Corporate Profile Focused on delivering shareholder value from oil and gas royalties 2020E revenue and production from Oil & NGL(1) 81% revenue / 55% production Q3-2020 royalty production 9,096 boe/d Annual dividend (2) (0.02 per month)…
The Royalty Advantage Participation in the energy sector via superior economics and a lower risk profile compared to traditional E&Ps Financial Strength, Low Ability to increase our dividend, and still generate meaningful free cash…
Why Own Freehold 98% operating margin (1) provides Freehold the ability to pay a High Margins meaningful dividend across all commodity cycles Target 60%-80% of funds flow returned to shareholders Top tier operating netback 23/boe in…
Near Term Free Cash Flow Priorities New dividend level right sized for todays business environment Target 60-80% payout ratio in 2021 Dividend Dividend levels mirror improving commodity prices and corresponding funds from…
Our Assets Freehold maintains a diversified suite of assets B.C. Alberta Saskatchewan Manitoba 300 industry payors Slave Point 2.5% average royalty across 6 million acres of land Montney Gas Clearwater Portfolio balanced with…
Our ESG Approach & Commitments Freehold unveiled its first Environmental, Social & Governance Report (ESG) in 2019 Our approach to ESG is rooted in our collective desire to provide a long-term value proposition to our shareholders…
Our Approach to ESG What we do Why we do it Align with competent Align our business with competent and reputable To ensure continued development of our royalty and reputable payors operators and payors that are technically strong,…
Freehold increased its 2021 monthly dividend 2020 Third Quarter Results by 33% in Q3-2020 to 0.02/share Q3 2020 Q2 2020 change Royalty production boe/d 9,096 9,150 -1% Royalty liquids production boe/d 5,022 4,957 1% Operating netback…
Dividend Sustainability 100% Freehold announced a dividend increase from 0.015 to 0.02 per 90% month as part of Q3-2020 results, 80% reflecting stabilizing commodity prices and restoration of shut-in 70% production 60%…
Illustrative Oil Price Leverage At 20/bbl WTI, Freehold 0.90 generates funds from operations 0.80 in-line with its revised dividend Funds from Operations per share level 0.70 As commodity prices improve, 0.60 Freehold…
An Attractive Income Investment 16 Freehold has continued to pay a 14 Freehold offers an attractive Dividend Yield (%) 12 yield with upside as consistent dividend to its 10 commodity prices improve shareholders 8 Relative…
Illustrative 5-Year Free Cash Flow and Dividend Outlook 400 Freehold maintains Cumulative funds from operations (mm) significant option value to 350 provide returns to shareholders over the long 300 term 250 Under…
Attractive Risk/Reward Proposition Freeholds implied free cash flow yield implies 25% strong returns given risk profile of the asset base At current valuation levels, Freehold share price implies 20% greater than a 15% free cash…
2020 Q3 YTD Royalty Drilling Results 2020 Q3 Royalty Drilling Gross Net Non-Unit: 25 Gross wells 2.0 Net Top Drillers 2020 CLEARWATER Unit: 7 Gross wells 0.1 Net Wells Wells Perpetual, Highwood, Spur Total: 32 Gross wells 2.1 Net…
Industry Drilling vs. Freehold Despite a slowdown in activity in western Canada, 18000 25 Freehold has historically 16000 Gross Wells Western Canada achieved growth in net drilling on its royalty lands 14000 20 Freehold…
The Viking: Key Growth Driver Freehold has been able to grow Acquired as part of a royalty acquisition in 2016, Freehold 120 its Viking production since 1200 completing its initial acquisition maintains a top tier position in the…
Low Risk Profile E&P Torque to Higher Oil Prices Benefit of: The royalty model provides Dividend Yield a number of advantages over typical E&P operators Capital Costs Abandonment Limited Exposure to: Liabilities…
Royalties vs. Exploration and Production Companies The royalty model maintains a A Working Interest Barrel A Royalty Interest Barrel material operating netback Operating netback Operating netback advantage over traditional E&Ps 60% of…
Strong Balance Sheet 5.0 (at September 30, 2020) Freehold exited F9-2020 4.5 with net debt to funds from 4.0 Debt to funds from operations operations of 1.0x 3.5 At current commodity price 3.0 levels and the revised 2.5…
Supplemental Information Quality Assets Sustainable Dividends freeholdroyalties.com
Consistent Income Provider 3.00 Freehold has generated greater than 35.00 30.50/share to its shareholders over its history and has always returned a dividend Cumulative Dividends Per Share 30.00 2.50 to is shareholders…
Cash Costs 7.00 Freehold realized its lowest level of cash Q3-2020 cash costs of costs in its corporate history in Q3-2020 6.00 3.70/boe facilitate a strong cash flow netback for 5.00 Cash Costs (/boe) Freehold 4.00 Cash costs…
Royalty Production History Royalty Production (boe/d) 12,000 11,270 11,197 11,052 10,919 10,960 11,000 10,701 10,618 10,351 10,322 10,312 10,311 10,315 10,169 10,139 10,149 10,000 9,150 9,096 9,000 Freehold royalty production…
Diversified Royalty Payors Our top payors remain well financed with no significant concentration risk Winter 2020 TSX : FRU 26
Disciplined Acquirer During this period of weaker commodity prices, we expect to be opportunity driven in our A&D strategy and look for opportunities that enhance the resiliency and durability of our portfolio across all commodity…
Royalty Comps: Strong Netbacks, Attractive Valuation 30 14 2021E Consensus EV/EBITDA 2021 Consensus Funds Flow Netback (/boe) 12 25 10 20 8 (times) (/boe) 15 6 10 4 5 2 0 0 US US US Freehold CND US US CND…
Royalty Comps: Price/CFPS & Debt to Funds from Operations 14 2.5 2021 Debt to funds from operations 12 2 Price/Consensus 2021 CFPS 10 1.5 8 1 (times) 6 0.5 4 0 2 -0.5 0 CND US US Freehold US US US -1…
Advisories Forward-Looking Information This presentation offers our assessment of Freeholds future plans and operations as at November 10th, 2020 and contains forward-looking information including, 2020 expected percentage of revenue and…
Advisories cont. Non-GAAP Financial Measures Within this presentation, references are made to terms commonly used as key performance indicators in the oil and natural gas industry. We believe that operating income, operating margin, free…
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