Freehold Royalties Ltd. · TSX:FRU
Freehold Royalties — Merger or Acquisition (July 2022)
10 slides from Freehold Royalties's merger presentation, Jul 7, 2022
Slide 1: U.S. Royalty Transaction Overview
U.S. Royalty Transaction Overview freeholdroyalties.com TSX FRU Quality Assets • Sustainable Dividends
Slide 2: Investment Highlights
Investment Highlights A lower risk income vehicle 8.0% dividend yield Torque to commodity sustainable income to shareholders with dividend coverage down to $40WTI ESG friendly investment High margin asset class rated top 1% among global oil producers $109/bbl realized oil price, $3.70/boe cash costs
Slide 3: U.S. Royalty Expansion
U.S. Royalty Expansion Adding core positions in the Permian and Eagle Ford ▪ Freehold entered into Definitive Agreements to Howard Eagle Ford Diversified County Midland further add core positions in the Midland Permian Midland (Howard County) and Eagle Ford for CAD$155 million Purchase price (CAD$,
Slide 4: Transaction Highlights
Transaction Highlights ▪ Collectively, Freehold is acquiring 1,100 boe/d and $31 million of forecast 2023 production and funds from operations respectively for total consideration of CAD$174 million. U.S. Expansion ▪ Increases Q4-2022 revenue from 35% to over 40% in the U.S. Continues ▪ Adds 19% to
Slide 5: Howard County Midland Acquisition Overview
Howard County Midland Acquisition Overview ▪ Howard County Midland Asset is accretive to Freehold’s existing growth profile, realized pricing and payor quality ▪ Total consideration CAD$123 million – Q4-2022 forecast production of 550 boe/d (95% liquids), forecast to grow to 750 boe/d (95% liquids)
Slide 6: Eagle Ford Acquisition Overview
Eagle Ford Acquisition Overview ▪ Low volatility Eagle Ford asset with attractive balance of current production and future development upside ▪ Total consideration CAD$32 million Acquisition DSU – 2023 average production forecast 250 boe/d FRU DSU Active Rig – Increases Freehold Eagle Ford productio
Slide 7: Diversified Midland Assets Overview
Diversified Midland Assets Overview ▪ Tuck-in asset to previous Midland transactions underpinned by focused Midland operators ▪ Total consideration CAD$19 million – 2023 average production forecast at 130 boe/d – Numerous undeveloped and underdeveloped sections within the core of this asset are expe
Slide 8: Strategic Rationale
Strategic Rationale North American portfolio continues to expand Freehold Corporate Production ▪ Completing the latest U.S. Royalty transaction is accretive to Freehold on a number of key metrics 16 14 – 10% accretive on funds flow per share (2023E) Production (mboe/d) 12 – 7% accretive on a product
Slide 9: Advisories
Advisories Forward-Looking Statements This presentation offers our assessment of Freehold’s future plans and operations as at July 7th, 2022 and contains forward-looking information including, without limitation, forward-looking information with regards to the expected terms and conditions of the U.
Slide 10: Advisories continued
Advisories continued Production All production disclosed herein is considered net production for the purposes of National Instrument 51-101-Standards of Disclosure for Oil and Gas Activities, which includes Freehold’s working interest (operating and non-operating) share after deduction of royalty ob
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