Freehold Royalties May 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 more than 360 royalty…
A Uniquely North American Energy Royalty Company Why Own Freehold Dividend Focused 9.0% Dividend Yield Coverage down to US50/bbl WTI Target a dividend payout ratio of 60% Liquids Weighted 11,000 bbls/d 16% CAGR on liquids…
Balanced North American Portfolio; Oil Weighted; Best-in-Class Operators Snapshot of Freehold Freeholds 3 key areas (boe/d) Production 57% 43% Midland 3,700 Q1 2025 48% of Total Eagle Ford 2,500 Heavy Oil 1 1,525 67% Oil Weighted…
Freeholds Strategy Income Growth and Durable Returns, the Results Creating Value Enhancing Value Delivering Value Production per million Funds from operations, and Total shareholder shares outstanding dividends per share return…
Freeholds Value Proposition High Margin Barrels Best in the Business 2025E cashflow per boe 1 Freehold realized pricing Q1-2025 (/boe) 40 US US +21% premium oil Canada Cdn. 30 0 20 40 60 80 100 120 (/bbl) 20 US US +47%…
Freeholds Value Proposition Evolution of a Freehold BOE The shift in product mix over the 9,781 boe/d 15,800 17,000 boe/d last 5 years to higher value oil 70% 55% Liquids 66% Liquids and liquids results in each BOE generating…
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 24,000* 30 25 30 years development…
Finance and Dividend Strength Conservatively Balancing Dividends with Leverage Low cost structure provides robust Dividend Payout Ratio Net debt to last funds from operations to support (dividends paid/funds from operations) twelve…
Track Record of Capital Discipline Disciplined Investment Framework Drives Profitable Growth FRUs Return on Average Capital Employed 1 FRU vs. Peers 1 Return on Average Capital Employed 30% 30% 25% Average ROACE 12% 20% 20%…
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 2.3 billion 2,000 dividends…
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 Peers 1 FRU 12 13 16 19…
2025E Range of 15,800 17,000 boe/d Higher Liquids Drives FFO Improvement Key Item Sensitivities & Guidance 0.02/sh 2025E Range +/- 0.01 FX 3.8mm 15,800 17,000 boe/d 0.02/sh +/- US1/bbl WTI 3.8mm 10% YoY Production Growth +/-…
US Portfolio FREEHOLDROYALTIES.COM TSX FRU
US Portfolio Overview Freehold US asset map Production summary Summary Q1 2025 (Q1 2025) (boe/d) Midland 3,700 Eagle Ford 2,500 Delaware 350 Other 450 0% 25% 50% 75% 100% Total 7,000 Oil NGLs Gas Revenue summary US M&A…
Drilling Activity Led by Top Operators Net activity wells on Freeholds US lands Freeholds top US drillers (2023-2024)1 1.8 1.6 60 other operators 1.4 24% 1.2 32% 1.0 3% 0.8 7% 0.6 0.4 10% 24% 0.2 - 1Q21 1Q22 1Q23 1Q24…
392mm of Midland focused acquisitions in 2024 has reshaped FRUs position FRUs Midland Basin Position 2024 acquisitions focused on building out Midland Production (% of Corporate Production) wall to wall carpeting in the Midland…
Why Multi-Basin Exposure Is Important U.S. Investments Providing Significant Returns Cumulative US royalty revenue Freeholds US royalty production ( millions) (boe/d) 6,970 boe/d 600 510 million 7,000 500 6,000 5,532 5,102 400…
19 continuing with Efficiency gains are average feet drilled Average feet drilled by 150% since 2014 and 87% since 2019 per rig improving by per rig has increased 14% in 2024 over 2023 Total Midland Rigs () 0 50…
Why Freehold Likes the US Positioned In Front of the Drill Bit Midland Basin activity heatmap 1 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 inventory locations are split evenly between the Lower Eagle…
Canadian Portfolio FREEHOLDROYALTIES.COM TSX FRU
Canadian Portfolio Overview Freehold Canadian asset map Production summary Summary Q1 2025 (Q1 2025) (boe/d) Viking 1,100 SE Sask 1,150 0% 25% 50% 75% 100% Heavy Oil 1,020 Oil NGLs Gas Clearwater 530 Revenue summary Cardium…
What Freehold is Excited About Multilateral Adoption in Canada New technology continues to unlock substantial Multilateral Spuds on Freehold Lands resource that may have been marginal under 120 40% previous drilling techniques 100…
Clearwater Developments Robust Position Across Multiple Exploration Plays Net Clearwater royalty production Basin summary (boe/d) Peace River 600 500 Peavine Nipisi 400 300 Marten Hills 200 West Marten & McLeod Lake…
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…
Early Innings of Mannville Growth for Freehold The Mannville Cornerstone Mannville oil royalty Mannville fairway net Mannville Mannville land map volumes heavy oil wells spud ownership (bbls/d) stats 1,200 Mannville oil volumes 4…
Canadian Resource Expansion Southeast Saskatchewan Resurgence Significant momentum in activity with 25% YoY SE Sask. net drilled wells increase in spuds on Freeholds acreage 3.5 3.0 Dominant position with 525,000 gross acres of…
Supplemental Slides 31
First Quarter 2025 Results Q1-2025 Q4-2024 Q1-2024 WTI crude oil US/bbl 71.42 70.27 76.96 Production boe/d 16,248 15,306 14,714 Liquids Production bbls/d (% liquids) 10,635 (65%) 9,878 (65%) 9,278 (63%) Funds from operations C…
Minerals and Royalties Represent a Simple Asset Class The Royalty Advantage High Margin Return of Balance Sheet Model Capital Strength Operating Margin of 85% 2024 with Consistent, sustainable dividend Capacity to fund future…
Q1-2025 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 2024…
Strong Balance Sheet 5.0x 4.5x Proforma December 2024 Midland Acquisition, Freeholds net debt to 4.0x trailing funds from operations is 1.1x Net Debt to Funds From Operations 3.5x At current commodity price levels and…
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 in dustry. 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 our expectation to continue as we see growth in oil weighted plays like Midland, Mannville Stack, Clearwater and SE Sas katchewan in addition to gro wth through value enhancing acquisitions; our expectati on there will be…
Advisories Advisory Relating to Presentation of Oil and Natural Gas Reserves, Revenue and ProductionInformation This presentation contains information relating to crude oil, natural gas and NGL reserves and other information prepared…
Advisories Conversion of Natural Gas to Barrels of Oil Equivalent (boe) To provide a single unit of production for analytical purposes, natural gas production and reserves volumes are converted mathematically to equivalent barrels of…
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