North America PERMIAN BASIN Location: Texas & New Mexico, United States | Operator: Pioneer Natural Resources, Occidental Petroleum, Coterra Energy, Others | Energy: Oil Royalty: Various Royalty Rates Franco-Nevada has exposure to the Permian Basin in West Texas, through both the Midland and Delaware sub-basins. 2023 2022 2021 In the third quarter of 2017, Franco-Nevada acquired a package of royalties Revenue to Franco-Nevada ($ million) $ 47.6 $ 52.6 $ 34.9 in the Delaware Basin for approximately $101 million. The Delaware Production (Mboe) 1,007 780 708 Basin comprises the western portion of the broader Permian Basin, Commodity Split (%)1 Oil 51% 77% 78% which is located in West Texas and southeast New Mexico. Sitting Gas 30% 12% 11% to the west of the Midland Basin, the Delaware Basin shares many NGL 19% 11% 11% similarities geologically, and is attractive to operators due to the stacked pay potential and premier economics. The current focus of operators 1 Percentage based on production revenue from each commodity in the Delaware Basin are the Wolfcamp and Bonespring horizons. 2 Asset life is calculated as the Proven, Probable and Possible reserve volumes divided by the The royalties consist of approximately 94% mineral title rights, along prior year production volume with some GORR interests, which apply to approximately 676 acres These two basins are considered among the most economic and prolific (net to Franco-Nevada). There are various operators across the acreage shale oil plays in the U.S. and have been the key drivers behind U.S. oil who continue to direct capital toward the Delaware Basin, which will production growth over the last decade. The Permian is the most active result in continued development of our assets over time. shale play in North America. Franco-Nevada’s Permian assets generated $47.6 million in revenue Effective in the first quarter of 2017, Franco-Nevada purchased a package in 2023 representing a 9.5% decrease from 2022. This was primarily of royalties in the Midland Basin for approximately $115 million. driven by lower realized oil prices coupled with a decrease in wells The Midland Basin comprises the eastern portion of the broader Permian completed on our land base. The Permian assets have an estimated 2 Basin. The royalty acreage is very diversified, covering a significant portion asset life of approximately 31 years , with additional stacked formations of the core of the Midland basin and providing exposure to multiple that may be exploited in the future. benches in the Wolfcamp and Spraberry formations. The royalties consist of approximately 97% mineral title rights, along with some GORR interests, Royalties provide exposure to Midland and Delaware Basins which apply to approximately 1,036 acres (net to Franco-Nevada). Permian represents one of the most active and economic The acreage is host to numerous operators, however, Pioneer Natural plays in North America Resources (“Pioneer”) is the operator for the largest portion of royalty acreage and is one of the largest companies operating in the basin. Exposure to upside through multiple formations at depth Pioneer has been is focused solely on its Midland Basin acreage and achieves some of the best well results in the area. ExxonMobil and Pioneer announced a merger in late 2023 which will create the industry’s leading high-quality undeveloped U.S. unconventional inventory position with 1.4 million net acres across the Midland and Delaware basins. The deal is expected to close in the first half of 2024. Mineral Resources and Mineral Reser Permian Basin Delaware Basin Midland Basin Northwest Shelf San Simon Channel FNV Royalty Acreage WSON BORDEN A D N ARD W LEA MARTIN HO Y EDD ANDREWS 0 16 kilometer Central Basin Platform w Mexico 0 10 Ne GLASSCOCK exas mile T VING ECTOR LO WINKLER CULBERSON MIDLAND ves Net Royalty Acres by County ARD W 3% Eddy 1.% Lea CRANE UPTON GAN REA 3% Culberson 1% Other IRION 3% Ward REEVES 4% Upton 23% Reeves OCKETT 5% Reagan CR 7% Loving Additional Inf VIS PECOS A New JEFF D Mexico 8% Howard Midland Basin Delaware Texas 16% Martin Basin 11% Midland Permian 15% Glasscock Basin or mation TSX / NYSE: FNV Franco-Nevada Corporation ★ 111