Source Rock Royalties (SRR) Q2 2025 earnings summary

Executive summary

• Quarterly royalty production was 237 boe/d (93% oil and NGLs), down 6% year-over-year for Q2 2025.

• Royalty revenue for Q2 2025 was $1,526,025, a 27% decrease from Q2 2024.

• Adjusted EBITDA for Q2 2025 was $1,299,095, down 33% year-over-year.

• Funds from operations for Q2 2025 totaled $1,168,154, a 30% decrease from Q2 2024.

• Lower drilling activity and oil prices in early 2025 led to declines in production and revenue, but strong cash flow and netbacks were maintained.

Financial highlights

• Year-to-date royalty revenue was $3,202,413, down 16% from the same period in 2024.

• Year-to-date adjusted EBITDA was $2,759,535, a 20% decrease year-over-year.

• Year-to-date funds from operations were $2,460,369, down 18% from 2024.

• Operating netback for Q2 2025 was $60.23/boe, and corporate netback was $54.16/boe.

• Working capital as of June 30, 2025, was $5,543,005, up from $3,675,775 a year earlier.

Outlook and guidance

• Ongoing reduced drilling activity is expected for the remainder of 2025, except for consistent drilling at Figure Lake Clearwater.

• Management continues to evaluate acquisition opportunities but prioritizes prudent capital deployment and long-term value.

• Dividend strategy and payout ratios are expected to remain sustainable, subject to commodity prices and acquisition success.