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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.
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Q2 2025 earnings summary2 Sep, 2025

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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