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PRAIRIESKY ― ROYALTY LTD PRAIRIESKY ANNOUNCES 2021 FIRST QUARTER RESULTS Calgary , Alberta ( April 19 , 2021 ) PrairieSky Royalty Ltd. ( " PrairieSky " or the " Company " ) ( TSX : PSK ) is pleased to announce its first quarter ( " Q1 2021 " ) operating and financial results for the period ended March 31 , 2021 . First Quarter 2021 Highlights : • Total revenues of $ 59.5 million increased 27 % over Q4 2020 and 13 % over Q1 2020 and was comprised of royalty production revenues of $ 56.7 million and other revenues of $ 2.8 million . Funds from Operations of $ 48.8 million ( $ 0.22 per common share basic and diluted ) were up 19 % from Q4 2020 and 5 % from Q1 2020 . • Royalty production averaged 19,380 BOE per day ( 50 % liquids ) , a modest increase from Q4 2020 as the negative impact of cold weather freeze - offs on natural gas volumes were largely offset by incremental royalty production volumes from the Deep Basin Acquisition which closed in late February 2021 . • PrairieSky closed its previously announced royalty acquisition for cash consideration of $ 45.0 million , before adjustments , consolidating a significant fee mineral title , royalty , and seismic position in Western Canada ( the " Deep Basin Acquisition " ) . • Declared a first quarter dividend of $ 14.5 million ( $ 0.065 per common share ) , representing a payout ratio of 30 % , with remaining cash flow allocated to funding the Deep Basin Acquisition . PRESIDENT'S MESSAGE PrairieSky's Q1 2021 results demonstrate the resiliency of our high margin business model with quarter over quarter increases in revenue , funds from operations and production . In late February 2021 , PrairieSky closed the previously announced Deep Basin Acquisition . The acquired assets consist of approximately 640,000 net acres of royalty interest lands in Western Canada , including a 170,000 acre fee mineral title position with multizonal leasing , exploration and development potential ; approximately 650 BOE per day of production ( 56 % natural gas , 33 % NGL , 11 % oil ) ; and ownership of approximately 3,200 square kilometres of 3D seismic and 3,100 kilometres of 2D seismic covering the acquired assets and PrairieSky's existing fee mineral title acreage . Given the timing of closing the Deep Basin Acquisition , the Q1 2021 results described herein include contribution from the acquired assets for approximately one month . PrairieSky generated funds from operations of $ 48.8 million during Q1 2021 , a 19 % increase over Q4 2020 and a 5 % increase over Q1 2020. The increase in funds from operations over prior quarters was due primarily to the strength of West Texas Intermediate ( " WTI " ) and AECO benchmark pricing demonstrating the advantage of PrairieSky's unhedged leverage to commodity prices . During the quarter , PrairieSky declared an increased quarterly dividend of $ 14.5 million , with remaining funds from operations of $ 34.3 million allocated to partially funding the previously announced Deep Basin Acquisition . Total Q1 2021 royalty production revenue of $ 56.7 million was 30 % above Q4 2020 royalty production revenue of $ 43.6 million and 15 % above Q1 2020 royalty production revenue of $ 49.1 million . Royalty production revenue was generated from total royalty production volumes of 19,380 BOE per day which increased modestly from Q4 2020 royalty production volumes of 19,281 BOE per day but was down 13 %