Freehold Royalties Announces Third Quarter 2025 Results

Core Insights - Freehold Royalties Ltd. reported a 10% increase in average production to 16,054 boe/d in Q3 2025 compared to Q3 2024, driven by a 33% increase in U.S. production and a 13% increase in heavy oil production in Canada [3][9] Financial Performance - The company generated $74 million in revenue and $59 million in funds from operations, equating to $0.36 per share [5][9] - Dividends paid during the quarter totaled $44 million, maintaining a payout of $0.27 per share [7][9] - The net debt was reduced by $7.3 million, resulting in a net debt to funds from operations ratio of 1.1x for the trailing 12 months [7][9] Production and Operations - Gross drilling activity totaled 282 wells, with 83 in Canada and 199 in the U.S., reflecting a 4% increase compared to the previous quarter [12][9] - The average realized price for petroleum and natural gas was $48.92/boe, with U.S. production priced at $56.54/boe and Canadian production at $42.44/boe [9][10] Leasing and Revenue - Bonus and leasing revenue reached $1.7 million for the quarter, totaling a record $7.6 million for the first three quarters of 2025, primarily from leasing activity in the Permian basin [6][9] - The company signed 34 new leases, contributing to the robust leasing revenue [9][16] Drilling Activity - In Canada, 83 gross wells were drilled, marking an 84% increase on a gross basis compared to the prior quarter, primarily focused on oil plays [14][17] - In the U.S., 199 gross wells were drilled, with 92% of the activity in the Permian basin [17][18] Credit Facilities - Freehold renewed and amended its credit facilities, increasing the total from $450 million to $500 million, with a committed facility of $480 million [19]