SOURCE ROCK ROYALTIES ANNOUNCES SECOND QUARTER 2025 RESULTS
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S./
CALGARY, AB, Sept. 2, 2025 /CNW/ - Source Rock Royalties Ltd. ("Source Rock") (TSXV:SRR), a pure-play oil and gas royalty company with an established portfolio of oil focused royalties, announces results for the three and six month periods ended June 30, 2025.
Second Quarter Highlights:
Quarterly royalty production of 237 boe/d (93% oil and NGLs), a decrease of 6% over Q2 2024.
Quarterly royalty revenue of $1,526,025, a decrease of 27% over Q2 2024.
Quarterly adjusted EBITDA(1) of $1,299,095 ($0.029 per share), a decrease of 33% over Q2 2024.
Quarterly funds from operations(1) of $1,168,154 ($0.026 per share), a decrease of 30% over Q2 2024.
Declared three monthly dividends of $0.0065 per share, resulting in a payout ratio(1) of 76%.
Achieved an operating netback(1) of $60.23 per boe and a corporate netback(1) of $54.16 per boe.
Working capital of $5,543,005(2) (0.12 per share) as at June 30, 2025, compared to $3,675,775 as at June 30, 2024.
Year-to-date Highlights:
Royalty production of 234 boe/d (93% oil and NGLs), a decrease of 5% over the same period in 2024.
Royalty revenue of $3,202,413, a decrease of 16% over the same period in 2024.
Adjusted EBITDA(1) of $2,759,535 ($0.061 per share), a decrease of 20% over the same period in 2024.
Funds from operations(1) of $2,460,369 ($0.054 per share), a decrease of 18% over the same period in 2024.
Declared six monthly dividends of $0.0065 per share, resulting in a payout ratio(1) of 72%.
Achieved an operating netback(1) of $65.15 per boe and a corporate netback(1) of $58.09 per boe.
President's Message
Following a robust year of drilling on our royalty lands in 2024, activity was weaker in the first half of 2025. This coincided with materially lower year-over-year oil prices, resulting in a decline of both royalty production and revenue. Despite this, because of our low-cost business model, we have maintained a strong cash flow profile, a manageable dividend payout ratio and a top-tier netback per barrel. At current oil prices, we anticipate ongoing reduced drilling activity on our royalty lands for the remainder of 2025 besides expected consistent drilling on our Figure Lake Clearwater lands.
We continue to actively evaluate additional royalty and mineral interest acquisitions that can be completed with our cash balance. These efforts have not translated into recent transactions as we strongly believe that prudently deploying shareholder capital on high-quality assets and at accretive metrics is more important than forcing growth. We will continue to undertake our acquisition strategy and manage the business with an approach that reflects our alignment with shareholders and our focus on long-term value creation.
Brad Docherty, President & CEO
Financial and Operational Results
Three months ended June 30,
Six months ended June 30,
FINANCIAL ($)
2025
2024
Change
2025
2024
Change
Royalty revenue
1,526,025
2,102,292
-27 %
3,202,413
3,830,342
-16 %
Adjusted EBITDA(1)
1,299,095
1,932,636
-33 %
2,759,535
3,436,740
-20 %
Per share (basic)
0.029
0.043
-33 %
0.061
0.076
-20 %
Funds from operations(1)
1,168,154
