Source Rock Royalties (SRR) Q1 2025 earnings summary

Executive summary

• Reported Q1 2025 royalty production of 232 boe/d, 92% oil and NGLs, down 4% year-over-year.

• Royalty revenue for the quarter was $1.68 million, a 3% decrease from Q1 2024.

• Adjusted EBITDA reached $1.46 million, down 3% year-over-year.

• Funds from operations totaled $1.29 million, a 3% decline from the prior year.

• Total comprehensive income rose 63% to $355,381 compared to Q1 2024.

Financial highlights

• Quarterly dividends declared totaled $888,863 ($0.0195 per share), up 9% year-over-year.

• Payout ratio was 69%, compared to 61% in Q1 2024.

• Cash and cash equivalents increased 110% to $5.13 million as of March 31, 2025.

• Operating netback was $70.00/boe and corporate netback was $61.94/boe, both up 2% year-over-year.

• Average price realizations improved 2% to $80.36/boe.

Outlook and guidance

• Strategy focuses on balanced growth and yield, using funds from operations for accretive royalty acquisitions and dividends.

• Forward-looking statements highlight expectations for future drilling, commodity prices, and acquisition opportunities.

• Management emphasizes maintaining a low-cost structure and sustainable, scalable business model.