Freehold Royalties Ltd. · TSX:FRU
Freehold Royalties — Investor Day (December 2024)
83 slides from Freehold Royalties's investor day presentation, Dec 3, 2024
Slide 1: Freehold Investor Day
Freehold Investor Day December 3, 2024 FREEHOLDROYALTIES.COM | TSX FRU
Slide 2: Today’s Agenda
Today’s Agenda 1 Opening Remarks David Spyker, President and Chief Executive Officer 2 Asset Book Summary Rob King, Chief Operating Officer 3 US Portfolio David Spyker 4 Canadian Portfolio David Spyker 5 Financial and Dividend Strength David Hendry, VP Finance & Chief Financial Officer 6 Closing Rem
Slide 3: Income Growth and Durable Returns, Our Plan
Freehold’s Strategy Income Growth and Durable Returns, Our Plan Creating Value Enhancing Value Delivering Value ▪ Increase exposure to the ▪ Maximize royalty value ▪ Target a dividend best plays, concentrated through a comprehensive payout of ~60% that is under the best operators audit and complianc
Slide 4: Income Growth and Durable Returns, Looking Back
Freehold’s Strategy Income Growth and Durable Returns, Looking Back Creating Value Enhancing Value Delivering Value ▪ Successful expansion into ▪ Rationalized portfolio to ▪ 19% average return on the US, with 1.1 million solely focus on high-margin capital deployed in the gross drilling acres focuse
Slide 5: Income Growth and Durable Returns, in Action
Freehold’s Strategy Income Growth and Durable Returns, in Action Creating Value Enhancing Value Delivering Value Value added through US Audit & optimization value Last twelve months returns acquisition strategy added since 2021 to shareholders ($ millions) ($ millions) ($ millions) $900 $40 $180 $27
Slide 6: Income Growth and Durable Returns, the Results
Freehold’s Strategy Income Growth and Durable Returns, the Results Creating Value Enhancing Value Delivering Value Production per million Funds from operations, and Last 5 years total shares outstanding dividends per share shareholder return (boe/d/mm shares) ($ per share) 15% boe 100 $2.00 S&P 17.1
Slide 7: North American Portfolio Overview
DEEP BASIN CLEARWATER Freehold’s Value Proposition North American Portfolio Overview MANNVILLE HEAVY OIL CARDIUM VIKING SE SASKATCHEWAN ▪ Exposure to major conventional and shale basins with >360 royalty counterparties N. DAKOTA BAKKEN ▪ ~6.1 million gross acres in Canada, and ~1.1 million gross dri
Slide 8: Resilient Cashflow Margins
Freehold’s Value Proposition Resilient Cashflow Margins 2025E cashflow per boe1 Freehold realized pricing 2024 YTD ($/boe) ($/boe) $50 US US +19% premium oil $40 Canada Cdn. $70 $80 $90 $100 $110 $30 US US +43% premium $20 boe Cdn. Canada $10 $0 $20 $40 $60 $80 Expanding into the US has delivered a
Slide 9: Aligned with Quality Operators
Freehold’s Value Proposition Aligned with Quality Operators Freehold payor qualities Key Freehold payors Greater than $10Bn > $10 billion market Mktcap Cap Greater than > 100 MBOE/d 100 mboe/d Production Less than < 1X1x Netnet Debt to EBITDA debt to EBITDA Investment Investment Grade grade rating P
Slide 10: The US Resource Advantage
What Freehold is Excited About The US Resource Advantage 2,100 7,000 ▪ The Permian is best in class in terms of thickness, 2,200 production and resource potential 7,500 2,300 2,400 8,000 ▪ Freehold has positioned into the thickest reservoir 2,500 pay, with scalable mineral title ownership 8,500 2,60
Slide 11: Multilateral Adoption in Canada
What Freehold is Excited About Multilateral Adoption in Canada ▪ New technology continues to Clearwater net royalty Mannville fairway net production heavy oil wells spud unlock substantial resource that (boe/d) may have been marginal under 500 3 previous drilling techniques 400 ▪ Exposure via the Cl
Slide 12: Success Expanding Development Benches
What Freehold is Excited About Success Expanding Development Benches ▪ New benches continue to add Midland Basin oil growth since 2020 operator inventory, and deliver value 500% to Freehold that we didn’t fully Emerging Benches +10,000 bbls/d underwrite during acquisitions 400% ▪ Operators continue
Slide 13: A New Era of Shale Development
What Freehold is Excited About A New Era of Shale Development 100 billion reasons to ▪ US$100 billion in recent M&A transactions have love the Permian consolidated the Midland Basin under well capitalized and globally relevant operators ▪ Quality counterparties provide a certainty of development int
Slide 14: Decades of Inventory
What Freehold is Excited About Decades of Inventory Asset Book highlights Development inventory by region (years) 40 Canada United States 35 ~40 years ~18,000 ~18,500 30 25 ~30 years development locations development locations 20 ~$10.3 billion ~$5.3 billion 15 undiscounted value undiscounted value
Slide 15: Asset Book Summary
Asset Book Summary FREEHOLDROYALTIES.COM | TSX FRU
Slide 16: Appraising the Value of our Inventory
Asset Book Summary Appraising the Value of our Inventory Future Optionality Expansion of geologic zones, improved drilling and completion technologies, new/expansion of secondary and tertiary recovery schemes, new pool and play discoveries, discovery of other minerals/metals Defined Future Developme
Slide 17: Methodology and Assumptions
Asset Book Summary Methodology and Assumptions Constant pricing assumptions WTI Crude: US$75.00/bbl AECO Gas: $2.00/mcf NYMEX Gas: US$3.00/mmbtu WCS Differential: US$15.00/bbl Productive Wells Edm Light Differential: US$5.00/bbl Prospective Fairway Freehold’s Royalty Lands USD/CAD FX: 0.75 1 2 3 Pro
Slide 18: Sharing a Deeper Understanding of our Portfolio
Asset Book Summary Sharing a Deeper Understanding of our Portfolio Purpose Key to Unlocking Value ▪ The Asset Book validates ▪ Supports our teams to better execute our acquisition and the multi-decade value optimization efforts proposition that Freehold’s royalty assets ▪ Drives continued in-depth u
Slide 19: Freehold’s Canadian Portfolio
Asset Book Summary Freehold’s Canadian Portfolio Net Total Gross 2023 ▪ ~6.1 million acres, spanning Undiscounted Prospective Industry Western Canada, concentrated in Value ($ billions) Inventory Spuds liquids-rich plays SE Saskatchewan $3.2 3,775 990 Mannville Heavy $0.9 1,825 405 ▪ ~70% of future
Slide 20: Freehold’s US Portfolio
Asset Book Summary Freehold’s US Portfolio Net Total Gross 2023 ▪ ~1.1 million gross drilling acres in Undiscounted Prospective Industry oil weighted basins Value ($ billions) Inventory Spuds Midland $2.5 12,425 2,850 ▪ 0.5% average royalty interest, with Eagle Ford $2.0 3,650 1,700 stacked pay and
Slide 21: Robust Inventory Position Backstops Portfolio Duration
Asset Book Summary Robust Inventory Position Backstops Portfolio Duration Canadian inventory life US inventory life (years) (years) Canada Total ~40 years1 US Total ~30 years1 Heavy Oil Delaware SE Sask. Midland Deep Basin Eagle Ford Clearwater Other Viking Cardium denotes oil weighted play Bakken d
Slide 22: Canada vs. US Observations
Asset Book Summary Canada vs. US Observations Gross prospective locations Net royalty locations Prospective development value 18,000 (gross) 910 (net) ~$10.2 billion 18,500 (gross) 90 (net) ~$5.3 billion ▪ Despite larger land base ▪ Freehold’s Canadian ▪ Canadian net locations in Canada, similar gro
Slide 23: US Portfolio
US Portfolio FREEHOLDROYALTIES.COM | TSX FRU
Slide 24: Freehold’s US Portfolio Overview
Freehold’s US Portfolio Overview Freehold US asset map Production summary Basin summary (YTD 2024) (boe/d) Eagle Ford 2,400 Midland 2,050 Delaware 370 Other 600 0% 25% 50% 75% 100% Total 5,420 Oil NGLs Gas Revenue summary US M&A lookback (YTD 2024) $685 million deployed between 20 unique transaction
Slide 25: US Deals Allowed Freehold to Improve our Business
US Deals Allowed Freehold to Improve our Business Creating Value Enhancing Value Delivering Value Freehold M&A cashflow 2024 YTD realized pricing Last twelve months return multiple comparison ($/boe) on capital employed1 10x $80 16% 8x $60 12% 6x $40 8% 4x $20 4% 2x - $0 0% USCategory Transactions 1
Slide 26: Drilling Activity Led by Top Operators
Drilling Activity Led by Top Operators Net activity wells on Freehold’s US lands Freehold’s top US drillers (2023-2024 YTD) 1.6 1.4 60 other operators 1.2 25% 1.0 42% 0.8 7% 0.6 0.4 8% 8% 10% 0.2 - 1Q21 1Q22 1Q23 1Q24 Permits Spuds TIL (turn-in-line/on prod) 26 Source | Company Reports
Slide 27: Positioned In Front of the Drill Bit
Why Freehold Likes the US Positioned In Front of the Drill Bit Midland Basin activity heatmap1 ▪ 60% of basin activity is concentrated in the Midland, Martin and Howard counties, where the majority of Freehold’s acreage is positioned ▪ 2023 and 2024 YTD operator completions have been primarily focus
Slide 28: A&D Returns Substantially Above Cost of Capital
Why Freehold Likes the US A&D Returns Substantially Above Cost of Capital Net US royalty production Cumulative US royalty revenue (boe/d) ($ millions) 6,000 5,420 $409 $400 BOE/d million 4,000 YTD 2024 $300 $200 2,000 $100 0 $0 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 Since 2020,
Slide 29: Our Midland Basin Operators are Focused on Excellence
Why Freehold Likes the US Our Midland Basin Operators are Focused on Excellence For us to be able to We’ve built the logistic systems, The teams are say that combined, we the pipeline systems [and] we believe laser-focused on capital have about 12 years of there is a value opportunity [in] efficienc
Slide 30: Unlike Canada, it’s All For Sale
Why Freehold Likes the US Unlike Canada, it’s All For Sale Canadian unconventional mineral rights Texas mineral rights Midland Montney Delaware Eagle Ford Duvernay Private Mineral Rights Government Owned Land 50 miles 50 miles 30 Source | EIA, Enverus, Government of Alberta Open Data
Slide 31: Competes with Canada’s Best
Why Freehold Likes the US Competes with Canada’s Best Average cumulative oil from wells on production since 2020 ▪ Freehold’s Midland position (mbbls of oil/condensate) stacks up against any 250 repeatable resource play in Freehold US 200-220 mbbls Western Canada 200 Montney 180 mbbls ▪ Aerial exten
Slide 32: Midland Basin Bench Overview
Resource Expansion Midland Basin Bench Overview GR RES Gross Net Total Future Royalty Clearfork Prospective Undiscounted Volumes (mboe) Upper 7,000 Inventory Value ($ billions) Spraberry Middle Clearfork Spraberry 7,500 zero value underwritten Upper Spraberry Jo Mill Middle Spraberry 1,200 3,300 225
Slide 33: 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 34: Midland Basin Development Progress to Date
Resource Expansion Midland Basin Development Progress to Date Our existing cashflow engine, resilient Quantifiable immediate upside that Freehold’s long-dated call on resource, down to low US$40s WTI pricing and continues to see success, providing with infrastructure in place and underneath well cap
Slide 35: What We’re Excited About Around Freehold Lands
Resource Expansion What We’re Excited About Around Freehold Lands Emerging Bench 2nd Generation Bench 1 4 Strong Recent Upper Highpeak Kallus 34-39 A Unit Spraberry results from Freehold Midland Basin map M 2H well targeting Middle Diamondback with oil IP90 4 Spraberry with “max oil rates averaging
Slide 36: Resource Expansion Pushing Play Boundaries
Resource Expansion Resource Expansion Pushing Play Boundaries 1st Generation Bench 1st Generation Bench 1 4 Diamondback step-outs SM Energy 6 well Dean bench targeting the Lower Freehold Midland Basin map delineation, oil IP90 rates Spraberry, Jo Mill and 2 1 averaging >850 bbls/d Wolfcamp A, oil IP
Slide 37: Resource Expansion Seeing Success in the Dean
Resource Expansion Resource Expansion Seeing Success in the Dean 2nd Generation Bench 2nd Generation Bench 1 4 Hibernia 2 well Dean project, Midland Basin Dean well map OXY 4 well Dean project, average 245,000 bbls of oil averaging 275,000 bbls of oil produced in the first year produced in the first
Slide 38: Midland Production Evolution
Resource Expansion Midland Production Evolution Emerging Benches Midland Basin oil production by bench generation ~10,000 bbls/d from 380 wells (mmbbl/d of oil) 2.5 Second Generation Benches 2.0 ~600,000 bbls/d from ~5,000 wells 1.5 First Generation Benches ~1,600,000 bbls/d from ~20,000 wells 1.0 0
Slide 39: A Decade of Consistency
Resource Expansion A Decade of Consistency ▪ Midland lateral length has increased 60% Midland average cumulative oil from wells on production since 2015 over the last decade, now averaging more (mbbls of oil per 1,000ft) than 2 miles; with well productivity 25 consistently increasing on an absolute
Slide 40: The DSU Development Advantage
Why Freehold Likes the US The DSU Development Advantage Diamondback “Butte Unit” DSU “Butte Unit” pad detail oil production by vintage (mbbls/d) 10 8 Frac shut-ins 6 average of ~4,000bbls/d over ~8 years 4 2 0 '16 '17 '18 '19 '20 '21 '22 '23 '24 1 mile 2016-2017 2018-2019 2020-2022 Whitespace repres
Slide 41: The DSU Development Advantage
Why Freehold Likes the US The DSU Development Advantage Diamondback “Butte Unit” DSU greater Diamondback “Butte Unit” cumulative Midland Basin map DSU production through time 16 15,035,700 boe 12 11,177,800 barrels of oil over ~8 years 8 4 Comparable Kakwa Montney Freehold “White Space” 5 miles 0 '1
Slide 42: Liquid A&D Market Allows Freehold to Build Scale
Why Freehold Likes the US Liquid A&D Market Allows Freehold to Build Scale ▪ Freehold has tripled its Freehold Midland Basin Midland Basin royalty industry activity capture rate market share market share of activity, production, and acreage in 20% Freehold (~0.3%) the Midland Basin over the last 3 y
Slide 43: 2nd Generation and Emerging Benches Compete
Resource Expansion 2nd Generation and Emerging Benches Compete ▪ 2nd Generation and Emerging benches Midland Basin cumulative production by bench from wells on production since 2023 are delivering results that are in-line (mbbls of oil normalized to 10,000ft) with the 1st Generation benches 200 ▪ Op
Slide 44: Additional Benches, What the Operators Have to Say
Resource Expansion Additional Benches, What the Operators Have to Say What’s unique is that, we’re adding a lot of Probably, the most exciting [play] we Wolfcamp D, a lot of Upper Spraberry, more Jo Mill. have currently is the Middle Spraberry We’re adding more zones to our Midland development that'
Slide 45: High Quality Payors
Why Freehold Likes the US High Quality Payors Freehold’s key Midland Basin royalty payors Key payor map FRU Land Investment Grade Public Private 10 miles 45 Source | Bloomberg, Enverus
Slide 46: Freehold’s Eagle Ford Inventory
Resource Expansion Freehold’s Eagle Ford Inventory GR (API) 0 150 10,900 Inventory Future Royalty Undiscounted Locations Volumes (mboe) Value ($millions) 11,000 Austin Chalk 1,150 9,100 $585 11,100 11,200 Upper Eagle Ford 550 4,350 $280 Lower Eagle Ford 1,950 12,100 $785 11,300 feet 3,650 25,550 $1,
Slide 47: Concentrated Footprint in the Core
Resource Expansion Concentrated Footprint in the Core ▪ 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 County Basin-wide ho
Slide 48: Additional Eagle Ford Benches
Resource Expansion Additional Eagle Ford Benches ▪ 54% of Freehold’s Karnes County average Upper Eagle Ford and Austin Chalk cumulative oil by bench development since 2010 royalty lands are (mbbls of oil per 1,000ft) in Karnes County 50 which has seen strong delineation 40 and development activity i
Slide 49: Freehold is in the Heart of the Oil Fairway
Resource Expansion Freehold is in the Heart of the Oil Fairway Eagle Ford oil window productivity map Eagle Ford average cumulative oil by county (mbbls of oil/condensate normalized to 10,000ft) 350 300 Karnes (~54% of net acres) 250 Atascosa 200 (~20% of net acres) 150 10 miles 100 50 Oil IP365 Rat
Slide 50: Returning to the Most Resource Rich Parts of the Play
Resource Expansion Returning to the Most Resource Rich Parts of the Play ▪ Refracs and infills target economic Eagle Ford proppant intensity vs. productivity resource “left behind” during early 3,000 300 days of play development 2,500 250 ▪ Clear step-change in well refrac candidates 2,000 200 produ
Slide 51: Eagle Ford Refrac Success
Resource Expansion Eagle Ford Refrac Success ▪ Redevelopment locations compete for Karnes County Lower Eagle Ford refrac cumulative oil (mbbls of oil) capital within operators’ portfolios 500 ▪ Any improvement to recoveries is a +170 mbbl net value positive for Freehold 400 to date over primary decl
Slide 52: Refracs, What the Operators Have to Say
Resource Expansion Refracs, What the Operators Have to Say We’ve been implementing We are pretty excited They're pretty exciting. new refrac techniques across our about what we're seeing We're seeing rates go from 15 existing Eagle Ford position that’s specifically in South Texas to 20 barrels a day
Slide 53: Freehold’s US Assets; Oil Weighted and in the Right Areas
Freehold’s US Assets; Oil Weighted and in the Right Areas Creating Value Enhancing Value Delivering Value ▪ $685 million invested, with ▪ Light oil weighting, and ▪ Our US approach has more than $400 million of premium Gulf Coast pricing provided shareholders with cumulative revenue delivers superio
Slide 54: Canadian Portfolio
Canadian Portfolio FREEHOLDROYALTIES.COM | TSX FRU
Slide 55: Freehold’s Canadian Portfolio Overview
Freehold’s Canadian Portfolio Overview Freehold Canadian asset map Production summary Basin summary (YTD 2024) (boe/d) Viking 1,300 SE Sask. 1,100 0% 25% 50% 75% 100% Cardium 1,100 Oil NGLs Gas Mannville 900 Revenue summary Heavy Oil 830 (YTD 2024) Clearwater 450 Other 3,800 Total 9,480 0% 25% 50% 7
Slide 56: Robust Position Across Multiple Exploration Plays
Clearwater Developments Robust Position Across Multiple Exploration Plays Net Clearwater royalty production Basin summary (boe/d) Peace River 500 Peavine 400 Nipisi 300 Marten Hills 200 West Marten & McLeod Lake 100 Figure Lake Greater Jarvie Clearwater Wells 0 Sub-Area Outlines 2020 2021 2022 2023
Slide 57: Serious Exploration Potential
Clearwater Developments Serious Exploration Potential Freehold Clearwater asset development stage ▪ Continuous size of circle denotes number of Nipisi evaluation of new 12 development locations ▪ Waterflood expansion ▪ Infill drilling Marten pools within the ▪ Step-out exploration Hills greater fair
Slide 58: Drilling Efficiencies Lead to Resilient Inventory, Growth
Clearwater and Mannville Heavy Oil Developments Drilling Efficiencies Lead to Resilient Inventory, Growth ▪ Improved drilling economics Multilaterals Fishbone Sweeper translate directly into improved inventory quality, duration, and better exploration returns across Freehold’s vast land portfolio ▪
Slide 59: Bespoke Heavy Oil Drilling
Canadian Resource Expansion Bespoke Heavy Oil Drilling ▪ Revitalization of Mannville stack revitalized multilateral development established production fairways through application of bespoke drilling and completions strategies unlocks value for Freehold with zero capital requirements Channel sweeper
Slide 60: Southeast Saskatchewan Resurgence
Canadian Resource Expansion Southeast Saskatchewan Resurgence ▪ Dominant position with 525,000 gross acres of royalty SE Sask. net drilled wells lands (including 300,000 gross acres of mineral title land) 3.0 2.5 ▪ Operators have continued to realize improved economics by drilling multilateral wells
Slide 61: Multilaterals, Not a One Trick Pony
Canadian Resource Expansion Multilaterals, Not a One Trick Pony SE Sask. Spuds by type Viewfield Bakken average SE Sask. Viewfield Bakken cumulative oil production development map 100% by well type since 2020 (mbbls) 80% 35 30 60% 25 +50% 20 40% 46% 15 20% 10 20% 5 0% 0 Multilateral Wells Single Leg
Slide 62: Multilaterals, What the Operators Have to Say
Canadian Resource Expansion Multilaterals, What the Operators Have to Say We've been implementing Having stacked multi-zone [our multilateral a new well design we call the development over much of our drilling has] reduced fan design broadly across the land base enhances our capital drilling costs a
Slide 63: Viking Light Oil
Canadian Cashflow Machine Viking Light Oil ▪ The Viking has been a cornerstone Freehold Viking Dodsland asset map of Freehold’s portfolio for over a decade, we expanded our presence in 2015, at the time believing there was ~15 years of drilling inventory ▪ Great reservoirs always surprise to the ups
Slide 64: The Mannville Cornerstone
Canadian Cashflow Machine The Mannville Cornerstone Mannville oil royalty Mannville fairway net Mannville Mannville land map volumes heavy oil wells spud ownership (bbls/d) stats 1,200 3 975,000 acres 1,100 1,825 heavy 2 oil locations 1,000 46% 3,575 other Mannville 1 locations 900 20% Increasing 80
Slide 65: Deep Knowledge of our Land Base Drives Value
Portfolio Optimization Deep Knowledge of our Land Base Drives Value Number of leases Production from leasing Leasing activity breakdown since 2020 issued per year activity since 2020 (boe/d) Privates Juniors Small Caps Mid Caps Large Caps 140 400 0% 25% 50% 75% 100% 120 100 300 80 200 60 40 100 20 0
Slide 66: Deep Knowledge of our Land Base Drives Value
Portfolio Optimization Deep Knowledge of our Land Base Drives Value ▪ Capitalize on our extensive land base Optimization, Audit & Compliance revenue since 2021 ($ millions) with royalty optimization 2021 2022 2023 20241 Total ▪ Maximize Freehold’s royalty interests Optimization $1.2 $10.8 $7.9 $5.0
Slide 67: Balance of Minerals
Portfolio Optimization Balance of Minerals ▪ Freehold’s 1.1 million Potash (430,000 acres1) Other mineral acreage gross acres of mineral Lithium (400,000 acres1) in Western Canada Helium (580,000 acres1) ownership provides revenue from potash royalties and future option value from emerging resource
Slide 68: Key Canadian Portfolio Themes
Key Canadian Portfolio Themes Long Life, and Improving Gas Option Value Multilateral Capture ▪ Since 1996, Freehold has ▪ Cashflow upside should ▪ Evolving drilling built a strong cashflow Cdn. gas prices recover technologies in our key base in Canada areas continue to backstop ▪ Strong gas prices a
Slide 69: Finance and Dividend Strength
Finance and Dividend Strength FREEHOLDROYALTIES.COM | TSX FRU
Slide 70: Returns Focused Strategy, Growing Over Time
Returns Focused Strategy, Growing Over Time Over the last 5 years, Freehold has delivered significant returns to our shareholders while growing the business and strengthening our balance sheet $1.4 billion $1.1 billion >$0.6 billion Funds from Dividends Paid Revenues Operations to Shareholders +10%
Slide 71: Conservatively Balancing Dividends with Leverage
Finance and Dividend Strength Conservatively Balancing Dividends with Leverage ▪ Low cost structure provides Annual dividends paid Net debt to last robust funds from operations to ($ millions) twelve months funds from operations support dividend $180 1.5x Conservative leverage ▪ Freehold continues t
Slide 72: Invested Capital and Dividends Drive Returns
Finance and Dividend Strength Invested Capital and Dividends Drive Returns Return on capital employed1 Dividend payout ratio (dividends paid/funds from operations) 20% 80% 15% 10% 60% 5% 0% 40% -5% -10% 20% -15% 2020 2021 2022 2023 YTD 2024 0% Freehold Royalty Peer Average 2020 2021 2022 2023 2024 Y
Slide 73: Returns Continue to Grow as Freehold Grows
Finance and Dividend Strength Returns Continue to Grow as Freehold Grows ▪ Freehold’s dividend has Cumulative dividends paid ($ millions) been a permanent feature through all $2,500 commodity price cycles $2.26 billion $2,000 dividends ▪ Current monthly paid since inception dividend of 9 cents per $
Slide 74: Dividend Resiliency
Finance and Dividend Strength Dividend Resiliency 2025E WTI breakeven pricing1 (US$/bbl WTI) Blue bars denote peers with a $80 dividend yield above 5% $70 $60 $50 $40 $30 $20 $10 $0 FRU Peers1 Peer 1 FRU 9 2 3 4 5 6 8 11 13 15 10 12 14 16 17 18 19 20 21 22 23 24 25 26 27 Freehold’s dividend is susta
Slide 75: Closing Remarks and Questions
Closing Remarks and Questions FREEHOLDROYALTIES.COM | TSX FRU
Slide 76: The Freehold Story
DEEP BASIN CLEARWATER The Freehold Story CARDIUM VIKING ▪ Royalty ownership provides significant exposure to SE SASKATCHEWAN high margin assets with zero maintenance capital N. DAKOTA BAKKEN ▪ Positioned at the low-end of the North American upstream supply cost curve, alongside operators focused on
Slide 77: Advisories
Advisories FREEHOLDROYALTIES.COM | TSX FRU
Slide 78: 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 79: 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 80: Advisories
Advisories the future drilling locations and future development upside identified on our royalty lands; our expectation to achieve total payback on pre-2024 acquisitions in 2026; that our existing cashflow engine, resilient down to low US$40's WTI pricing and underneath well capitalized operators; t
Slide 81: Advisories
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 82: 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 83: 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