Freehold Royalties Ltd.

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Your conference is now ready to begin. Good morning, ladies and gentlemen, and welcome to the first quarter results conference call. I would now like to turn the meeting over to Mr. David Spiker. Please go ahead.

Good morning, everyone, and thank you for joining us today. After a busy 2021, we see significant opportunities ahead of us to continue to build our company through strategic acquisition work and and third-party drilling activity on our lands. Joining me on the call this morning are Dave Henry, our CFO, and Rob King, our VP of Business Development. Approximately 18 months after Freehold's initial large-scale expansion in the US, the company continued to execute its North American strategy, providing shareholders a sustainable dividend, low leverage, and diversification to royalty payers operating in core oil and gas plays throughout North America. Through the efforts of our team, we are a bigger, better company and will continue to showcase this moving forward. Key highlights for the quarter included, bigger and better resulted in a second consecutive quarter of records funds from operations of $72 million, or 48 cents per share. This was driven by production of 13,676 BUE a day and the continued strength in commodity prices. Drilling activity remains strong on our lands with 244 gross wells drilled and this is approximately the same number of wells as drilled in the previous quarter and 132% higher than Q1 of last year. Our asset base is very well positioned in the most actively drilled plays across North America and is being developed by top tier operators. The ramp up over the past two quarters in Canadian drilling activity is already showing up in our quarterly results. In the US, these strong activity levels will show up as production in Q2 and beyond as the cycle time to go from a permit or well license to production is typically nine months in the US as compared to three months in Canada. Our Canadian production was down approximately 1% quarter over quarter and this was driven by cold weather impacts that started late last year and continued into mid-February. March production has fully recovered. We averaged nine drilling rigs on our lands in Q1, drilling a total of 144 wells with primary targets being the Viking, Clearwater, Cardium and Light Oil in southeast Saskatchewan. Our U.S. production was down 5% quarter over quarter, primarily driven by the timing of bringing new wells on stream. The asset overall continues to be very well supported by drilling activity with 17 rigs active, primarily on our core Permian and Eagle Ford land base. After increasing our dividend every quarter in 2021, we are maintaining our monthly payout at $0.08 a share. Current dividend levels imply approximately a 55% payout ratio for 2022 under our current commodity price and production assumptions. with the expectation to review dividend levels again as part of our Q2 2022 results in August. Given the suite of opportunities we see to reinvest in royalties on both sides of the border, we are preserving dry powder to pursue acquisitions. We currently believe this is the best return for our shareholders as we see a number of high-quality opportunities to continue to enhance our underlying royalty portfolio. With this, subsequent to quarter end, we entered into a definitive agreement to acquire mineral title and overriding royalty interests across approximately 1,100 net royalty acres, which equates to about 220,000 gross acres in our core midland basin of the Permian for US $15.5 million. This is a tuck-in to our Permian royalty lands that were acquired in October of last year. Leasing activity in both Canada and the U.S. continues to strengthen, with bonus and rental considerations approaching $1 million in the quarter. I will now pass the call to Dave Hendry to walk through some of the financial highlights.