Source Rock Royalties Ltd. posted record quarterly royalty revenue of $2,134,983 for the three months ended June 30, 2026, marking a 40% increase compared to $1,526,025 in the same period of 2025.

The oil and gas royalty operator, which maintains an oil-focused portfolio concentrated in southeast Saskatchewan, central Alberta, and west-central Saskatchewan, funded its operations and acquisitions through cash generated from its assets. Source Rock targets a balanced growth and yield business model, utilizing funds from operations to pursue accretive royalty acquisitions and pay monthly dividends.

Alongside the revenue growth, Adjusted EBITDA for the second quarter rose 49% to $1,932,155, or $0.042 per share, up from $1,299,095 in the corresponding period last year. Operating netback expanded 60% to $96.51 per barrel of oil equivalent (boe) from $60.23 per boe, while corporate netback reached $81.09 per boe. Funds from operations grew 39% to $1,623,372, or $0.036 per share.

Total average daily production for the quarter stood at 220 boe per day, representing a 7% decrease from 237 boe per day in Q2 2025. The production mix remained heavily weighted toward liquids, with 94% coming from oil and natural gas liquids.

Operational activity during the quarter included eight gross new horizontal wells beginning production on royalty lands across central Alberta, all of which were Clearwater wells. Source Rock also acquired a 0.5% gross overriding royalty in producing lands in Saskatchewan and purchased a 50% interest in 16.75 sections of Crown mineral leases in Alberta for $402,073, expanding its total leasehold position to 50.75 sections.

The company declared three monthly dividends of $0.0065 per share during the quarter, resulting in a payout ratio of 55% against funds from operations. Working capital closed at $4,899,871 as of June 30, 2026, compared to $4,567,435 at the end of the previous quarter.

Read the full announcement: SOURCE ROCK ROYALTIES ANNOUNCES SECOND QUARTER 2026 RESULTS INCLUDING RECORD QUARTERLY ROYALTY REVENUE