Freehold Royalties Completes $259M Midland Basin Acquisition

Freehold Royalties Ltd, a major player in the North American energy royalty sector, has closed its acquisition of mineral title and royalty interests in the core of the Midland Basin, Texas, for $259 million. This strategic acquisition is slated to increase Freehold's funds flow per share, free cash flow per share, and total production. The company projects approximately $37 million in net royalty revenue for 2025, anticipating future growth in light oil-weighted production. Following this acquisition, Freehold has elevated its credit facilities by $50 million, increasing the committed revolving credit facility to $430 million and retaining the operating facility at $20 million. Additionally, Freehold declared a monthly dividend of $0.09 per share for December 2024. Freehold's Canadian tax strategy is reaffirmed with dividends labeled as eligible. Forward-looking statements included estimates for production and financial assumptions based on commodity prices and exchange rates, pointing to potential future variations. This transaction highlights Freehold's growth trajectory in North America's energy domain.