Research Alert: Psk Q1: Strong Leasing Offsets Pricing, Rate Headwinds
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:PSK delivered 11% growth in funds from operations to CAD94.9M (CAD0.41/share) as 4% production growth to 26,293 BOE/d offset 5% pricing decline to CAD50.08/BOE, driving 4% revenue growth to CAD133.8M. Net earnings declined 4% to CAD55.8M (CAD0.24/share), while other revenue surged 87% to CAD15.3M from exceptional leasing activity. Record Duvernay activity with 26 wells spud, including 20 in the prolific West Shale Basin, supports our positive outlook as management expects this will drive meaningful oil production growth in 2H 2026. Multilateral drilling expanded to 33% of new wells from 20% previously, demonstrating operational efficiency improvements. We view the 65% funds from operations payout ratio through the CAD0.265/share quarterly dividend as sustainable, while CAD8.3M in share buybacks and CAD18.8M net debt reduction to CAD257.7M demonstrate disciplined capital allocation that should support future returns.
