Q1 2026 Freehold Royalties Ltd Earnings Call Transcript
Key Points
- Freehold Royalties Ltd (FRHLF) achieved a production of 15,533 BUE a day with a liquids weighting of 65%, contributing 90% of total revenue.
- The company generated $59 million of funds from operations, or $0.36 per share, at an oil price of $72 a barrel WTI in the first quarter.
- Freehold Royalties Ltd (FRHLF) paid $44 million in dividends to shareholders, reflecting a strong commitment to returning value.
- The company invested $19 million in oil-focused mineral title lands in the core of the Permian Basin, adding over 200 drilling locations to its inventory.
- US royalty volumes realized a 31% pricing premium compared to Canadian production, driven by premium pricing and higher liquid weighting in US assets.
- Q1 production was impacted by lower drilling activities in late 2025 due to oil prices below $60 a barrel WTI.
- A winter storm in the Southern US resulted in approximately 300 barrels a day of production downtime in January.
- US drilling activity was down considerably year on year, reflecting trailing $60 WTI from the previous quarter.
- Net debt increased slightly due to investments in mineral title lands, indicating a higher financial leverage.
- Permitting and drilling activity in the US has not seen a significant uptick yet, with operators cautious about capital deployment strategies.
Good day, and thank you for standing by. Welcome to the Freehold Royalties first-quarter 2026 webcast.(Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to. The conference over to your first speaker today, David Spyker, President and CEO. Please go ahead.
Yes, good morning, everyone. Thank you for joining us today. On the call with me is Paul Slack, our Interim CFO; and Todd McBride, our Manager of Investor Relations. For those that don't know Paul, he's been with our organization for the past six years as our controller and has been in the industry for 30 years.
So before we get started, please be advised that certain statements on this call are considered as forward-looking information, and we caution the listener to review the advisory on forward-looking statements in the news release and MD&A found on our website.
So in the first quarter of this year, we achieved production of
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