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CALGARY, AB, Aug. 29, 2024 /CNW/ - Source Rock Royalties Ltd. ("Source Rock") (TSXV:SRR), a pure-play oil and gas royalty company with an established portfolio of oil royalties, announces results for the three and six month periods ended June 30, 2024 ("Q2 2024").
Q2 2024 Highlights:
Record quarterly royalty production of 251 boe/d (95% oil and NGLs), an increase of 22% over Q2 2023.
Record quarterly royalty revenue of $2,102,292, an increase of 38% over Q2 2023.
Record quarterly adjusted EBITDA2 of $1,932,636 ($0.043 per share), an increase of 42% over Q2 2023.
Record quarterly funds from operations2 of $1,673,849 ($0.037 per share), an increase of 27% over Q2 2023.
Declared $882,037 in dividends ($0.0195 per share), resulting in a payout ratio2 of 53%.
Achieved an operating netback2 of $84.61 per boe and a corporate netback2 of $73.28.
Ended Q2 2024 with cash and cash equivalents of $3,234,443 ($0.07 per share).
President's Message
We are very pleased to report record results for Q2 2024. Realized pricing on our royalty production was 17% higher in Q2 2024 compared to Q1 2024, and we continue to see strong drilling activity from various operators targeting the Frobisher Formation on our SE Saskatchewan royalty lands. Drilling activity on our Clearwater royalty lands was steady in Q2 2024 and we expect this to continue during the remainder of 2024.
Our current working capital is ~$3.8 million ($0.08 per share) and is increasing monthly. We are actively evaluating additional royalty acquisitions that can be completed with our existing cash balance and future cash flow. Our goal remains to accretively compound growth of our royalty production and royalty lands, while also paying an attractive and sustainable monthly dividend.
Financial and Operational Results
Three months ended June 30,
Six months ended June 30,
FINANCIAL ($)
2024
2023
Change
2024
2023
Change
Royalty revenue
2,102,292
1,526,946(1)
38 %
3,830,342
2,907,197(1)
32 %
Adjusted EBITDA(2)
1,932,636
1,363,910
42 %
3,436,740
2,521,430
36 %
Per share (basic)
0.043
0.030
42 %
0.076
0.060
27 %
Funds from operations(2)
1,673,849
1,316,628
27 %
3,004,955
2,428,099
24 %
Per share (basic)
0.037
0.029
28 %
0.066
0.054
22 %
Total comprehensive income (loss)
527,511
431,863
22 %
745,479
