Source Rock Royalties (SRR) Q3 2025 earnings summary

Executive summary

• Quarterly royalty production was 225 boe/d (93% oil and NGLs), down 12% year-over-year for Q3 2025.

• Royalty revenue for Q3 2025 was $1.5 million, a 25% decrease compared to Q3 2024.

• Adjusted EBITDA for Q3 2025 was $1.33 million, down 21% year-over-year.

• Funds from operations for Q3 2025 totaled $1.29 million, a 13% decrease from Q3 2024.

• Lower oil prices in 2025 led to reduced drilling activity and lower production and revenue, but cost controls maintained strong cash flow and netbacks.

Financial highlights

• Year-to-date royalty production averaged 231 boe/d, down 8% from the same period in 2024.

• Year-to-date royalty revenue was $4.7 million, a 19% decrease year-over-year.

• Year-to-date adjusted EBITDA was $4.09 million, down 20% from 2024.

• Year-to-date funds from operations were $3.75 million, a 16% decrease year-over-year.

• Ending cash balance was $4.7 million ($0.10 per share), up from $3.87 million 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 driving free cash flow despite market volatility.