Freehold Royalties Ltd. · TSX:FRU
Freehold Royalties — Shareholder Meeting (May 2025)
21 slides from Freehold Royalties's shareholder meeting presentation, May 14, 2025
Slide 1: Annual General Meeting and Corporate Presentation, May 14, 2025
Freehold Royalties Annual General Meeting and Corporate Presentation, May 14, 2025 FREEHOLDROYALTIES.COM | TSX FRU
Slide 2: Five Year Review: Enhancing Value to Shareholders
Five Year Review Enhancing Value to Shareholders Year Action Result 2019 Exit working interest business Focus on high margin barrels 2020 Initiate US expansion Improved scalability of the business Superior return on capital 2021-22 Focus on opportunistic US growth employed (ROCE) Increased exposure
Slide 3: Annual General Meeting, May 14, 2025
Freehold Royalties Annual General Meeting, May 14, 2025 FREEHOLDROYALTIES.COM | TSX FRU
Slide 4: Freehold Royalties
Freehold Royalties Corporate Presentation, May 14, 2025 FREEHOLDROYALTIES.COM | TSX FRU
Slide 5: 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 360 royalty counterparties N. DAKOTA BAKKEN ▪ ~6.1 million gross acres in Canada, and ~1.2 mill
Slide 6: Positioning In Hydrocarbon Rich Basins
Multi-Basin Exposure Driving Value Positioning In Hydrocarbon Rich Basins Global Gas Production Global Oil Production Permian 26 Bcf/d Permian 6+ MMbbls/d 5.8 18.4 Exposure To World Class Assets – Across North America 6
Slide 7: High Margin Barrels – Best in the Business
Multi-Basin Exposure Driving Value High Margin Barrels – Best in the Business 2025E cashflow per boe 1 Freehold realized pricing Q1-2025 (C$/boe) $40 US US +21% premium oil Canada Cdn $30 $0 $20 $40 $60 $80 $100 $120 (C$/bbl) $20 US US +47% premium boe $10 Cdn Canada $0 $20 $40 $60 $80 (C$/boe) $0 P
Slide 8: US Investments Providing Significant Returns
Multi-Basin Exposure Driving Value US Investments Providing Significant Returns Cumulative US royalty revenue Freehold’s US royalty production Corporate ROCE1 (C$ millions) (boe/d) $600 6,970 ~C$510 million 7,000 30% $500 6,000 5,532 20% 78% liquids 5,102 $400 5,000 4,395 10% $300 4,000 0% $200 3,00
Slide 9: Midland Basin Positioning
C$392 million invested in 2024 has reshaped Freehold’s position Midland Basin Positioning ▪ 2024 acquisitions focused on building out “wall Martin to wall carpeting” in the Midland basin ▪ Market share has grown significantly – positioned to capture 1 in 3 wells vs 1 in 12 in 2023 Midland ▪ 1/3 of d
Slide 10: Aligned with High Quality Operators
Strong Balance Sheets, Long Term Thinkers Aligned with High Quality Operators Freehold payor qualities Our Top 10 Royalty Payors Greater than >C$10 $10 Bn billion market cap Mkt Cap Greater than > 100 MBOE/d 100 Production mboe/d Investment Investment Grade grade rating Private Private 0% 10% 20% 30
Slide 11: Dividend Resiliency
Finance and Dividend Strength Dividend Resiliency 2025E WTI breakeven pricing1 (US$/bbl WTI) Blue bars denote peers with a $80 Freehold currently provides dividend yield above 5% a 9% dividend yield $70 $60 $50 WTI $50 $40 $30 $20 $10 $0 FRU Peers 1 FRU 12 13 16 19 20 23 10 11 14 15 17 18 21 22 24 2
Slide 12: Canadian Portfolio Overview
Canadian Portfolio Overview Freehold Canadian asset map Production summary Summary Q1 2025 (Q1 2025) (boe/d) Viking 1,100 SE Sask 1,150 Heavy Oil 1,020 Clearwater 530 0% 25% 50% 75% 100% Cardium 900 Oil NGLs Gas Deep Basin 2,775 Mannville/Other 1,800 Revenue summary Total ~9,280 (Q1 2025) Canadian I
Slide 13: US Portfolio Overview
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 Inventory (Q1 2025) ~24,0001 Development locations ~$6.3 billion1 Undiscounted value
Slide 14: Why Own Freehold
A Uniquely North American Energy Royalty Company Why Own Freehold Dividend Focused 9.0% Dividend Yield Coverage down to ~US$50/bbl WTI Target a dividend payout ratio of ~60% Liquids Weighted ~11,000 bbls/d 16% CAGR on liquids production since 2020 Liquids1 ~88% of Revenue Free option on natural gas
Slide 15: Freehold Royalties
Freehold Royalties May 14, 2025 FREEHOLDROYALTIES.COM | TSX FRU
Slide 16: Advisories
Advisories FREEHOLDROYALTIES.COM | TSX FRU
Slide 17: Advisories: Non-GAAP Measures
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, and return on capital employed are useful non-GAAP financial measures
Slide 18: Advisories: Third Party Information
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 19: Advisories: Forward-Looking Statements
Advisories Forward-looking statements involve known and un known risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Freehold to be materially different from any future results, performance or achievements expressed or implied by the forward-loo
Slide 20: Advisory Relating to Presentation of Oil and Natural Gas Reserves
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 in accordance with the requirements of Canadian securities laws in
Slide 21: Advisory Related to Analogous Information
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 well production from other producers with operations that are