A North American Royalty Company freeholdroyalties.com TSX FRU Quality Assets Sustainable Dividends
Freehold Snapshot Proven Production Platform A North American Royalty Company Strong Free Funds Flow 12,000 Royalty Production (boe/d) 10,000 2021E dividend Freehold Canadian Assets commitment 8,000 2021E production 9,500…
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 production (1) 10,500-11,000 boe/d Annualized dividend (2) (0.040…
2021 First Quarter Results Q1/2021 Q1/2020 change Production boe/d 10,944 11,026 -1% Funds from operations mm 32.4 20.2 60% Period end net debt mm 64.8 101.8 -36% Corporate netback /boe 32.94 20.46 61% Payout ratio % 24% 92% -68% Cash…
The Royalty Advantage Freehold provides a lower risk/return proposition than traditional E&Ps Financial Strength, Diversified Royalty Environmental, Low Risk Portfolio Social, Governance Strong operating margins, Diversified North…
The Royalty Advantage: A Simple Return Model Funds from Operations 2021E 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…
U.S. Asset 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 four US acquisitions YTD in 2021 ) 2021E production of 1,300…
U.S. Entrance It Makes Freehold a Better Company Investment discipline by E&P companies is focusing capital in the highest return basins Diversifies Freehold asset base, Defensive accretive to Freeholds netback and In a US40/bbl WTI…
Freehold Royalties: A North American Royalty Company Proforma, Freehold Royalties provide investors a diversified portfolio of 6.3 million gross royalty acres in Canada and over 450,000 gross drilling unit acres in U.S. Exposure to 5…
Why Own Freehold A low risk vehicle providing income for its shareholders 95% operating margin (1) provides Freehold the ability to pay a meaningful dividend across all commodity cycles High Margins Top tier corporate netback 32.00/boe…
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 The royalty model maintains a…
Dividend Sustainability Freehold has paid out 1.7 billion in dividends since initial IPO 100% 90% Freehold announced a dividend increase from 0.03 to 0.04 per month as part of 80% Q1-2021 results 70% Forecast funds from…
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 exited Q1-2021 with net debt to trailing Freehold remains committed to maintaining leverage funds from operations of at levels well below 1.5x debt to funds from operations 0.8x 5.0 4.5 At current…
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…
2021 Q1 Royalty Drilling Results 2021 Q1 Royalty Drilling Non-Unit: 104 Gross wells 3.9 Net Unit: 7 Gross wells 0.04 Net Top Drillers Q1 2020 Gross Wells Net Wells Total: 111 Gross wells 3.9 Net CLEARWATER Tamarack, Crestwynd…
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…
Industry vs FRU Non-Unit Drilling Activity - Viking (SK) 1200 60% Viking (Dodsland) 1000 50% 800 40% Freehold maintains the majority of its Viking exposure in the Wells Drilled Dodsland area 600 30% % The area…
Industry vs FRU Non-Unit Drilling Activity - Clearwater Formation (AB) Clearwater (Nipisi, Jarvie) 180 6% 160 5% 140 Expected to be one of the more active areas in 2021 for FRU. Net volumes have grown by 20% since change 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 Expect to…
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
2021E Guidance Maintaining our production Guidance Date Guidance Date 2021 Annual Average guidance to 10,500-11,000 March 4, 2021 May 11, 2021 boe/d Average production boe/d 10,500-11,000 10,500-11,000 Q1-2021 production levels West…
Consistent Income Provider Freehold has provided greater than 32.60/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 Q1-2021 cash costs of 4.37/boe facilitate a 6.00 strong corporate netback 5.00 for Freehold Cash Costs (/boe) 4.00 Q1-2021 cash costs down 24%…
Royalty Production History Freeholds royalty production increased 13% q/q in Q1-2021 with volumes forecast to increase in 2021 Royalty Production (boe/d) 12,000 11,270 11,197 10,919 10,960 11,052 10,944 11,000 10,701 10,618 10,750…
Diversified Royalty Payors Our top payors remain well financed with no significant concentration risk Winter 2021 Spring 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 May 11, 2021 and contains forward-looking information including, without limitation, forward-looking information…
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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