Freehold Royalties (FRU) Corporate presentation summary

Business model and portfolio

• Operates as a pure-play royalty company with no capital, operating, or abandonment costs, providing low-risk exposure to oil and gas markets.

• Maintains a diversified North American portfolio, with a growing oil-weighted focus and assets in premier basins.

• U.S. portfolio now contributes 51% of revenue, up from zero in 2020, with a 31% pricing premium over Canadian barrels.

• Over 30 years of development inventory in the U.S. and 40 years in Canada, supporting long-term growth.

• Revenue is largely derived from high-quality, investment-grade operators, including global supermajors and well-capitalized specialists.

Financial performance and capital allocation

• Q1 2026 production reached 15,533 boe/d, with 65% liquids weighting and $59 million in funds from operations.

• Achieved a 16% increase in FFO/share over Q4 2025, driven by higher realized prices.

• Maintains a strong balance sheet with $275 million net debt and a 1.2x net debt to trailing FFO ratio.

• Returned $80 million to shareholders in 2025 through dividends, with a 75% payout ratio and a $0.09/share monthly dividend.

• Capital allocation prioritizes base dividends, strategic acquisitions, debt repayment, and opportunistic share buybacks.

Operational highlights and innovation

• U.S. production base expanded rapidly, especially in the Permian and Midland basins, with 220% oil growth in Permian since 2022.

• ExxonMobil is the largest Midland producer, with ongoing technology advancements improving oil recoveries.

• Organic acquisitions have added ~1,200 gross future drilling locations in the Permian.

• Canadian portfolio features heavy oil growth, enhanced oil recovery, and multilateral drilling success.

• Industry innovation includes AI-assisted optimization, advanced recovery techniques, and novel technology trials across both U.S. and Canadian assets.