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Freehold Royalties Ltd T.FRU

Alternate Symbol(s):  FRHLF

Freehold Royalties Ltd. is a Canada-based royalty company. It manages non-government portfolios of oil and natural gas royalties in Canada with a sizeable land base in the United States. Its segments include Canada and the United States. Canada segment includes exploration and evaluation assets and the petroleum and natural gas interests in Western Canada. The United States segment 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, North Dakota and New Mexico. Its total land holdings encompass approximately 6.1 million gross acres in Canada and approximately 1.1 million gross drilling acres in the United States. The Company also have gross overriding royalty (GORR) and other interests in approximately five million acres. It has royalty interests in close to 21,000 producing wells and almost 500 units spanning five provinces and eight states.


TSX:FRU - Post by User

Comment by rustybladeson Mar 04, 2021 8:11pm
159 Views
Post# 32724619

RE:Distributions

RE:DistributionsThe news release acknowledges that the payout ratio is lower than targeted and hints at a possible increase in the dividend later this year. The pertinent section reads

"Projected 2021 payouts are below our stated dividend policy levels, which outlines a 60%-80% payout ratio over the long-term based on forward looking funds from operations. The dividend increase announced today is at a measured pace as, although the commodity price outlook has improved substantially, there is still risk as the supply - demand balance for oil continues to be tenuous. We also see meaningful, high quality, acquisition opportunities across North America and feel it would be prudent to retain financial flexibility to pursue these as we work to continually enhance our portfolio positioning and business strength."
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