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Tuesday
On Tuesday, BMO Capital Markets maintained its Outperform rating on PrairieSky Royalty Ltd (TSX:PSK:CN) (OTC: PREKF), with a steadfast Cdn$35.00 price target. The research firm’s endorsement follows PrairieSky’s recent performance update, highlighting a quarter that saw record oil production, marking a 3% year-over-year increase.
The heavy oil plays in regions such as Mannville, Clearwater, and Duvernay have been particularly active, driving the company’s strong production numbers. PrairieSky’s strategic positioning within the industry, characterized by its unique royalty assets, high profitability, and low debt levels, was praised by BMO Capital.
The analyst at BMO Capital emphasized the company’s robust business platform and its potential in the face of ongoing industry developments. Even with lower West Texas Intermediate (WTI) crude prices, the industry’s shift towards multi-lateral development is expected to open a new era for PrairieSky.
In addition to operational successes, PrairieSky has indicated a strategic focus on enhancing shareholder returns. The company has made it clear that its Normal Course Issuer Bid (NCIB) will be more actively utilized moving forward, signaling a commitment to returning value to its investors.
PrairieSky’s first quarter performance aligns with the company’s reputation for consistent and reliable growth within the oil basin, setting a positive tone for its future endeavors and shareholder engagement strategies.
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