Freehold Royalties Announces Second Quarter 2025 Results

Core Viewpoint - Freehold Royalties Ltd. reported a strong second quarter performance with increased production and funds from operations, despite lower oil prices compared to previous quarters [3][4][8]. Financial Performance - The company generated $78 million in revenue and $57 million in funds from operations, translating to $0.35 per share, which is a 40% increase from the first quarter of 2021 [4][8]. - Dividends paid to shareholders amounted to $44 million, maintaining a dividend payout ratio of 78% [6][9][38]. - The average realized price for petroleum and natural gas was $50.36 per barrel of oil equivalent (boe) [8][9]. Production and Operations - Total production reached 16,584 barrels of oil equivalent per day (boe/d), a 2% increase from the previous quarter and a 9% increase year-over-year [3][8]. - U.S. production contributed significantly, with a 7% growth over the first quarter of 2025, and accounted for 7,480 boe/d [3][8]. - The company drilled a total of 271 gross wells during the quarter, with 226 in the U.S. and 45 in Canada [11][12]. Leasing and Revenue - Bonus and leasing revenue was strong, generating $1.9 million in the second quarter and $5.8 million in the first half of 2025, marking a 50% increase from the previous record in 2018 [5][8]. - The company entered into 40 new leases during the second quarter, contributing to its leasing revenue [8][14]. Market Conditions - Oil prices in the second quarter were at their lowest since the first quarter of 2021, with West Texas Intermediate (WTI) averaging $63.74 per barrel [7][8]. - The company’s strategic focus on high-quality, liquids-weighted assets has positively impacted its financial performance despite the challenging market conditions [4][8].