Source Rock Royalties (SRR) Q3 2025 earnings summary

Executive summary

• Royalty production averaged 225 boe/d (93% oil and NGLs) in Q3 2025, down 12% year-over-year.

• Royalty revenue for Q3 2025 was $1.50 million, a 25% decrease from Q3 2024, reflecting weaker oil prices and reduced drilling activity.

• Adjusted EBITDA for Q3 2025 was $1.33 million, down 21% year-over-year; funds from operations were $1.29 million, down 13%.

• Despite lower revenue, cost reductions and lower taxes supported robust cash flow and a manageable payout ratio.

Financial highlights

• Q3 2025 royalty revenue: $1,497,691 (down 25% year-over-year); adjusted EBITDA: $1,326,057 (down 21%).

• Funds from operations in Q3 2025: $1,290,361 (down 13% year-over-year); payout ratio: 69%.

• Year-to-date royalty revenue: $4,700,104 (down 19%); adjusted EBITDA: $4,085,592 (down 20%).

• Year-to-date funds from operations: $3,750,730 (down 16%); payout ratio: 71%.

• Ending cash balance: $4,702,596, up from $3,865,103 in 2024.

Outlook and guidance

• Anticipates continued reduced drilling activity on royalty lands due to current oil prices, except for consistent drilling at Figure Lake Clearwater.

• Plans to leverage cash balance for royalty and mineral acquisitions at lower valuations.

• New oil sands Crown mineral rights leasing joint venture provides an additional growth path.

• Focus remains on prudent capital deployment and long-term value creation despite market volatility.