Royalties do not drill wells. They collect them
Freehold Royalties (TSX: FRU) reported second-quarter 2026 results on July 29. Production averaged 15,622 boe/d with 10,277 bbl/d of crude oil and NGLs, a 66 percent liquids weighting. Royalty and other revenue was $100.3 million, with crude and NGL royalties making up more than 95 percent of that line. Funds from operations were $78 million, or $0.47 per basic share, up 32 percent from Q1 2026.
Freehold returned $44 million through monthly dividends in the quarter, a 57 percent payout ratio. Net debt decreased $24 million to $251 million. Trailing net debt to funds from operations was about 1.0 times. The company spent about $9 million on acquisitions in the quarter and about $29 million year to date buying Permian royalty interests in Loving, Martin, Midland, and Lea counties.
August 31 was the record date for the September 15 monthly dividend of $0.09 per share. That is distribution continuity, not a new acquisition.