Freehold Royalties Announces First Quarter 2025 Results

Core Insights - Freehold Royalties Ltd. reported record production levels in Q1-2025, achieving 16,248 boe/d, marking a 10% increase year-over-year [3][11] - The company generated $91 million in revenue and $68 million in funds from operations, translating to $0.42 per share [9][11] - The U.S. operations contributed significantly, with 54% of revenue and 43% of production, driven by premium pricing and higher liquids weighting [3][4] Financial Performance - Revenue for Q1-2025 was $91 million, an 18% increase from the previous quarter and a 23% increase year-over-year [11] - Funds from operations totaled $68 million, up from $61 million in Q4-2024 and $54 million in Q1-2024 [9][11] - The average realized price was $59.29/boe, reflecting a 9% increase from Q4-2024 and an 8% increase from Q1-2024 [11][29] Production and Operations - Total liquids production reached 10,635 bbls/d, an 8% increase from the previous quarter and a 15% increase year-over-year [9][11] - The company maintained its production guidance for 2025 at 15,800 to 17,000 boe/d [6] - A total of 322 gross wells were drilled in Q1-2025, a 12% increase from the previous quarter, with 71% of drilling focused in the U.S. [12][17] Leasing and Acquisitions - Freehold signed 25 new leases in Q1-2025, generating $3.9 million in revenue, with a record $3.3 million from U.S. leases [9][19] - The company completed $13.8 million in land purchases, including $11 million in high-quality undeveloped mineral title lands [11] Dividend and Capital Management - The board declared a monthly dividend of $0.09 per share, with a payout ratio of 65% for Q1-2025 [7][21] - Net debt at the end of Q1-2025 was $272.2 million, reduced by $10.1 million compared to year-end 2024 [21][9] - The company plans to implement a Normal Course Issuer Bid (NCIB) to acquire up to 10% of its issued shares [22][24]