CALGARY, AB, April 12, 2023 /CNW/ – Source Rock Royalties Ltd. (“Source Rock”) (TSXV: SRR) (TSXV: SRR.WT), a pure-play oil and gas royalty company with an established portfolio of light oil focused royalties, announces that its board of directors has declared an inaugural monthly dividend of $0.0055 per common share, payable in cash on May 15, 2023 to shareholders of record on April 28, 2023. On an annualized basis, this monthly dividend equates to a 10% dividend increase.
This dividend is designated as an “eligible dividend” for Canadian income tax purposes.
Source Rock declared a $0.015 per share quarterly dividend for 25 consecutive quarters starting in Q1 2014. No quarterly dividend was declared for Q2 and Q3 2020, then a $0.005 per share quarterly dividend was declared in Q4 2020. Source Rock re-established its $0.015 per share quarterly dividend in Q1 2021 and has declared this same dividend for 9 consecutive quarters. In total, Source Rock has declared a quarterly dividend in 35 of 37 quarters since Q1 2014 and has paid approximately $13.5 million to shareholders.
We have had a long-standing focus on a balanced growth and yield business model. Our quarterly dividend has been the core strategy to consistently return capital to shareholders. We paid a quarterly dividend through all market cycles since 2014, except for Q2 and Q3 2020. Since our IPO in March 2022, we have realized that a material portion of our shareholder base would prefer to receive a dividend monthly instead of quarterly. We are pleased to not only transition to a monthly dividend, but to increase our annualized dividend by 10%.
Brad Docherty, President & CEO
Source Rock is a pure-play oil and gas royalty company with an existing, light oil focused portfolio of royalty interests concentrated in southeast Saskatchewan, east-central Alberta, west-central Alberta and west-central Saskatchewan. Source Rock targets a balanced growth and yield business model, using funds from operations to pursue accretive royalty acquisitions and to pay dividends. By leveraging its niche industry relationships, Source Rock identifies and acquires both existing royalty interests and newly created royalties through collaboration with industry partners. Source Rock’s strategy is premised on maintaining a low-cost corporate structure and achieving a sustainable and scalable business, measured by growing funds from operations per share and maintaining a strong netback on its royalty production.
This news release includes forward-looking statements and forward-looking information within the meaning of Canadian securities laws. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “is expected”, “expects”, “scheduled”, “intends”, “contemplates”, “anticipates”, “believes”, “proposes” or variations (including negative and grammatical variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements in this news release include statements regarding Source Rock’s ability to pay dividends in the future. Such statements and information are based on the current expectations of Source Rock’s management and are based on assumptions and subject to risks and uncertainties. Although Source Rock’s management believes that the assumptions underlying these statements and information are reasonable, they may prove to be incorrect. The forward-looking events and circumstances discussed in this news release may not occur by certain dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting Source Rock. Although Source Rock has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements and information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement or information can be guaranteed. Except as required by applicable securities laws, forward-looking statements and information speak only as of the date on which they are made and Source Rock undertakes no obligation to publicly update or revise any forward-looking statement or information, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of this release.
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SOURCE Source Rock Royalties Ltd.