Freehold Royalties Reports Solid Q3 2024 Results

Freehold Royalties Ltd. ( (FRHLF) ) has released its Q3 earnings. Here is a breakdown of the information Freehold Royalties Ltd. presented to its investors.

Freehold Royalties Ltd. is a Canadian company primarily involved in the oil and gas sector, focusing on managing and acquiring oil and gas royalties, with operations across key North American basins.

In its latest earnings release for the third quarter of 2024, Freehold Royalties Ltd. reported a revenue of $74 million and funds from operations amounting to $56 million, showcasing a solid performance despite fluctuating commodity prices. The company also highlighted an upcoming Investor Day, scheduled for December 2024, where it plans to discuss its North American strategy and asset base.

Key financial highlights of the quarter included a 3% increase in liquids production compared to the previous year, with an average total production of 14,608 barrels of oil equivalent per day (boe/d). U.S. production maintained strong levels at 5,533 boe/d, and the company benefited from a pricing premium on its U.S. production due to higher quality crude oil and reduced transportation costs. The net debt decreased by $12 million, reflecting the company’s continued efforts to maintain balance sheet strength.

The company also declared dividends amounting to $41 million, maintaining a dividend payout ratio of 73%. Furthermore, Freehold saw a notable increase in drilling activity, especially in its U.S. assets, with 278 gross wells drilled during the quarter, marking an 11% increase compared to the same period in 2023.

Looking ahead, Freehold Royalties Ltd. remains focused on delivering consistent returns to shareholders and expects to maintain its dividend sustainability even at lower commodity price levels. The company also anticipates continued robust drilling activities in both Canada and the U.S., supporting its growth strategy.