Freehold Royalties Ltd.
0UWL.L
London Stock Exchange15.87
CAD
-0.05
- -
Freehold Royalties Ltd.
0UWL.L
(London Stock Exchange)
Recent
price
15.87
P/E
ratio
- -
div
yld
- -
ROIC.AI
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in mil. unless spec.- Similar Companies
- Business
- Freehold Royalties Ltd. Freehold Royalties Ltd. is a North American energy royalty company that acquires and manages one of the largest non-government portfolios of oil and natural gas royalties primarily in Western Canada, with a sizeable and expanding land base in the United States; its core assets include mineral title lands and gross overriding royalties generating revenue from crude oil, natural gas, natural gas liquids (NGLs) and potash properties, encompassing approximately 6.2 million gross acres in Canada across five provinces and over 1.1 million gross drilling acres in eight U.S. states, with interests in more than 18,000 producing wells operated by over 380 industry operators. The company, founded in 1996 and headquartered in Calgary, Alberta, Canada, operates through two main segments—Canada and United States—focusing on low-risk income generation without bearing drilling, operating or reclamation costs, as operators cover these expenses while Freehold receives a percentage of production. Production is diversified with crude oil comprising about 55% of output and 47% of revenue, natural gas around 45% of production and 53% of revenue, and NGLs contributing the balance, targeting investment-grade operators in high-potential areas like the Midland Basin. In recent developments, Freehold executed $412 million in acquisitions throughout 2024, including a strategic $261 million purchase of mineral title and royalty assets in the core Midland Basin closing in December 2024, a $182 million Midland Basin deal, and an earlier acquisition adding 1,250-1,350 boe/d of light oil-weighted production under operators like ExxonMobil and Diamondback Energy, expanding its Midland footprint by 35% to roughly 244,000 gross drilling acres and boosting U.S. exposure to one in every three wells drilled from one in every 12 the prior year. These moves, funded via equity financings and credit facilities, enhance long-term cash flow visibility, align with top-tier operators following their combined $90 billion acquisitions, and support sustainable dividend growth while maintaining a pro forma net debt to funds from operations ratio below 1.1x.