Freehold Royalties Ltd. · TSX:FRU
Freehold Royalties — Q2 2026 Earnings Presentation
28 slides from Freehold Royalties's earnings presentation, Jul 30, 2026
Slide 1: Corporate Presentation
UNIQUELY NORTH AMERICAN Corporate Presentation July 2026 FREEHOLDROYALTIES.COM | TSX FRU
Slide 2: Corporate Overview
DEEP BASIN CLEARWATER Corporate Overview MANNVILLE HEAVY OIL CARDIUM VIKING SE SASKATCHEWAN Market Overview Ticker Symbol TSX: FRU N. DAKOTA BAKKEN Shares Outstanding 164 million Market Capitalization $2.8 billion Annual Dividend (Yield1) $1.08/share (6.3%) Operational & Financial Overview 2026 Prod
Slide 3: 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 ~6% company weighted portfolio dividend yield1 No capital costs Positioned in premier $0.09 per share monthly No ope
Slide 4: Strategic Priorities
Strategic Priorities Developing our Asset Base ▪ Drive development through lease and royalty optimization ▪ Acquire royalty assets with long economic life and attractive risk-adjusted returns ▪ Generate GORRs to deliver capital-efficient exposure to resource development Maintaining Financial Flexibi
Slide 5: Freehold Royalties – 30 Years of Growth & Returns
Freehold Royalties – 30 Years of Growth & Returns Total Production (boe/d) (boe/d) ▪ Consistent track record of production 18,000 growth and portfolio optimization 16,000 4% annual production growth since 1996 ▪ Positioned to continue to build the 14,000 business through a combination of 12,000 orga
Slide 6: Aligned With Quality Payors
Aligned With Quality Payors Over 50% of Freehold’s Revenue Comes from Large, High Quality Operators in North America ▪ 32% of revenue from global supermajors Integrated & 32% ▪ Production less impacted by oil prices, Global Scale adding portfolio resilience across cycles ▪ 8% of revenue from senior
Slide 7: High Margin Barrels – Best in the Business
High Margin Barrels – Best in the Business 2026E Cash Flow per boe1 Freehold Realized Pricing H1-2026 ($/boe) $50 US US +14% premium $40 oil Canada Cdn. $30 $80 $100 ($/bbl) $20 US US +23% premium boe $10 Cdn. Canada $0 $20 $40 $60 $80 $0 ($/boe) Peers1 FRU TOU SOIL PNE AAV SDE KEL VET CNQ LTC BTE S
Slide 8: Royalties Provide Lower Risk, High Margin Business
Royalties Provide Lower Risk, High Margin Business $0 Capital Costs H1-2026 Revenue $89 Returned To Shareholders Dividend of $0.09 per share per month $178 million million $43 Cash Costs1,2 + Taxes • Taxes, interest on debt, people & office costs million $46 Reinvestment & Debt Repayment • $29 milli
Slide 9: Capital Allocation Priorities
Capital Allocation Priorities Generating Significant Funds from Operations1 Capital Allocation Priorities ($ millions) $400 Base Dividend ▪ Support a sustainable dividend $350 ▪ Target 60% long-term payout ratio $300 Strategic Acquisitions $250 $160 $90 $125 ▪ Pursue growth opportunities that suppor
Slide 10: Freehold Provides Compelling Dividend Income
Freehold Provides Compelling Dividend Income TSX Composite Index - Dividend Yields 10% ▪ ~6% dividend yield in an established, high margin business 8% ▪ Payable down to US$50/bbl WTI oil price 6% 168 dividend paying companies ▪ Backstopped by multi in the TSX Composite Index decade drilling inventor
Slide 11: Industry Innovation Driving Value
Industry Innovation Driving Value Relentless industry innovation continues to deepen our portfolio Secondary Recovery Projects ▪ Water & polymer flooding deployment across Clearwater & Mannville heavy oil ▪ Unconventional light oil secondary recovery trials in the Permian & Eagle Ford Exploration &
Slide 12: Q2-2026 Results Overview
DEEP BASIN CLEARWATER Updated Q2-2026 Results Overview MANNVILLE HEAVY OIL CARDIUM VIKING 15,622 boe/d total production SE SASKATCHEWAN ▪ 10,277 boe/d of crude oil & NGL production in the quarter ▪ 46% of production & 49% of revenue from U.S. portfolio N. DAKOTA BAKKEN 66% crude oil & NGL weighting
Slide 13: Canadian Portfolio
Canadian Portfolio
Slide 14: Canadian Portfolio Overview – Well Established
Canadian Portfolio Overview – Well Established Freehold Canadian Asset Map Summary H1-2026 Heavy Oil Growth in Oil Weighted Plays (boe/d) Canada Gas Weighted Plays (boe/d) SE Sask 1,200 1,600 ~80% Oil Mannville H. Oil 1,000 21% growth Clearwater Mannville Heavy Oil Viking 1,000 Clearwater Cardium 1,
Slide 15: Leveraging Canadian Operator Diversity to Drive Returns
Leveraging Canadian Operator Diversity to Drive Returns Top Canadian Payors In-flight Strategies in Canada to Drive Value ▪ Continued execution of asset optimization and audit program ▪ Leverage operator innovation and Inv ics technological advancements in improving well es bl tm productivities and
Slide 16: Growth Led by Heavy Oil
Growth Led by Heavy Oil Sustainable Growth Supported by Enhanced Oil Recovery Established waterflood in West Cyclic gas injection and waterflood Nipisi conversion in (net heavy oil production, boe/d) Figure Lake 1,900 1,700 1,500 1,300 Waterflood Development pad conversion pilot in using line drive
Slide 17: Emerging Opportunities in the Clearwater
Emerging Opportunities in the Clearwater Freehold volumes under waterflood now at 25% and have more than doubled in last two years Bluesky Testing in Seal Wabiskaw in Pelican Lake 1 3 Headwater drilled a Bluesky test Headwater drilled a multilateral well (04/13-06-083-15W5) in well (04/04-19-079-22W
Slide 18: U.S. Portfolio
U.S. Portfolio
Slide 19: U.S. Portfolio Overview – Targeted Growth
U.S. Portfolio Overview – Targeted Growth Bakken Freehold U.S. Asset Map Summary H1-2026 Oil Growth in Permian Oil Weighted Plays (boe/d) (boe/d) Gas Weighted Plays Midland 3,900 3,000 Eagle Ford 1,900 228% growth Marcellus Delaware 500 since 2022 Other 700 Permian Basin Denver-Julesburg Total ~7,00
Slide 20: Exposure to Leading U.S. Operators Drives Durable Returns
Exposure to Leading U.S. Operators Drives Durable Returns Top U.S. Payors In-flight Strategies in U.S. to Unlock Value ▪ Execute on Ground Game Strategy by acquiring mineral title acreage of cs undeveloped lands in the core of the Publi at es In Permian basin ve iv Pr stm ▪ Increase exposure under i
Slide 21: 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) 16.0 ▪ If the Permian were a country, it would be the 14.0 4th largest oil producer and 3rd largest natural gas producer in the world 12.0 Key Attributes 10.0 6.6 MMb
Slide 22: Growing the Midland Basin
Growing the Midland Basin ▪ ExxonMobil is Freehold’s largest Midland producer; applying unmatched technical capabilities and experience to develop our largest asset ▪ ~32% of drilling inventory is concentrated in undeveloped lands ▪ Advancements in technologies are driving higher oil recoveries and
Slide 23: Improved Recovery Techniques in the Permian are a Catalyst in U.S. Portfolio
Improved Recovery Techniques in the Permian are a Catalyst in U.S. Portfolio Lightweight Proppants Surfactants Enhanced Oil Recovery Fracture Oil CO2 ExxonMobil’s lightweight Chevron has found chemical Occidental’s unconventional proppant has improved surfactant treatments that CO2 EOR pilots have r
Slide 24: 2026 Sensitivities and Guidance Range
2026 Sensitivities and Guidance Range Sensitivities of Annualized Funds from Operations $0.02/sh US$1/bbl WTI $3.7mm 2026E Range 0.01 FX $0.02/sh $3.0mm 15,500 – 16,300 boe/d $0.01/sh 100 boe/d US Prod $2.0mm Pricing Assumptions $0.01/sh 0.5% Liquids Weighting $1.8mm • US$65.00/bbl WTI • C$2.00/mcf
Slide 25: 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 26: Advisories
Advisories Advisory Relating to Forward-Looking Information This presentation offers an assessment of Freehold's future plans and operations as at June 30, 2026 and contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws legislations.
Slide 27: Advisories
Advisories The statements contained in this presentation are based upon assumptions management believes to be reasonable, including, without limitation: the operation of the properties in which Freehold holds a royalty interest by the owners or operators of such properties in a manner consistent wit
Slide 28: 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