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  • Freehold Royalties (FRU) has closed its acquisition of high-quality U.S. royalty asset the Eagle Ford oil basin in Texas
  • The Calgary-based oil and gas royalty company acquired the property for US $180 million before closing adjustments
  • The transaction advances Freehold’s strategy of being positioned in high-quality development areas across North America
  • The assets were partially funded by a previously closed bought deal financing that resulted in gross proceeds of approximately $173 million
  • Freehold Royalties is up 1.12 per cent, trading at $9.97 at 1:42 pm ET

Freehold Royalties (FRU) has closed its acquisition of high-quality U.S. royalty asset the Eagle Ford oil basin in Texas.

The Calgary-based oil and gas royalty company acquired the property for US $180 million before closing adjustments.

The company expects the assets to “significantly enhance the quality of its North American royalty portfolio, improving both the near-term and long-term sustainability of dividend while providing further option value to return capital to our shareholders through multiple years of free cash flow growth.”

The transaction further advances Freehold’s strategy of being positioned in high-quality development areas across North America, delivering growth and low risk attractive returns to our shareholders.

The assets were partially funded by a previously closed bought deal financing that resulted in gross proceeds of approximately US $173 million.

Freehold also amended its credit facility agreement with a syndicate of four Canadian banks, increasing the committed revolving facility to $285 million and maintaining the operating facility at $15 million.

Freehold Royalties is up 1.12 per cent, trading at $9.97 at 1:42 pm ET.

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