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PRAIRIESKY ― ROYALTY LTD PRAIRIESKY ANNOUNCES 2021 SECOND QUARTER RESULTS , CLEARWATER ROYALTY ACQUISITION AND 38 % DIVIDEND INCREASE Calgary , Alberta ( July 19 , 2021 ) PrairieSky Royalty Ltd. ( " PrairieSky " or the " Company " ) ( TSX : PSK ) is pleased to announce its second quarter ( " Q2 2021 " ) operating and financial results for the period ended June 30 , 2021 , $ 155.0 million Clearwater royalty acquisition and a 38 % dividend increase . Clearwater Royalty Acquisition and Dividend Increase • • PrairieSky has acquired a 5 % gross overriding royalty on over 76,000 acres of Clearwater lands in the core Marten Hills area . The acquisition provides approximately 500 BOE per day ( 96 % oil ) of current royalty production with expected growth over the short and medium term , and a stable long - term production profile as a result of waterflood initiatives . The acquisition increases PrairieSky's position in the Clearwater play to over 1.1 million acres . PrairieSky's Board of Directors has approved a 38 % quarterly dividend increase to $ 0.09 per common share effective for the September 30 , 2021 record date . Second Quarter 2021 Highlights : • Total revenues of $ 69.8 million increased 17 % over Q1 2021 and 148 % over Q2 2020 and were comprised of royalty production revenues of $ 64.9 million and other revenues of $ 4.9 million , including a 64 % increase in bonus consideration over the first quarter . • • Funds from Operations rose 16 % to $ 56.5 million ( $ 0.25 per common share basic and diluted ) from Q1 2021 and 165 % from Q2 2020 . Royalty production averaged 19,723 BOE per day ( 49 % liquids ) up 2 % over Q1 2021 and 6 % higher than Q2 2020 . Common share repurchases of $ 13.2 million under the normal course issuer bid ( " NCIB " ) . Over the 12 - month period ending June 30 , 2021 , PrairieSky has repurchased 9.8 million common shares at an average price of $ 9.64 at an aggregate cost of $ 95.0 million . • Declared a second quarter dividend of $ 14.5 million ( $ 0.065 per common share ) , representing a payout ratio of 26 % , with remaining cash flow used primarily to reduce PrairieSky's bank debt 44 % from March 31 , 2021 to $ 34.1 million . On July 19 , 2021 , PrairieSky completed an acquisition from Spur Petroleum Ltd. ( " Spur " ) of a 5 % gross overriding royalty interest on over 76,000 acres in the core Marten Hills Clearwater area of Alberta for total cash consideration of $ 155.0 million ( the " Marten Hills Acquisition " ) . The Marten Hills Clearwater lands held by Spur are at the heart of a best in class , long life heavy and medium crude oil project , which has significant undeveloped land potential , extensive multi - zonal drilling inventory , and upside opportunities for enhanced oil recovery and tertiary recovery schemes . The Marten Hills Clearwater play has one of the lowest environmental footprints among North American oil plays , with pipeline connected multi - well pad developments that do not require fresh water for fracking or extensive surface locations . The Marten Hills Acquisition includes a royalty interest on Spur's existing production of approximately 10,000 BOE per day and all future production from the Marten Hills Acquisition lands , which is expected to grow to a sustainable production base of over 20,000 barrels per day by 2024. Given the robust economics of the Clearwater play , with top decile economics and managed by a best - in - class operator , PrairieSky expects that Spur can grow and maintain production volumes at Marten Hills by reinvesting only internally generated cash flows . The Marten Hills Acquisition is highly complementary to PrairieSky's