PrairieSky Royalty | StockChase
36
PrairieSky Royalty (PSK-T)

Last Price Recorded: $32.0000 on 2017-12-13

ON STOCKCHASE SINCE Jun 2014

0
36
PrairieSky Royalty (PSK-T)

Last Price Recorded: $32.0000 on 2017-12-13

ON STOCKCHASE SINCE Jun 2014


PrairieSky Royalty


Signal Opinion Expert
TOP PICK
PrairieSky Royalty(PSK-T) 

March 20, 2017

One of the oil patch casualties that has actually done okay. He likes royalty structures because you don’t have capital investment risks, and this one has no debt on the balance sheet. Oil price recovery gives them torque to the upside. During the horrific oil environment of 2015-2016, they proved their ability to generate good cash flow. Dividend yield of 2.7%. (Analysts’ price target is $34.75.)

One of the oil patch casualties that has actually done okay. He likes royalty structures because you don’t have capital investment risks, and this one has no debt on the balance sheet. Oil price recovery gives them torque to the upside. During the horrific oil environment of 2015-2016, they proved their ability to generate good cash flow. Dividend yield of 2.7%. (Analysts’ price target is $34.75.)

0
Lyle Stein

Sr. Portfolio & Managing Director, Vestcap Investment M...

PricePrice
$28.250
Owned Owned
Yes

SELL
PrairieSky Royalty(PSK-T) 

October 7, 2016

He would Sell this in favour of more conventional producers. It’s an awesome company, but from a stock perspective, he is kind of challenged to be asked to pay 27X cash flow. Feels the stock is approaching fair value.

He would Sell this in favour of more conventional producers. It’s an awesome company, but from a stock perspective, he is kind of challenged to be asked to pay 27X cash flow. Feels the stock is approaching fair value.

0
Eric Nuttall

Senior Portfolio Manager, Ninepoint Partners...

PricePrice
$28.600
Owned Owned
No

PAST TOP PICK
PrairieSky Royalty(PSK-T) 

September 16, 2016

(A Top Pick Sept 2/15. Up 8.33%.) This is an easy one, because it is a royalty. There is no drilling involved. Essentially, all the cash flow can be paid out to shareholders. There is no debt involved in the story. However, the valuation is really stretched now.

(A Top Pick Sept 2/15. Up 8.33%.) This is an easy one, because it is a royalty. There is no drilling involved. Essentially, all the cash flow can be paid out to shareholders. There is no debt involved in the story. However, the valuation is really stretched now.

0
Swanzy Quarshie

Portfolio Manager, Sentry Investments...

PricePrice
$26.240
Owned Owned
No

COMMENT
PrairieSky Royalty(PSK-T) 

September 7, 2016

A less volatile play than a regular producer, as they don’t have the same operating leverage. It is a royalty business, which means they don’t own trucks etc., but are still ultimately at the whim of commodity prices. A very long-term high-quality business where you look at the free cash flow you are getting today under certain scenarios. The key, over the long, long term, is the optionality. You benefit from things like improvements in technology. A great model. Good management.

A less volatile play than a regular producer, as they don’t have the same operating leverage. It is a royalty business, which means they don’t own trucks etc., but are still ultimately at the whim of commodity prices. A very long-term high-quality business where you look at the free cash flow you are getting today under certain scenarios. The key, over the long, long term, is the optionality. You benefit from things like improvements in technology. A great model. Good management.

0
Stephen Groff

Principal & Portfolio Manager, Cambridge Global Ass...

PricePrice
$26.650
Owned Owned
Yes

COMMENT

He loves this at $15. Because other people drill their land, you don’t quite know how the world is going to play out. The gas market has had a great jump in gas, and this looks a lot better. It is a great thing to own long-term, but he would just like to try and steal it if he can be patient. He came within $2 in the spring.

He loves this at $15. Because other people drill their land, you don’t quite know how the world is going to play out. The gas market has had a great jump in gas, and this looks a lot better. It is a great thing to own long-term, but he would just like to try and steal it if he can be patient. He came within $2 in the spring.

0
Bill Harris, CFA

Portfolio Manager, Avenue Investment Ma...

PricePrice
$24.970
Owned Owned
No

COMMENT

A royalty company that gets its money at the top, as opposed to an operating company. Have a good land position, and their participation is high on the food chain. A great place to park funds.

A royalty company that gets its money at the top, as opposed to an operating company. Have a good land position, and their participation is high on the food chain. A great place to park funds.

0
Lyle Stein

Sr. Portfolio & Managing Director, Vestcap Investment M...

PricePrice
$24.580
Owned Owned
Yes

COMMENT

If you owned Canadian Natural Resources (CNQ-T), then you now own some of this stock’s shares. A royalty company and very, very expensive. 

If you owned Canadian Natural Resources (CNQ-T), then you now own some of this stock’s shares. A royalty company and very, very expensive. 

0
Bruce Campbell (1)

President, Campbell and Lee Inv...

PricePrice
$23.520
Owned Owned
No

SELL

(Market Call Minute.) He really likes the CEO, but the valuation is beyond nosebleed level.

(Market Call Minute.) He really likes the CEO, but the valuation is beyond nosebleed level.

0
Eric Nuttall

Senior Portfolio Manager, Ninepoint Partners...

PricePrice
$25.290
Owned Owned
Unknown

COMMENT
PrairieSky Royalty(PSK-T) 

April 20, 2016

A very good business model. You collect a nice stream of cash, depending on how much people put into the ground in your zone. Keep in mind that there is torque to the model. When energy prices are higher, more people want to drill and you get better pricing. Today it is the exact opposite. Management is very competent and are return oriented. If looking for a high-quality way to play energy, this is the perfect type of business.

A very good business model. You collect a nice stream of cash, depending on how much people put into the ground in your zone. Keep in mind that there is torque to the model. When energy prices are higher, more people want to drill and you get better pricing. Today it is the exact opposite. Management is very competent and are return oriented. If looking for a high-quality way to play energy, this is the perfect type of business.

0
Stephen Groff

Principal & Portfolio Manager, Cambridge Global Ass...

PricePrice
$26.020
Owned Owned
Yes

PAST TOP PICK
PrairieSky Royalty(PSK-T) 

March 17, 2016

(A Top Pick April 2/15. Down 16.23%.) Has been trimming his position. Valuation is rich, especially when comparing to a Freehold Royalty (FRU-T). Also, Canadian Natural Resources (CNQ-T) vended their freehold land and gross overriding royalties into this company for an almost 20% shareholder basis. They’ve given indications that they want to dividend half of those 44 million shares to CNQ shareholders, selling the other half on the market. That creates an overhang for shareholders of Prairie Sky. Still likes the company.

(A Top Pick April 2/15. Down 16.23%.) Has been trimming his position. Valuation is rich, especially when comparing to a Freehold Royalty (FRU-T). Also, Canadian Natural Resources (CNQ-T) vended their freehold land and gross overriding royalties into this company for an almost 20% shareholder basis. They’ve given indications that they want to dividend half of those 44 million shares to CNQ shareholders, selling the other half on the market. That creates an overhang for shareholders of Prairie Sky. Still likes the company.

0
Mason Granger

Portfolio Manager, Sentry Investments...

PricePrice
$25.170
Owned Owned
Yes

PAST TOP PICK
PrairieSky Royalty(PSK-T) 

February 23, 2016

(A Top Pick Jan 20/15. Down 12.92%.) Down because of energy prices, but also companies are drilling less on their lands. Also, did a large asset swap with Canadian Natural Resources (CNQ-T) in exchange for shares, and because of financial concerns of CNQ, they may want to be selling some of those shares. The Short interest in this company is very high because of concerns that they are going to cut their dividend. That should really shock no one.

(A Top Pick Jan 20/15. Down 12.92%.) Down because of energy prices, but also companies are drilling less on their lands. Also, did a large asset swap with Canadian Natural Resources (CNQ-T) in exchange for shares, and because of financial concerns of CNQ, they may want to be selling some of those shares. The Short interest in this company is very high because of concerns that they are going to cut their dividend. That should really shock no one.

0
Eric Nuttall

Senior Portfolio Manager, Ninepoint Partners...

PricePrice
$20.200
Owned Owned
No

BUY
PrairieSky Royalty(PSK-T) 

February 22, 2016

A massive land holder in Western Canada who just made another massive acquisition.  The dividend (6.3%) could be cut under current pressures, however.  You have to be in the sector.  A dividend cut is probably largely discounted in the stock price.

A massive land holder in Western Canada who just made another massive acquisition.  The dividend (6.3%) could be cut under current pressures, however.  You have to be in the sector.  A dividend cut is probably largely discounted in the stock price.

0
Michael Smedley

Exec VP & Chief Investment Officer, Morgan Meighan & Ass...

PricePrice
$20.520
Owned Owned
No

WAIT
PrairieSky Royalty(PSK-T) 

February 10, 2016

(Market Call Minute.) There is talk about a dividend cut, and thinks it is quite likely. They don’t want to carry any debt, and the payout ratio is over 100% right now. They can pay out almost all their cash flow because they don’t have to spend any money to drill. However, with Canadian Natural Resources (CNQ-T) selling their royalty assets to Prairiesky, you have to recognize that CNQ has a 19% ownership. They could cover off some of their debt to CNQ shareholders in the form of a dividend. Wait until that is over.

(Market Call Minute.) There is talk about a dividend cut, and thinks it is quite likely. They don’t want to carry any debt, and the payout ratio is over 100% right now. They can pay out almost all their cash flow because they don’t have to spend any money to drill. However, with Canadian Natural Resources (CNQ-T) selling their royalty assets to Prairiesky, you have to recognize that CNQ has a 19% ownership. They could cover off some of their debt to CNQ shareholders in the form of a dividend. Wait until that is over.

0
Swanzy Quarshie

Portfolio Manager, Sentry Investments...

PricePrice
$19.090
Owned Owned
Unknown

WATCH
PrairieSky Royalty(PSK-T) 

January 6, 2016

Royalties are a great way to play commodities. You have no operating exposure and they have had a big correction here. If and when you turn positive on the energy complex, this would be a great buy. Well-managed and have a clean balance sheet. If we get oil and gas looking a little better in the spring, this will be a big beneficiary.

Royalties are a great way to play commodities. You have no operating exposure and they have had a big correction here. If and when you turn positive on the energy complex, this would be a great buy. Well-managed and have a clean balance sheet. If we get oil and gas looking a little better in the spring, this will be a big beneficiary.

0
Rick Stuchberry

Portfolio Manager, Richardson GMP...

PricePrice
$21.350
Owned Owned
Unknown

COMMENT
PrairieSky Royalty(PSK-T) 

December 8, 2015

This is a royalty company. They have been buying assets from producers who are looking to raise capital. Thinks they are now over distributing, so there is potential of a dividend cut. He didn’t buy into it because he thought the valuation multiple was too high.

This is a royalty company. They have been buying assets from producers who are looking to raise capital. Thinks they are now over distributing, so there is potential of a dividend cut. He didn’t buy into it because he thought the valuation multiple was too high.

0
Jeff Young

Co-CEO & CIO, NexGen Financial...

PricePrice
$23.020
Owned Owned
No

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