Source Rock Royalties (SRR) Q2 2026 earnings summary

Executive summary

• Achieved record quarterly royalty revenue of $2.13 million in Q2 2026, up 40% year-over-year.

• Quarterly adjusted EBITDA rose 49% to $1.93 million, with funds from operations up 39% to $1.62 million.

• Year-to-date royalty revenue increased 7% to $3.44 million, with adjusted EBITDA up 7% and funds from operations up 4%.

• Declared monthly dividends totaling $0.0195 per share in Q2, with a payout ratio of 55%.

• Expanded royalty and lease portfolio through acquisitions in Alberta and Saskatchewan.

Financial highlights

• Q2 2026 royalty revenue: $2,134,983 (+40% YoY); six-month revenue: $3,440,390 (+7% YoY).

• Adjusted EBITDA for Q2: $1,932,155 (+49% YoY); six months: $2,951,766 (+7% YoY).

• Funds from operations for Q2: $1,623,372 (+39% YoY); six months: $2,555,631 (+4% YoY).

• Total comprehensive income for Q2: $873,950 (+333% YoY); six months: $1,224,304 (+120% YoY).

• Cash and cash equivalents at June 30, 2026: $4,086,350, down 21% from prior year.

Outlook and guidance

• Management expects increased drilling and enhanced oil recovery activity on royalty lands due to higher oil prices.

• Plans to pursue additional royalty acquisitions and Crown land leases.

• Dividend strategy and sustainability remain a focus, with ongoing evaluation of payout levels.