Freehold Royalties (FRU) investor relations material

Executive summary

• Q2 2025 production reached a record 16,584 boe/d, up 9% year-over-year, with 67% liquids weighting and strong U.S. and Canadian contributions.

• U.S. expansion, especially in the Permian and Eagle Ford, drove oil growth, improved realized pricing, and delivered high productivity wells.

• Canadian oil plays, including Mannville, Clearwater, and SE Saskatchewan, grew 10% year-over-year, supported by multilateral drilling and technology adoption.

• The North American royalty portfolio covers 6.1 million gross acres in Canada and 1.2 million in the U.S., with exposure to major oil and shale basins.

• Revenue reached $78 million in Q2 2025, with $44 million in dividends paid and $12 million invested in undeveloped U.S. mineral title lands.

Financial highlights

• Funds from operations were $57 million in Q2 2025 ($0.35/share), up 40% from Q1 2021 at similar oil prices, but down from Q1 2025.

• Netback was $42.68/boe in Q2 2025, with cash costs at $7.38/boe.

• Dividend payout ratio was 78% in Q2 2025, with a monthly dividend of $0.09/share.

• Net debt stood at $271 million, with a net debt to trailing funds from operations ratio of 1.1x.

• Return on average capital employed averaged 12% since 2020, outperforming peers.

Outlook and guidance

• 2025 production guidance is 15,800–17,000 boe/d, representing 10% year-over-year growth and a 2% increase in liquids weighting.

• Management expects continued focus on oil-weighted plays in Canada and high-productivity drilling in U.S. basins.

• Each 2% increase in liquids weighting is expected to add 3% to FFO per share.

• Dividend is sustainable at oil and gas prices materially below current levels, with breakeven WTI at $50/bbl.

• Anticipates continued leasing and drilling activity on undeveloped U.S. acreage, with expected returns in the high teens to low 20% range.