Canada's Source Rock Royalties Q1 revenue falls on lower oil prices

Source Rock Royalties

01/06/2026 13:17

Overview
Canada oil and gas royalty firm's Q1 royalty revenue fell 22% yr/yr amid lower oil prices and reduced drilling activity
Q1 adjusted EBITDA declined 30% yr/yr
Company acquired 50% interest in 15 sections of Crown oil sands and PNG mineral leases in Alberta

Outlook
Company expects increased drilling activity on royalty lands due to higher oil prices
Company anticipates enhanced oil recovery activities, including waterflood and polymer injection pilots
Source Rock is seeking additional royalty acquisitions and Crown mineral leases in 2026

Result Drivers
LOWER OIL PRICES - Co said prolonged weak oil prices in Jan and Feb reduced drilling activity and new production on royalty lands
SCHEDULED PRODUCTION DECLINE - Co noted a scheduled drop in production volume royalty from 70 bbl/d to 39 bbl/d effective Jan 1, 2026
MARCH REBOUND - Oil price spike in March and new wells increased royalty production

Company press release: ID:nCNW8Z9Lla

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 FFO Per Share
 
C$0.02

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)