SABINE ROYALTY TRUST

Oil

The Trust’s average per barrel oil price decreased from $79.60 in 2023 to $77.04 in 2024. In 2023, oil prices declined in the first few months of 2023, but as the year went on, the price of oil increased somewhat. However, average 2023 prices were still below that of the previous year. Oil prices stayed fairly constant throughout 2024, with increases in the spring and summer of 2024, followed by decreases throughout the remainder of the year. The Trustee believes that the price of oil was affected by higher inflation, along with uncertainty in the economy due to the November U.S. presidential election.

Natural Gas

Natural gas prices, which once were determined largely by governmental regulations, are now being governed by the marketplace. Substantial competition in the natural gas marketplace continues. In addition, competition with alternative fuels persists. The average price received by the Trust in 2024 on natural gas volumes sold of $1.88 per thousand cubic feet (“Mcf”) represented a decrease from the $3.52 per Mcf average price received in 2023, due largely to warmer weather in the fall and early winter 2024, higher inflation, along with uncertainty brought about by the November U.S. presidential election which put downward pressure on the price. This continued oversupply contributed to lower gas prices in the fourth quarter of 2024.