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Freehold Royalties Ltd T.FRU

Alternate Symbol(s):  FRHLF

Freehold Royalties Ltd. is a Canada-based royalty company. The Company manages non-government portfolios of oil and natural gas royalties in Canada with an expanding land base in the United States. Its primary focus is to acquire and actively manage royalties, while providing a lower risk income vehicle for its shareholders. Its total land holdings encompass approximately 6.2 million gross acres in Canada. It has royalty interests in more than 19,000 producing wells and almost 400 units spanning five provinces and eight states and receives royalty income from over 360 industry operators throughout North America. It has two geographical segments: Canada, which includes exploration and evaluation assets and the petroleum and natural gas interests in Western Canada, and US includes petroleum and natural gas interests primarily held in the Permian (Midland and Delaware), Eagle Ford, Haynesville and Bakken basins largely located in the states of Texas, Louisiana, and North Dakota.


TSX:FRU - Post by User

Comment by Rainydayon Jun 20, 2022 5:42pm
176 Views
Post# 34769808

RE:Assessment

RE:AssessmentThe decade of 2011 to 2021 was not kind to the oil and gas sector - SGY for example in 2014 traded at about 6 times its price today (and it's been lower). Oil companies are bringing in huge revenues these days and - unlike in previous times when oil prices went up - they're not blowing the increased revenues on high premium acquisitions and large increases to CAPEX. They are raising dividends and doing share buybacks. If FRU has cashflow of $2 / share in 2023 (which is likely @ $95 oil) and raises the dividend to the bottom end of the 60 to 80% payout ratio the stock could rise to $20 with a 6% yield (about a 50% increase) and, more likely, somewhat higher as oil and gas stocks revalue to higher multiples than has been experienced over the past few years. 
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