Freehold Royalties Ltd. ( (FRHLF) ) has released its Q1 earnings. Here is a breakdown of the information Freehold Royalties Ltd. presented to its investors.
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Freehold Royalties Ltd. is a Canadian company specializing in acquiring and managing oil and gas royalties, primarily operating in North America with a focus on high-quality basins.
In its first quarter of 2025, Freehold Royalties Ltd. reported strong financial results, driven by strategic acquisitions and robust leasing activities. The company achieved record production levels and maintained a balanced revenue base between its Canadian and U.S. operations.
Key financial highlights include $91 million in revenue and $68 million in funds from operations, reflecting a significant increase in production and leasing revenues. The company reported a total production of 16,248 boe/d, marking a 6% increase from the previous quarter, with a notable 8% rise in liquids production. Freehold also signed 25 new leases, contributing $3.9 million in revenue, with the U.S. operations showing a pricing premium due to higher quality crude oil and reduced transportation costs.
Freehold’s strategic focus on expanding its North American royalty portfolio has resulted in increased drilling activity, particularly in the U.S., where wells typically yield higher production volumes. The company remains conservatively leveraged, with net debt reduced to $272.2 million, and continues to prioritize sustainable dividend payouts.
Looking ahead, Freehold maintains its production guidance for 2025, despite uncertainties in the global macro environment. The company is well-positioned to manage commodity price volatility, supported by its disciplined capital management and strategic asset positioning in low break-even plays across North America.