Freehold Royalties Ltd. · TSX:FRU
Freehold Royalties — Investor Presentation (September 2024)
18 slides from Freehold Royalties's investor presentation, September 2024
Slide 1: Freehold Royalties Ltd.
Freehold Royalties Ltd. September 2024 FREEHOLDROYALTIES.COM | TSX FRU
Slide 2: Corporate Overview
Corporate Overview A Uniquely North American energy royalty company Corporate Snapshot Uniquely North American Growth & Leverage to Oil Market Capitalization ($billion) $2.0 Production Per Share Growth 105 CLEARWATER Prod per mm shares 100 Shares Outstanding (million) 150.7 DEEP BASIN MANNVILLE 95 N
Slide 3: Why Own Freehold
Why Own Freehold A Uniquely North American energy royalty company Dividend Focused 8% Dividend Yield Coverage down to ~US$50/bbl WTI Target a dividend payout ratio of ~60% Liquids Weighted 9,300 bbls/d Liquids 50% oil production per share growth since Q1-2021 93% of Revenue Free option on natural ga
Slide 4: Diversified North American Portfolio
Diversified North American Portfolio COMMODITY PRODUCTION VOLUMES CLEARWATER Diversified land base provides DEEP 36% BASIN MANNVILLE NATURAL 64% Oil & NGLs free option value on continued technological advancement, CARDIUM CONV GAS GAS VIKING new discoveries, and increasing ~7% ~93% development of em
Slide 5: US Assets 36% Production 45% Revenue
US Assets H1 2024 % Liquids Strong Economics, Growth Production (boe/d) Eagle Ford 2,400 82% NORTH DAKOTA BAKKEN Oil weighted, high netback Midland 2,050 83% 36% Production Delaware North Dakota 380 250 75% 76% 45% Revenue Higher Realized Pricing Attractive Growth Profile MIDLAND ~40% production Oil
Slide 6: Midland (Permian)
Midland (Permian) Aligned with growth focused operators ▪ ~1 in 5 wells drilled in Midland on Freehold’s land (1) ▪ 40% production per share growth since Q1-2023 ▪ Development inventory concentrated under growth focused operators ▪ Exxon and Diamondback represent ~36% and ~21%, respectively, of Free
Slide 7: Midland (Permian)
Midland (Permian) Significant resource thru development of Primary, Emerging and Upside benches Horizontal % Developed Wells in Basin FRU Lands Zone Wells Per DSU 1 mile x 2 mile unit Growth Engine for Freehold 217 0% Clearfork 55 0% Upper Spraberry Primary Benches – Lots of running room Middle ▪ ~3
Slide 8: US Resource Advantage – Free "In the Money" Options
US Resource Advantage – Free “In the Money” Options Technical Advancements Improving Productivity and Upside ▪ Permian operators have been Emerging Targets in Midland Growing at Impressive Rate moving towards developing 300% the entire resource stack Oil Volume Growth Since Jan 2020 (bbl/d) 250% Eme
Slide 9: Eagle Ford
Eagle Ford Concentrated under Conoco (Marathon) and EOG; 1 in 8 wells in Eagle Ford drilled on FRU land Freehold Eagle Ford Development Inventory Other 26% 49% 25% Conoco acquires Marathon for US$23 billion “We see over a decade of runway in the Eagle Ford.”(1) 6 12 “…adding roughly 1,000 new primar
Slide 10: US Asset Performance – Exceeding Expectations
US Asset Performance – Exceeding Expectations US investments forecast payout in 2026; recoverable reserves exceeding expectations Cumulative Revenue C$ million $1,400 ▪ ~$565 million invested to YE-2023 $1,200 Plus $112 million in January 2024 $1,000 ▪ Financial performance exceeding expectations $8
Slide 11: Canadian Assets 64% Production 55% Revenue
Canadian Assets Stable Production Base Deep Basin Liquids rich gas development Clearwater 9% H1 2024/2023 production growth Expect this growth rate to continue 64% Production Mannville Heavy Oil 9% H1 2024/2023 production growth 55% Revenue Cardium Growth expected to continue Viking 8% H1 2024/2023
Slide 12: Clearwater
Clearwater ~450 boe/d, ~400,000 gross acres 500 Clearwater Production (boe/d) 400 300 200 100 0 2020 2021 2022 2023 H1-2024 Expectations For Continued Growth ▪ ~20% of production under waterflood in Nipisi ▪ Core area development in Figure Lake & Nipisi ▪ Tamarack deployed fan drilling technology at
Slide 13: Mannville Stack
Mannville Stack ~1.4 million gross acres of Mannville royalty ownership Heavy Oil – Multilateral Drilling ▪ 16% production per share growth since Q2-2023 ▪ Active leasing and legacy land base resurgence Edmonton` ▪ 1,348 bbls/d of total heavy oil production in Q2-2024 Lloydminster (includes Clearwat
Slide 14: Why Freehold?
Why Freehold? A Low-Risk Investment Vehicle Mirroring North American Development North American Oil Proven Asset Base Weighted Business Model Oil & Liquids ▪ Free cash flow business Canada US Canada US % of Geography ▪ Hedge against inflation Gross Acres (millions) ~6.2 ~1.1 Revenue 92% 98% ▪ High m
Slide 15: Advisories
Advisories Forward-Looking Statements This presentation offers our assessment of Freehold’s future plans and operations as at September 9, 2024 and contains forward-looking information or statements (collectively, "forward-looking statements" or "forward- looking information") within the meaning of
Slide 16: Advisories continued
Advisories continued Third-Party Information Certain market, third party and industry data contained in this presentation is based upon information from government or other industry publications and reports or based on estimates derived from such publications and reports. Government and industry pub
Slide 17: Advisories continued
Advisories continued Drilling Locations This Presentation discloses anticipated future drilling or development locations associated with Freehold assets. Certain locations have been identified as booked locations as proved and/or probable reserves have been attributed to such locations in the Trimbl
Slide 18: Investor Presentation
INVESTOR PRESENTATION Main (403) 221-0833 Fax (403) 221-0888 FREEHOLDROYALTIES.COM
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