Added to YB: 2025-09-30
Pitch date: 2025-09-29
SRR.V [bullish]
Source Rock Royalties Ltd.
+20.89%
current return
Author Info
Aurelion Research is a research analyst with a passion for markets, specializing in high‑conviction ideas across shipping, offshore drilling, and thematic equity research. Sign up for the newsletter.
Company Info
Source Rock Royalties Ltd. engages as an oil and gas royalty company in Canada. The company is also involved in acquiring and managing oil and gas royalties and mineral title interests.
Market Cap
CAD 45.6M
Pitch Price
CAD 0.82
Price Target
1.55 (+55%)
Dividend
7.80%
EV/EBITDA
8.98
P/E
35.71
EV/Sales
6.87
Sector
Oil, Gas and Consumable Fuels
Category
value
Source Rock Royalties
SRR.V: Canadian oil royalty at 7.0x EV/EBITDA, 22-35% discount to PSK/FRU/TPZ despite 9% yield (highest in peer group). Capital-light model, no opex/capex. Dividend covered at $60 oil, NAV $1.55/sh vs $0.85 price = 82% upside. 240 boe/d production, revenue grew $2M→$8M since 2020. CN Rail Pension 20% stake, mgmt owns 10%. Upside: peer re-rating to 9x = 59-65% gain; $80 oil/11x = 100% gain. Risks: commodity volatility, liquidity, operator dependence.
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