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

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

CALGARY, AB, April 22, 2024 /CNW/ - 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.

Source Rock Logo (CNW Group/Source Rock Royalties Ltd.)
Source Rock Logo (CNW Group/Source Rock Royalties Ltd.)

Annual Highlights:

  • Record annual royalty revenue of $6,646,3261, an increase of 2% over 2022.

  • Record annual funds from operations3 of $5,653,618 ($0.126 per share), an increase of 10% over 2022.

  • Record annual Adjusted EBITDA3 of $5,793,204 ($0.129 per share), an increase of 1% over 2022.

  • Record annual royalty production of 2084 boe/d (93% oil and NGLs), an increase of 25% over 2022.

  • Declared $2,968,990 in dividends ($0.066 per share), resulting in a payout ratio3 of 53%.

  • Achieved an operating netback3 of $76.30 per boe and a corporate netback3 of $74.47.

  • Completed $13.23 million of royalty acquisitions in central Alberta and S.E. Saskatchewan.

  • 26 gross horizontal wells drilled on royalty lands in S.E. Saskatchewan (24) and central Alberta (2).

Fourth Quarter Highlights:

  • Quarterly royalty revenue of $1,720,2641, an increase of 14% over Q4 2022.

  • Record quarterly funds from operations3 of $1,663,376 ($0.037 per share), an increase of 18% over Q4 2022.

  • Quarterly Adjusted EBITDA3 of $1,525,386 ($0.034 per share), an increase of 9% over Q4 2022.

  • Quarterly royalty production averaged 2184 boe/d (94% oil and NGLs), an increase of 29% over Q4 2022.

  • Declared three monthly dividends of $0.006 per share, resulting in a payout ratio3 of 49%.

  • Achieved an operating netback3 of $76.06 per boe and a corporate netback3 of $82.94 per boe.

  • Completed an $8 million royalty acquisition in the central Alberta Clearwater heavy oil fairway.

Financial and Operational Results

Three Months Ended December 31,

Year Ended December 31,

FINANCIAL ($, except as noted)

2023

2022

Change

2023

2022

Change

Royalty revenue

1,720,264(1)

1,504,421(2)

14 %

6,646,326(1)

6,490,519(2)

2 %

 Adjusted EBITDA(3)

1,525,386

1,399,621

9 %

5,793,204

5,736,622

1 %

Per share (basic)

0.034

0.031

10 %

0.129

0.136

-5 %

Funds from operations(3)

1,663,376

1,411,440

18 %

5,653,618

5,128,706

10 %

Per share (basic)

0.037

0.031

19 %

0.126

0.121

4 %

Total comprehensive income (loss)

382,367

559,447

-32 %

1,566,310

2,558,054

-39 %

Per share (basic)

0.008

0.012

-33 %

0.035

0.060

-42 %

Per share (diluted)

0.008

0.012

-33 %

0.034

0.059

-42 %

Dividends declared

812,850

673,450

21 %

2,968,990

2,693,798

10 %

Per share

0.018

0.015

20 %

0.066

0.06

10 %

Payout ratio(3)

49 %

48 %

2 %

53 %

53 %

-

Cash and cash equivalents

1,462,040

13,152,502

-89 %

1,462,040

13,152,502

-89 %

Per share (basic)

0.03

0.29

-90 %

0.03

0.29

-90 %

Average shares outstanding (basic)

45,139,091

44,896,645

1 %

45,022,140

42,344,911

6 %

Shares outstanding (end of period)

45,231,645

44,896,645

1 %

45,231,645

44,896,645

1 %

OPERATING

Average daily production (boe/d)

218(4)

169(5)

29 %

208(4)

166(5)

25 %

Percentage oil & NGLs

94 %

92 %

2 %

93 %

92 %

1 %

Average price realizations ($/boe)

85.86

96.55

-11 %

87.54

107.28

-18 %

Operating netback ($/boe)(3)

76.06

90.02

-16 %

76.30

94.68

-19 %

Corporate netback ($/boe)(3)

82.94

90.78

-9 %

74.47

84.65

-12 %

(1)

Source Rock also benefited from $211,892 (Q4 2023) and $373,437 (fiscal 2023) of sales proceeds from royalty production that occurred after the effective date but prior to the closing date of acquisitions. These proceeds were accounted for as a reduction to the purchase price of the acquisitions.

(2)

Source Rock also benefited from $85,268 (Q4 2022) and $25,268 (fiscal 2022) of sales proceeds from royalty production that occurred after the effective date but prior to the closing date of acquisitions. These proceeds were accounted for as a reduction to the purchase price of the acquisitions.

(3)

This is a non-GAAP financial measure or non-GAAP ratio. Refer to the disclosure under the heading "Non-GAAP Financial Measures & Ratios" for more information on each non-GAAP financial measure or ratio.

(4)

Source Rock also benefited from 29 boe/d (100% oil & NGLs) for Q4 2023 and 12 boe/d (100% oil & NGLs) for fiscal 2023, of royalty production that occurred after the effective date but prior to the closing date of acquisitions.

(5)

Source Rock also benefited from 9 boe/d (100% oil & NGLs) for Q4 2022 and 2 boe/d (100% oil & NGLs) for fiscal 2022, of royalty production that occurred after the effective date but prior to the closing date of acquisitions.

2023 Reserves Information

Source Rock's reserves data and other oil and natural gas information, as required under National Instrument 51-101, will be filed on SEDAR+ at www.sedarplus.ca on or before April 29, 2024.

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