04:46 PM EDT, 03/11/2026 (MT Newswires) -- Freehold Royalties ( FRHLF ) after trade on Wednesday reported a 72% year-over-year drop in its fourth-quarter profit driven by a drop in revenues as oil prices weakened.

The company posted net income of C$14.1 million, or $0.09 per share, compared with $51.1 million, or $0.33, in the same period a year earlier. The consensus estimate among analysts polled by FactSet expected earnings of $0.23 per share.

Royalty and other revenue declined to $69.8 million from $76.9 million in the prior-year period.

For the quarter ended Dec. 31, Freehold reported funds from operations of $51 million, or $0.31 per share, down 17% year over year, primarily reflecting a 16% decline in WTI benchmark pricing, the company said.

The company reported 16,294 boe/d (barrels of oil equivalent per day) of royalty production, up 6% from the year-prior quarter. Besides, it reported 10,765 bbls/d of total crude oil and natural gas liquids production, a 9% increase from the fourth quarter of 2024.

Freehold also declared a monthly dividend of $0.09 per share to be paid on April 15 to shareholders of record on March 31.

"The company's 2024 U.S. acquisitions, combined with continued development across our U.S. portfolio contributed to the higher production and the increase in our liquids weighting to 66% from 64% in 2024," chief executive David Spyker said. "Our liquids portfolio, comprised of crude oil and natural gas liquids, accounted for 90% of our revenue in 2025. Natural gas contributed 7%, while potash and lease bonuses made up the remaining 3%."

In 2026, the company expects its overall production to average between 15,500 and 16,300 boe/d, weighted approximately 66% crude oil and natural-gas liquids (42% light and medium crude oil, 9% heavy oil and 15% natural-gas liquids) and approximately 34% natural gas. Its guidance range represents lower production volumes in the first half of 2026 followed by a ramp up in the second half supported by existing well licenses and permits, active current drilling programs, and an inventory of drilled but uncompleted wells.

However, it admitted that military operations in the Middle East could influence crude oil and natural gas prices during 2026.

Shares of the company closed up $0.14 to $17.97 on Toronto Stock Exchange.