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

Freehold Royalties Ltd > Q2 earnings

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Comment by Divyproon Aug 11, 2022 10:53am

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Post# 34888241

RE:RE:RE:RE:RE:RE:Q2 earnings

The issue with PSK is that they would have to triple the dividend to get close to the yield offered by FRU. That would put their payout ratio at around 55% which is similar to FRU after the recent raise. So based on payout ratio PSK is already trading where it should be even after raising the dividend 300% unless one believes they should trade at a much lower yield (at the same payout ratio) compared to FRU based on assets quality.

When I look at the assets - PSK is only in Canada where current natural gas prices are much lower than the US. The US assets of FRU fetch much better commodity prices so that is why I prefer FRU.

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Cannara reports record growth and profitability in Q4 2023