Source Rock Royalties (TSXV:SRR)

Source Rock Royalties: A Pure-play on Oil & Gas Royalties in Western Canada


Source Rock Royalties (TSXV:SRR) focuses on oil & gas royalties in the provinces of Alberta and Saskatchewan. The company's portfolio comprises various gross overriding royalty interests in southeast Saskatchewan and a gross overriding royalty in largely contiguous Clearwater interests in Central Alberta. Source Rock Royalties offers investors low-risk and low-capital-cost exposure to the oil & gas sector with a royalty business model that shares in production revenue without exposure to the capital costs associated with drilling, development, maintenance, abandonment, environmental and other obligations.

Source Rock acquired new royalties worth nearly C$13 million in 2023 and a total of C$16.5 million since its IPO in March 2022 effectively doubling the company's royalty acreage. The acquisitions further enhanced its current royalty production and exposure to potential undeveloped drill locations. Source Rock generated C$6.6 million in royalty revenue in 2023, the highest in its 11-year history.

Interest in Land

The majority of Source Rock's royalties are derived from top-line revenue, resulting in minimal exposure to deductions linked to production costs from wellbores and the sale of various commodities. Also, the majority of its current royalty payors are financially stable and possess robust capabilities to efficiently operate and enhance the value of the lands in which Source Rock holds royalties. Some of the key royalty payors include Whitecap Resources (TSX:WCP), Rubellite Energy (TSX:RBY), Surge Energy (TSX:SGY), Crescent Point Energy (TSX:CPG) and Anova Resources (Private), among many others.

Company Highlights

  • Source Rock Royalties is a Calgary, Canada based pure-play oil and gas royalty company, with a focus on Alberta and Saskatchewan; the only junior oil and gas royalty company listed on the TSXV.
  • Source Rock concentrates on acquiring royalties in areas with proved reserves, foreseeable future high rate-of-return drilling upside, and partnering with operators that are financially and operationally prudent.
  • Owning and managing royalties is a capital-light business model offering the benefit of sharing in production revenue without exposure to the capital costs associated with drilling, development, maintenance, abandonment, environmental and other obligations.
  • Source Rock Royalties has a diversified oil-focused portfolio of royalty interests concentrated in southeast Saskatchewan, central Alberta, and west-central Saskatchewan with well-positioned royalty payors. Oil exposure allows for a strong netback (profit) per barrel even during periods of lower commodity prices.
  • Source Rock Royalties has a proven track record of executing on its balanced growth and yield business model. The company has achieved 11 years of positive cash flow and provided ~$17 million in dividends back to shareholders since 2014.
  • Source Rock Royalties anticipates its current monthly dividend of $0.006 to be comfortably funded with cash flow by current operations down to oil prices of C$60/bbl (or US$50/bbl WTI).
  • The management and board of directors have a proven track record of creating value in the oil & gas industry. The insiders own 9.5 percent of Source Rock’s common shares, aligning their interests to that of the shareholders.
  • The company has a strong institutional shareholder base with CN Rail Pension Fund owning approximately 21 percent of Source Rock’s common shares.
  • Insiders and key shareholders have an average cost on their shares of ~$0.90 (there were never any cheap Founders or seed shares issued).
  • Source Rock Royalties does not use debt in its business and always maintains a cash balance (currently ~$2.2 million).

This Source Rock Royalties profile is part of a paid investor education campaign.*

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Source Rock Royalties

Source Rock Royalties


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SOURCE ROCK ROYALTIES ANNOUNCES 2023 RESULTS INCLUDING RECORD ANNUAL & QUARTERLY FUNDS FROM OPERATIONS

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/Not for distribution to U.S. news wire services or dissemination in the U.S./

Source Rock Royalties Ltd. ("Source Rock") (TSXV: SRR), a pure-play oil and gas royalty company with an established portfolio of oil focused royalties, announces results for the three-month period and year ended December 31, 2023 .

News Provided by Canada Newswire via QuoteMedia

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/Not for distribution to U.S. news wire services or dissemination in the U.S./

Source Rock Royalties Ltd. ("Source Rock") (TSXV: SRR), a pure-play oil and gas royalty company with an established portfolio of oil royalties, announces that its board of directors has declared a monthly dividend of $0.0065 per common share, payable in cash on May 15, 2024 to shareholders of record on April 30, 2024 . This represents an increase of 8% to the monthly dividend. Source Rock has now increased its monthly dividend by 30% since March 2023 .

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/Not for distribution to U.S. news wire services or dissemination in the U.S./

Source Rock Royalties Ltd. ("Source Rock") (TSXV: SRR), a pure-play oil and gas royalty company with an established portfolio of oil royalties, announces unaudited operational and financial highlights for fiscal 2023 and the fourth quarter of 2023 ("Q4 2023"). Annual royalty production and revenue were the highest results in Source Rock's 11-year history.

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Not for distribution to U.S. news wire services or dissemination in the U.S.

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/Not for distribution to U.S. news wire services or dissemination in the U.S./

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Source Rock Royalties

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