CALGARY, AB, Dec. 1, 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 nine month periods ended September 30, 2025.
Third Quarter Highlights:
Quarterly royalty production of 225 boe/d (93% oil and NGLs), a decrease of 12% over Q3 2024.
Quarterly royalty revenue of $1,497,691, a decrease of 25% over Q3 2024.
Quarterly adjusted EBITDA(1) of $1,326,057 ($0.029 per share), a decrease of 21% over Q3 2024.
Quarterly funds from operations(1) of $1,290,361 ($0.028 per share), a decrease of 13% over Q3 2024.
Declared three monthly dividends of $0.0065 per share, resulting in a payout ratio(1) of 69%.
Achieved an operating netback(1) of $64.06 per boe and a corporate netback(1) of $62.33 per boe.
Ending cash balance of $4,702,596 ($0.10 per share), compared to $3,865,103 ($0.09 per share) in 2024.
Year-to-date Highlights:
Royalty production of 231 boe/d (93% oil and NGLs), a decrease of 8% over the same period in 2024.
Royalty revenue of $4,700,104, a decrease of 19% over the same period in 2024.
Adjusted EBITDA(1) of $4,085,592 ($0.09 per share), a decrease of 20% over the same period in 2024.
Funds from operations(1) of $3,750,730 ($0.083 per share), a decrease of 16% over the same period in 2024.
Declared nine monthly dividends of $0.0065 per share, resulting in a payout ratio(1) of 71%.
Achieved an operating netback(1) of $64.79 per boe and a corporate netback(1) of $59.48 per boe.
President's Message
After record results and strong new drilling on our lands in 2024, weaker oil prices in 2025 has led to reduced activity and lower production and revenue. Despite this, a decrease in expenses and lower taxes has allowed us to maintain a robust cash flow profile, a manageable dividend payout ratio and a top-tier netback. At current oil prices, we anticipate continued reduced drilling activity on our royalty lands besides consistent drilling expected on our Figure Lake Clearwater lands.
Weaker oil prices are providing an opportunity to use our cash balance to acquire royalties and mineral interests at lower valuations. Our new oil sands Crown mineral rights leasing joint-venture has created an added growth path for the business in conjunction with leveraging our industry relationships to identify and evaluate producing royalty and mineral acquisition opportunities. We will continue to deploy capital and manage the business prudently, with an emphasis on driving free cash flow despite market volatility and achieving long-term value creation.
Brad Docherty, President & CEO
Financial and Operational Results
Three months ended September 30,
Nine months ended September 30,
FINANCIAL ($)
2025
2024
Change
2025
2024
Change
Royalty revenue
1,497,691
1,987,999
-25 %
4,700,104
5,818,341
-19 %
Adjusted EBITDA(1)
1,326,057
1,670,376
-21 %
4,085,592
5,107,116
-20 %
Per share (basic)
0.029
0.037
-21 %
0.09
0.113
-20 %
Funds ...
