Freehold Royalties Ltd. · TSX:FRU
Freehold Royalties — Schachter Conference (October 2025)
20 slides from Freehold Royalties's conference presentation, October 2025
Slide 1: Freehold Royalties
Freehold Royalties October 2025 UNIQUELY NORTH AMERICAN FREEHOLDROYALTIES.COM | TSX FRU
Slide 2: 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 ~8% company weighted portfolio dividend yield No capital costs Positioned in premier $0.09 per share monthly No oper
Slide 3: Business Overview
DEEP BASIN CLEARWATER Business Overview MANNVILLE HEAVY OIL CARDIUM VIKING SE SASKATCHEWAN ▪ In business since 1996 N. DAKOTA BAKKEN ▪ Evolved to pure play royalty company in 2020 ▪ $2.3 billion in dividends returned to shareholders to date ▪ Financial discipline – 1.1 times net DELAWARE MIDLAND deb
Slide 4: Asset Overview (H1-2025)
DEEP BASIN CLEARWATER Asset Overview (H1-2025) MANNVILLE HEAVY OIL CARDIUM VIKING SE SASKATCHEWAN ▪ 16,416 boe/d production N. DAKOTA BAKKEN - up 10% from 2024 ▪ 10,842 boe/d oil and natural gas liquids - up 14% from 2024 ▪ 66% oil and natural gas liquids - contributes 93% of revenue DELAWARE MIDLAN
Slide 5: Aligned With Quality Payors
Aligned With Quality Payors Top 5 U.S. Payors Top 5 Canadian Payors 5 Source | Company Reports
Slide 6: U.S. Portfolio Overview – Targeted Growth
U.S. Portfolio Overview – Targeted Growth Freehold U.S. Asset Map Summary H1-2025 Oil Growth in Permian (boe/d) (boe/d) Midland 3,750 4,500 Eagle Ford 2,600 Delaware 450 120% growth Other 425 Permian Basin Total ~7,225 3,500 (Midland and Delaware) Production Summary (H1-2025) Permian 2,500 0% 25% 50
Slide 7: 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 8: Growing The Midland Basin
Growing The Midland Basin ▪ Invested ~$400 million in 2024 to strengthen position in Midland basin ▪ Market share has grown significantly – positioned to capture 1 in 3 wells drilled vs 1 in 12 in 2023 ▪ ~32% of drilling inventory is concentrated in undeveloped lands ▪ ExxonMobil is FRU’s largest Mi
Slide 9: ExxonMobil Spotlight – Our Top Permian Operator
ExxonMobil Spotlight – Our Top Permian Operator Freehold Well Positioned on ExxonMobil Acreage FRU/ExxonMobil Overlap Exxon as leading operator in the Permian basin is still in early stages of growth and continued Exxon Land Freehold Land 40% of Midland Outline ultimate recovery improvements ExxonMo
Slide 10: Canadian Portfolio Overview – Well Established
Canadian Portfolio Overview – Well Established Freehold Canadian Asset Map Summary H1-2025 Oil Growth in Canada (boe/d) (boe/d) 2,750 Viking 1,100 16% growth ~80% Oil SE Sask 1,150 SE Saskatchewan Heavy Oil Heavy Oil 1,025 2,500 Clearwater Clearwater 525 Cardium 925 ~80% Gas 2,250 Deep Basin 2,750 M
Slide 11: Multilateral Adoption in Canada
Multilateral Adoption in Canada ▪ New technology continues to unlock substantial Multilateral Spuds on Freehold Lands 120 40% resource that may have been marginal under previous drilling techniques 100 Multilateral Spuds (#) 30% % of Total Spuds (%) ▪ Exposure via the Clearwater and Mannville heavy
Slide 12: North American Portfolio
North American Portfolio 18,000 120 Expanding U.S. production base 16,000 100 • Zero presence in 2020 to 52% of revenue today Production per Million Shares 14,000 • Most valuable barrels - 39% pricing Production (boe/d) 12,000 80 U.S. Production 10,000 premium compared to Canada 60 8,000 Focused on
Slide 13: High Margin Barrels – Best in the Business
High Margin Barrels – Best in the Business 2026E Cashflow per boe1 Freehold Realized Pricing H1-2025 ($/boe) $40 U.S. US +39% premium boe Cdn. Canada $30 ($/boe) $0 $20 $40 $60 $80 $20 2025E US 66% liquids weighting Liquids % 2020 $10 Canada (%) 45% 50% 55% 60% 65% 70% $0 Peers1 FRU KEC PNE SOIL GTE
Slide 14: Lower Risk, High Margin Business
Lower Risk, High Margin Business $0 Capital Costs H1-2025 Revenue $89 Returned To Shareholders • Dividend of $0.09 per share per month $169 million • ~8% yield million $45 Cash Costs1 + Taxes • Taxes, interest on debt, people & office costs million $36 Reinvestment & Debt Repayment • $29 million inv
Slide 15: Capital Allocation Priorities
Capital Allocation Priorities Generating Significant Funds from Operations1,2 Capital Allocation Priorities ($ millions) Base Dividend $300 ▪ Annual dividend of $1.08 per share fully funded at low commodity prices $250 $100 ▪ Target 60% long term payout ratio $64 $200 $25 Strategic Acquisitions ▪ Ge
Slide 16: Freehold Provides Compelling Dividend Income
Freehold Provides Compelling Dividend Income TSX Composite Index - Dividend Yields ▪ 8% dividend yield in an 10% established, high margin business 8% ▪ Payable down to $50/bbl WTI oil price 6% 168 dividend paying companies ▪ Backstopped by multi decade drilling inventory in the TSX Composite Index a
Slide 17: Advisories
Advisories Non-GAAP and Other 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 cash costs and payout ratios, are useful non-GAAP financial measures or non- GAAP ratios for management and
Slide 18: Advisories
Advisories Advisory Relating to Forward-Looking Information This presentation offers and assessment of Freehold's future plans and operations as at October 10, 2025 and contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws legislatio
Slide 19: Advisories
Advisories The statements contained in this presentation are based upon assumptions management believes to be reasonable, including, without limitation: the ongoing operation of the properties in which Freehold holds a royalty interest by the owners or operators of such properties in a manner consis
Slide 20: Advisories
Advisories Advisory Related to Analogous Information Certain information in this presentation may constitute "analogous information" as defined in National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities ("NI 51-101") with respect to the certain drilling results, number of wel
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