Freehold Royalties Ltd. · TSX:FRU
Freehold Royalties — Investor Presentation (September 2025)
19 slides from Freehold Royalties's investor presentation, September 2025
Slide 1: Freehold Royalties
Freehold Royalties September 2025 FREEHOLDROYALTIES.COM | TSX FRU
Slide 2: Freehold Royalties Overview: Investment Highlights
DEEP BASIN CLEARWATER Freehold Royalties Overview Investment Highlights MANNVILLE HEAVY OIL CARDIUM VIKING ▪ Differentiated North American oil and gas portfolio SE SASKATCHEWAN ▪ ~$1 billion invested in last 5 years to diversify portfolio, increasing liquids production by 18% N. DAKOTA BAKKEN ▪ Sust
Slide 3: Freehold's Value Proposition: Track Record of Growth and Sustainable Returns
Freehold’s Value Proposition Track Record of Growth and Sustainable Returns Creating Value Enhancing Value Delivering Value Production per million Funds from operations per Dividends per share shares outstanding share ($ per share) (boe/d/mm shares) ($ per share) 8.1% 110 2020 – 2024 per Share Growt
Slide 4: More Oil, More Cash Flow
More Oil, More Cash Flow Focus On Positioning In High Quality Oil Plays ▪ Growth through US Relative Oil Growth Since Q1-2022 expansion and increased exposure to Clearwater 40% and Mannville heavy oil in Freehold Oil Canada 30% ▪ Freehold outpacing 20% broader western Canadian US Oil oil growth 10%
Slide 5: High Margin Barrels – Best in the Business
Royalty Model, Liquids Weighting and U.S. Pricing Key to Generating Higher Margins High Margin Barrels – Best in the Business 2026E Cashflow per boe 1 Freehold Realized Pricing H1-2025 ($/boe) U.S. US +39% premium $40 boe Cdn. Canada $30 ($/boe) $0 $20 $40 $60 $80 $20 2025E US 66% liquids weighting
Slide 6: Growing The Midland Basin
Midland Is Freehold’s Largest Producing Area Growing The Midland Basin Oil Growth in Permian ▪ Invested ~$400 million in (boe/d) 2024 to strengthen position 4,500 in Midland basin 120% growth Permian Basin ▪ Market share has grown (Midland and Delaware) significantly – positioned to 3,500 capture 1
Slide 7: Permian is a World Class Basin
Freehold Positioned In Leading North American Producing Areas Permian is a World Class Basin Global Oil Production Size and Scale of Permian 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
Slide 8: ExxonMobil Spotlight
Underpinned by Top Operator in Midland Basin ExxonMobil Spotlight Freehold Well Positioned on Exxon Acreage FRU/XOM Overlap Exxon as leading operator in the Permian basin is still in early stages of growth and continued Exxon Land Freehold Land 40% of XOM’s Core ultimate recovery improvements Midlan
Slide 9: U.S. Drilling Activity
Well Performance and Rig Efficiencies Continually Improving U.S. Drilling Activity Conoco & ExxonMobil Rig Activity ExxonMobil Continuing to Outperform (Rig activity as a percent of basin level activity) (Cumulative oil production (Mbbl)) 300 30% Recovery 250 outperformance 25% in 2024 vintage 200 w
Slide 10: Canadian Portfolio Overview
Well Established Basin Position Canadian Portfolio Overview Freehold Canadian asset map Summary Q2-2025 Oil Growth in Canada (boe/d) (boe/d) 2,750 Viking 1,100 16% growth ~80% Oil SE Sask 1,100 SE Saskatchewan Heavy Oil Heavy Oil 1,000 2,500 Clearwater Clearwater 500 Cardium 925 ~80% Gas 2,250 Deep
Slide 11: U.S. Portfolio Overview
Targeted Growth in Premier Basins U.S. Portfolio Overview Freehold US asset map Summary Q2 2025 Oil Growth in Permian (boe/d) (boe/d) 4,500 Midland 3,750 Eagle Ford 2,750 120% growth Delaware 500 Permian Basin (Midland and Other 480 Delaware) 3,500 Total ~7,480 Production Summary 2,500 (Q2 2025) 1,5
Slide 12: Aligned With Quality Payors
60% of Freehold’s Revenue from Investment Grade Operators Aligned With Quality Payors Top 5 U.S. Payors Top 5 Canadian Payors 12 Source | Company Reports
Slide 13: Return Of Capital Priorities
Freehold’s Value Proposition Return Of Capital Priorities Generating Significant Free Funds Flow 1 Return Of Capital Priorities ($ millions) $300 Base Dividend ▪ Annual dividend of $1.08 per share fully funded $250 at low commodity prices $100 $200 $64 ▪ Target 60% long term payout ratio $25 Strateg
Slide 14: Decades of Inventory
Freehold’s Value Proposition 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 undiscounted value undiscounted value
Slide 15: The Freehold Advantage
The Freehold Advantage High Margin Return of Balance Sheet Model Capital Strength Operating Margin of 85% in H1-2025 Consistent, sustainable annual Capacity to fund future growth with no operating or capital cost dividend of $1.08/share through credit facility requirements to run the business suppor
Slide 16: 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 industr y. We believe that net revenue, cash costs, netback, dividend payout ratio, funds from operations per share and return on capital employed are us
Slide 17: 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", t he "Corporation", "us", "we" or "our") collects or may in the future collect royalties and associated revenues. It a
Slide 18: Advisories: Forward-Looking Statements
Advisories future production levels; future exchange rates; future tax rates; future legislation; the cost of developing and expanding our assets; our ability and the ability of our industry partners and royalty payors to obtain equipment in a timely manner to carry out development activities; our a
Slide 19: Advisories: Development Locations
Advisories Advisory relating to Development Locations and Associated Undiscounted Values In this presentation, Freehold has presented an analysis of the Freehold’s prospective drilling locations and associated undiscounted value of its royalty lands. The potential drilling locations and associated u
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