The Franco Nevada of the oil and gas sector really, although Franco Nevada does have some oil and gas exposure as well.
Unlike a producer, I'd expect Freehold to be able to perform well and generate strong income in almost any environment. As a royalty company, it is less susceptible to the price of oil. We can see that in 2023, as most producers have gotten hammered, while Freehold has helped up decently well.
The company targets a 60% payout ratio, and despite yielding north of 7% actually closed out last year at around 51%. It went on an acquisition spree last year a well, which should bode well for it this year. Debt has increased, but the company is still in a very strong financial position. Has a rock solid balance sheet and outstanding coverage ratios. Management stated the dividend can be sustained even as low as $50 a barrel. So, there's a pretty large cushion there. The last time oil hit $50 a barrel, outside of the COVID-19 pandemic situation of course, was late 2018, and it was there very briefly.
Overall, probably one of the more reliable income options right now when it comes to oil and gas if you're looking to go the more conservative route. Keep in mind although its earnings are sheltered to an extent, the stock price isn't. The company still has a beta of 2.2.