Source Rock Royalties (SRR) Q4 2025 earnings summary

Executive summary

• Annual royalty production was 230 boe/d (92% oil and NGLs), down 8% year-over-year.

• Annual royalty revenue totaled $6.03 million, a 22% decrease from 2024.

• Adjusted EBITDA for the year was $5.26 million, down 23% year-over-year.

• Funds from operations reached $4.85 million, a 19% decline from the prior year.

• 33 new horizontal wells began producing on royalty lands across Saskatchewan and Alberta.

Financial highlights

• Q4 royalty production averaged 226 boe/d (91% oil and NGLs), down 12% from Q4 2024.

• Q4 royalty revenue was $1.33 million, a 29% decrease year-over-year.

• Q4 adjusted EBITDA was $1.18 million, down 31% from Q4 2024.

• Q4 funds from operations were $1.10 million, a 27% decrease year-over-year.

• Q4 payout ratio rose to 81% from 59% in Q4 2024.

Outlook and guidance

• Management expects to continue its dividend strategy and pursue additional royalty acquisitions and Crown land leases.

• Forward-looking statements highlight risks related to commodity prices, acquisition opportunities, and drilling activity.