Freehold is in a very enviable position relative to many of its peers.
- Its net debt to cash flow is 0.8 times, very low
- It operates principally as a royalty play and thus has virtually no operating costs
- Its stated cash dividend payout is 60-80% of cash flow
- At current prices, its payout is just over 50%
- At $60 WTI its payout would be just over 40%
- The company has the flexibility to increase dividends and / or acquire more royalty properties