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15-05-2025
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Freehold Royalties Ltd (FRHLF) Q1 2025 Earnings Call Highlights: Record Production and ...
Production: 16,248 BOE/day in Q1, highest since inception in 1996. Funds from Operations: $16 million in the quarter, or $0.42 per share. Realized Pricing: $49.25 BOE in Canada, $72.64 BOE in the US. Leasing Revenue: $3.9 million from new leases in Canada and the US. Drilling Activity: Up 12% from Q4 2024 levels, with increased activity in US land base. Heavy Oil Production: Up 19% from Q1 a year ago. Gas Production: 25 million cubic feet/day or 4,100 BOE/day of Canadian gas exposure. Dividend Payout Ratio: Targeting 60% payout ratio. Dividend Coverage: Sustainable at approximately $50/barrel WTI. Warning! GuruFocus has detected 7 Warning Signs with FER. Release Date: May 14, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Freehold Royalties Ltd (FRHLF) terminated its management agreement with Rife, simplifying governance and streamlining decision-making. The company achieved its highest production level since inception, with 16,248 BOE per day in Q1. Freehold Royalties Ltd (FRHLF) introduced a Normal Course Issuer Bid (NCIB) to provide flexibility in capital returns through share buybacks. The company reported a significant premium on US production pricing compared to Canada, driven by higher oil weighting and lower transportation costs. Freehold Royalties Ltd (FRHLF) experienced robust leasing activity in Q1, setting a new high watermark for US mineral title lands leasing revenue. There was a softening in wells drilled in Canada, particularly in the Viking area, compared to Q1 2024. The company anticipates episodic lease bonus revenue, indicating potential variability in future leasing income. Market volatility, influenced by external factors like geopolitical events, could impact future financial performance. The company is exposed to commodity price fluctuations, with a breakeven oil price of $50 per barrel WTI needed to cover costs and dividends. Despite strong licensing, there is uncertainty regarding operator activity levels post-breakup season in Canada. Q: Is this the first time that Freehold will have a Normal Course Issuer Bid (NCIB), and how are you planning to use it to optimize shareholder value? A: David Hendry, CFO, explained that this is indeed the first time Freehold has implemented an NCIB. It is currently in the process of being approved and is not yet active. The NCIB will provide optionality to realize shareholder value, and it will be used tactically when it makes sense, serving as an additional tool to benefit shareholders. Q: Are the lease bonus results in the US repeatable, and how should we think about these cohorts? A: Robert King, COO, noted that in Q1, Freehold signed 11 leases on US assets, primarily in the Permian, with significant revenue from a private E&P focusing on the Barnett formation. While the $3.3 million revenue is significant, future results may be episodic. However, with 80% of their US land being mineral rights, there is substantial opportunity for growth. Q: How should we think about the cost structure following the termination of the management agreement with Rife? A: David Spyker, CEO, stated that the cost impact is not material. The cost structure remains largely unchanged, with a minor one-time cost associated with separating infrastructure. The termination allows Freehold to have a dedicated staff focused solely on the company, which is seen as a positive step forward. Q: How should we think about the current wells being drilled in the Permian going forward? A: Robert King, COO, explained that the bulk of drilling in the Permian is still in the middle eight benches of their Midland assets. There is increased drilling in the deeper Barnett formation, which has shown significant success. Freehold's targeted acquisition strategy in the Permian has resulted in a land base where one-third has not yet had horizontal drilling, indicating significant future potential. Q: How much exposure does Freehold have to multilateral drilling in the Western Canada inventory Basin? A: David Spyker, CEO, highlighted that Freehold has significant exposure to multilateral drilling in heavy oil areas like Clearwater and Mannville Stack, as well as in Southeast Saskatchewan. The introduction of a royalty incentive for multilateral drilling in Saskatchewan has led to increased activity, with nearly 40% of wells drilled on Freehold's lands being multilaterals in 2024, almost doubling from previous years. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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15-05-2025
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Freehold Royalties Announces Results from Annual Meeting of Shareholders
CALGARY, Alberta, May 14, 2025 (GLOBE NEWSWIRE) -- Freehold Royalties Ltd. (Freehold or the Company) (TSX:FRU) announced today that all nominees listed in its notice of meeting and information circular dated March 26, 2025 were elected as directors of Freehold at its Annual Meeting of Shareholders (the Meeting) held today. In addition, all other matters considered at the Meeting were approved by Freehold's shareholders. A replay of the Meeting is available on our website at the below link, under the 2025 Annual Meeting of Shareholders: The results of the votes on the director nominees are as follows: Nominee Votes For (%) Votes Withheld (%) Gary R. Bugeaud 98.02 1.98 Maureen E. Howe 98.56 1.44 J. Douglas Kay 76.51 23.49 Kimberley E. Lynch Proctor 97.18 2.82 Valerie A. Mitchell 97.79 2.21 Marvin. F. Romanow 97.81 2.19 Mathieu M. Roy 98.39 1.61 David M. Spyker 99.16 0.84 Aidan M. Walsh 98.75 1.25 KPMG LLP was appointed as the auditors of Freehold with 93.69% of the shares represented at the Meeting voting in favour of their appointment. The resolution to accept Freehold's approach to executive compensation was approved by 95.14% of the shares represented at the Meeting voting in favour of the resolution. Freehold is uniquely positioned as a leading North American energy royalty company with approximately 6.1 million gross acres in Canada and approximately 1.2 million gross drilling acres in the United States. Freehold's common shares trade on the Toronto Stock Exchange in Canada under the symbol FRU. For further information contact Freehold Royalties Ltd. Todd McBride, CPA, CMA Nick Thomson, CFA Investor Relations Investor Relations & Capital Markets t. 403.221.0833 t. 403.221.0874 e. tmcbride@ e. nthomson@ in to access your portfolio
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13-05-2025
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Freehold Royalties Announces First Quarter 2025 Results
CALGARY, Alberta, May 13, 2025 (GLOBE NEWSWIRE) -- Freehold Royalties Ltd. (Freehold or the Company) (TSX:FRU) announces first quarter results for the period ended March 31, 2025. First Quarter 2025 Highlights $91 million in revenue; $68 million in funds from operations ($0.42/share) (1)(3); $44 million in dividends paid ($0.27/share)(2); 10,635 bbls/d of total liquids production, an 8% increase from previous quarter driven by continued execution of our U.S. expansion strategy and heavy oil growth in Canada; 16,248 boe/d of total production, a 6% increase from previous quarter with a 65% weighting to oil and natural gas liquids (NGLs), an increase from 63% in Q1-2024; Gross drilling of 322 wells, up 12% from Q4-2024; Robust leasing with 25 new leases signed (14 in Canada; 11 in the U.S.) contributing $3.9 million in revenue with the U.S. contributing a record $3.3 million in lease bonus; and $59.29/boe average realized price ($72.64/boe in the U.S. and $49.26/boe in Canada); 47% pricing premium on Freehold's U.S. production reflecting higher liquids weighting, higher quality crude oil and reduced transportation costs to get product to market. President's Message Freehold's Q1-2025 production of 16,248 boe/d is at the highest levels in our corporate history, in step with the high quality acquisition work completed in late 2024. The deliberate and strategic build out of our North American royalty portfolio has resulted in a balanced revenue base with Canada contributing 46% of revenue in Q1-2025 and the U.S. contributing 54%. On a volume basis the U.S. represented 43% of our production with premium pricing and higher liquids weighting driving an outsized revenue contribution. Our focus on acquiring mineral title interests in prospect rich basins has contributed to the record level of leasing this quarter in our core U.S. operating areas. Freehold's oil weighted portfolio, underpinned by premium operators in select basins across North America, delivered significant value to the Company and our shareholders with $68 million of funds from operations(3) in the quarter, or $0.42/share. Included in our funds from operations was record leasing results with $3.9 million in revenue, including $3.3 million in U.S. leasing revenue. Notably, the majority of the U.S. leases signed in Q1-2025 are targeting the deeper Barnett formation of the Permian basin that is in the early stages of development. Liquids production increased 8% over Q4-2024 and 15% compared to Q1-2024. The increase is largely attributed to the December 2024 Midland basin acquisition and continued growth in our heavy oil portfolio which grew 7% over Q4-2024 and is up 19% compared to Q1-2024. Our U.S. portfolio continues to be led by consistent drilling activity by some of the highest quality payors in North America who are executing on their multi-year growth plans. We are maintaining our production guidance range of 15,800 boe/d to 17,000 boe/d for 2025E. The global macro environment has shifted since the end of the first quarter and how that may impact operator plans for the remainder of 2025 is unknown at this point. The industry is in excellent shape to manage commodity price volatility due to the capital discipline and prudent balance sheet management approach over the past number of years. Contributing to this is our positioning in the lowest break-even plays across North America under investment grade operators who take a long term, measured view to capital planning. David M. Spyker, President and Chief Executive Officer Dividend Announcement The board of directors of Freehold has declared a monthly dividend of $0.09 per share to be paid on June 16, 2025, to shareholders of record on May 30, 2025. The dividend is designated as an eligible dividend for Canadian income tax purposes. Operating and Financial Highlights Three Months Ended FINANCIAL ($ millions, except as noted) Q1-2025 Q4-2024 Q1-2024 West Texas Intermediate (US$/bbl) 71.42 70.27 76.96 AECO 7A Monthly Index (Cdn$/Mcf) 2.02 1.46 2.07 Royalty and other revenue 91.1 76.9 74.3 Funds from operations (3) 68.1 61.3 54.4 Funds from operations per share, basic ($) (1)(3) 0.42 0.40 0.36 Dividends paid per share ($) (2) 0.27 0.27 0.27 Dividend payout ratio (%) (3) 65 % 66 % 75 % Long-term debt 294.3 300.9 223.6 Net debt (5) (6) 272.2 282.3 210.5 Net debt to trailing funds from operations (times) (5) 1.1x 1.2x 0.9x OPERATING Total production (boe/d) (4) 16,248 15,306 14,714 Canadian production (boe/d)(4) 9,278 9,437 9,593 U.S. production (boe/d)(4) 6,970 5,869 5,121 Oil and NGL (%) 65 % 65 % 63 % Petroleum and natural gas realized price ($/boe) (4) 59.29 53.80 54.81 Cash costs ($/boe) (3)(4) 7.00 5.93 7.19 Netback ($/boe) (3) (4) 53.01 47.25 46.62 ROYALTY INTEREST DRILLING (gross / net) Canada 92 / 3.9 110 / 3.6 132 / 5.9 U.S. 230 / 0.8 178 / 0.6 168 / 0.5 (1) Calculated based on the basic weighted average number of shares outstanding during the period(2) Based on the number of shares issued and outstanding at each record date(3) See Non-GAAP and Other Financial Measures(4) See Conversion of Natural Gas to Barrels of Oil Equivalent (boe)(5) Net debt and net debt to trailing funds from operations are capital management measures First Quarter Summary Average production of 16,248 boe/d, an increase of 10% over the first quarter of 2024 with year-over-year liquids growth of 15% to 10,635 bbls/d: Light and medium oil was up 13% over Q1-2024 to 6,880 bbls/d, largely due to the high quality, oil weighted U.S. acquisitions completed in 2024; and Heavy oil was up 19% over Q1-2024 to 1,552 bbls/d as Mannville Stack and Clearwater production on Freehold's lands hit record highs in the first quarter. Royalty and other revenue totalled $91.1 million, up 18% over the prior quarter and 23% year-over-year. Other revenue included $3.9 million in lease bonus consideration and lease rental revenue, a quarterly record for Freehold. Freehold's corporate realized price was $59.29/boe, an increase of 9% compared to Q4-2024 and 8% from Q1-2024 due to higher commodity prices and higher weighting to liquids production. Funds from operations totalled $68.1 million ($0.42 per share)(1). Freehold closed $13.8 million of land purchases in the first quarter, including $11 million of high quality undeveloped mineral title lands in our core Midland and Delaware basin properties. Dividends declared for Q1-2025 of $44.3 million ($0.27 per share). Freehold's dividend payout ratio(1) was 65% for Q1-2025. Freehold's dividend remains sustainable at oil and natural gas prices well below current commodity price levels. Net debt(1)(2) of $272.2 million at the end of Q1-2025 was reduced by $10.1 million compared to year end 2024, representing 1.1 times trailing funds from operations(2) during the period. Freehold remains conservatively levered. (1) See Non-GAAP and Other Financial Measures(2) Net debt and net debt to trailing funds from operations are capital management measures Q1-2025 Drilling and Leasing Activity In total, 322 gross wells (4.7 net wells) were drilled on Freehold's royalty lands in Q1-2025, a 12% increase (12% on a net basis) compared to the previous quarter. The increase in drilling reflects the expansion of the Company's U.S. asset base and the positioning of our assets in areas across North America that continue to attract drilling capital. On a gross basis, essentially all drilling was oil focused. Approximately 29% of gross wells drilled in Q1-2025 were in Canada and 71% targeted Freehold's U.S. royalty acreage. Three Months Ended Q1-2025 Q4-2024 Q1-2024 Gross Net (1) Gross Net (1) Gross Net (1) Canada 92 3.9 110 3.6 132 5.9 United States 230 0.8 178 0.6 168 0.5 Total 322 4.7 288 4.2 300 6.4 (1) Equivalent net wells are aggregate of the numbers obtained by multiplying each gross well by our royalty interest percentage; U.S. wells on Freehold's lands generally come on production at approximately 10 times the volume that of an average Canadian well in our Canadian net drilling was up over the previous quarter despite the decline on a gross basis as higher interest wells in the Viking and mineral title drilling in southeast Saskatchewan and the Mannville Stack made up a higher percentage. Q1-2025 drilling in Canada was led again by oil weighted plays including Viking (33 gross wells), southeast Saskatchewan (12 gross wells) and Mannville Stack (9 gross wells). During Q1-2025, Freehold entered into 14 new leases with seven counterparties totalling approximately $0.6 million in bonus and lease rental revenue. The majority of the new leasing was focused in southeast Saskatchewan and the Mannville Stack. U.S. During Q1-2025, 230 gross (0.8 net) wells were drilled on our U.S. lands, up 29% on a gross basis and 33% on a net basis from previous quarter due to a larger footprint in the Midland basin following the December 2024 acquisition and increased activity in the Eagle Ford basin. Approximately 90% of Q1-2025 drilling was focused in the Permian basin and 10% in the Eagle Ford basin. U.S. wells typically come on production at approximately ten times that of an average Canadian well in the Company's portfolio, making equivalent net well additions much more valuable in the U.S. compared to Canada. However, a U.S. well can take upwards of six to twelve months on average from initial license to first production, compared to three to four months in Canada. In Q1-2025, Freehold entered into 11 new U.S. leases with four counterparties, totalling $3.3 million of bonus and lease rental revenue. Leasing activity was predominantly focused on Freehold's mineral title interests in the Midland and Delaware basins with one lease in the Haynesville basin. Normal Course Issuer Bid (NCIB) Application The Company plans to implement an NCIB, pursuant to which Freehold would be permitted to acquire up to 10% of its issued and outstanding common shares that comprise the public float (less common shares held by directors, executive officers and principal securityholders (holders holding greater than 10% of the issued and outstanding Shares) of the Company), through the facilities, rules and regulations of the TSX. The NCIB will be subject to receipt of certain approvals, including acceptance of the notice of intention to commence an NCIB by the TSX. The NCIB will commence following receipt of all such approvals and will continue until the earlier of: (i) a period of up to one-year; or (ii) the date on which the Company has acquired all common shares sought pursuant to the NCIB. Further particulars of the NCIB will be described in a subsequent press release when approved by the TSX. Freehold believes establishing a NCIB as part of its capital management strategy is in the best interests of the Company and provides an opportunity to deliver value to shareholders. Decisions regarding utilizing the NCIB will be based on market conditions, share price, best use of funds from operations and other factors including debt repayment and options to expand our portfolio of royalty assets. Annual Meeting of Shareholders Freehold's annual meeting of shareholders (the AGM) will be conducted in person and via live audio webcast at 3:00 PM (MDT) on Wednesday May 14, 2025 at the Calgary Petroleum Club. Further details are available on our website at Conference Call Details A webcast to discuss financial and operational results for the period ended March 31, 2025, will be held for the investment community on Wednesday May 14, 2025, beginning at 7:00 AM MT (9:00 AM ET). A live audio webcast will be accessible through the link below and on Freehold's website under 'Events & Presentations' on Freehold's website at To participate in the conference call, you can register using the following link: Live Audio Webcast URL: A dial-in option is also available and can be accessed by dialing 1-800-952-5114 (toll-free in North America) participant passcode is 5153824#. For further information contact Freehold Royalties McBride, CPA, CMA Investor Relations t. 403.221.0833 e. tmcbride@ Nick Thomson, CFAInvestor Relations & Capital Marketst. 403.221.0874 e. nthomson@ Quarterly Information 2025 2024 2023 Financial ($millions, except as noted) Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Royalty and other revenue 91.1 76.9 73.9 84.5 74.3 80.1 84.2 73.7 Net Income (loss) 37.3 51.1 25.0 39.3 34.0 34.3 42.3 24.3 Per share, basic ($) (1) 0.23 0.33 0.17 0.26 0.23 0.23 0.28 0.16 Cash flows from operations 62.9 59.1 64.1 47.6 52.5 70.7 53.7 49.9 Funds from operations 68.1 61.3 55.7 59.6 54.4 62.8 65.3 53.0 Per share, basic ($) (1)(3) 0.42 0.40 0.37 0.40 0.36 0.42 0.43 0.35 Acquisitions & related expenditures 13.9 277.0 1.8 11.5 121.5 2.1 1.2 3.2 Dividends paid 44.3 40.7 40.7 40.7 40.7 40.7 40.7 40.7 Per share ($) (2) 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 Dividends declared 44.3 41.9 40.7 40.7 40.7 40.7 40.7 40.7 Per share ($) (2) 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27 Dividend payout ratio (%) (3) 65 % 66 % 73 % 68 % 75 % 65 % 62 % 77 % Long-term debt 294.3 300.9 205.8 228.0 223.6 123.0 141.2 152.0 Net debt (5) 272.2 282.3 187.1 199.1 210.5 100.9 113.4 136.9 Shares outstanding, period end (000s) 164.0 164.0 150.7 150.7 150.7 150.7 150.7 150.7 Average shares outstanding, basic (000s) (6) 164.0 153.4 150.7 150.7 150.7 150.7 150.7 150.7 Operating Light and medium oil (bbl/d) 6,880 6,296 6,080 6,551 6,094 6,308 6,325 6,093 Heavy oil (bbl/d) 1,552 1,516 1,315 1,348 1,300 1,182 1,127 1,167 NGL (bbl/d) 2,203 2,066 1,972 1,902 1,884 1,878 1,678 1,845 Total liquids (bbl/d) 10,635 9,878 9,367 9,801 9,278 9,368 9,130 9,105 Natural gas (Mcf/d) 33,678 32,564 31,447 32,524 32,617 32,968 32,851 33,372 Total production (boe/d) (4) 16,248 15,306 14,608 15,221 14,714 14,863 14,605 14,667 Oil and NGL (%) 65 % 65 % 64 % 64 % 63 % 63 % 63 % 62 % Petroleum & natural gas realized price ($/boe) (4) 59.29 53.80 54.36 59.74 54.81 57.94 61.55 54.05 Cash costs ($/boe) (3)(4) 7.00 5.93 5.42 9.80 7.19 4.73 5.10 7.19 Netback ($/boe) (3)(4) 53.01 47.25 47.78 49.44 46.62 52.59 55.63 46.07 Benchmark Prices West Texas Intermediate crude oil (US$/bbl) 71.42 70.27 75.09 80.57 76.96 78.32 82.26 73.78 Exchange rate (Cdn$/US$) 1.43 1.40 1.37 1.37 1.35 1.36 1.34 1.34 Edmonton Light Sweet crude oil (Cdn$/bbl) 95.32 94.90 97.85 105.29 92.14 99.69 107.89 94.97 Western Canadian Select crude oil (Cdn$/bbl) 84.30 80.75 83.95 91.63 77.77 76.96 93.05 78.76 Nymex natural gas (US$/Mcf) 3.79 2.86 2.24 1.96 2.33 2.98 2.64 2.17 AECO 7A Monthly Index (Cdn$/Mcf) 2.02 1.46 0.81 1.44 2.07 2.70 2.42 2.40 (1) Calculated based on the basic weighted average number of shares outstanding during the period(2) Based on the number of shares issued and outstanding at each record date(3) See Non-GAAP and Other Financial Measures(4) See Conversion of Natural Gas to Barrels of Oil Equivalent (boe)(5) The 2023 reported balances have been restated due to the retrospective adoption of IAS 1 (see note 3d of December 31, 2024 audited consolidated financial statements)(6) Weighted average number of shares outstanding during the period, basic Forward-Looking Statements This news release offers our assessment of Freehold's future plans and operations as of March 12, 2025, and contains forward-looking statements that we believe allow readers to better understand our business and prospects. These forward-looking statements include our expectations for the following: 2025 production guidance; our expectation regarding continued growth of our total liquid production through continued execution of our U.S. expansion strategy and heavy oil growth in Canada; our expectation that our U.S. portfolio will continue to be led by consistent drilling activity by the highest quality payors in North America who are executing on their multi-year growth plans; our expectation that the industry is in excellent shape to manage commodity price volatility due to the capital discipline and prudent balance sheet management approach over the past number of years; our expectation that while some growth directed capital may be pared down, there will not be a slow down in core activity on our lands; our expectation Freehold's dividend remains sustainable at oil and natural gas prices materially below current commodity price levels; our expectation that the positioning of our assets in areas across North America will continue to attract drilling capital despite volatility in commodity prices; our expectation that U.S. wells typically come on production at approximately ten times that of an average Canadian well in the Company's portfolio, making net well additions much more valuable in the U.S. compared to Canada; our expectations that a U.S. well can take upwards of six to twelve months on average from initial license to first production, compared to three to four months in Canada; our expectations that we will apply for an commence a NCIB once approval is granted; and other similar statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond our control, including general economic conditions, volatility in market prices for crude oil, NGL and natural gas, risks and impacts of tariffs (or other retaliatory trade measures) imposed by Canada or the U.S. (or other countries) on exports and/or imports into and out of such countries, inflation and supply chain issues, the impacts of the ongoing Israeli-Hamas-Hezbollah and potentially the broader Middle-East region, and Russia-Ukraine wars and any associated sanctions as well as OPEC+ curtailments on the global economy and commodity prices, geopolitical instability, political instability, industry conditions, volatility of commodity prices, future production levels, future capital expenditure levels, currency fluctuations, imprecision of reserve estimates, royalties, environmental risks, taxation, regulation, changes in tax or other legislation, competition from other industry participants, inaccurate assumptions on supply and demand factors affecting the consumption of crude oil, NGLs and natural gas, inaccurate expectations for industry drilling levels on our royalty lands, the failure to complete acquisitions on the timing and terms expected, the failure to satisfy conditions of closing for any acquisitions, the lack of availability of qualified personnel or management, stock market volatility, our inability to come to agreement with third parties on prospective opportunities and the results of any such agreement and our ability to access sufficient capital from internal and external sources. Risks are described in more detail in our Annual Information Form for the year-ended December 31, 2024, available at With respect to forward-looking statements contained in this news release, we have made assumptions regarding, among other things, future commodity prices, future capital expenditure levels, future production levels, future exchange rates, future tax rates, future legislation, the cost of developing and producing our assets, the quality of our counterparties and the plans thereof, our ability and the ability of our lessees to obtain equipment in a timely manner to carry out development activities, our ability to market our oil and gas successfully to current and new customers, the performance of current wells and future wells drilled by our royalty payors, our expectation for the consumption of crude oil and natural gas, our expectation for industry drilling levels, our expectation for completion of wells drilled, our ability to obtain financing on acceptable terms, shut-in production, production additions from our audit function, our ability to execute on prospective opportunities and our ability to add production and reserves through development and acquisition activities. Additional operating assumptions with respect to the forward-looking statements referred to above are detailed in the body of this news release. You are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Our actual results, performance, or achievement could differ materially from those expressed in, or implied by, these forward-looking statements. We can give no assurance that any of the events anticipated will transpire or occur, or if any of them do, what benefits we will derive from them. The forward-looking information contained in this document is expressly qualified by this cautionary statement. To the extent any guidance or forward-looking statements herein constitute a financial outlook, they are included herein to provide readers with an understanding of management's plans and assumptions for budgeting purposes and readers are cautioned that the information may not be appropriate for other purposes. Our policy for updating forward-looking statements is to update our key operating assumptions quarterly and, except as required by law, we do not undertake to update any other forward-looking statements. You are further cautioned that the preparation of financial statements in accordance with International Financial Reporting Standards (IFRS), which are the Canadian generally accepted accounting principles (GAAP) for publicly accountable enterprises, requires management to make certain judgments and estimates that affect the reported amounts of assets, liabilities, revenues, and expenses. These estimates may change, having either a positive or negative effect on net income, as further information becomes available and as the economic environment changes. To the extent any guidance or forward-looking statements herein constitutes a financial outlook, they are included herein to provide readers with an understanding of management's plans and assumptions for budgeting purposes and readers are cautioned that the information may not be appropriate for other purposes. You are further cautioned that the preparation of financial statements in accordance with IFRS requires management to make certain judgments and estimates that affect the reported amounts of assets, liabilities, revenues, and expenses. These estimates may change, having either a positive or negative effect on net income, as further information becomes available and as the economic environment changes. Conversion of Natural Gas to Barrels of Oil Equivalent (BOE)To provide a single unit of production for analytical purposes, natural gas production and reserves volumes are converted mathematically to equivalent barrels of oil (boe). We use the industry-accepted standard conversion of six thousand cubic feet of natural gas to one barrel of oil (6 Mcf = 1 bbl). The 6:1 boe ratio is based on an energy equivalency conversion method primarily applicable at the burner tip. It does not represent a value equivalency at the wellhead and is not based on either energy content or current prices. While the boe ratio is useful for comparative measures and observing trends, it does not accurately reflect individual product values and might be misleading, particularly if used in isolation. As well, given that the value ratio, based on the current price of crude oil to natural gas, is significantly different from the 6:1 energy equivalency ratio, using a 6:1 conversion ratio may be misleading as an indication of value. Non-GAAP and Other Financial MeasuresWithin this news release, references are made to terms commonly used as key performance indicators in the oil and gas industry, which do not have any standardized means prescribed by Canadian generally accepted accounting principles (GAAP). We believe that net revenue, netback, dividend payout ratio, funds from operations per share and cash costs are useful non-GAAP financial measures and ratios for management and investors to analyze operating performance, financial leverage, and liquidity, and we use these terms to facilitate the understanding and comparability of our results of operations. However, these as terms do not have any standardized meanings prescribed by GAAP, such terms may not be comparable with the calculations of similar measures for other entities. This news release also contains the capital management measures net debt and net debt to trailing funds from operations, as defined in note 14 to the unaudited consolidated financial statements as at and for the three months ended March 31, 2025. Net revenue, which is calculated as revenues less ad valorem and production taxes (as incurred in the U.S. at the state level, largely Texas, which do not charge corporate income taxes but do assess flat tax rates on commodity revenues in addition to property tax assessments) details the net amount Freehold receives from its royalty payors, largely after state withholdings. The netback, which is also calculated on a boe basis, as average realized price less production and ad valorem taxes, operating expenses, general and administrative expense, cash-based management fees, cash-based interest charges and share-based payouts, represents the per boe netback amount which allows us to benchmark how changes in commodity pricing, net of production and ad valorem taxes, and our cash-based cost structure compare against prior periods. Cash costs, which is calculated on a boe basis, is comprised by the recurring cash-based costs, excluding taxes, reported on the statements of operations. For Freehold, cash costs are identified as operating expense, general and administrative expense, cash-based interest charges, cash-based management fees and share-based compensation payouts. Cash costs allow Freehold to benchmark how changes in its manageable cash-based cost structure compare against prior periods. The following table presents the computation of Net Revenue, Cash costs and the Netback: $/boe Q1-2025 Q4-2024 Q1-2024 Royalty and other revenue 62.29 54.59 55.47 Production and ad valorem taxes (2.28) (1.41) (1.66) Net revenue $60.01 $53.18 $53.81 Less: General and administrative expense (3.41) (3.02) (3.58) Operating expense (0.13) (0.19) (0.15) Interest and financing cash expense (3.31) (2.67) (2.79) Management fee-cash settled (0.05) (0.05) (0.06) Cash payout on share-based compensation (0.10) - (0.61) Cash costs (7.00) (5.93) (7.19) Netback $53.01 $47.25 $46.62 Dividend payout ratios are often used for dividend paying companies in the oil and gas industry to identify dividend levels in relation to funds from operations that are also used to finance debt repayments and/or acquisition opportunities. Dividend payout ratio is a supplementary measure and is calculated as dividends paid as a percentage of funds from operations. ($000s, except as noted) Q1-2025 Q4-2024 Q1-2024 Dividends paid $44,269 $40,687 $40,686 Funds from operations $68,050 $61,332 $54,362 Dividend payout ratio (%) 65% 66% 75% Funds from operations per share, which is calculated as funds from operations divided by the weighted average shares outstanding during the period, provides direction if changes in commodity prices, cash costs, and/or acquisitions were accretive on a per share basis. Funds from operations per share is a supplementary in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-02-2025
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Freehold Royalties Declares Dividend for February 2025
CALGARY, Alberta, Feb. 13, 2025 (GLOBE NEWSWIRE) -- Freehold Royalties Ltd. (Freehold) (TSX: FRU) announces that its Board of Directors has declared a dividend of Cdn. $0.09 per common share to be paid on March 17, 2025 to shareholders of record on February 28, 2025. These dividends are designated as 'eligible dividends' for Canadian income tax purposes. Freehold is uniquely positioned as a leading North American energy royalty company with approximately 6.1 million gross acres in Canada and approximately 1.2 million gross drilling acres in the United States. Freehold's common shares trade on the Toronto Stock Exchange in Canada under the symbol FRU. Freehold Royalties Ltd. Todd McBride, CPA, CMAInvestor Relationst. 403.221.0833e. tmcbride@ Nick Thomson, CFAInvestor Relationst. 403.221.0874e. nthomson@ in to access your portfolio
Yahoo
11-02-2025
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3 Canadian Small Cap Gems Poised For Potential Growth
The Canadian market, like its U.S. counterpart, is navigating a complex landscape of potential tariffs and trade uncertainties that could impact economic growth and inflation. Despite these challenges, the fundamental backdrop remains supportive with above-trend economic growth and rising corporate profits. In this environment, identifying small-cap stocks with strong fundamentals and potential for growth can be a strategic move for investors looking to diversify their portfolios amidst increased market volatility. Name Debt To Equity Revenue Growth Earnings Growth Health Rating TWC Enterprises 6.24% 12.63% 23.89% ★★★★★★ Reconnaissance Energy Africa NA 9.16% 15.11% ★★★★★★ Maxim Power 25.01% 12.79% 17.14% ★★★★★☆ Mako Mining 10.21% 38.44% 58.78% ★★★★★☆ Grown Rogue International 24.92% 19.37% 188.55% ★★★★★☆ Corby Spirit and Wine 65.79% 7.46% -5.76% ★★★★☆☆ Petrus Resources 19.44% 17.20% 46.03% ★★★★☆☆ Queen's Road Capital Investment 8.87% 13.76% 16.18% ★★★★☆☆ Genesis Land Development 47.40% 28.61% 52.30% ★★★★☆☆ Dundee 3.76% -37.57% 44.64% ★★★★☆☆ Click here to see the full list of 44 stocks from our TSX Undiscovered Gems With Strong Fundamentals screener. Here we highlight a subset of our preferred stocks from the screener. Simply Wall St Value Rating: ★★★★★★ Overview: Centerra Gold Inc. is a gold mining company involved in the acquisition, exploration, development, and operation of gold and copper properties across North America, Turkey, and internationally with a market cap of approximately CA$2.05 billion. Operations: Centerra Gold derives its revenue primarily from three segments: Öksüt ($559.44 million), Mount Milligan ($460.21 million), and Molybdenum ($232.42 million). Centerra Gold, a Canadian mining company, has recently turned profitable and is trading at 66.2% below its estimated fair value, indicating potential undervaluation. The firm boasts high-quality earnings and no debt, a significant improvement from five years ago when its debt-to-equity ratio was 4.6%. Centerra's free cash flow is positive, suggesting strong financial health. The company's involvement in the Cherry Creek property drill program in Nevada highlights its strategic exploration initiatives aimed at uncovering mineralized porphyry systems. With earnings forecasted to grow by 7.75% annually, Centerra seems poised for future growth within the industry context. Click here and access our complete health analysis report to understand the dynamics of Centerra Gold. Gain insights into Centerra Gold's historical performance by reviewing our past performance report. Simply Wall St Value Rating: ★★★★☆☆ Overview: Freehold Royalties Ltd. focuses on acquiring and managing royalty interests in crude oil, natural gas, natural gas liquids, and potash properties across Western Canada and the United States, with a market cap of CA$2.07 billion. Operations: Freehold Royalties Ltd. generates revenue primarily from its oil and gas exploration and production segment, with reported earnings of CA$312.68 million. The company operates within a market cap of CA$2.07 billion, focusing on royalty interests in energy resources across North America. Freehold Royalties, a Canadian royalty company, offers an intriguing investment case with its current trading price at 65% below the estimated fair value. Despite a challenging year with earnings growth at -4.1%, it outpaced the broader Oil and Gas sector's average of -21.1%. The company's debt to equity ratio has climbed from 16.1% to 22.7% over five years, yet remains satisfactory under industry standards. With interest payments well covered by EBIT at 13.7x and positive free cash flow reported recently, Freehold appears financially stable and poised for potential future growth amidst its strategic financial maneuvers like increasing credit facilities and equity offerings totaling CAD 150 million in late 2024. Take a closer look at Freehold Royalties' potential here in our health report. Learn about Freehold Royalties' historical performance. Simply Wall St Value Rating: ★★★★★★ Overview: Winpak Ltd. is a company that manufactures and distributes packaging materials and related machinery across the United States, Canada, and Mexico, with a market capitalization of CA$2.63 billion. Operations: Winpak generates revenue primarily from three segments: Flexible Packaging ($592.07 million), Rigid Packaging and Flexible Lidding ($494.74 million), and Packaging Machinery ($34.58 million). Winpak, a Canadian packaging player, has been catching some attention with its solid financial footing and recent shareholder-friendly moves. The company boasts a debt-free status for the past five years, highlighting its robust balance sheet. Over this period, Winpak's earnings have grown at an annual rate of 7.6%, although last year's growth of 2.3% lagged behind the industry average of 10.3%. Trading at 34% below estimated fair value suggests potential upside for investors. In December 2024, Winpak declared both regular and special dividends totaling C$3.05 per share, signaling confidence in its cash flow generation capabilities. Delve into the full analysis health report here for a deeper understanding of Winpak. Gain insights into Winpak's past trends and performance with our Past report. Reveal the 44 hidden gems among our TSX Undiscovered Gems With Strong Fundamentals screener with a single click here. Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports. Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TSX:CG TSX:FRU and TSX:WPK. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
