SOURCE ROCK ROYALTIES ANNOUNCES THIRD QUARTER 2025 RESULTS

Executive Summary

• Source Rock Royalties reported a decline in Q3 2025 royalty production (225 boe/d, ‑12% YoY) and revenue ($1.50 M, ‑25% YoY).
• Adjusted EBITDA fell to $1.33 M ($0.029 per share), down 21% from the prior year quarter.
• Cash balance increased to $4.70 M (+22% YoY) and a dividend of $0.0065 per share was declared (payout ratio 69%).

Key Details

• Royalty Production: 225 boe/d in Q3 2025 (93% oil & NGLs), ‑12% vs Q3 2024; YTD average 231 boe/d, ‑8% YoY.
• Royalty Revenue: $1,497,691 for the quarter, down 25% YoY; YTD revenue $4,700,104, down 19% YoY.
• Adjusted EBITDA: $1,326,057 for Q3 2025 ($0.029 per share), ‑21% YoY; YTD $4,085,592, ‑20% YoY.
• Funds from Operations: $1,290,361 for the quarter ($0.028 per share), down 13% YoY; YTD $3,750,730, down 16% YoY.
• Dividends Declared: Three monthly dividends of $0.0065 per share (quarterly total $888,863); payout ratio increased to 69% from 60% in Q3 2024.
• Netbacks: Operating netback $64.06/boe (‑9% YoY); Corporate netback $62.33/boe (flat YoY). YTD operating netback $64.79/boe, corporate netback $59.48/boe.
• Cash Position: Cash and cash equivalents $4,702,596 at quarter end ($0.10 per share), up 22% from $3,865,103 a year earlier.
• Average Price Realizations: $72.28 per boe in Q3 2025, down 14% YoY; YTD $74.47 per boe, down 12% YoY.
• Share Statistics: Average shares outstanding (basic) 45,582,727; unchanged from prior year.

Notable Quotes

“Weaker oil prices in 2025 have led to reduced activity and lower production and revenue. Despite this, a decrease in expenses and lower taxes has allowed us to maintain a robust cash flow profile, a manageable dividend payout ratio and a top‑tier netback.” – Brad Docherty, President & CEO

All non‑material boilerplate, forward‑looking statements, and disclaimer sections have been omitted for brevity.