Freehold Royalties January 2025 FREEHOLDROYALTIES.COM TSX FRU
DEEP BASIN CLEARWATER Freeholds Value Proposition North American Portfolio Overview MANNVILLE HEAVY OIL CARDIUM VIKING SE SASKATCHEWAN Exposure to major conventional oil and shale basins with 360 royalty counterparties N.…
A Uniquely North American Energy Royalty Company Why Own Freehold Dividend Focused 8% Dividend Yield Coverage down to US50/bbl WTI Target a dividend payout ratio of 60% 10,660 bbls/d Liquids Weighted Liquids1 20% liquids…
259 Million Acquisition in the Core of the Midland Basin Strategic Midland Basin Acquisition Acquired assets map Acquisition highlights 244,000 gross drilling acres; increasing Freeholds Midland Basin acreage by 35% 85% of acreage…
Positioning Portfolio into Undeveloped Lands Strengthens Future Growth Position Strategic Midland Basin Acquisition 25% of the acquisition is Undeveloped Significant white space DSUs with more than 25% of the Acquired Assets acreage…
Balanced North American Portfolio; Oil Weighted; Best-in-Class Operators Pro forma Freehold Key metrics including the Dec 2024 acquisition Freeholds top 3 areas (boe/d) Midland 3,600 49% of Total Production 58% 42% Eagle Ford 2,400…
Freeholds Strategy Income Growth and Durable Returns, the Results Creating Value Enhancing Value Delivering Value Production per million Funds from operations, and Last 5 years total shares outstanding dividends per share…
Freeholds Value Proposition Resilient Cashflow Margins 2025E cashflow per boe1 Freehold realized pricing 2024 YTD (/boe) (/boe) 50 US US +19% premium oil 40 Canada Cdn. 70 80 90 100 110 30 US US +43% premium 20 boe…
Portfolio of Oil-Weighted Areas Provide Growth and Optionality Decades of Inventory Asset Book highlights Development inventory by region (years) 40 Canada United States 35 40 years 18,000 18,500* 30 25 30 years development…
Finance and Dividend Strength Conservatively Balancing Dividends with Leverage Low cost structure provides Annual dividends paid Net debt to last robust funds from operations to ( millions) twelve months funds from operations…
Finance and Dividend Strength Invested Capital and Dividends Drive Returns Return on capital employed1 Dividend payout ratio (dividends paid/funds from operations) 20% 80% 15% 10% 60% 5% 0% 40% -5% -10% 20% -15% 2020…
Finance and Dividend Strength Returns Continue to Grow as Freehold Grows Freeholds dividend has Cumulative dividends paid ( millions) been a permanent feature through all 2,500 commodity price cycles 2.26 billion 2,000…
Finance and Dividend Strength Dividend Resiliency 2025E WTI breakeven pricing1 (US/bbl WTI) Blue bars denote peers with a 80 dividend yield above 5% 70 60 50 40 30 20 10 0 FRU Peers1 Peer 1 FRU 9 2 3 4…
DEEP BASIN CLEARWATER The Freehold Story CARDIUM VIKING Royalty ownership provides significant exposure to SE SASKATCHEWAN high margin assets with zero maintenance capital N. DAKOTA BAKKEN Positioned at the low-end of the North…
US Portfolio FREEHOLDROYALTIES.COM TSX FRU
Freeholds US ortfolio Overview Freehold US asset map Production summary Basin summary (YTD 2024) (boe/d) Midland 3,600 Eagle Ford 2,400 Delaware 370 Other 600 0% 25% 50% 75% 100% Total 6,970 Oil NGLs Gas Revenue summary US…
Drilling Activity Led by Top Operators Net activity wells on Freeholds US lands Freeholds top US drillers (2023-2024 YTD) 1.6 1.4 60 other operators 1.2 25% 1.0 42% 0.8 7% 0.6 0.4 8% 8% 10% 0.2 - 1Q21 1Q22 1Q23 1Q24…
Why Freehold Likes the US Positioned In Front of the Drill Bit Midland Basin activity heatmap1 60% of basin activity is concentrated in the Midland, Martin and Howard counties, where the majority of Freeholds acreage is positioned…
Resource Expansion Midland Basin Bench Overview Clearfork 7,000 Significant running room Upper Spraberry in the 1st Generation and 7,500 Middle Spraberry 2nd Generation benches Jo Mill 8,000 Emerging benches are Lower Spraberry…
Resource Expansion Midland Production Evolution Emerging Benches Midland Basin oil production by bench generation 10,000 bbls/d from 380 wells (mmbbl/d of oil) 2.5 Second Generation Benches 2.0 600,000 bbls/d from 5,000 wells…
Resource Expansion Concentrated Footprint in the Core of the Eagle Ford 20 years1 of prospective development inventory Lower Eagle Ford development since 2010 Freeholds inventor locations are split evenl between the Lower Eagle…
Canadian Portfolio FREEHOLDROYALTIES.COM TSX FRU
Freeholds Canadian ortfolio Overview Freehold Canadian asset map Production summary Basin summary (YTD 2024) (boe/d) Viking 1,300 SE Sask. 1,100 0% 25% 50% 75% 100% Cardium 1,100 Oil NGLs Gas Mannville 900 Revenue summary…
What Freehold is Excited About Multilateral Adoption in Canada New technology continues to Clearwater net royalty Mannville fairway net production heavy oil wells spud unlock substantial resource that (boe/d) may have been marginal…
Clearwater Developments Robust Position Across Multiple Exploration Plays Net Clearwater royalty production Basin summary (boe/d) Peace River 500 Peavine 400 Nipisi 300 Marten Hills 200 West Marten & McLeod Lake 100…
Clearwater Developments Serious Exploration Potential Freehold Clearwater asset development stage Continuous size of circle denotes number of Nipisi evaluation of new 12 development locations Waterflood expansion Infill drilling…
Canadian Cashflow Machine The Mannville Cornerstone Mannville oil royalty Mannville fairway net Mannville Mannville land map volumes heavy oil wells spud ownership (bbls/d) stats 1,200 3 975,000 acres 1,100 1,825 heavy 2 oil…
Canadian Resource Expansion Southeast Saskatchewan Resurgence Dominant position with 525,000 gross acres of royalty SE Sask. net drilled wells lands (including 300,000 gross acres of mineral title land) 3.0 2.5 Operators have…
Supplemental Slides 29
Minerals and Royalties Represent a Simple Asset Class The Royalty Advantage High Margin Return of Balance Sheet Model Capital Strength Operating Margin of 85% YTD 2024 Consistent, sustainable dividend Capacity to fund future growth…
Q1 Q3 2024 Royalty Drilling NORTH DAKOTA BAKKEN Deep Basin Clearwater Mannville Viking MIDLAND Cardium DELAWARE EAGLE FORD SE Saskatchewan CANADA TOP CANADIAN PLAYS UNITED STATES TOP US PLAYS GROSS WELLS NET WELLS GROSS…
Strong Leasing Activity in Canada Deep Knowledge of our Land Base Drives Value Number of leases Production from leasing Leasing activity breakdown since 2020 issued per year activity since 2020 (boe/d) Privates Juniors Small Caps…
Portfolio Optimization in Canada Deep Knowledge of our Land Base Drives Value Capitalize on our extensive land base Optimization, Audit & Compliance revenue since 2021 ( millions) with royalty optimization 2021 2022 2023 20241…
Strong Balance Sheet 5.0x 4.5x Proforma December 2024 acquisition, Freeholds net debt to trailing funds 4.0x Net Debt to Funds From Operations from operations is 1.1x 3.5x At current commodity price levels and dividend…
Why Freehold Likes the US A&D Returns Substantially Above Cost of Capital Net US royalty production Cumulative US royalty revenue (boe/d) ( millions) 6,000 5,420 409 400 BOE/d million 4,000 YTD 2024 300 200 2,000 100 0 0…
Advisories FREEHOLDROYALTIES.COM TSX FRU
Advisories Non-GAAP Measures Within this presentation, references are made to terms commonly used as key performance indicators in the oil and gas industry. We believe that net revenue, cash costs, netback, dividend payout ratio,…
Advisories Third Party Information and Public Information This presentation contains information regarding lands and interests from which Freehold Royalties Ltd. (Freehold, FRU, the Corporation, us, we or our) collects or may in the…
Advisories that Freehold has significant white space DSUs with more than 25% of the c uired ssets acreage characterized as undeveloped with no prior horizontal drilling activity, which lands are positioned to benefit from cube…
Advisories Freehold cannot assure investors that actual results will be consistent with these forward-looking statements. Accordingly, investors should not place undue reliance on forward-looking statements due to the inherent…
Advisories Advisory Related to Analogous Information Certain information in this presentation may constitute analogous information as defined in NI 51-101 with respect to the certain drilling results, number of wells drilled, or offset…
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