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Supply Rock Royalties Ltd. (“Supply Rock”) (TSXV: SRR,OTC:SRRRF), a pure-play oil and gasoline royalty firm with a longtime portfolio of oil targeted royalties, pronounces outcomes for the three and 9 month intervals ended September 30, 2025.
Third Quarter Highlights:
- Quarterly royalty manufacturing of 225 boe/d (93% oil and NGLs), a lower of 12% over Q3 2024.
- Quarterly royalty income of $1,497,691, a lower of 25% over Q3 2024.
- Quarterly adjusted EBITDA(1) of $1,326,057 ($0.029 per share), a lower of 21% over Q3 2024.
- Quarterly funds from operations(1) of $1,290,361 ($0.028 per share), a lower of 13% over Q3 2024.
- Declared three month-to-month dividends of $0.0065 per share, leading to a payout ratio(1) of 69%.
- Achieved an working netback(1) of $64.06 per boe and a company netback(1) of $62.33 per boe.
- Ending money steadiness of $4,702,596 ($0.10 per share), in comparison with $3,865,103 ($0.09 per share) in 2024.
Yr-to-date Highlights:
- Royalty manufacturing of 231 boe/d (93% oil and NGLs), a lower of 8% over the identical interval in 2024.
- Royalty income of $4,700,104, a lower of 19% over the identical interval in 2024.
- Adjusted EBITDA(1) of $4,085,592 ($0.09 per share), a lower of 20% over the identical interval in 2024.
- Funds from operations(1) of $3,750,730 ($0.083 per share), a lower of 16% over the identical interval in 2024.
- Declared 9 month-to-month dividends of $0.0065 per share, leading to a payout ratio(1) of 71%.
- Achieved an working netback(1) of $64.79 per boe and a company netback(1) of $59.48 per boe.
President’s Message
After document outcomes and powerful new drilling on our lands in 2024, weaker oil costs in 2025 has led to lowered exercise and decrease manufacturing and income. Regardless of this, a lower in bills and decrease taxes has allowed us to keep up a sturdy money stream profile, a manageable dividend payout ratio and a top-tier netback. At present oil costs, we anticipate continued lowered drilling exercise on our royalty lands apart from constant drilling anticipated on our Determine Lake Clearwater lands.
Weaker oil costs are offering a chance to make use of our money steadiness to amass royalties and mineral pursuits at decrease valuations. Our new oil sands Crown mineral rights leasing joint-venture has created an added progress path for the enterprise along side leveraging our business relationships to determine and consider producing royalty and mineral acquisition alternatives. We are going to proceed to deploy capital and handle the enterprise prudently, with an emphasis on driving free money stream regardless of market volatility and attaining long-term worth creation.
Brad Docherty, President & CEO
Monetary and Operational Outcomes
|
Three months ended September 30, |
9 months ended September 30, |
|||||
|
FINANCIAL ($) |
2025 |
2024 |
Change |
2025 |
2024 |
Change |
|
Royalty income |
1,497,691 |
1,987,999 |
-25 % |
4,700,104 |
5,818,341 |
-19 % |
|
Adjusted EBITDA(1) |
1,326,057 |
1,670,376 |
-21 % |
4,085,592 |
5,107,116 |
-20 % |
|
Per share (primary) |
0.029 |
0.037 |
-21 % |
0.09 |
0.113 |
-20 % |
|
Funds from operations(1) |
1,290,361 |
1,477,458 |
-13 % |
3,750,730 |
4,482,413 |
-16 % |
|
Per share (primary) |
0.028 |
0.032 |
-13 % |
0.083 |
0.099 |
-16 % |
|
Complete complete earnings |
456,682 |
247,925 |
84 % |
1,013,779 |
993,404 |
2 % |
|
Per share (primary) |
0.01 |
0.005 |
100 % |
0.022 |
0.022 |
– |
|
Per share (diluted) |
0.01 |
0.005 |
100 % |
0.021 |
0.021 |
– |
|
Dividends declared |
888,863 |
888,863 |
– |
2,666,589 |
2,585,076 |
3 % |
|
Per share (primary) |
0.0195 |
0.0195 |
– |
0.0585 |
0.057 |
3 % |
|
Payout ratio(1) (%) |
69 % |
60 % |
15 % |
71 % |
58 % |
22 % |
|
Money and money equivalents |
4,702,596 |
3,865,103 |
22 % |
4,702,596 |
3,865,103 |
22 % |
|
Per share (primary) |
0.10 |
0.09 |
11 % |
0.10 |
0.09 |
11 % |
|
Common shares excellent (primary) |
45,582,727 |
45,495,207 |
– |
45,582,727 |
45,320,871 |
– |
|
Shares excellent (finish of interval) |
45,582,727 |
45,582,727 |
– |
45,582,727 |
45,582,727 |
– |
|
OPERATING |
||||||
|
Common every day manufacturing (boe/d) |
225 |
257 |
-12 % |
231 |
250 |
-8 % |
|
Proportion oil & NGLs |
93 % |
94 % |
-1 % |
93 % |
95 % |
-2 % |
|
Common worth realizations ($/boe) |
72.28 |
83.94 |
-14 % |
74.47 |
85.00 |
-12 % |
|
Working netback(1) ($/boe) |
64.06 |
70.65 |
-9 % |
64.79 |
74.26 |
-13 % |
|
Company netback(1) ($/boe) |
62.33 |
62.49 |
– |
59.48 |
65.18 |
-9 % |
|
(1) |
It is a non-GAAP monetary measure or non-GAAP ratio. Consult with the disclosure below the heading “Non-GAAP Monetary Measures & Ratios” for extra info on every non-GAAP monetary measure or ratio. |
About Supply Rock Royalties Ltd.
Supply Rock is a pure-play oil and gasoline royalty firm with an present, oil targeted portfolio of royalty pursuits concentrated in southeast Saskatchewan, central Alberta and west-central Saskatchewan. Supply Rock targets a balanced progress and yield enterprise mannequin, utilizing funds from operations to pursue accretive royalty acquisitions and to pay dividends. By leveraging its area of interest business relationships, Supply Rock identifies and acquires each present royalty pursuits and newly created royalties by means of collaboration with business companions. Supply Rock’s technique is premised on sustaining a low-cost company construction and attaining a sustainable and scalable enterprise, measured by rising funds from operations per share and sustaining a robust netback on its royalty manufacturing.
Ahead-Wanting Statements
This information launch consists of forward-looking statements and forward-looking info throughout the that means of Canadian securities legal guidelines. Usually, however not all the time, forward-looking info might be recognized by means of phrases equivalent to “plans”, “is anticipated”, “expects”, “scheduled”, “intends”, “contemplates”, “anticipates”, “believes”, “proposes” or variations (together with destructive and grammatical variations) of such phrases and phrases, or state that sure actions, occasions or outcomes “might”, “might”, “would”, “would possibly” or “will” be taken, happen or be achieved. Ahead-looking statements on this information launch embody statements concerning Supply Rock’s dividend technique and the quantity and timing of future dividends (and the sustainability thereof), the potential for future drilling on Supply Rock’s royalty lands, expectations concerning commodity costs, Supply Rock’s progress technique and expectations with respect to future royalty acquisition and partnership alternatives, and the flexibility to finish such acquisitions and set up such partnerships. Such statements and data are based mostly on the present expectations of Supply Rock’s administration and are based mostly on assumptions and topic to dangers and uncertainties. Though Supply Rock’s administration believes that the assumptions underlying these statements and data are affordable, they could show to be incorrect. The forward-looking occasions and circumstances mentioned on this information launch might not happen by sure dates or in any respect and will differ materially because of recognized and unknown danger components and uncertainties affecting Supply Rock. Though Supply Rock has tried to determine vital components that would trigger precise actions, occasions or outcomes to vary materially from these described in forward-looking statements and data, there could also be different components that trigger actions, occasions or outcomes to vary from these anticipated, estimated or meant. No forward-looking assertion or info might be assured. Besides as required by relevant securities legal guidelines, forward-looking statements and data communicate solely as of the date on which they’re made and Supply Rock undertakes no obligation to publicly replace or revise any forward-looking assertion or info, whether or not because of new info, future occasions or in any other case.
Non-GAAP Monetary Measures & Ratios
This information launch makes use of the phrases “funds from operations” and “Adjusted EBITDA” that are non-GAAP monetary measures and the phrases “payout ratio”, “working netback” and “company netback” that are non-GAAP ratios. These monetary measures and ratios shouldn’t have a standardized prescribed that means below GAAP and these measures and ratios is probably not comparable with the calculation of comparable measures disclosed by different entities.
“Adjusted EBITDA” is utilized by administration to research the Company’s profitability based mostly on the Company’s principal enterprise actions previous to how these actions are financed, how belongings are depreciated, amortized and impaired, and the way the outcomes are taxed. Moreover, quantities are eliminated referring to share-based compensation expense, the sale of belongings, honest worth changes on monetary belongings and liabilities, different non-cash gadgets and sure non-standard bills, because the Company doesn’t deem these to narrate to the efficiency of its principal enterprise. Adjusted EBITDA just isn’t meant to characterize internet revenue (or loss) as calculated in accordance with IFRS.
Essentially the most straight comparable GAAP monetary measure to funds from operations is money stream from working actions. “Funds from operations” is outlined as money stream from working actions earlier than the change in non-cash working capital. Supply Rock believes the timing of assortment, cost or incurrence of those non-cash gadgets entails a excessive diploma of discretion and as such is probably not helpful for evaluating Supply Rock’s working efficiency. Supply Rock considers funds from operations to be a key measure of working efficiency because it demonstrates Supply Rock’s means to generate funds to fund operations, acquisition alternatives, dividend funds and debt repayments, if relevant. Funds from operations shouldn’t be construed as an alternative choice to earnings or money stream from working actions decided in accordance with GAAP as a sign of Supply Rock’s efficiency.
“Company netback” is calculated as funds from operations divided by cumulative manufacturing volumes for the interval. Company netback is utilized by Supply Rock to raised analyze the monetary efficiency of its royalties in opposition to prior intervals and to evaluate the associated fee effectivity of its general company platform because it pertains to manufacturing volumes. There is no such thing as a standardized that means for “company netback” and this metric as utilized by Supply Rock is probably not comparable with the calculation of comparable metrics disclosed by different entities, and due to this fact shouldn’t be used to make comparisons.
“Working netback” represents the money margin for merchandise bought. Working netback is calculated as income minus money administrative bills divided by cumulative manufacturing volumes for the interval. Working netback is utilized by Supply Rock to evaluate the money producing and working efficiency of its royalties in opposition to prior intervals and to evaluate the prices effectivity of its working platform because it pertains to manufacturing volumes. There is no such thing as a standardized that means for “working netback” and this metric as utilized by Supply Rock is probably not comparable with the calculation of comparable metrics disclosed by different entities, and due to this fact shouldn’t be used to make comparisons.
“Payout ratio” is calculated as the combination of money dividends declared in a interval divided by funds from operations realized in such interval. Supply Rock considers payout ratio to be a key measure to evaluate Supply Rock’s means to fund operations, acquisition alternatives, dividend funds, money taxes and debt repayments, if relevant.
Neither the TSX Enterprise Trade nor its Regulation Companies Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Trade) accepts duty for the adequacy of this launch.
SOURCE Supply Rock Royalties Ltd.
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