Freehold Royalties (FRU) Investor Day 2024 summary

Strategic direction and asset positioning

• Focus on building a North American royalty portfolio with high-quality, oil-weighted assets in top basins and premium operators, emphasizing income growth and durable returns.

• Expanded U.S. presence with 1.1 million acres in the Permian and Eagle Ford, and 430,000 acres in the Clearwater play in Canada, with Canadian portfolio totaling 6.1 million gross acres.

• Shifted portfolio to long-duration, high-margin royalty assets, exiting working interests and increasing oil weighting from 47% to 51%, with 70% of future Canadian inventory oil-weighted.

• Strategic alignment with leading operators (Exxon, ConocoPhillips, Diamondback) ensures consistent development and value creation.

• US and Canadian portfolios together provide over 36,000 gross prospective development locations and decades of inventory.

Asset base, inventory, and value creation

• Asset book underpinned by $1.3 billion in PDP reserves, with 36,500 gross prospective locations and $14–15 billion in undiscounted value.

• 30–40 years of drilling inventory across Canada and the U.S., with future optionality from undeveloped acreage and emerging benches.

• Canadian portfolio concentrated in four oil-weighted plays, representing over 50% of inventory and value; U.S. value split between Midland (50%) and Eagle Ford (40%).

• U.S. net locations are more valuable due to higher productivity, reserve recovery, and premium pricing, with a 43% pricing premium due to light oil and Gulf Coast access.

• Portfolio includes exposure to emerging resources such as lithium and helium, providing future optionality.

Operational performance and growth drivers

• U.S. production is 62% oil-weighted, driving over 90% of revenue; Canadian oil weighting is 45% but also delivers 80%+ of revenue.

• Achieved 4% CAGR in oil production (2019–2024), 15% per-share production growth, and 8% CAGR in FFO per share.

• Audit, compliance, and optimization initiatives have added ~1,300 boe/d since 2021 and generated $56 million in value.

• Canadian growth driven by adoption of open hole multilaterals, revitalizing legacy assets and unlocking new zones.

• Enhanced oil recovery (EOR) initiatives underway, with 20–30% of volumes in key plays under waterflood, supporting future upside.