Freehold Royalties Reports Record 2025 Production

Company highlights higher liquids mix, U.S. pricing premium, and continued investment in royalty interests

Mar. 13, 2026 at 5:14am

Got story updates? Submit your updates here. ›

Freehold Royalties (TSE:FRU) reported strong results for the fourth quarter of 2025, including record annual production, a higher-value liquids mix, and continued investment in undeveloped royalty interests. However, the company also cautioned that operator activity slowed in the back half of 2025 amid lower commodity prices and weak Canadian natural gas pricing.

Why it matters

As a leading royalty company, Freehold's results provide insights into broader trends in the North American oil and gas industry. The company's geographic diversification, focus on liquids-rich assets, and disciplined capital allocation strategy offer a window into how some producers are navigating the current market environment.

The details

Freehold achieved its fifth consecutive year of record annual production in 2025, averaging 16,294 BOE/d from its North American royalty portfolio. The company increased its liquids weighting from 55% to 66% over the past five years, which drove 90% of its total revenue in 2025. Freehold also emphasized its geographic balance, with 55% of production coming from Canada and 45% from the U.S., though the U.S. represented 53% of revenue due to stronger pricing and a higher liquids weighting.

  • Freehold generated CAD 235 million in funds from operations in 2025.
  • The company paid CAD 177 million in dividends to shareholders, reduced long-term debt by CAD 18 million, and invested CAD 38 million in oil-focused royalty interest assets in 2025.

The players

Freehold Royalties

A Canadian company that acquires and manages oil and gas royalties, operating in Canada and the United States.

David Spyker

President and CEO of Freehold Royalties.

Shaina Morihira

CFO of Freehold Royalties.

Got photos? Submit your photos here. ›

What they’re saying

“Freehold achieved its fifth consecutive year of record annual production in 2025, averaging 16,294 BOE/d from its North American royalty portfolio.”

— David Spyker, President and CEO

“The acquisitions included mineral title land in undeveloped drilling areas in the core of the Permian Basin and gross overriding royalty interests in Canada. Spyker described the acquired Permian mineral title lands as held in perpetuity and located in areas with 'significant undeveloped resource and drilling inventory,' adding that the lands were in early stages of development.”

— David Spyker, President and CEO

“If higher commodity prices persist and cash flow exceeds expectations, Freehold's first priorities would be to continue paying dividends—bringing down the payout ratio—and to apply incremental cash flow to the balance sheet.”

— Shaina Morihira, CFO

What’s next

Freehold expects activity and volumes to improve in the second half of 2026, supported by existing well licenses and permits, active drilling programs, and an inventory of drilled but uncompleted wells.

The takeaway

Freehold Royalties' strong 2025 results and continued focus on liquids-rich assets, geographic diversification, and disciplined capital allocation highlight the company's ability to navigate the current market environment. The company's investment in undeveloped royalty interests also positions it for potential future growth as operator activity ramps up.