Source: Benzinga

Freehold Royalties: Freehold Royalties Ltd. Announces Second Quarter Results & Increases Production Guidance

CALGARY, Alberta, Aug. 01, 2019 (GLOBE NEWSWIRE) -- Freehold Royalties Ltd. (Freehold) (TSX:FRU) announced second quarter results for the period ended June 30, 2019.RESULTS AT A GLANCE Three Months EndedSix Months Ended June 30June 30FINANCIAL ($000s, except as noted)20192018Change2019 2018ChangeRoyalty and other revenue 35,333 39,961-12%70,942 79,118-10%Net income (loss)3,4305,386-36%(3,649)9,809-137% Per share, basic and diluted ($)0.030.05-40%(0.03)0.08-138%Funds from operations30,09534,540-13%59,443 66,924-11% Per share, basic ($)0.250.29-14%0.50 0.57-12%Acquisitions and related expenditures30,3133,516762%31,242 35,912-13%Dividends declared18,66018,625- 37,311 36,6512% Per share ($) (1) 0.1575 0.1575- 0.3150 0.31002%Net debt98,31077,90826%98,310 77,90826%Shares outstanding, period end (000s) 118,513 118,293 - 118,513 118,293 - Average shares outstanding (000s) (2)118,458118,238 - 118,431 118,211 - OPERATING Royalty production (boe/d) (3) 10,311 11,052-7%10,226 11,124-8%Total production (boe/d) (3)10,66411,721-9%10,646 11,860-10% Oil and NGL (%)55542%55 542%Average price realizations ($/boe) (3)35.8836.96-3%36.08 35.731%Operating netback ($/boe) (3) (4) 35.36 35.94-2%35.79 35.391%(1) Based on the number of shares issued and outstanding at each record date.(2) Weighted average number of shares outstanding during the period, basic.(3) See Conversion of Natural Gas to Barrels of Oil Equivalent (boe).(4) See Non-GAAP Financial Measures.President's MessageThe second quarter marked another strong period for Freehold as we were able to provide a sustainable dividend and per share production growth quarter-over-quarter while remaining opportunistic with acquisitions. Royalty production averaged 10,311 boe/d for the quarter, a 2% improvement versus the previous quarter as strong activity through the first half of 2019 drove volume growth. Funds from operations for the quarter totaled $30.1 million or $0.25/share, comfortably ahead of current dividend levels of $0.1575/share and at the low end of our payout range.Freehold completed $30.3 million in acquisitions over the quarter. We acquired a diversified royalty package with near-term growth driven by a Canadian intermediate with planned multi-year drilling on the lands. Subsequent to quarter-end, we also completed our first royalty acquisition in the United States which should provide Freehold an additional 200 boe/d in production by year-end 2019.It is our objective to drive oil and gas development on our lands, generate per share production growth, acquire royalties with acceptable growth and risk profiles and provide a sustainable dividend to our shareholders. During the quarter, we have achieved these mandates.Tom MullanePresident and CEO Dividend AnnouncementThe Board has declared a dividend of $0.0525 per common share to be paid on September 16, 2019 to shareholders of record on August 31, 2019. The dividend is designated as an eligible dividend for Canadian income tax purposes.2019 Second Quarter HighlightsDividends declared for Q2-2019 totaled $0.1575 per share, unchanged from Q2-2018 and Q1-2019.Our payout ratio (1) (dividends declared/funds from operations) for Q2-2019 totaled 62%, compared to 64% in the previous quarter and 54% in Q2-2018.Freehold's royalty production averaged 10,311 boe/d during Q2-2019. This represents a 7% decrease over Q2-2018 while increasing 2% from the previous quarter. Growth in volumes sequentially was driven by increased third-party drilling.Royalty interests accounted for 97% of total production and contributed 100% of operating income (1) in Q2-2019.Q2-2019 funds from operations totaled $30.1 million, ...Full story available on Benzinga.com

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Thomas J. Mullane

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Freehold Royalties focused in acquiring and managing oil and gas royalties.

Freehold Royalties is headquartered in Calgar...
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