If you have the two routers in the same area, can you use the distribute-list out command to filter resources between them

No to filter the routes use the command distribute-list in command not the distribute-list out.

To filter networks received in updates, use the distribute-list in command in address family or router configuration mode. To change or cancel the filter, use the no form of this command.

distribute-list [access-list-number | name] | [route-map map-tag] in [interface-type | interface-number]

no distribute-list [access-list-number | name] | [route-map map-tag] in [interface-type | interface-number]