO, please begin.

Good morning, and thank you for dialing in to the Prairie Sky 2024 Q4 and year-end earnings call. On the call from Prairie Sky are Pam Cazale, SVP and CFO, Dan Bertram, Chief Commercial Officer, Mike Murphy, Vice President, Geosciences and Capital Markets, and myself, Andrew Phillips. Before we begin, there is certain forward-looking information in my commentary today, so I would ask investors to review the forward-looking statements qualifier in our press release in MD&A. In 2024, Prairie Sky organically grew its oil production by 6% or 7% per debt adjusted share. This is the third consecutive year of high single-digit organic growth rates in oil per debt adjusted share. $30.8 million of lease issuance bonus was received by entering into 219 leases with over 100 counterparties. Over the last 10 years, we have positioned the company in the fastest growing oil plays in the basin. the Clearwater, Manville Stack, and the West Shale DuVernay. This will allow us to continue our material organic oil royalty growth rates into the future. After production of 9.32 million barrels of royalty production over the year, which generated $380.5 million of free cash flow, the oil reserves were more than replaced, up 3.5%, and gas was down modestly due to economic impacts of lower pricing. Over the past four years, virtually all reserves were replaced organically by industries totaling over 35 million barrels while generating $1.5 billion in free cash flow over the same period of time. With decades of economic inventory, our hurdle rates for any organic opportunity are high. We successfully closed on four acquisitions totaling $73 million that will generate just under 20% IRRs and can show growth as we work on the assets. Included in these packages is one of the largest collections of GRTs, as well as the Petro Canada feed mineral title in Southeast Saskatchewan. Rig count in Western Canada is 258 this morning and was 241 rigs a year ago, so we're seeing a positive start to the year in Canada. For reference, the USA rig count is down 37 at the end of January. We are also pleased to announce a 4% increase in our dividend to $1.04 per common share to be paid quarterly. The first quarterly dividend of $0.26 per share will be effective for the March 31, 2025 record date. I will now turn the call over to Mike.

Thanks, Andrew. The fourth quarter saw a continuing trend of elevated multilateral drilling activity, with 77 well spot bringing the total number of multilateral wells drilled in 2024 to 268. Multilaterals accounted for 36% of all drilling activity in 2024, which is up from the 31% we saw in 2023. With increased productivity and recovery per well, multilaterals contributed to the strong growth in corporate oil royalty production and reserves in 2024, despite a reduction in the overall spread count year over year. Separately, our Duvernay royalty production volumes were up over 50% in 2024, driven by strong activity levels with 33 wells spud in the year. Third-party operators have recently seen a step change improvement in initial well rates in the oil window of the West Shale Basin Duvernay, where Prairie Sky has a significant fee position. We look forward to active capital programs planned in the Pembina and Williston green areas this year, which is expected to drive high net back light oil growth for Prairie Sky in 2025 and beyond. I'll now pass the call over to Pam to discuss the financials.