Freehold Royalties Ltd. · TSX:FRU
Freehold Royalties — Q3 2025 Earnings Presentation
45 slides from Freehold Royalties's earnings presentation, Nov 14, 2025
Slide 1: Freehold Royalties
Freehold Royalties November 2025 FREEHOLDROYALTIES.COM | TSX FRU
Slide 2: North American Portfolio Overview
DEEP BASIN CLEARWATER Freehold’s Value Proposition North American Portfolio Overview MANNVILLE HEAVY OIL CARDIUM VIKING SE SASKATCHEWAN ▪ Exposure to major conventional oil and shale basins with more than 380 royalty counterparties N. DAKOTA BAKKEN ▪ ~6.1 million gross acres in Canada, and ~1.2 mill
Slide 3: The Freehold Advantage
The Freehold Advantage Low-Risk Differentiated Consistently Exposure to Oil & North American Strong Capital Gas Industry Portfolio Allocation Pure play royalty Growing oil TSX leading ~7.5% company weighted portfolio dividend yield No capital costs Positioned in premier $0.09 per share monthly No op
Slide 4: Aligned With Quality Payors
Production Underpinned by Top Tier Operators Aligned With Quality Payors Top 5 U.S. Payors Top 5 Canadian Payors 4 Source | Company Reports
Slide 5: North American Portfolio
North American Portfolio 18,000 105 Expanding U.S. production base 16,000 100 • Zero presence in 2020 to 52% of 14,000 revenue today Production per Million Shares 95 U.S. Production • Most valuable barrels - 39% pricing Production (boe/d) 12,000 90 premium compared to Canada 10,000 8,000 85 Focused
Slide 6: Focus On Positioning In High Quality Oil Plays
Focus On Positioning In High Quality Oil Plays More Oil, More Revenue Relative Oil Growth Since Q1-2022 ▪ Growth through U.S. 40% expansion and increased Freehold Oil exposure to Clearwater and Mannville heavy oil in 30% Canada ▪ Freehold outpacing broader US Oil 20% western Canadian oil growth 10%
Slide 7: Improving Well Productivity on Freehold's Acreage
Wells on Freehold’s Canadian and US acreage performing ~25% and ~15% better YoY Improving Well Productivity on Freehold’s Acreage Canadian Well Productivities US Well Productivities (gross boe/d) (gross boe/d) 200 1,400 175 1,200 150 1,000 125 +25% Y/Y Increase 800 +15% Y/Y Increase 100 600 75 400 5
Slide 8: High Margin Barrels – Best in the Business
Freehold’s Value Proposition High Margin Barrels – Best in the Business 2026E cashflow per boe1 Freehold realized pricing Q3-2025 ($/boe) $40 US US +16% premium oil Canada Cdn. $30 $0 $20 $40 $60 $80 $100 ($/bbl) $20 US US +33% premium boe $10 Cdn. Canada $0 $20 $40 $60 ($/boe) $0 Peers1 FRU Expandi
Slide 9: Evolution of a Freehold BOE
Freehold’s 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 60% generating almost 20% more revenue than in 2020 50% ▪ In 2025, Freehold exp
Slide 10: Decades of Inventory
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 locations development locations 20 ~$10.3 billion ~$6.3 billion* 15 undi
Slide 11: Conservatively Balancing Dividends with Leverage
Finance and Dividend Strength Conservatively Balancing Dividends with Leverage ▪ Low cost structure provides robust Dividend Payout Ratio Net debt to last funds from operations to support (dividends paid/funds from operations) twelve months funds dividend from operations 80% 1.5x Conservative levera
Slide 12: Disciplined Investment Framework Drives Profitable Growth
Track Record of Capital Discipline Disciplined Investment Framework Drives Profitable Growth FRU’s Return on Average Capital Employed1 FRU vs. Peers – Return on Average Capital Employed1 30% 30% 25% Average ROACE 12% 20% 20% 10% 15% ROACE 10% 0% 5% -10% 0% ROACE ROACE Avg -20% -5% 2020 2021 2022 202
Slide 13: Returns Continue to Grow as Freehold Grows
Finance and Dividend Strength Returns Continue to Grow as Freehold Grows ▪ Freehold’s dividend has Cumulative dividends paid ($ millions) been a permanent feature through all $3,000 commodity price cycles $2.4 $2,500 billion ▪ Current monthly dividends paid $2,000 since inception dividend of $0.09 p
Slide 14: Capital Allocation Priorities
Significant Shareholder Returns + Debt Repayment, M&A and Buybacks Capital Allocation Priorities Generating Significant Funds from Operations1 Capital Allocation Priorities ($ millions) Base Dividend $300 ▪ Annual dividend of $1.08 per share fully funded at low commodity prices $250 $100 ▪ Target 60
Slide 15: Compelling Dividend Income
Significant Shareholder Returns + Debt Repayment, M&A and Buybacks Compelling Dividend Income TSX Composite Index - Dividend Yields ▪ ~7.5% dividend yield in an 14% established, high margin business 12% ▪ Payable down to $50/bbl 10% WTI oil price ▪ Backstopped by multi 8% decade drilling inventory 1
Slide 16: US Portfolio
US Portfolio FREEHOLDROYALTIES.COM | TSX FRU
Slide 17: US Portfolio Overview
US Portfolio Overview Freehold US asset map Production summary Summary Q3 2025 (Q3 2025) (boe/d) Midland 3,750 Eagle Ford 2,650 Delaware 500 Other 500 0% 25% 50% 75% 100% Total ~7,400 Oil NGLs Gas Revenue summary US M&A lookback (Q3 2025) $975 million deployed over 20 unique transactions has generat
Slide 18: Positioned in the Permian - A World Class Basin
Positioned in the Permian - A World Class Basin Global Oil Production Size and Scale is Unmatched (Million barrels per day (MMbbls/d)) 12 ▪ If the Permian were a country, it would be the 4th largest oil producer and 3rd largest gas 10 producer in the world 8 Key Attributes 6.3 MMbbls/d ▪ Dominant No
Slide 19: FRU's Midland Basin Position
~$392mm of Midland focused acquisitions in 2024 has reshaped FRU’s position FRU’s Midland Basin Position ▪ 2024 acquisitions focused on building out Midland Production (% of Corporate Production) “wall to wall carpeting” in the Midland basin 2025E 2025E Doubled since 2023 ▪ Market share has grown 20
Slide 20: U.S. Investments Providing Significant Returns
US Portfolio Continues to Deliver Solid Returns U.S. Investments Providing Significant Returns Cumulative US royalty revenue Freehold’s US royalty production ($ millions) (boe/d) 7,374 boe/d $600 ~$593 million 8,000 $500 7,000 6,000 5,532 $400 5,102 $300 5,000 4,395 75% 4,000 liquids $200 3,000 2,16
Slide 21: Midland – Staggering Efficiency Gains
Best Place to Find Oil…..Is Where There is Oil…. Midland – Staggering Efficiency Gains ▪ Average lateral feet drilled Midland rig efficiencies per rig has increased by (total lateral length drilled LHS, rig count RHS) over 200% since 2015 and 10,000 200 over 60% since 2019 9,000 180 8,000 160 ▪ Effi
Slide 22: Positioned In Front of the Drill Bit
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 Freehold’s acreage is positioned – represents ~60% of Freehold’s Midland production ▪ Operator comp
Slide 23: Midland Basin Bench Overview
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 being tested with results 8,500 Dean thar are on par with Wolfcamp A
Slide 24: Midland Production Evolution
Resource Expansion Midland Production Evolution Emerging Benches Midland Basin oil production by bench generation ~15,000 bbls/d from 380 wells (mmbbl/d of oil) 2.5 Second Generation Benches ~700,000 bbls/d from ~6,000 wells 2.0 First Generation Benches 1.5 ~1,700,000 bbls/d from ~23,000 wells 1.0 0
Slide 25: Concentrated Footprint in the Core of the Eagle Ford
Resource Expansion Concentrated Footprint in the Core of the Eagle Ford ▪ 20 years1 of prospective development inventory Lower Eagle Ford development since 2010 ▪ Freehold’s inventory locations are split evenly between the Lower Eagle Ford and upper zones ▪ Freehold acreage mostly in core Karnes Cou
Slide 26: Canadian Portfolio
Canadian Portfolio FREEHOLDROYALTIES.COM | TSX FRU
Slide 27: Canadian Portfolio Overview
Canadian Portfolio Overview Freehold Canadian asset map Production summary Summary Q3 2025 (Q3 2025) (boe/d) SE Sask 1,150 ~80% Oil Viking 1,000 0% 25% 50% 75% 100% Heavy Oil 950 Oil NGLs Gas Clearwater 500 Revenue summary Cardium 900 (Q3 2025) ~80% Gas Deep Basin 2,500 Mannville 800 Other 900 0% 25
Slide 28: Multilateral Adoption in Canada
What Freehold is Excited About Multilateral Adoption in Canada ▪ New technology continues to unlock substantial Multilateral Spuds on Freehold Lands 120 40% resource that may have been marginal under previous drilling techniques 100 Multilateral Spuds (#) 30% % of Total Spuds (%) ▪ Exposure via the
Slide 29: Robust Position Across Multiple Exploration Plays
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 Figure Lake 100 Clearwater Wells Greater Jarvie Exploratory Region 0 Developing Regi
Slide 30: Serious Exploration Potential
Clearwater Developments Serious Exploration Potential Freehold Clearwater asset development stage ▪ Continuous evaluation size of circle denotes number of Nipisi of new pools within the 12 development locations ▪ Waterflood expansion greater fairway ▪ Infill drilling Marten ▪ Step-out exploration Hi
Slide 31: The Mannville Cornerstone
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 1,400 Mannville oil volumes 4 up ~15% since 2023 975,000 acres 1,200 3 1,825 heavy 1,000 oil locatio
Slide 32: Southeast Saskatchewan Resurgence
Canadian Resource Expansion Southeast Saskatchewan Resurgence ▪ Significant momentum in activity with >25% YoY increase SE Sask. net drilled wells in spuds on Freehold’s acreage 3.5 3.0 ▪ Dominant position with 525,000 gross acres of royalty 2.5 lands (including 300,000 gross acres of mineral title
Slide 33: Supplemental Slides
Supplemental Slides
Slide 34: Third Quarter 2025 Results
Third Quarter 2025 Results Q3-2025 Q2-2025 Q3-2024 WTI crude oil US$/bbl $64.93 $63.74 $75.09 Production boe/d 16,054 16,584 14,608 Liquids Production bbls/d (% liquids) 10,477 (65%) 11,047 (67%) 9,367 Funds from operations C$ millions $59 $57 $56 Netback C$ per boe $42.82 $42.68 $47.78 Dividend pay
Slide 35: The Royalty Advantage
Minerals and Royalties Represent a Simple Asset Class The Royalty Advantage High Margin Return of Balance Sheet Model Capital Strength Operating Margin of 87% YTD 2025 Consistent, sustainable dividend Capacity to fund future growth with no operating or capital cost with >$37/share or ~$2.4 billion t
Slide 36: Q3-2025 Royalty Drilling
Q3-2025 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 WELLS NET WELLS SE Sask 26 0.6 Midland 151 0.3 Mannville Heavy Oil 17 1.4 Delaware
Slide 37: Deep Knowledge of our Land Base Drives Value
Strong Leasing Activity in Canada and the US Deep Knowledge of our Land Base Drives Value Number of leases issued Canadian production Canadian leasing activity breakdown per year from leasing activity since 2020 since 2020 (Leasing & (boe/d) Privates Juniors Small Caps Mid Caps Large Caps (Leases is
Slide 38: Net Debt to Funds From Operations
Strong Balance Sheet 5.0x 4.5x ▪ Freehold’s net debt to trailing funds from operations is ~1.1x 4.0x Net Debt to Funds From Operations ▪ At current commodity price levels 3.5x and dividend level, Freehold has capacity to pay down debt or pursue 3.0x acquisitions with free funds from 2.5x operations
Slide 39: Key Item Sensitivities & Guidance
2025E Range of 15,800 – 17,000 boe/d – Higher Liquids Drives FFO Improvement Key Item Sensitivities & Guidance $0.02/sh 2025E Range +/- US$1/bbl WTI $3.6mm 15,800 – 17,000 boe/d $0.02/sh +/- $0.01 FX $3.4mm ~10% YoY Production Growth $0.01/sh 2% increase in liquids weighting increases +/- 100 BOE/d
Slide 40: Advisories
Advisories FREEHOLDROYALTIES.COM | TSX FRU
Slide 41: Advisories
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, funds from operations per share and return on capital employed are use
Slide 42: Advisories
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 future collect royalties and associated revenues. It al
Slide 43: Advisories
Advisories our expectation that the trend in increased liquids weighting will continue as we see growth in oil weighted plays like Midland, Mannville Stack, Clearwater and Southeast Saskatchewan – in addition to growth through value enhancing acquisitions; our expectation there will be increased lic
Slide 44: Advisories
Advisories Advisory Relating to Presentation of Oil and Natural Gas Reserves, Revenue and Production Information This presentation contains information relating to crude oil, natural gas and NGL reserves and other information prepared in accordance with the requirements of Canadian securities laws i
Slide 45: Advisories
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 oil ("boe"). We use the industry-accepted standard conversion of s