About Caledonian Royalty Corporation
Caledonian Royalty Corporation is a dividend-paying oil and gas company located in Calgary, Alberta. Our business strategy is to provide shareholders low risk income focused exposure to oil and gas markets primarily derived from oil and gas royalties on producing properties. Royalties provide low risk participation in the oil and gas industry through sharing in production, without exposure to the capital, operating and environmental costs associated with oil and natural gas production. Upside is achieved through increases in commodity prices, enhancements through the application of new technologies, ongoing development of Caledonian's significant land base (which includes some 987,740 acres) and through acquisitions.
The Royalty Advantage
Royalties revenues are a direct play on commodity prices, with reduced claims on revenues. Our royalties essentially provide Caledonian the entire gross proceeds from the sale of the underlying commodity.
Proceeds From the Sale of a Barrel of Oil
Caledonian: A Low Risk Play on Commodity Prices
Caledonian has significant experience in structuring royalty agreements and seeks to maximize payment security by ensuring it's royalty assets are a senior obligation of the underlying working interest party. To further reduce risk Caledonian will opportunistically hedge expected production upon management's discretion.
An Active Growth Model
Caledonian's acquisition strategy targets producing properties to minimize risk.
The key criteria are:
- high quality assets;
- attractive returns based on Caledonian's accretion model; and
- long economic life.