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Source Rock Royalties (SRR) investor relations material
Source Rock Royalties Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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.
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