02/23/2015 06:50 EST | Updated 04/25/2015 05:59 EDT

PrairieSky posts Q4 net earnings of $50.7M; revenue slumps on lower oil price

CALGARY - PrairieSky Royalty Ltd. (TSX:PSK) has reported net earnings of $50.7 million or 38 cents per share in the final quarter of 2014. Revenue was $69.6 million in the three months ended Dec. 31.

Funds from operations were $59 million or 44 cents per share.

Production in the quarter averaged 17,280 barrels of oil equivalent per day, with an average realized price of $39.24 per barrel, versus $62.35 in the second quarter and $59.60 in the third.

For the 219 days since it began operations in late May, the company reported net earnings of $136.3 million or $1.75 per share on revenue of $198.7 million. Average production was 16,249 bbd, with an average realized price of $50.62 per barrel.

PrairieSky was spun off by Encana Corp. (TSX:ECA) as part of a strategy to separate a big chunk of its royalty lands into a new publicly traded company.

Encana retains a majority stake in the company, which makes it money by allowing other energy companies to develop oil and gas on its land, which spans 5.2 million acres in southern and central Alberta.