CALGARY, Alberta, Nov. 08, 2022 (GLOBE NEWSWIRE) — Freehold Royalties Ltd. (Freehold or the Company) (TSX:FRU) announces third quarter results for the period ended September 30, 2022.
President’s Message
Production volumes for the quarter averaged 14,219 boe/d, a record for Freehold. We had over 300 gross wells drilled on our lands in the third quarter, bringing year to date totals to over 750 gross wells and we expect 2022 to be Freehold’s most active year for drilling in our 26-year history. Since the start of the third quarter, we have consistently had between 30 and 35 drilling rigs active on our lands as we continue to position our portfolio in the premier growth basins across North America.
We have continued to enhance our multi-year drilling inventory through the closing of our previously announced acquisitions in the Permian and Eagle Ford basins as well as completing a Clearwater acquisition in late August, which triples our land position to over 460,000 gross acres in this Canadian oil growth play.
These transactions, which further enhance our existing land positions, are expected to provide organic growth into 2023 and beyond and continue to build our top tier drilling inventory which is underpinned by well capitalized public and private operators.
A snapshot of our third quarter 2022 highlights are as follows:
- Average production of 14,219 boe/d – a record for Freehold
- Funds from operations of $81 million – $0.54 per share
- Canadian realized pricing – $65.63/boe on 9,566 boe/d of production
- US realized pricing – $92.15/boe on 4,653 boe/d of production
- 304 gross wells drilled on our lands, bringing the first nine months of 2022 total to 764 gross wells – positioning Freehold for a record year
- Net debt of $159.9 million – represents 0.5 times trailing funds from operations and includes over $160 million of acquisition activity in Q3-2022
- We remain excited about the near and long-term outlook for Freehold. We continue to strengthen Freehold’s asset base, balance sheet and the long-term sustainability of our business.
Dividend Announcement
The Board of Directors of Freehold has declared a monthly dividend of $0.09 per share to be paid on December 15, 2022, to shareholders of record on November 30, 2022. The dividend is designated as an eligible dividend for Canadian income tax purposes.
Operating and Financial Highlights