TSX:FNV 101.61 +0.49 +0.48%
Volume 421,412
February 19, 2019
NYSE:FNV 76.94 +0.52 +0.68%
Volume 841,314
February 19, 2019
Gold 1,345.35 +3.05 +0.23%
Volume
February 20, 2019
Contact Share

Location: TEXAS
Operator: Pioneer Natural Resources and various other operators
Royalty: Various Royalty Rates

Effective in the first quarter of 2017, Franco-Nevada purchased a package of royalties in the Midland Basin for approximately $115 million. The Midland Basin comprises the eastern portion of the broader Permian Basin, which is located in West Texas. The Permian is the most active play in North America. The royalty acreage is very diversified, covering a significant portion of the core of the Midland basin providing exposure to multiple benches in the Wolfcamp and Spraberry formations. The royalties consist of approximately 97% mineral title rights, along with some GORR interests, which apply to approximately 1,010 acres (net after royalties) and that when pooled, provide exposure to an estimated gross acreage of 495,360 acres.

The acreage is host to numerous operators, however, Pioneer Natural Resources is the operator for the largest portion of royalty acreage. Pioneer is one of the largest companies operating in the basin. Pioneer is focused solely on its Midland Basin acreage and achieves some of the best well results in the area.

In 2017, Franco received a partial year of revenue in the amount of $2.3 million from its acreage in the Midland Basin.

ASSET HIGHLIGHTS:

  • Royalty provides exposure to effectively all of the Midland Basin
  • Midland Basin represents one of most active plays in North America
  • Revenues expected to ramp-up as royalty acreage is developed

2017 2016 2015
Revenue to Franco-Nevada ($ million)1 $ 2.3 $ – $ –