UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

                                QUARTERLY REPORT
                            UNDER SECTION 13 OR 15(d)
                   OF THE SECURITIES EXCHANGE ACT OF 1934 For
                    the quarterly period ended June 30, 1997


                         Commission file number 0-19767


                       THE HOME-STAKE ROYALTY CORPORATION
        (Exact name of small business issuer as specified in its charter)


             Oklahoma                                  73-0288040
  (State or other jurisdiction of                   (I.R.S. Employer
   incorporation or organization)                  Identification No.)


                         15 East 5th Street, Suite 2800
                              Tulsa, Oklahoma 74103
                    (Address of principal executive offices)


                                 (918) 583-0178
                          Registrant's telephone number



     Check whether the issuer (1) has filed all reports  required to be filed by
Section 13 or 15(d) of the  Securities  Exchange  Act of 1934 during the past 12
months (or for such shorter period that the registrant was required to file such
reports),  and (2) has been subject to such filing  requirements for the past 90
days. Yes |X| No | |


     The number of shares outstanding of the Registrants's  common stock, all of
which  comprise  a single  class with $40 par value,  as of July 31,  1997,  the
latest practicable date, was 69,808.




                                       -1-

<PAGE>



                       THE HOME-STAKE ROYALTY CORPORATION

                                   FORM 10-QSB
                                  JUNE 30, 1997

                                TABLE OF CONTENTS

                                                                          Page
PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

        Condensed Balance Sheets ........................................    4

        Condensed Statements of Income and Retained
          Earnings for the Six Months ended June 30, 1997................    5

        Condensed Statements of Income and Retained
          Earnings for the Three Months ended June 30, 1997..............    6

        Condensed Statements of Cash Flow ...............................    7

        Notes to Condensed Financial Statements .........................    8

Item 2. Management's Discussion and Analysis ............................    9

PART II - OTHER INFORMATION

Item 1. Legal Proceedings ...............................................   12

Item 2. Changes in Securities ...........................................   12

Item 3. Defaults upon Senior Securities .................................   12

Item 4. Submission of Matters to a Vote of Security Holders .............   12

Item 5. Other Information ...............................................   12

Item 6. Exhibits and Reports on Form 8-K ................................   12

SIGNATURES ..............................................................   13


                                       -2-

<PAGE>



                         PART I - FINANCIAL INFORMATION

                                       -3-

<PAGE>



                       THE HOME-STAKE ROYALTY CORPORATION
                            CONDENSED BALANCE SHEETS
                                   (Unaudited)

                                     ASSETS

                                                      June 30,      December 31,
                                                        1997            1996
                                                        ----            ----
Current assets:
  Cash.........................................     $    727,181  $     626,864
  Accounts receivable..........................          707,408      1,469,877
  Receivable from affiliate....................           17,679         66,213
  Prepaid expenses.............................          168,272        255,957
                                                    ------------  -------------
      Total current assets.....................        1,620,540      2,418,911

Investments (Note 2)...........................        3,699,162      3,592,495

Property and equipment, at cost:...............       24,141,927     25,235,245
    Less accumulated depreciation, 
     depletion and amortization................       15,716,548     16,437,277
                                                    ------------  -------------
      Net property and equipment...............        8,425,379      8,797,968

Other assets...................................           24,119         24,119
                                                    ------------  -------------
                                                    $ 13,769,200  $  14,833,493
                                                    ============  ============= 


                      LIABILITIES AND STOCKHOLDERS' EQUITY


Current liabilities:
  Accounts payable and accrued liabilities.....     $    602,247  $   1,514,282
  Dividends declared...........................           62,827         62,827
  Income taxes payable.........................          137,738         75,198
  Bonus Payable................................           24,200         20,253
  Current note payable (Note 3)................           --            964,260
                                                    ------------  -------------
     Total current liabilities.................          827,012      2,636,820

Long-term note payable (Note 3)................           --            401,775

Deferred income taxes..........................          955,006        773,200

Contingencies (Note 4)

Stockholders' equity:
  Preferred stock, $1 par value -
    200,000 shares authorized; none issued
  Common stock, $40 par value -
    100,000 shares authorized and issued.......        4,000,000      4,000,000
  Additional paid-in capital...................        6,000,000      6,000,000
  Retained earnings............................        5,351,346      4,385,862
                                                    ------------  -------------
                                                      15,351,346     14,385,862

  Less treasury stock, at cost - 30,192 shares.        3,364,164      3,364,164
                                                    ------------  -------------
     Total stockholders' equity................       11,987,182     11,021,698
                                                    ------------  -------------
                                                    $ 13,769,200  $  14,833,493
                                                    ============  =============
                             See accompanying notes.

                                       -4-

<PAGE>



                       THE HOME-STAKE ROYALTY CORPORATION
                         CONDENSED STATEMENTS OF INCOME
                              AND RETAINED EARNINGS
                     Six months ended June 30, 1997 and 1996
                                   (Unaudited)



                                                       1997              1996
                                                       ----              ----

Revenues:
  Oil sales....................................     $ 2,294,048   $   2,298,046
  Gas sales....................................       1,525,891       1,193,469
  Lease bonuses and rentals....................          49,378          11,352
  Interest and dividends.......................          19,617          31,249
  Gain on sales of assets......................          99,708           2,768
  Income from equity affiliates................         271,139         134,713
  Other........................................          91,827          96,114
                                                    -----------   -------------
                                                      4,351,608       3,767,711

Costs and expenses:
  Lease operating expenses.....................         778,957       1,037,094
  Production taxes.............................         306,053         305,624
  Depreciation, depletion and amortization.....         676,166         702,786
  Dry hole costs...............................         370,747          46,420
  Condemned and abandoned properties...........          46,515         (5,081)
  General and administrative expense...........         539,933         468,630
  Interest expense.............................          36,086         135,697
  Property, franchise and other taxes..........          87,197          65,459
                                                    -----------   -------------
                                                      2,841,654       2,756,629

Income before provision for income taxes.......       1,509,954       1,011,082

Provision for income taxes:
  Current......................................         237,010         153,300
  Deferred.....................................         181,806          93,512
                                                    -----------   -------------
                                                        418,816         246,812
                                                    -----------   -------------

Net income.....................................       1,091,138         764,270

Retained earnings at beginning of period.......       4,385,862       2,855,837

Cash dividends ($1.80 per share - 1997, 
      $2.70 per share - 1996)..................        (125,654)       (188,482)
                                                    -----------   -------------

Retained earnings at end of period.............     $ 5,351,346     $ 3,431,625
                                                    ===========    ============

Weighted average number of common 
      shares outstanding.......................          69,808          69,808
                                                         ======          ======

Net income per common share....................          $15.63          $10.95
                                                          ======         ======


                             See accompanying notes.

                                       -5-

<PAGE>



                       THE HOME-STAKE ROYALTY CORPORATION
                         CONDENSED STATEMENTS OF INCOME
                              AND RETAINED EARNINGS
                    Three months ended June 30, 1997 and 1996
                                   (Unaudited)



                                                        1997            1996
                                                        ----            ----

Revenues:
  Oil sales....................................     $   991,715   $   1,251,758
  Gas sales....................................         590,205         621,912
  Lease bonuses and rentals....................          28,552           8,592
  Interest and dividends.......................          10,087          22,666
  Gain on sales of assets......................              --           2,864
  Income from equity affiliates................          80,839          66,390
  Other........................................          40,421          58,393
                                                    -----------   -------------
                                                      1,741,819       2,032,575

Costs and expenses:
  Lease operating expenses.....................         327,988         531,922
  Production taxes.............................         121,076         172,579
  Depreciation, depletion and amortization.....         338,083         351,393
  Dry hole costs...............................         182,645          44,089
  Condemned and abandoned properties...........          19,317           1,862
  General and administrative expense...........         281,189         219,824
  Interest expense.............................           9,353          65,809
  Property, franchise and other taxes..........          54,754          36,754
                                                    -----------   -------------
                                                      1,334,405       1,424,232

Income before provision for income taxes.......         407,414         608,343

Provision for income taxes:
  Current......................................          80,965          96,950
  Deferred.....................................           2,780          62,253
                                                    -----------   -------------
                                                         83,745         159,203
                                                    -----------   -------------

Net income.....................................         323,669         449,140

Retained earnings at beginning of period.......       5,090,504       3,076,726

Cash dividends ($ .90 per share - 1997, 
     $1.35 per share - 1996)...................         (62,827)        (94,241)
                                                    -----------   -------------

Retained earnings at end of period.............     $ 5,351,346   $   3,431,625
                                                    ===========   =============

Weighted average number of common 
     shares outstanding........................          69,808          69,808
                                                         ======          ======

Net income per common share....................          $ 4.64          $ 6.43
                                                         ======          ======

                             See accompanying notes.

                                       -6-

<PAGE>



                       THE HOME-STAKE ROYALTY CORPORATION
                       CONDENSED STATEMENTS OF CASH FLOWS
                 For the six months ended June 30, 1997 and 1996
                                   (Unaudited)



                                                       1997            1996
                                                       ----            ----

Operating activities:
  Oil and gas sales, net of production.........     $  3,634,659  $   3,113,619
  Lease bonuses and rentals....................           49,378         11,352
  Interest and dividends.......................           19,617         31,249
  Other........................................           91,827         96,114
                                                    ------------  -------------
                                                       3,795,481      3,252,334

  Cash paid to suppliers and employees.........        1,354,813      1,654,398
  Interest expense.............................           36,086        135,697
  Property, franchise and other taxes..........           87,197         65,459
  Income taxes paid............................          174,470          5,734
                                                    ------------  -------------
                                                       1,652,566      1,861,288
                                                    ------------  -------------
   Net cash provided by operating activities...        2,142,915      1,391,046


Investing activities:
  Proceeds from sales of 
     property and equipment....................          329,391         16,808
  Acquisition of property and equipment........         (908,835)      (148,517)
  Dividends from equity affiliates.............           30,337         42,614
                                                    ------------  -------------
    Net cash used in investing activities......         (549,107)       (89,095)


Financing activities:
  Note payments................................       (1,366,035)      (482,130)
  Cash dividends paid..........................         (127,456)      (191,309)
                                                    ------------  -------------
    Net cash used in financing activities......       (1,493,491)      (673,439)
                                                    ------------  -------------

Net increase in cash...........................          100,317        628,512

Cash at beginning of period....................          626,864        564,875
                                                    ------------  -------------

Cash at end of period..........................     $    727,181  $   1,193,387
                                                    ============  =============








                             See accompanying notes.

                                       -7-

<PAGE>



                       THE HOME-STAKE ROYALTY CORPORATION
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (Unaudited)

Note 1 - General

The unaudited financial  information provided in this report includes all normal
recurring  adjustments  which are, in the opinion of  management,  necessary  to
fairly  present the financial  position,  result of operations and cash flows of
the Company.  Certain information and footnote  disclosures normally included in
financial  statements  prepared in accordance with generally accepted accounting
principles  have been  omitted  or  condensed.  The  Company  believes  that the
disclosures   herein  are  adequate  to  make  the  information   presented  not
misleading;  however,  these financial  statements should be read in conjunction
with the audited financial  statements and related notes thereto included in the
Company's Annual Report on Form 10-KSB for the year ended December 31, 1996.

The results for interim periods are not  necessarily  indicative of trends or of
results to be expected for the full year.

Note 2 - Summarized financial information of equity investees

Summarized  income statement  information for the six months ended June 30, 1997
and 1996 for The  Home-Stake  Oil & Gas  Company  ("HSOG")  and  Alden  Pipeline
Company is presented below:

                                            1997              1996
                                            ----              ----
Income Statement data:
          Revenues.....................  $ 4,027,653       $ 3,600,334
          Income before income taxes...    1,256,381           749,024
          Net income (1)...............      941,663           499,636

(1)  Includes $165,989 and $120,010 in 1997 and 1996, respectively, attributable
     to the equity earnings of the Company recorded by HSOG.

During the first  quarter of 1997,  the  Company  sold its  interest in the N.E.
Alden Field,  including Alden Pipeline Company.  This sale was effective January
1, 1997. Accordingly,  1997 information presented above does not include amounts
attributable to the operations of Alden Pipeline  Company;  amounts included for
1996 operations are not material to the totals shown.

Note 3 - Note payable

On May 31, 1997 the Company  paid-off its bank note payable which was due May 1,
1998. The Company has a line of credit in the amount of $700,000 available until
May 1, 1998,  which provides for monthly payments of interest on the outstanding
borrowings at bank prime. There is no balance currently under this line, however
the  Company  has issued a letter of credit in the  amount of  $60,000  which is
guaranteed by this line.

The note  payable  and line of  credit  described  above are  collateralized  by
certain of the Company's producing properties.

Note 4 - Contingencies

The  Company is involved in various  other legal  actions  arising in the normal
course of business. In the opinion of management, the Company's liabilities,  if
any, in these matters will not have a material effect on the Company's financial
position or the results of operations.

                                       -8-

<PAGE>



Item 2.     Management's discussion and Analysis.


Results of  Operations - First six months of 1997 compared with first six months
of 1996

Net income for the first six months increased  $326,868 from $764,270 in 1996 to
$1,091,138 in 1997. The principal reasons for this increase are as follows:

Oil sales  decreased  $3,998 as a result of a decrease in production  volumes of
6,859 barrels,  partially offset by an increase in the average price of oil from
$18.96  per  barrel  in 1996 to  $20.06  per  barrel in 1997.  The  decrease  in
production volumes was primarily a result of property  dispositions  during 1996
and early 1997.

Gas sales  increased  $332,422 (28%) due to an increase in the average gas price
per mcf  from  $1.94  in 1996 to $2.44 in  1997,  coupled  with an  increase  in
production volumes from 614,133 mcf in 1996 to 624,695 mcf in 1997.

Lease rentals and bonuses  increased  $38,026 due to higher leasing  activity in
1997 than in 1996.

Interest income  decreased  $11,632 from 1996 which included an $11,400 discount
related to the prepayment of certain production taxes in the state of Montana.

Gain on sales of assets  increased  $96,940 in 1997 following the Company's sale
of their  interest in the N.E.  Alden Field.  There were no comparable  sales in
1996.

Income  from  equity  affiliates  increased  $136,426  in  1997.  The  Company's
principal equity investee, The Home-Stake Oil & Gas Company, reported net income
of $941,663 in 1997 and $509,661 in the same period of 1996.  In  addition,  the
Company's  ownership in The Home-Stake Oil & Gas Company increased from 31.7% to
33.9% in November, 1996.

Lease  operating  expenses  decreased  $258,137 (25%) in 1996.  This increase is
principally   attributable  to  environmental   remediation   expenses  in  1996
associated  with a  waterflood  property  in which the  Company has a 9% working
interest,  coupled  with an insurance  reimbursement  in 1997 of certain of such
costs of approximately $145,250

Dry hole costs  increased  $324,327  in 1997 due the  greater  incidence  of dry
holes. In 1996 there were 3 dry holes (.18 net) drilled at an average gross cost
of  $257,900  per well;  in 1997 there were 6 dry holes (.86 net)  drilled at an
average gross cost of $431,100 per well.

Condemned and abandoned property expense increased  $51,596.  1996 expense was a
net  credit of  $5,081,  primarily  the  result of  salvage  credits  of $12,488
received on a property abandoned during the first quarter. 1997 expense was also
higher due to the abandonment of acreage costs  associated with six dry holes in
1997, compared to two in 1996.

General and  administrative  expense  increased  $71,303 (15%). This increase is
primarily  associated  with the  addition  of  certain  full-time  and  contract
employees in late 1996 and early 1997. Such personnel were added in anticipation
of an increase in the Company's exploration activities.

Interest  expense  decreased  $99,611 in 1997,  reflecting  the Company's  lower
average borrowings.


Results of Operations - Second quarter 1997 compared with second quarter 1996

Net income for the second  quarter  decreased  $125,471 from $449,140 in 1996 to
$323,669 in 1997. The principal reasons for this decrease are as follows:

                                       -9-

<PAGE>



Oil sales  decreased  21%  ($260,043)  due to lower  average  oil  prices  which
decreased  from $20.23 per barrel in 1996 to $18.50 per barrel in 1997,  coupled
with a decrease in production volumes from 61,886 barrels to 53,620 barrels.

Gas sales  decreased  $31,707 (5%) due to lower average  prices which  decreased
from  $2.00  per mcf in 1996 to $1.82  per mcf in 1997,  partially  offset by an
increase in production volumes from 310,374 mcf to 324,807 mcf.

Income from equity affiliates increased $14,449 in 1997. The Company's principal
equity  investee,  The  Home-Stake  Oil & Gas  Company,  reported  net income of
$285,329  in 1997  and  $263,027  in the same  period  of  1996.  The  Company's
ownership in The Home-Stake  Oil & Gas Company  increased from 17.1% to 19.3% in
November, 1996.

Lease  operating  expenses  decreased  $203,934 (38%) in 1996.  This increase is
principally   attributable  to  environmental   remediation   expenses  in  1996
associated  with a  waterflood  property  in which the  Company has a 9% working
interest,  coupled  with an insurance  reimbursement  in 1997 of certain of such
costs of approximately $145,250

Production  taxes  decreased  $51,503  as a result  of lower  production  values
described above.

Dry hole costs  increased  $138,556  in 1997 due the  greater  incidence  of dry
holes. In 1996 there was 1 dry hole (.06 net) drilled;  in 1997 there were 4 dry
holes (.57 net) drilled.

Condemned and abandoned  property expense  increased  $17,455.  1997 expense was
higher due to the  abandonment of acreage costs  associated with the 4 dry holes
in 1997, compared to only 1 in 1996.

General and administrative expense increased $61,365. This increase is primarily
associated with the addition of certain full-time and contract employees in late
1996 and early 1997. Such personnel were added in anticipation of an increase in
the Company's exploration activities.

Interest  expense  decreased  $56,456 in 1997,  reflecting  the Company's  lower
average borrowings.

Financial Condition and Liquidity

The Company's operating activities have traditionally been self-financed through
internally  generated cash flows.  The principal uses of cash flows have been to
fund the Company's  exploration and production activities and for the payment of
dividends to stockholders.  The use of borrowed funds has generally been limited
to the acquisition of producing oil & gas properties  where future revenues from
such purchases are expected to fund the debt.

The Company has an exploration and development  budget for 1997 of $1.7 million.
The Company has spent  approximately  $816,000 in the first two quarters of 1997
and has current commitments of approximately $1 million for the remainder of the
year.  In  addition,  the Company is  actively  pursuing  opportunities  for the
acquisition of producing properties whenever possible.

The Company has a revolving  line-of-credit  with Bank IV Oklahoma,  N.A. in the
amount of  $700,000  which  expires May 1, 1998.  There is no balance  currently
under this line,  however the Company has issued letters of credit in the amount
of $60,000 which are also guaranteed by this line.

Product  prices have decreased  approximately  20% for oil and 45% for gas since
the first of the year.  Despite these decreases,  the Company expects to finance
its budgeted 1997  operations  and drilling  through  internally  generated cash
flows.

Statement  of Financial  Accounting  Standards  No. 128,  Earning Per Share will
become  effective for periods ending after  December 15, 1997.  Adoption of this
statement will not have a material effect on the Company's result of operations.

                                      -10-

<PAGE>



Forward-looking Statements

This Management's Discussion and Analysis of Results of Operations and Financial
Condition contains certain statements which are not historical in nature and are
considered "forward looking  statements",  including  statements  concerning the
Company's anticipated capital expenditures,  cash flows, financial condition and
liquidity.  These forward looking statements are based on current  expectations,
estimates and  assumptions  of  management  and are subject to certain risks and
uncertainties.  Actual results and developments man differ  materially from what
is expressed  in the forward  looking  statements  as a result of changes in the
prices of oil or gas,  operating  expenses,  federal and state  regulations  and
other factors beyond the control of the Company.

                                      -11-

<PAGE>



                           Part II. Other Information

Item 1.    Legal Proceedings.

           There is a complete  discussion of legal proceedings in the Company's
           Annual  Report on Form  10-KSB for the year ended  December  31, 1996
           (the "Form 10-KSB"). Since the date of that report there have been no
           material changes in the status of such matters.

Item 2.    Changes in Securities.

           None.

Item 3.    Defaults Upon Senior Securities.

           None.

Item 4.    Submission of Matters to a Vote of Security Holders.

           None.

Item 5.    Other Information.

           None.

Item 6.    Exhibits and Reports on Form 8-K.

           (a) Exhibits.

               The  following  documents  are  included as exhibits to this Form
               10-QSB.

           Exhibit
           Number   Description

           10.1     Third Amendment and Modification Agreement to Loan Agreement
                    dated May 1, 1997 to the Third  Amended  and  Restated  Loan
                    Agreement  dated  March 29,  1995  between  the  Company and
                    Boatmen's National Bank of Oklahoman(formerly  known as Bank
                    IV Oklahoma, N.A.).

           27       Financial Data Schedule

           (b)  Reports on Form 8-K.

                No reports on Form 8-K were filed  during the quarter ended June
                30, 1997.

                                      -12-

<PAGE>


                                   Signatures



In accordance with the  requirements of the Exchange Act, the Registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.


                                        The Home-Stake Royalty Corporation
                                            (Registrant)


Date: August 11, 1997                   By:   /s/  Robert C. Simpson
                                            -----------------------------
                                             Robert C. Simpson
                                             Chairman of the Board, C.E.O.,
                                             President and Treasurer


Date: August 11, 1997                   By:   /s/  Chris K. Corcoran
                                            -----------------------------
                                             Chris K. Corcoran
                                             Executive Vice President,
                                             Chief Financial Officer and
                                             Corporate Secretary

                                      -13-