Freehold Royalties Ltd. · TSX:FRU
Freehold Royalties — Peters & Co Fall Energy Conference 2022
16 slides from Freehold Royalties's conference presentation, Sep 13, 2022
Slide 1: Investor Presentation: Peters & Co Fall Energy Conference
Investor Presentation Peters & Co Fall Energy Conference freeholdroyalties.com TSX FRU Quality Assets • Sustainable Dividends
Slide 2: Investment Highlights
Investment Highlights A North American energy royalty company 7.3% dividend yield Torque to commodity current dividend coverage to $40 WTI direct returns to shareholders without cost inflation ESG friendly investment High margin asset class rated top 1% among global oil producers >95% operating marg
Slide 3: Balanced Commodity & Basin Exposure
Balanced Commodity & Basin Exposure Commodity Portfolio Clearwater Deep Basin Mannville ~20% of 65% Cardium Revenue Conv Viking Production Gas SE Sask Production 60% Volumes Revenue 38% Natural Gas 62% 35% Oil & NGL’s Production 40% ~80% of Revenue Revenue Permian Eagle Proforma 2022 Proforma 2022 F
Slide 4: North American Advantage
North American Advantage Upstream capital drives growth Oil production growth driven by Texas $166 9 +2.4 million bbls/d 6x investment in the US Oil Prod (MMbbl/d) Permian & 8 Eagle Ford $121 US$ billions $110 7 $88 6 6x growth 5 4 +0.4 million bbls/d $21 $17 $22 $23 3 Oil Sands & 2 Conventional 201
Slide 5: Bigger & Better Freehold
Bigger & Better Freehold >$500mm of US assets added over 2 years Significant FFO growth, solid balance sheet 16,000 $350 50% growth Corporate Production (boe/d) 14,000 since Q2-2020 $300 12,000 US $250 10,000 Funds From Operations $, millions 8,000 $200 6,000 $150 4,000 Canada 2,000 $100 Net Debt 0
Slide 6: Record Level of Activity on US Assets
Record Level of Activity Wells On US Assets Gross permits & DUCs Net permits & DUCs 800 5 700 2Q22* Proforma 2022 Acquisitions 2Q22* Proforma 2022 Acquisitions 4 Gross Activity Wells Net Activity Wells 600 Permit 500 3 DUC Permit 400 300 2 200 1 DUC 100 0 0 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q
Slide 7: Freehold Return Profile
Freehold Return Profile Return of 60% Payout Ratio ▪ Dividend of $0.09/share announced at Q2-2022 is Capital to the highest level since 2015 Shareholders ▪ Current dividend reflects 60% payout at US $75 WTI 2022E Funds from Less than 1.0x Funds From Operations Operations Balance Sheet ▪ Q2-2022 net
Slide 8: Balanced Returns
Balanced Returns FRU has maintained a balance between dividend growth, portfolio growth, debt reduction 18 Dividend Change 16 Deal Announcement Share Price ($/share) 14 12 10 8 • Dividend increased 6 times from $0.015 to $0.09/share over last 8 6 quarters 4 • Current dividend yield 7.3% 2 • Executed
Slide 9: Sustainable Through All Commodity Cycles
Sustainable Through All Commodity Cycles 120 West Texas intermediate (US$/bbl) 100 Business planning on a long term WTI price of US$75/bbl 80 60 40 Current dividend payable down to ~US$40/bbl WTI 20 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 WTI Crude Oil (US$/bbl) - Price Futures
Slide 10: Near-Term Catalysts: Continued Strategy Execution
Near-Term Catalysts: Continued Strategy Execution We remain committed to executing our North American strategy Clearwater Oil Expansion • Recently executed Clearwater deal; tripling Clearwater land position to over 460,000 acres • Expands asset base into new production and exploration areas of the p
Slide 11: Why Own Freehold
Why Own Freehold Strong Balance Quality Long High Margins Sustainable Sheet, Low Risk Duration Assets, Business Multi-year Upside ▪ High operating margin ▪ Increased dividend as ▪ Q2-2022 net debt to ▪ Positioned in the top tier provides Freehold the part of Q2-2022 results trailing funds from oil p
Slide 12: Investor Relations
Investor Relations tf. 888.257.1873 t. 403.221.0833 w. freeholdroyalties.com freeholdroyalties.com TSX FRU Quality Assets • Sustainable Dividends
Slide 13: Advisories
Advisories Forward-Looking Statements This presentation offers our assessment of Freehold’s future plans and operations as at September 13, 2022 and contains forward-looking information including, without limitation, future dividends per share; the expectation that DUCs will contribute to H2 2022 pr
Slide 14: Advisories continued
Advisories continued Production All production disclosed herein is considered net production for the purposes of National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities, which includes Freehold's working interest (operating and non-operating) share after deduction of royalty
Slide 15: Advisories continued
Advisories continued Non-GAAP Financial Measures Within this presentation, references are made to terms commonly used as key performance indicators in the oil and gas industry. We believe that netback, payout ratio and cash costs are useful supplemental measures for management and investors to analy
Slide 16: Investor Relations
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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