Source Rock Royalties (SRR) investor relations material

Executive summary

• Q1 2026 saw a volatile oil price environment, with prices below $60/bbl in January and February, rebounding sharply in March.

• Royalty production and revenue declined early in the quarter but recovered in March, with seven new horizontal wells commencing production.

• The company remains focused on acquiring additional producing oil royalties and expanding undeveloped royalty lands, supported by $4.6 million in working capital.

Financial highlights

• Royalty revenue for Q1 2026 was $1,305,407, down 2% from Q4 2025 and 22% year-over-year.

• Adjusted EBITDA was $1,019,611, a 13% decrease from Q4 2025 and 30% lower than Q1 2025.

• Funds from operations totaled $932,259, down 15% sequentially and 28% year-over-year.

• Total comprehensive income was $350,354, nearly flat year-over-year.

• Cash and cash equivalents stood at $3,811,258, a 26% decrease from Q1 2025.

Outlook and guidance

• Higher oil prices in March have improved expectations for royalty revenue and drilling activity for the remainder of 2026.

• Operators plan to increase drilling and enhanced oil recovery activities, particularly on Clearwater royalty lands.

• The company is positioned to benefit from both strong and weak oil price environments through flexible acquisition strategies.