Q2 2025 Freehold Royalties Ltd Earnings Call Transcript

Jul 31, 2025 / 01:00 PM GMT

Release Date Price: $9.64 (-2.03%)

Transcript

Key Points

Positve

Freehold Royalties Ltd (FRHLF) achieved a 9% production growth from the second quarter of last year, reflecting strategic acquisitions that expanded their US positioning.
The company reported strong liquids production in Q2, with a liquid weighting of 67% and significant contributions from high productivity wells.
Funds from operations were $57 million in the quarter, marking a 40% increase in FFO per share compared to a similar WTI oil benchmark price four years ago.
Freehold Royalties Ltd (FRHLF) maintained a strong balance sheet with net debt of $271 million, representing a 1.1 times trailing net debt to funds from operations.
The company paid $44 million in dividends to shareholders and invested $12 million in acquiring undeveloped mineral title lands in the US, indicating a focus on growth and shareholder returns.

Negative

Benchmark oil pricing was 11% lower than the previous quarter, dropping almost $8 a barrel to approximately $64 US a barrel, impacting revenue.
There was a slowdown in drilling rig activity in both the Permian and Eagleford basins, with both down about 10% year-to-date compared to last year.
The Canadian Cardium play requires stronger gas pricing to be economically viable, leading to reduced activity levels.
The Viking play is not expected to represent growth in the portfolio, with a flat production profile anticipated going forward.
The company is not seeing the same level of M&A opportunities as in prior years, which could limit growth through acquisitions.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

FRU.TO - Freehold Royalties Ltd
Q2 2025 Freehold Royalties Ltd Earnings Call
Jul 31, 2025 / 01:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good morning ladies and gentlemen, and welcome to the Q2 results conference call. I would now like to turn the meeting over to Mr. David Spiker. Please go ahead.

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Unidentified_2 [2]
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Good morning everyone and thank you for joining us today.

On the call with me from Freehold are Rob King, our COO, Shayna Morihara, our CFO, and Todd McBride, our manager of IR.

Shana joined her team as CFO in June of this year, and we look forward to working together and having the opportunity to introduce her to you, our shareholders over the coming

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