Freehold Royalties Q1 revenue falls on lower commodity prices

Freehold Royalties

12/05/2026 21:59

Overview

Canada oil and gas royalty firm's Q1 revenue fell yr/yr amid lower commodity prices

Net income and funds from operations declined compared to Q1 last yr

Company invested C$19 mln in Permian basin royalty lands, plans NCIB renewal

Outlook

Company expects production to remain moderate in Q2 2026, with growth in the latter half

Freehold sees any production increase from higher oil prices likely starting in late 2026

Company expects its asset base to generate cash flows to sustain dividends under current conditions

Result Drivers

LOWER COMMODITY PRICES - Co said Q1 production reflected moderated activity levels following weaker benchmark crude oil pricing in late 2025

FOCUS ON OIL DRILLING - Drilling in Q1 was concentrated on crude oil targets in both Canada and the U.S., with limited gas drilling due to weak Canadian natural gas prices

HIGHER U.S. REALIZED PRICES - U.S. production accounted for a premium realized price due to higher liquids weighting, crude quality, and lower transportation costs

Company press release: ID:nGNXb3HKg2

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 EPS
C$0.21
Q1 Net Income
C$35.10 mln
Q1 FFO
C$59 mln
Q1 FFO Per Share
C$0.36
Q1 Net Debt
C$275.30 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the oil & gas exploration and production peer group is "buy."

Wall Street's median 12-month price target for Freehold Royalties Ltd is C$18.00, about 2.6% above its May 11 closing price of C$17.55

The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 28 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)