Corporate Profile Focused on delivering shareholder value from oil and gas royalties 2021E revenue and production from Oil & NGL (1) 80% revenue / 55% production 2021E royalty production (1) 10,500-11,000 boe/d Annualized dividend…
The Royalty Advantage Freehold provides investors superior margins and a low risk profile Participation in the energy sector via superior economics and a lower risk profile compared to traditional E&Ps Financial Strength, Ability to…
The Royalty Advantage: A Simple Return Model Funds from Operations 2021 payout (1)(2) less than 50% Dividend Free Cash (2) flow provides high provides room for growth of the 2021E dividend commitments quality option value to our…
U.S. Acquisition Overview 450,000 gross exposure acres (15,155 net) of mineral title and overriding royalty interests, across 12 basins and 8 states ( 1 Freehold has closed three US acquisitions YTD in 2021 ) 2021E production of…
U.S. Acquisition It Makes Freehold a Better Company Investment discipline by E&P companies is focusing capital in the highest return Diversifies Freehold asset base, accretive basins Defensive to Freeholds netback and enhances the In…
Freehold Royalties: A North American Royalty Company Proforma, Freehold Royalties will provide a diversified portfolio of 6.3 million gross royalty acres in Canada and over 400,000 gross drilling unit acres in U.S. Freehold Canadian…
Why Own Freehold A low risk vehicle providing income for its shareholders 98% operating margin (1) provides Freehold the ability to pay a meaningful dividend across High Margins all commodity cycles Target 60%-80% of funds flow…
Royalties vs. Exploration and Production Companies Royalties provide lower costs and higher returns to shareholders A Working Interest Barrel A Royalty Interest Barrel Operating netback Operating netback 60% of gross revenue 100% of…
Dividend Sustainability At current commodity price levels, Freehold is still able to pay a meaningful dividend with potential for growth 100% 90% Freehold announced a dividend increase from 0.02 to 0.030 per month as part of 80%…
2021 Free Cash Flow Sensitivities Freehold maintains considerable Free Cash Flow Profile(1) torque to higher crude oil pricing Freehold has minimal operating expenses, as a result, improving prices directly impact top line revenue…
Strong Balance Sheet Freehold remains committed to maintaining leverage at levels well below 1.5x debt to funds from operations Freehold exited 2020 with 5.0 net debt to funds from operations of 0.9x 4.5 4.0 Debt to funds…
Low Risk Profile The royalty model provides a number of advantages over typical E&P producers E&P Torque to Higher Oil & Natural Gas Prices Benefit Benefit Revenue Exposure: Dividend Yield / Benefit Some have benefit Capital…
2020 Royalty Drilling Results 2020 Royalty Drilling Non-Unit: 257 Gross wells 13.2 CLEARWATER Net Tamarack Unit: 115 Gross wells 0.35 Net Total: 372 Gross wells 13.6 Net Top Drillers 2020 Gross Wells Net Wells Teine Energy 77…
2020 Q4 Royalty Drilling Results Freehold saw 9% more drilling on 2020 Q4 Royalty Drilling its land Q4-2020 over Q4-2019 CLEARWATER Non-Unit: 99 Gross wells 4.9 Net Tamarack Unit: 12 Gross wells 0.04 Net Total: 111 Gross wells 4.94…
Industry Drilling vs. Freehold Freeholds royalty portfolio has outperformed the broader Western Despite a slowdown in activity in western Canadian Sedimentary Basin as a % of activity Canada, Freehold has historically achieved…
Viking Industry vs FRU Non-Unit Drilling Activity - Viking (SK) Freehold maintains the majority of its Viking exposure in the 1200 60% Dodsland area 1000 50% The area represents our primary source of activity with 30% 800 40%…
Clearwater Industry vs FRU Non-Unit Drilling Activity - Clearwater Formation (AB) 180 6% Expected to be one of the more active areas in 2021 for FRU 160 5% Change in operatorship expected to result in a meaningful 140 increase in…
Our ESG Approach & Commitments Our ESG approach is rooted in our desire to provide a long-term value proposition to our shareholders Freehold unveiled its first Environmental, Social & Governance Report (ESG) in 2019 Our approach…
Our Approach to ESG What we do Why we do it Align with competent Align our business with competent and reputable operators and payors that are technically strong, regulatory To ensure continued development of our royalty assets and…
Supplemental Information freeholdroyalties.com TSX FRU Quality Assets Sustainable Dividends
2020 Annual Results 2020 2019 change Royalty production boe/d 9,605 10,229 -6% Royalty liquids production boe/d 5,294 5,701 -10% Operating netback /boe 24.56 36.28 -30% Payout ratio % 54% 63% -9% Cash costs /boe 4.63 5.30 -23% Period end…
2021E Guidance With the resurgence in drilling Guidance Date activity on Freehold royalty lands 2021 Annual Average March 4, 2021 Increasing our production guidance to Royalty production boe/d 10,500-11,000 10,500-11,000 boe/d West…
Consistent Income Provider Freehold has provided greater than 30.50/share over its history to its shareholders through dividend payments 3.00 35.00 30.00 2.50 Cumulative Dividends Per Share 25.00 2.00 Dividends per…
Cash Costs Freehold has shown a strong trending down in cash costs in 2020 7.00 Q4-2020 cash costs of 4.11/boe facilitate a 6.00 strong cash flow netback 5.00 for Freehold Cash Costs (/boe) 4.00 2020 cash costs down 13%…
Royalty Production History Freeholds royalty production stabilized in Q3-2020 and has displayed modest production growth in H2-2020 with volumes forecast to increase in 2021 Royalty Production (boe/d) 12,000 11,270 11,197 10,919 10,960…
Diversified Royalty Payors Our top payors remain well financed with no significant concentration risk Payors before U.S. Royalty Transaction Winter 2021 TSX : FRU Winter 2021 28
Disciplined Acquirer Freehold will continue to look for opportunities that enhance the resiliency and durability of our portfolio across all commodity price cycles Cost Initial Production Year Area ( millions) Acquired (boe/d) 2012…
Advisories Forward-Looking Statements This presentation offers our assessment of Freeholds future plans and operations as at March 4, 2021 and contains forward-looking information including, without limitation, forward-looking…
Advisories Forward-Looking Statements Continued You are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue…
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,…
Investor Relations tf. 888.257.1873 t. 403.221.0833 w. freeholdroyalties.com freeholdroyalties.com TSX FRU Quality Assets Sustainable Dividends
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