Freehold Royalties : Investor Day 2021

Investor Day 2021

freeholdroyalties.com

TSX FRU

Quality Assets • Sustainable Dividends

Agenda

Time	Presenter	Focus
1:00pm	David Spyker	Opening Remarks
1:20pm	Rob King, Tom Plumridge	US Update: Why US? Difference to Canada, Play
Overview, Land Overview & Play Economics
1:45pm	Susan Nagy	Canada Update: Strategic Update, Historical Drilling,
Plays of Interest and Royalty Optimization
2:00pm	David Hendry	Financial Overview: Debt Strategy, Tax, Integration
and Audit/Compliance
2:10pm	David Spyker	Closing Remarks

Investor Day 2021 | 2

The New Freehold

Energizing the future

Refreshed

and

restructured

leadership

team

Integration of

ESG

framework

into

everything

we do

Repositioned

to capture the future

Strengthened

business to deliver long term value to shareholders

Investor Day 2021 | 3

Leadership Team

New Team Focused on Shareholder Returns

David Spyker		David Hendry		Rob King		Lisa Farstad		Bob Lamond		Ian Hantke
President & CEO		VP Finance & CFO		VP Business		VP Corporate		VP Asset		VP Diversified
				Development		Services		Development		Royalties
Responsible for		Provides strong		Spearheads		Leads human		Provides oversight to		Focuses on
driving portfolio		financial oversight,		Freehold's acquisition		resource initiatives,		US expansion efforts		evaluating energy
diversification and		business acumen,		and lease		cultivating a culture		through relevant		transition
restructuring to		and capital markets		optimization		of collaboration and		expertise and		opportunities to
ensure Freehold is		experience. Leads		initiatives, supported		success. Key driver		experience in geology		position Freehold to
positioned to		integration of new		by in house expertise		behind the		and asset		participate in a lower
compete in an		assets in our portfolio		in engineering,		advancement of		development across		carbon future
evolving energy		and overall audit and		geology and mineral		Freehold's innovation		core North American
market		compliance functions		land functions		& analytics initiatives		basins
34 years experience		33 years experience		22 years experience		23 years experience		22 years experience		14 years experience
										Investor Day 2021 | 4

Ian Hantke appointment subject to board approval, effective date January 1, 2022.

Not The Same Old Freehold

Increasing Production to Record Levels

2018

2022E

14,300 boe/d

▪	2022E production forecast to be ~14,300 boe/d, higher than
	any period in Freehold's history
▪	Organic drilling and bespoke royalty optimization efforts are
	directing capital to Freehold lands

2012

7,600 boe/d

11,400 boe/d

2024E

Q3-2021~14,800 boe/d

11,900 boe/d

Guidance past 2022 is the average of published analyst estimates

Introducing Organic Growth

• Without any further M&A, Freehold's production is forecast to generate modest growth over the next several years
• Freehold can be patient looking for exceptional opportunities to add to our portfolio, or return excess cash flow to shareholders

Reducing Cash Costs to Historic Lows

• Increased production, and exit from working interest business, have significantly reduced cash costs
• Further acquisitions within existing framework, allow us to grow our business with minimal added costs

2012	2018
$5.21/boe
$5.12/boe	YTD 2021
		~$3.80/boe

Investor Day 2021 | 5

For illustrative purposes and should not be relied on as indicative of future results, assumes midpoint of FRU 2022E production guidance, US$75/bbl WTI, US$13/bbl heavy oil differentials, US$3/bbl light oil differentials, US$4/mcf NYMEX, $4/mcf AECO. 2021 forecasts assume mid point of FRU 2021 production guidance