PrairieSky Royal Ltd. 很高兴地宣布截至 2023 年 12 月 31 日的第四季度（“2023 年第四季度”）以及年末运营和财务业绩。PrairieSky 还很高兴地宣布其年度股息增加 4% 至 1.00 美元每普通股（每季度每普通股 0.25 美元）。

第四季度亮点“
季度平均特许权使用费产量为每天 25,608 桶油当量，其中包括创纪录的每天 12,844 桶石油特许权使用费产量。”季度收入总计 1.366
亿美元，其中特许权使用费生产收入为 1.22 亿美元，其他收入为 14.6 美元百万美元，其中包括 1120 万美元的奖金，这是自 2017 年以来获得的最高季度奖金。
“来自运营的季度资金为 1.111 亿美元（基本和稀释后每股 0.46 美元），主要来自有机石油特许权使用费产量的强劲增长以及积极的第三方租赁所赚取的丰厚奖金。”已完成生产性
和非生产性特许权权益的收购以及增量地震数据，总现金考虑为 2220 万美元。
”宣布第四季度股息为 5730 万美元（每股 0.24 美元），相当于 52% 的季度派息率。

年度亮点——
特许权使用费产量平均为每天 24,857 桶油当量，与 2022 年平均特许权使用费产量持平，其中包括每天 59.5 MMcf 的天然气、每天 2,502 桶天然气液体 (“NGL”) 和创纪录的 12,438 桶年
收入总计 5.132 亿美元，其中包括：
o 特许权生产收入 4.746 亿美元，较 2022 年下降 23%，主要是由于基准商品价格下降；o
其他收入为 3,860 万美元，包括与 110 个独立交易对手签订 202 个新租赁安排而赚取的 2,600 万美元奖金对价。在
有机生产增长的推动下，来自运营的年度资金总额为 3.825 亿美元（基本和稀释后每股 1.60 美元）石油特许权使用费量，加上主动租赁给第三方运营商赚取的丰厚奖金。
”探明储量和概算储量总计 65,762 MBOE，税前净现值（按 10% 折现）为 18.4 亿美元，减少了 5自 2022 年 12 月 31 日起上涨 %，主要是由于近期天然气和 NGL 商品价格假设较低。
“宣布累计年度股息为 2.292 亿美元（每股 0.96 美元），年度派息率为 60%。
”截至 2023 年 12 月 31 日，净债务总额为 2.221 亿美元，较 2022 年 12 月 31 日净债务减少 30% 3.151 亿美元，因为支付股息和特许权使用费后运营产生的多余资金被用于偿还银行债务。

股息增加
——PrairieSky 很高兴地宣布，其年度股息增加 4%，至每股普通股 1.00 美元，按季度支付（每股普通股每季度 0.25 美元），自 2024 年 3 月 29 日登记日起生效。

可持续发展亮点
——维持“可忽略风险”ESG 风险评级，并荣获“2024 年 ESG 全球 50 强评级徽章”，该徽章授予 Sustainalytics ESG 风险评级领域排名前 50 名的公司，该评级涵盖 42 个行业的 14,000 多家公司
。 MSCI 的 AAA ESG 风险评级，衡量对长期、行业重大 ESG 风险的抵御能力。”
根据标准普尔 2023 年全球企业可持续发展评估中排名前 15% 的表现，被纳入标准普尔 2024 年全球可持续发展年鉴，该评估对全球 9,400 多家公司进行了评估。

领导层更新
——PrairieSky 很高兴地宣布任命 Michael Murphy 为地球科学和资本市场副总裁。墨菲先生是一位专业地质学家，在石油天然气行业和股票研究方面拥有19年的经验。

总裁致辞
活跃的第四季度租赁活动为 2023 年又一个强劲的一年画上了句号。PrairieSky 在本季度签订了 50 项租赁安排，赚取了 1,120 万美元的奖金对价，主要来自 Duvernay 权利的租赁，这是自 2017 年以来赚取的最高季度奖金对价。 PrairieSky 与 110 个不同的交易对手达成了 202 项租赁安排，奖金总额为 2600 万美元，是自 2017 年以来获得的最高年度奖金对价。2022 年和 2023 年，租赁活动都集中在石油目标上，这导致 PrairieSky 的特许权使用费财产的有机石油增长强劲。PrairieSky 本季度平均石油使用费产量达到创纪录的 12,844 桶/日，比 2022 年第四季度增长 6%。每年，平均石油使用费产量达到创纪录的每天 12,438 桶，比 2022 年增长 6%。随着 Duvernay 租赁的增量，我们预计长期轻质油特许权使用费产量增长将补充 PrairieSky 的 Clearwater 和 Mannville Stack 油田重油的增长。

第四季度特许权使用费生产总量平均为每天 25,608 桶油当量，产生 1.22 亿美元的特许权使用费生产收入，加上 1120 万美元的奖金对价、290 万美元的租赁租金和 50 万美元的其他收入，推动 2023 年第四季度运营资金达到 1.111 亿美元。每年，特许权使用费总产量平均为每天 24,857 桶油当量，产生 4.746 亿美元的特许权使用费生产收入。2023 年运营资金总额为 3.825 亿美元，主要来自强劲的石油特许权使用费生产收入，占特许权使用费生产收入的 79%，加上 2600 万美元的奖金。PrairieSky 2023 年年度股息为 2.292 亿美元，即每股普通股 0.96 美元，年度派息率为 60%。

PrairieSky 执行了 5,840 万美元的收购，并将运营中的剩余资金用于偿还银行债务。截至2023年12月31日，PrairieSky的净债务总额为2.221亿美元，比2022年12月31日的3.151亿美元减少了30%。管理层认为PrairieSky的业务模式非常适合在所有商品价格周期为股东提供可持续回报，我们很高兴宣布股息增加 4%，自 2024 年 3 月 29 日登记日起生效。

2023 年第四季度，PrairieSky 通过 2220 万美元的收购增加了特许权使用面积，其中包括 Mannville Stack 油田的未开发土地。自 2016 年以来，我们的收购策略一直专注于进入早期阶段，例如 Clearwater 和 Mannville Stack。这一战略推动了石油特许权使用费产量的强劲增长，我们预计这些收购将继续为投资资本带来强劲回报。除了早期机会外，PrairieSky 还在惯例成交调整前以 1,400 万美元的价格收购了艾伯塔省中部约 67,000 英亩的生产和非生产特许权使用面积，交易于 2023 年 12 月 6 日完成。此次收购包括每 90 桶油当量的特许权使用费产量。天（72％液体）和地震覆盖所收购的资产。

第四季度我们的特许权使用费表现活跃，共开工 197 口井，其中包括 184 口油井、12 口天然气井和 1 口氦气井。本季度的钻探活动从不列颠哥伦比亚省东北部到马尼托巴省西南部，主要集中在油田，包括 140 万英亩 Clearwater 土地上的 44 口 Clearwater 油井、48 口 Mannville Stack 油井和 33 口 Viking 油井，这些油井主要在萨斯喀彻温省以收费租赁方式运营。随着第三方钻探活动和新租赁的水平，管理层预计石油特许权使用费产量将在 2024 年保持增长势头。2023 年，开工井数为 805 口，低于 2022 年的 850 口井。PrairieSky 估计为 20 亿美元（净额 - 112 美元） 2023 年，PrairieSky 的特许权使用费钻探和完井花费了 15 亿美元（净额 8,400 万美元）的第三方资本，而 2022 年则为 15 亿美元（净额 8,400 万美元）。第三方运营商的资本支出针对石油区块，包括 PrairieSky 已开采的石油区块战略投资，其中最活跃的油田是 Clearwater 油田、Mannville Stack 重油油田和 Viking 油田。

我们对过去两年实现的石油特许权使用费数量的有机增长水平以及整个陆地基地的活动水平感到非常满意。我们预计 2024 年将继续活跃，我们将保持纪律，专注于租赁土地、管理可控成本以及开展特许权使用费和土地合规活动的核心战略。我们很高兴欢迎迈克尔加入我们的团队，并期待与他合作实现我们的企业目标。我们衷心感谢股东的支持，感谢员工的持续努力。总裁兼首席执行官安德鲁·菲利普斯 (Andrew Phillips)

2023 年第四季度财务亮点——2023 年
第四季度，PrairieSky 从运营中获得的资金为 1.111 亿美元，即每股 0.46 美元（基本和稀释后），比 2023 年第三季度增长 18%，比 2022 年第四季度增长 7%。 2023 年第三季度运营资金的增长是由石油特许权使用费产量的有机增长和新租赁活动赚取的奖金增加共同推动的。与 2022 年第四季度相比，WTI 和 AECO 基准定价的降低完全抵消了这些积极影响。”
PrairieSky 的特许权使用费产量总计为每天 25,608 桶油当量，2023 年第四季度的特许权使用费生产收入为 1.22 亿美元。进一步细分如下：
o PrairieSky 的石油特许权使用费产量达到创纪录的每天 12,844 桶，比 2023 年第三季度和 2022 年第四季度增长 6%，因为新投产油井的特许权使用费产量足以抵消自然下降。石油特许权使用费产量包括与本季度收购相关的每天 24 桶。
o 石油特许权使用费生产收入总计 9,840 万美元，较 2023 年第三季度下降 4%，因为 WTI 基准定价疲软以及轻质油和重油差异扩大抵消了特许权使用费产量的增加。石油特许权使用费生产收入低于 2022 年第四季度，原因是 WTI 基准定价较低和轻质油差异扩大，但部分被特许权使用费产量增加、重油差异缩小和加元相对美元走弱所抵消。
o 2023 年第四季度天然气特许权产量平均为每天 60.4 MMcf，比 2023 年第三季度下降 6%，比 2022 年第四季度下降 9%，因为新投产井被自然产量下降所抵消。
o 天然气特许权使用费收入总计 1,220 万美元，比 2023 年第三季度增长 5%，原因是某些特许权使用费以较高的 Sumas 定价出售。天然气特许权使用费收入较 2022 年第四季度下降了 62%，当时每日 AECO 定价平均为每 mcf 5.11 美元，每月 AECO 定价平均为每 mcf 5.58 美元，比 2023 年第四季度 AECO 定价高出 50% 以上。
o NGL 特许权使用费产量平均为每天 2,697 桶，与 2023 年第三季度和 2022 年第四季度持平，因为新投产井抵消了自然下降。
o 由于基准定价较低，NGL 特许权使用费收入总计 1140 万美元，较 2023 年第三季度下降 12%，较 2022 年第四季度下降 16%。”
PrairieSky 在 2023 年第四季度产生了 1120 万美元的奖金对价，这是自 2017 年以来获得的最高季度奖金对价，通过与 43 个不同的交易对手签订 50 项新的租赁安排而赚取。PrairieSky 本季度的租赁租金增加了 290 万美元，其他收入增加了 50 万美元。2023 年第四季度合规追偿总额为 200 万美元。
“现金管理费用总计 560 万美元，即每桶油当量 2.38 美元，与 2022 年第四季度持平。”
PrairieSky 宣布在 2023 年第四季度派发股息 5730 万美元（每股 0.24 美元），派息率为 52%。运营中的剩余资金被分配用于收购和偿还银行债务。”
2023 年第四季度，PrairieSky 收购了 Mannville Stack 中的未开发土地以及增量生产和非生产特许权使用费权益以及地震费用，现金代价为 2220 万美元。

年度财务亮点
——PrairieSky 的年度运营资金为 3.825 亿美元（基本和稀释后每股 1.60 美元），比 2022 年低 25%，因为创纪录的石油使用费产量和强劲的奖金考虑被较低基准商品的负面影响所抵消。特许权
使用费产量平均为每天 24,857 桶油当量，与去年同期持平，因为石油特许权使用费产量的增加被天然气特许权使用费产量的下降所抵消，天然气特许权使用费产量在这一年因设施维护停机和森林火灾相关关闭而受到负面影响。插入。石油特许权使用费平均产量达到创纪录的每天 12,438 桶，比 2022 年增长 6%
。PrairieSky 实现总收入 5.132 亿美元，其中包括 4.746 亿美元的特许权使用费生产收入和 3860 万美元的其他收入。其他收入包括 2600 万美元的奖金对价，这是自 2017 年以来的最高年度金额，是通过与 110 个交易对手达成 202 项新租赁安排而获得的。今年合规追偿总额为 660 万美元。
管理费用总额为 4500 万美元，即每个 BOE 4.96 美元，低于 2022 年的管理费用 4880 万美元，即每个 BOE 5.30 美元。现金管理费用总计 4790 万美元，即每桶油当量 5.28 美元，比 2022 年现金管理费用高出主要是由于基于股份的薪酬支付，包括与领导层变动和董事退休相关的终止付款。”2023 年期间，
PrairieSky 完成了对费用矿物的收购所有权和 GORR 权益主要针对 Mannville Stack 重油，价值 5,840 万美元。每年，收购都会使特许权使用费产量增加 35 BOE。”
PrairieSky 宣布累计年度股息为 2.292 亿美元，即每股 0.96 美元，年度派息率为 60%。”
截至 2023 年 12 月 31 日，PrairieSky 的净债务总额为 222.1 美元百万美元，比 2022 年 12 月 31 日的净债务 3.151 亿美元减少了 9300 万美元，即 30%。

PRAIRIESKY 皇室财产活动
2023 年第四季度，第三方钻井活动依然强劲，PrairieSky 的特许权资产上有 197 个开钻井，其中包括 Fee Lands 上的 95 个开钻井、GORR 区域的 93 个开钻井和 9 个单位开钻井。活动重点是拥有 184 口油井的石油目标，其中包括 48 口 Mannville Stack 油井、44 口 Clearwater 油井、33 口 Viking 油井、17 口 Mannville 油井、13 口 Cardium 油井、11 口 Mississippian 油井、6 口 Duvernay 油井和 12 口在巴肯、贝利河、查理湖、侏罗纪和尼斯库地层又钻探了更多油井。2023年第四季度，共有12口天然气井开工，其中包括5口Montney天然气井、7口Mannville和Spirit River井以及1口氦气井。PrairieSky 2023 年第四季度的平均特许权使用费率为 7.2%（2022 年第四季度为 6.4%）。2023 年 PrairieSky 特许权使用费资产上的钻探井总数为 805 口井，而 2022 年为 850 口井。2023 年钻探井的平均特许权使用费率为 7.2%（2022 年为 7.3%）。

PrairieSky 预计，到 2023 年，PrairieSky 特许权使用费钻探和完井将花费 20 亿美元（净资本 - 1.12 亿美元）的第三方资本，高于 2022 年的 15 亿美元（净资本 - 8400 万美元），相当于增长了 33%。 PrairieSky 土地基础上的净资本支出逐年增加。这一增长主要是服务业通胀的结果。

年度股息增加 4% 至每股 1.00 美元
PrairieSky 很高兴地宣布 2024 年年度股息增加 4% 至每股普通股 1.00 美元，按季度支付，自 2024 年 3 月 29 日记录日起生效。在确定股息水平的变化时，董事会考虑了许多因素，包括 PrairieSky 特许权土地当前和预计的活动水平、当前的商品价格环境、营运资金和银行债务余额以及公司的净利润。

2023 年储量信息
PrairieSky 截至 2023 年 12 月 31 日的探明储量和概算储量总计 65,762 MBOE（2022 年 12 月 31 日 - 66,719 MBOE），仅包括已开发资产（已开发的生产性资产和已开发的非生产性资产），不包括未开发的任何未来开发资本土地。探明储量和概算储量与 2022 年保持相对持平，同比变化包括与第三方钻探和采收率提高相关的增加 (7,111 MBOE)、技术增加 (971 MBOE)、收购 (14 MBOE) 和经济因素 (19 MBOE) ) 减去 2023 年特许权使用费产量 9,072 MBOE。截至 2023 年 12 月 31 日，探明储量和概算储量总额的税前净现值按 10% 贴现，下降 5% 至 18.4 亿美元（2022 年为 19.4 亿美元），主要是由于近期天然气和液化天然气产量下降商品价格假设。

PrairieSky 的 2023 年底储量由独立储量评估机构 GLJ Ltd 进行评估。PrairieSky 的特许权使用费资产评估是根据《加拿大石油和天然气评估手册》和国家仪器 51-101 标准中包含的定义、标准和程序进行的。石油和天然气活动的披露。PrairieSky 的储量信息包含在公司的年度信息表中，该信息表可在 SEDAR+（www.sedarplus.ca）和 PrairieSky 网站（www.prairiesky.com）上获取。

全球可持续发展排名
PrairieSky 再次获得多家全球公认的环境、社会和治理 (“ESG”) 评级机构 2023 年行业领先分数。这些结果证明了我们的碳中和状态(1) 以及对环境管理、社会责任、以及强有力的公司治理实践，如下所述。

PrairieSky Royalty Ltd. is pleased to announce its fourth quarter ("Q4 2023") and year-end operating and financial results for the period ended December 31, 2023. PrairieSky is also pleased to announce a 4% increase in its annual dividend to $1.00 per common share ($0.25 per common share quarterly).

Fourth Quarter Highlights
• Quarterly average royalty production volumes of 25,608 BOE per day, which included record oil royalty production volumes of 12,844 barrels per day.
• Quarterly revenues totaled $136.6 million, comprised of royalty production revenues of $122.0 million and other revenues of $14.6 million, including bonus consideration of $11.2 million, the highest quarterly bonus earned since 2017.
• Quarterly funds from operations of $111.1 million ($0.46 per share basic and diluted) generated primarily from robust organic oil royalty production growth and strong bonus consideration earned on active third-party leasing.
• Completed acquisitions of producing and non-producing royalty interests, as well as incremental seismic data, for aggregate cash consideration of $22.2 million.
• Declared a fourth quarter dividend of $57.3 million ($0.24 per share), representing a 52% quarterly payout ratio.

Annual Highlights
• Royalty production volumes averaged 24,857 BOE per day, flat with 2022 annual average royalty production volumes and comprised of 59.5 MMcf per day of natural gas, 2,502 barrels per day of natural gas liquids ("NGL") and a record 12,438 barrels per day of oil.
• Annual revenues totaled $513.2 million comprised of:
o Royalty production revenue of $474.6 million, a decrease of 23% from 2022 primarily due to lower benchmark commodity prices; and
o Other revenue of $38.6 million, including $26.0 million of bonus consideration earned on entering into 202 new leasing arrangements with 110 separate counterparties.
• Annual funds from operations totaled $382.5 million ($1.60 per share basic and diluted), driven by organic production growth in oil royalty volumes combined with strong bonus consideration earned on active leasing to third-party operators.
• Proved plus probable reserves totaled 65,762 MBOE with a before-tax net present value, discounted at 10%, of $1.84 billion, a decrease of 5% from December 31, 2022 primarily due to lower near-term natural gas and NGL commodity price assumptions.
• Declared cumulative annual dividends of $229.2 million ($0.96 per share), representing an annual payout ratio of 60%.
• At December 31, 2023, net debt totaled $222.1 million, a decrease of 30% from December 31, 2022 net debt of $315.1 million, as excess funds from operations after payment of the dividend and royalty acquisitions were used to retire bank debt.

Dividend Increase
• PrairieSky is pleased to announce a 4% increase in its annual dividend to $1.00 per common share, to be paid on a quarterly basis ($0.25 per common share quarterly), effective for the March 29, 2024 record date.

Sustainability Highlights
• Maintained "Negligible Risk" ESG Risk Rating and received "2024 ESG Global 50 Top-Rated Badge" awarded to the top 50 ranked companies in Sustainalytics ESG Risk Ratings universe which covers more than 14,000 companies across 42 industries.
• Maintained AAA ESG Risk Rating from MSCI, measuring resilience to long-term, industry material ESG risks.
• Included in the S&P's Global Sustainability Yearbook 2024 based on top 15% performance in the S&P's Global 2023 Corporate Sustainability Assessment which evaluated over 9,400 companies globally.

Leadership Update
• PrairieSky is pleased to announce the appointment of Michael Murphy as Vice-President, Geosciences and Capital Markets. Mr. Murphy is a professional geologist with 19 years of experience in the oil and gas industry and equity research.

President's Message
An active fourth quarter of leasing activity capped off another strong year in 2023. PrairieSky entered into 50 leasing arrangements in the quarter earning bonus consideration of $11.2 million, primarily from leasing of Duvernay rights, the highest quarterly bonus consideration earned since 2017. Annual bonus consideration totaled $26.0 million, the highest annual bonus consideration earned since 2017, with PrairieSky entering into 202 leasing arrangements with 110 different counterparties. In both 2022 and 2023, leasing activity was focused on oil targets which has resulted in strong organic oil growth on PrairieSky's royalty properties. PrairieSky averaged a record 12,844 barrels per day of oil royalty production in the quarter which was 6% above Q4 2022. Annually, average oil royalty volumes reached a record 12,438 barrels per day, 6% above 2022. With the incremental Duvernay leasing, we anticipate long-term light oil royalty production growth to complement the growth in heavy oil from PrairieSky's Clearwater and Mannville Stack oil plays.

Total royalty production averaged 25,608 BOE per day in the fourth quarter generating royalty production revenue of $122.0 million which combined with $11.2 million of bonus consideration, $2.9 million of lease rentals and $0.5 million of other revenues drove Q4 2023 funds from operations of $111.1 million. Annually, total royalty production averaged 24,857 BOE per day generating $474.6 million in royalty production revenue. Funds from operations totaled $382.5 million for 2023 generated primarily on strong oil royalty production revenue which made up 79% of royalty production revenue combined with $26.0 million in bonus consideration. PrairieSky's annual 2023 dividend was $229.2 million or $0.96 per common share, resulting in an annual payout ratio of 60%.

PrairieSky executed on $58.4 million in acquisitions and directed the remainder of funds from operations to retiring bank debt. At December 31, 2023, PrairieSky's net debt totaled $222.1 million, a decrease of 30% from $315.1 million at December 31, 2022. Management believes PrairieSky's business model is uniquely suited to provide sustainable returns to shareholders through all commodity price cycles and we are pleased to announce a 4% dividend increase effective for the March 29, 2024 record date.

During Q4 2023, PrairieSky added incremental royalty acreage through $22.2 million in acquisitions which included undeveloped lands in the Mannville Stack oil play. We have focused our acquisition strategy since 2016 on entering early stage plays such as the Clearwater and Mannville Stack. This strategy has driven strong oil royalty production growth and we anticipate these acquisitions will continue to provide strong returns on invested capital. In addition to early-stage opportunities, PrairieSky acquired approximately 67,000 acres of producing and non-producing royalty acreage in Central Alberta for $14.0 million before customary closing adjustments, which closed on December 6, 2023. The acquisition included royalty production volumes of 90 BOE per day (72% liquids) and seismic covering the acquired assets.

It was an active fourth quarter on our royalty properties with 197 wells spud, comprised of 184 oil wells, 12 natural gas wells and 1 helium well. Drilling activity in the quarter spanned from Northeast British Columbia to Southwest Manitoba and was focused on oil plays including 44 Clearwater oil wells across our 1.4 million acres of Clearwater acreage, 48 Mannville Stack oil wells and 33 Viking oil wells primarily on fee leases in Saskatchewan. With the level of third-party drilling activity and new leasing, management expects oil royalty production volumes to maintain momentum into 2024. In 2023, there were 805 wells spud, down from 850 wells in 2022. PrairieSky estimates that $2.0 billion (net - $112 million) in third-party capital was spent in 2023 drilling and completing wells on PrairieSky's royalty properties, up from $1.5 billion (net - $84 million) in 2022. Capital spending by third-party operators targeted oil plays, including those where PrairieSky has made strategic investments, with the most active plays being the Clearwater oil play, Mannville Stack heavy oil play and the Viking oil play.

We were very pleased with the level of organic growth in oil royalty volumes we have achieved over the last two years and the level of activity across our land base. We anticipate 2024 will continue to be active and we will remain disciplined, focusing on our core strategies of leasing land, managing controllable costs and conducting royalty and land compliance activities. We are pleased to welcome Michael to our team and look forward to working with him to meet our corporate objectives. We would like to thank our shareholders for their support, and our staff for their continued hard work. Andrew Phillips, President & CEO

Q4 2023 FINANCIAL HIGHLIGHTS
• PrairieSky generated funds from operations of $111.1 million or $0.46 per share (basic and diluted) in Q4 2023, an increase of 18% over Q3 2023 and 7% below Q4 2022. The increase in funds from operations over Q3 2023 was driven by a combination of organic growth in oil royalty production volumes and increased bonus consideration earned on new leasing activity. These positive impacts were more than offset by lower WTI and AECO benchmark pricing as compared to Q4 2022.
• PrairieSky's royalty production volumes totaled 25,608 BOE per day and generated royalty production revenue of $122.0 million in Q4 2023. A further breakdown is as follows:
o PrairieSky achieved record oil royalty production volumes of 12,844 barrels per day, a 6% increase over both Q3 2023 and Q4 2022 as royalty production from new wells on stream more than offset natural declines. Oil royalty production volumes included 24 barrels per day related to acquisitions in the quarter.
o Oil royalty production revenue totaled $98.4 million, a decrease of 4% from Q3 2023 as higher royalty production volumes were offset by weaker WTI benchmark pricing and wider light and heavy oil differentials. Oil royalty production revenue was lower than Q4 2022 due to lower WTI benchmark pricing and a wider light oil differential partially offset by stronger royalty production volumes, a narrowed heavy oil differential and a weaker Canadian dollar relative to the US dollar.
o Natural gas royalty production volumes averaged 60.4 MMcf per day in Q4 2023, a 6% decrease from Q3 2023 and 9% from Q4 2022 as new wells on stream were offset by natural declines.
o Natural gas royalty revenue totaled $12.2 million, a 5% increase over Q3 2023 due to certain royalty volumes being sold at higher Sumas pricing. Natural gas royalty revenue decreased 62% from Q4 2022 when daily AECO pricing averaged $5.11 per mcf and monthly AECO pricing averaged $5.58 per mcf which was more than 50% above Q4 2023 AECO pricing.
o NGL royalty production volumes averaged 2,697 barrels per day, flat with both Q3 2023 and Q4 2022 as new wells on stream offset natural declines.
o NGL royalty revenue totaled $11.4 million, down 12% from Q3 2023 and 16% from Q4 2022 due to lower benchmark pricing.
• PrairieSky generated $11.2 million in bonus consideration in Q4 2023, the highest quarterly bonus consideration earned since 2017, which was earned on entering into 50 new leasing arrangements with 43 different counterparties. PrairieSky earned an incremental $2.9 million in lease rentals and $0.5 million in other revenue in the quarter. Compliance recoveries totaled $2.0 million in Q4 2023.
• Cash administrative expenses totaled $5.6 million or $2.38 per BOE, in line with Q4 2022.
• PrairieSky declared a dividend of $57.3 million ($0.24 per share) during Q4 2023, representing a 52% payout ratio. Remaining funds from operations were allocated to acquisitions and to retiring bank debt.
• During Q4 2023, PrairieSky acquired undeveloped lands in the Mannville Stack as well as incremental producing and non-producing royalty interests and seismic for cash consideration of $22.2 million.

ANNUAL FINANCIAL HIGHLIGHTS
• PrairieSky generated annual funds from operations of $382.5 million ($1.60 per share basic and diluted), 25% below 2022, as record oil royalty production volumes and strong bonus consideration were more than offset by the negative impacts of lower benchmark commodity pricing.
• Royalty production volumes averaged 24,857 BOE per day, flat year over year, as increased oil royalty production volumes were offset by lower natural gas royalty volumes which were negatively impacted during the year due to facility maintenance downtime and forest fire related shut-ins. Average oil royalty production volumes reached a record 12,438 barrels per day, 6% higher than 2022.
• PrairieSky achieved total revenues of $513.2 million, comprised of $474.6 million of royalty production revenue and $38.6 million of other revenue. Other revenue included $26.0 million of bonus consideration, the highest annual amount since 2017, earned on entering into 202 new leasing arrangements with 110 counterparties. Compliance recoveries totalled $6.6 million for the year.
• Administrative expenses totaled $45.0 million or $4.96 per BOE, below 2022 administrative expenses of $48.8 million or $5.30 per BOE. Cash administrative expenses totaled $47.9 million or $5.28 per BOE higher than 2022 cash administrative expense primarily due to share-based compensation payments, including a termination payment related to a leadership change and a director retirement.
• During 2023, PrairieSky completed acquisitions of fee mineral title and GORR interests primarily targeting Mannville Stack heavy oil for $58.4 million. Annually, acquisitions added 35 BOE per day to royalty production volumes.
• PrairieSky declared cumulative annual dividends of $229.2 million or $0.96 per share with a resulting annual payout ratio of 60%.
• At December 31, 2023, PrairieSky's net debt totaled $222.1 million, a decrease of $93.0 million or 30% from December 31, 2022 net debt of $315.1 million.

ACTIVITY ON PRAIRIESKY’S ROYALTY PROPERTIES
Third-party drilling activity remained strong in Q4 2023 with 197 wells spud on PrairieSky's royalty properties consisting of 95 wells spud on Fee Lands, 93 wells spud on GORR acreage and 9 unit wells spud. Activity was focused on oil targets with 184 wells spud which included 48 Mannville Stack oil wells, 44 Clearwater oil wells, 33 Viking oil wells, 17 Mannville oil wells, 13 Cardium oil wells, 11 Mississippian oil wells, 6 Duvernay oil wells, and 12 additional oil wells spud in the Bakken, Belly River, Charlie Lake, Jurassic and Nisku formations. There were 12 natural gas wells spud in Q4 2023, including 5 Montney natural gas wells, 7 Mannville and Spirit River wells, and 1 helium well. PrairieSky's average royalty rate for wells spud in Q4 2023 was 7.2% (Q4 2022 - 6.4%). Spuds on PrairieSky's royalty properties in 2023 totaled 805 wells, as compared to 850 wells in 2022. The average royalty rate for wells spud in 2023 was 7.2% (2022 - 7.3%).

For 2023, PrairieSky estimates that $2.0 billion (net - $112 million) in third-party capital was spent drilling and completing wells on PrairieSky royalty properties, up from $1.5 billion (net capital - $84 million) in 2022, representing a 33% increase in net capital spent on PrairieSky's land base year over year. The increase was primarily a result of inflation in the service sector.

ANNUAL DIVIDEND INCREASED 4% TO $1.00 PER SHARE
PrairieSky is pleased to announce a 4% increase in its annual dividend to $1.00 per common share in 2024, to be paid on a quarterly basis effective for the March 29, 2024 record date. In determining changes to the dividend level, the Board of Directors considers a number of factors including current and projected activity levels on PrairieSky's royalty lands, the current commodity price environment, the working capital and bank debt balance and net earnings of the Company.

2023 RESERVES INFORMATION
PrairieSky's proved plus probable reserves totaled 65,762 MBOE at December 31, 2023 (December 31, 2022 - 66,719 MBOE) and include only developed assets (developed producing and developed non-producing properties) and do not include any future development capital on undeveloped lands. Proved plus probable reserves remained relatively flat with 2022, with year over year changes comprised of additions related to third-party drilling and improved recovery (7,111 MBOE), technical additions (971 MBOE), acquisitions (14 MBOE) and economic factors (19 MBOE) less 2023 royalty production volumes of 9,072 MBOE. At December 31, 2023, the before-tax net present value of total proved plus probable reserves, discounted at 10%, decreased 5% to $1.84 billion (2022 - $1.94 billion) primarily as a result of lower near-term natural gas and NGL commodity price assumptions.

PrairieSky's year end 2023 reserves were evaluated by independent reserves evaluators GLJ Ltd. The evaluation of PrairieSky's royalty properties was done in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook and National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities. PrairieSky's reserves information is included in the Company’s Annual Information Form which is available on SEDAR+ at www.sedarplus.ca and PrairieSky's website at www.prairiesky.com.

GLOBAL SUSTAINABILITY RANKINGS
Once again PrairieSky has received industry leading scores from several globally recognized environmental, social and governance ("ESG") rating agencies for 2023. These results demonstrate our carbon neutral status(1) and ongoing commitment to environmental stewardship, social responsibility, and strong corporate governance practices and are set forth below.