Stockchase InsightsPrairieSky RoyaltyPSK.TOBUYDec 01, 2021

Exceptionally well run. All-time high today. His struggle has always been what's the fair multiple on a royalty company? Trades at 19.5x PE, 18x for next year, and FCF yield is 5% (not compelling). Yield is 3%.

He owns some in his income fund. If you're really bullish on oil, royalty is not the way to go.

Strong performer over past several years, so trades at fairly high multiple (for example, twice that of FRU earlier this year). Extraordinarily good exposure to the Clearwater, good job with its business model. He struggles with what a fair multiple is. About 10% upside from here, and that doesn't do it for him. Yield is 3.8%, not overly compelling.

Second in line behind TPZ for what he'd want to own in terms of O&G royalty companies and infrastructure.

Excellent company. Trades at 18x cashflow. FRU is cheaper at about 9x.

Trades at a massive and unjustified premium of 14x. He holds FRU instead, trading at 8.5x.

FRU is such a low-cost producer, it hasn't benefited as much as marginal producers have in the uptick in oil/gas prices. So its margins haven't increased as much. FRU asset package is so good, he's happy to own it despite this year's price action. He likes both names.