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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 JayBankson Sep 14, 2023 9:51am
181 Views
Post# 35635739

RE:Debt free?

RE:Debt free?Unless they sell off some stuff you will be waiting a while...

It takes 2 minutes to scan a quarterly on here...

  • Long-term debt was reduced by $7.1 million to $152.0 million at quarter-end. Net debt(1) of $130.8 million at the end of Q2-2023 represented 0.5 times trailing funds from operations. Net debt was up from $127.9 million at year-end 2022 reflecting the reclassification of $24.4 million of income tax deposits from current to non-current assets.
It will reduce quicker with better oil price, but likely not crazily... Your likely looking at a couple years without any extra acquisitions.

But it is worth noting that the debt is very low for its size and it's rather meaningless as it's well covered. As per the dividend policy they aim to payout 60% (I believe) to shareholders with the other 40% funding growth, paying down debt and I don't keep up on share buybacks. After the last dividend raise they were still shy of that 60%, but during the last few quarters of lower priced oil they were above that goal line (last quarter at 77%)...
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