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Freehold Royalties Announces Strategic Midland Basin Royalty Acquisition and Bought Deal Equity Financing
Freehold Royalties Announces Strategic Midland Basin Royalty Acquisition and Bought Deal Equity F...
About this update from Freehold Royalties Ltd.
[{"type":"text","content":"\n\n\n\n Freehold Royalties Announces Strategic Midland Basin Royalty Acquisition and Bought Deal Equity Financing\n \n\n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n \n\n\n\n\n\n Canada NewsWire\n \n\n\n\n\n /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN\n \n THE UNITED STATES\n \n ./\n \n\n\n\n The prospectus supplement, the corresponding base shelf prospectus and any amendment thereto in connection with the financing will be accessible through SEDAR+ within two business days\n \n\n\n\n\n CALGARY, AB\n \n\n ,\n \n\n Dec. 9, 2024\n \n\n /CNW/ - Freehold Royalties Ltd. (Freehold or the Company) (TSX: FRU) has entered into a definitive agreement with a private seller to acquire mineral title and royalty interests in the core of the\n \n Midland\n \n Basin in\n \n Texas\n \n (the Acquisition or the Acquired Assets) for approximately\n \n $216\n \n million, net of estimates for exchange rate and customary closing adjustments.\n \n\n\n Acquisition Snapshot\n \n\n\n\n 1,250 – 1,350 boe/d of premium priced, light oil weighted production (~800 bbls/d oil)\n \n\n Approximately\n \n $31 million\n \n in 2025E net royalty revenue (net of production and ad valorem taxes and assuming\n \n US$70\n \n /bbl WTI)\n \n\n ~244,000 gross drilling acres, expanding our core, resource rich\n \n Midland\n \n Basin footprint by ~35%\n \n\n Highly undeveloped asset with ~25% of lands not having any horizontal drilling activity to date\n \n\n ~95% of production operated by\n \n Midland\n \n Basin focused ExxonMobil and Diamondback Energy\n \n\n 16 rigs currently active on the Acquired Assets\n \n\n Positions Freehold's royalty lands to capture one in every three rigs active in the\n \n Midland\n \n Basin (almost doubling from one in every six rigs prior to the Acquisition)\n \n\n\n \"This acquisition is a successful reflection of our disciplined approach to strategic M&A, in an area we know well and further builds on the two core\n \n Midland\n \n Basin acquisitions we closed earlier this year. This fits precisely with our strategy of posit...