Freehold Royalties Ltd. · TSX:FRU
Freehold Royalties — Merger or Acquisition (September 2021)
13 slides from Freehold Royalties's merger presentation, September 2021
Slide 1: U.S. Royalty Acquisition
U.S. Royalty Acquisition September 2021 freeholdroyalties.com TSX FRU Quality Assets • Sustainable Dividends
Slide 2: Disclaimer
Disclaimer General A preliminary short form prospectus containing important information relating to the subscription receipts (the "Subscription Receipts") of Freehold Royalties Ltd. ("Freehold") described in this document has not yet been filed with the securities regulatory authorities in each of
Slide 3: The Freehold Advantage
The Freehold Advantage Proven Production Platform A North American Royalty Company 15,000 Growth driven by Freehold Canadian Assets Royalty Production (boe/d) 14,000 organic drilling and 2022E production ~9,000 boe/d 13,000 accretive acquisitions 12,000 11,000 Freehold U.S. Assets 10,000 2022E produ
Slide 4: U.S. Acquisition Overview
U.S. Acquisition Overview Adds meaningful “core of the core” position in the Eagle Ford basin in Texas ▪ Active development in resilient “core of the core” 22% 9% 9% position with a well capitalized investment grade 2,500 producer, actively developing the Acquired Assets 51% $46mm boe/d 27% ▪ Concen
Slide 5: Strong Counterparties and ESG Accretive
Strong Counterparties and ESG Accretive Enhances Freehold’s payor portfolio and ESG profile Highly Complementary to Broader Portfolio of High Quality Names ▪ 2021 U.S. acquisitions have significantly improved Freehold’s credit profile – More than 70%(1) pro forma U.S. revenue coming from Investment
Slide 6: Portfolio Enhancing U.S. Acquisition
Portfolio Enhancing U.S. Acquisition Making Freehold a better company ▪ Positions Freehold as a leading North American royalty company. Pro forma, U.S. assets Balanced North are expected to contribute ~35% of production in 2022 American Portfolio ▪ Continues to enhance the sustainability and resilie
Slide 7: Pro Forma U.S. Portfolio Overview
Pro Forma U.S. Portfolio Overview ~785,000 gross acres (34,860 net) of mineral title and ORRI’s ( 1 ) ▪ Seven value enhancing U.S. acquisitions in 2021 Assets in 12 – Positioned in the best basins across North America basins and eight states ▪ U.S. 2021E production of 2,100 boe/d (66% liquids) proje
Slide 8: Enhancing Pro Forma Freehold
Enhancing Pro Forma Freehold Positioned in plays that attract capital across all commodity price environments ▪ Completing the U.S. royalty transaction is accretive to Freehold on a number of key metrics Units Acquired FRU % Change Assets Pro Forma – ~14% accretive on a funds flow per share (H1-2021
Slide 9: Pro Forma Corporate Profile
Pro Forma Corporate Profile Delivering shareholder value from a well positioned royalty portfolio 2022E production from Oil & NGL (1) 60% H2 2021E production (1) 11,750-12,250 boe/d 2022E production (1) 13,500-14,500 boe/d Annualized dividend (2) ($0.050 per month) $0.60/share Dividend yield (2)(3)
Slide 10: Why Own Freehold
Why Own Freehold A larger more sustainable North American income vehicle Strong Balance Quality Long High Margins Sustainable Sheet, Low Risk Duration Assets, Business Multi-year Upside ▪ Greater than 97% ▪ Target 60%-80% of funds ▪ Q2-2021 net debt to ▪ Positioned in the top tier operating margin (
Slide 11: Advisories
Advisories Forward-Looking Statements This presentation offers our assessment of Freehold’s future plans and operations as at September 8, 2021 and contains forward-looking information including, without limitation, forward-looking information with regards to the expected terms and conditions of the
Slide 12: 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 six
Slide 13: Investor Relations
Investor Relations tf. 888.257.1873 t. 403.221.0833 w. freeholdroyalties.com freeholdroyalties.com TSX FRU Quality Assets • Sustainable Dividends
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