PrairieSky Royalty Ltd. (TSX: PSK. OTC: PREKF)

The company is somewhat unusual in the energy business in that it is not actively involved in exploration and production. Rather, it leases land to E&P companies in exchange for a royalty stream on oil and natural gas production from the wells on its vast properties. This means the company does not incur the exploration and production costs of conventional energy producers although its profitability is still very much affected by movements in the prices of oil, natural gas, and natural gas liquids. The majority of its free cash flow is distributed to shareholders as dividends.