Freehold Royalties (FRU) investor relations material

Executive summary

• Q2 2026 production averaged 15,622 BOE per day with 66% liquids weighting, reflecting a focus on crude oil and NGLs and 49% of revenue from the U.S. portfolio.

• Portfolio remains geographically diversified across North America, with 54% of production from Canada and 46% from the U.S.

• Maintained a sustainable monthly dividend of $0.09/share, yielding 6.3% annually, supported by a resilient business model.

• Over 30 years of development inventory in the U.S. and 40 years in Canada, with ongoing innovation in recovery techniques.

• Net income for Q2-2026 was $57.0 million ($0.35/share), a significant rise from $6.2 million in Q2-2025.

Financial highlights

• Q2 royalty and other revenue reached $100.3 million, up 29% from Q1 2026, driven by stronger realized commodity prices.

• Funds from operations totaled $78 million ($0.47 per share), up 32% from Q1 2026.

• Net debt declined by $24 million to $251 million; net debt to trailing funds from operations improved to 1.0x.

• Returned $44 million to shareholders via dividends, representing a 57% payout ratio.

• Cash costs per BOE decreased to $6.50 from $7.02 in Q1 and $7.38 in Q2 2025.

Outlook and guidance

• 2026 production guidance maintained at 15,500 to 16,300 BOE per day, with 66% liquids weighting.

• Drilling activity and well completions expected to drive production growth in late 2026 and into 2027.

• Anticipates over 4 Bcf/d of new gas egress capacity in the Permian by Q1 2027 to support further production growth.

• Dividend is sustainable down to US$50/bbl WTI, with a targeted long-term payout ratio of 60%.

• Maintains a strong balance sheet and expects to continue supporting dividends and selective growth opportunities.