Freehold has a long history of providing consistent returns to its shareholders, through a unique North American strategy. From an Initial Public Offering of $10 per share, Freehold returned greater than $2.1 billion or $35 per share to its investors.
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Uniquely North American
Strategic Midland Basin Acquisition | December 2024
Freehold manages one of the largest non-government portfolios of oil and natural gas royalties in Canada with a sizeable land base in the U.S., uniquely positioning Freehold as a leading North American energy royalty company.
Important Dates
Ex-Dividend Date
Date of Payment
November 15, 2024
News Releases
Freehold Royalties Announces Closing of Equity Financing, Exercise of Over-Allotment Option, and Purchase of Additional Interest in the Acquisition
Freehold Royalties Announces Strategic Midland Basin Royalty Acquisition and Bought Deal Equity Financing
Our Strategy
As a leading royalty oil and gas company, Freehold’s objective is to deliver growth and lower risk attractive returns to shareholders over the long term. Freehold accomplishes this by:
01 Creating Value
- Drive oil and gas development on our lands through our lease out programs
- Acquire quality assets with acceptable risk profiles and long economic life
- Generate gross overriding royalties for revenue growth
02 Enhancing Value
- Maximize our royalty interests through a comprehensive audit program
- Manage our debt prudently with a target of below 1.5 times net debt to funds from operations
03 Delivering Value
- Target a dividend payout ratio of ~60%
Long-term Growth & Low-risk Returns
Reports & Filings
Dividends & Taxes
Dividends
The Board reviews and determines the dividend on a quarterly basis after considering expected commodity prices, foreign exchange rates, economic conditions, production volumes, tax payable, and our capacity to finance operating and investing obligations. The dividend rate is established with the intent of mitigating short-term market volatility over several months. It also recognizes our intention to fund capital expenditures primarily through funds generated from operations and to maintain a strong balance sheet to take advantage of acquisition opportunities.
Record dates for regular monthly dividends are the end of each month, and payment dates are approximately the 15th day of the following month.
The regular monthly dividend is currently fixed at $0.09 per share.
Direct Deposit
A Direct Deposit option is in place to provide shareholders who have Canadian bank accounts with a method of receiving cash dividends as a direct deposit into their bank account.
U.S. Currency Payment Plan
Shareholders may elect to receive their dividend payments in U.S. funds.
Taxes
Canadian Income Tax
Dividends paid on common shares are designated as eligible dividends for Canadian income tax purposes. If you have any questions regarding the taxation of eligible dividends, please contact your Canadian tax advisor or your local office of the Canada Revenue Agency.
Non-Resident Tax
Shareholders who are not residents of Canada for income tax purposes are encouraged to seek advice from a qualified tax advisor in their country of residence regarding the tax treatment of dividends.
Non-resident Withholding Tax
Dividends paid or payable to non-residents of Canada are subject, on the date of payment, to a withholding tax of 25%, as prescribed by the Income Tax Act (Canada). This withholding tax may be reduced in accordance with reciprocal tax treaties. In the cast of the Tax Treaty between Canada and the U.S., the withholding tax for U.S. residents is prescribed at 15%.
U.S. Residents
The majority of Freehold’s revenue is derived from non-operated royalty interests. Based on the nature of our assets, our dividends are not “qualified dividends” for U.S. tax purposes.
In consultation with its U.S. tax advisors, Freehold believes that it should be classified as a passive foreign investment company (“PFIC”) under U.S. federal income tax principles. As such, dividends are subject to the provisions of U.S. federal income taxation applicable to PFICs.
Analysts
Any opinions, estimates or forecasts regarding Freehold’s performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of Freehold or its management. Freehold does not by its reference herein imply its endorsement of or concurrence with such information, conclusions or recommendations.
Acumen Capital
Trevor Reynolds
ATB Capital Markets
Patrick O’Rourke
BMO Capital Markets
Jeremy McCrea
Canaccord Genuity
Mike Mueller
CIBC World Markets Inc.
Jamie Kubik
Desjardins Capital Markets
Chris MacCulloch
Eight Capital
Phil Skolnick
Haywood Securities Inc.
Christopher Jones
National Bank Financial
Travis Wood
Peters & Co. Limited
Tyler Reardon
RBC Capital Markets
Michael Harvey
Scotia Capital
Jason Bouvier
TD Securities Inc.
Aaron Bilkoski