SABINE ROYALTY TRUST
For the period ended Mar 31, 2025. Filed May 9, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 9, 2025
SBR$65.72-0.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-11-12; filed 2024-11-12.
0000950170-24-124994
Item 2. Trustee’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-09.
0000950170-25-067649
Item 2. Trustee’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 44 previous paragraphs and 45 current paragraphs.
28 unchanged; 10 reworded; 7 added; 6 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 2 previous and 1 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
Royalty Properties.
Current report
trade barriers and tariffs;
Current report
public health concerns, such as COVID-19;
Current report
The March distribution includes a $400,000 settlement payment received by Sabine, pursuant to the settlement agreement (the “Settlement”) between Sabine and TGNR East Texas II, LLC (“TGNR”) dated February 18, 2025. This settlement payment relates to unpaid royalties on various TGNR operated wells in Panola County, Texas. These unpaid royalties were discovered during Sabine’s ongoing revenue audit.
Current report
Royalty income for the quarter ended March 31, 2025, decreased approximately $1,364,000, or 7%, compared with the first quarter of 2024. This decrease was primarily the result of lower prices for both oil and natural gas ($4.4 million) and lower gas production ($0.1 million), partially offset by increased production for oil ($2.2 million), miscellaneous receipts ($0.7 million) and lower ad valorem taxes ($0.3 million).
Current report
The price realized in March 2025 for oil revenue of $44.22 per barrel was significantly lower than national averages due to multiple prior period adjustments from various remitters, resulting in a lower realized price for the first quarter of 2025, comparable to the same time period in 2024 and the fourth quarter 2024.
Current report
Compared to the previous quarter ended December 31, 2024, general and administrative expenses increased approximately $379,000 primarily due to timing of audit and legal fees of approximately $195,700, a bonus fee to Argent of $92,200, unitholder and printing services of approximately $81,300, and miscellaneous expenses of approximately $9,300.
Removed paragraphs (6)
Previous report
trade barriers;
Previous report
public health concerns;
Previous report
Royalty income for the quarter ended September 30, 2024, increased approximately $5,419,000, or 38%, compared with the third quarter of 2023. This increase was primarily the result of an increase in both oil and natural gas production ($6.3 million) and in oil prices ($0.8 million), partially offset by a decrease in natural gas prices ($1.3 million) and increased production taxes, operating expenses, and ad valorem taxes ($0.4 million).
Previous report
Royalty income for the nine months ended September 30, 2024, increased approximately $4,217,000, or 7%, compared to the same 2023 period. This increase was primarily the result of an increase in both oil and natural gas production ($15.8 million) and an increase in oil prices ($2.0 million). This increase was tempered by a decrease in the price of natural gas ($12.6 million) and higher production taxes, operating expenses, and ad valorem taxes ($1.0 million).
Previous report
General and administrative expenses for the quarter ended September 30, 2024, increased approximately $93,700 compared to the same quarter of 2023 due primarily to the timing of payment of unitholder services of approximately $80,000 and professional services of approximately $40,000. These were offset by a decrease in printing services of approximately $30,000, and approximately $3,000 in other miscellaneous expenses.
Previous report
Compared to the previous quarter ended June 30, 2024, general and administrative expenses increased approximately $156,400 primarily due to the timing of payment of unitholder services of approximately $80,000, an increase in professional services of approximately $79,200, an increase in Escrow Agent/Trustee fees of approximately $43,200, and an increase in revenue processing fees of approximately $68,400, partially offset by a decrease in printing fees due to the timing of payment of services of approximately $112,000, and approximately $2,400 in other miscellaneous expenses,
Reworded paragraphs (10)
Previous wording
Item 2. Trustee’s Discussion and Analysis of Financial Condition and Results of Operations.
Current wording
Item 2. Trustee’s Discussion and Analysis of Financial Condition and Results of Operations, Liquidity and Capital Resources
Previous wording
The Trust makes monthly distributions to the holders of Units of the excess of the preceding month’s royalty income received over expenses incurred. Upon receipt, royalty income is invested in short-term investments until its subsequent distribution. In accordance with the Trust Agreement, the Trust’s only long-term assets consist of royalty interests in producing and proved undeveloped oil and gas properties. Although the Trust is permitted to borrow funds if necessary to continue its operations, borrowings are not anticipated in the foreseeable future.
Current wording
The Trust makes monthly distributions to the holders of Units of the excess of the preceding month’s royalty income received over expenses incurred. Upon receipt, royalty income is invested in short-term investments until its subsequent distribution. In accordance with the Trust Agreement, the Trust’s only long-term assets consist of royalty interests in producing and proved undeveloped oil and gas properties. Although the Trust is permitted to borrow funds if necessary to continue its operations, borrowings are not anticipated in the foreseeable future. Accordingly, the Trust is dependent on receipt of royalty income to generate excess cash flows utilized in making distributions. These cash flows are largely dependent on such factors as oil and gas prices and production volumes, which are influenced by many factors beyond the control of the Trust. The Trust does not undertake capital projects or make capital expenditures, and is not liable for any production costs or liabilities attributable to the
Previous wording
The Trust’s income and monthly distributions are heavily influenced by commodity prices. Commodity prices may fluctuate widely in response to (i) relatively minor changes in the supply of and demand for oil and natural gas, (ii) market uncertainty and (iii) a variety of additional factors that are beyond the Trustee’s control. The price of oil and natural gas continued to remain soft from the first quarter through the beginning of the third quarter in 2023 due to continued lower demand resulting from higher-than-normal inflation and an oversupply of the commodities. In the latter part of the third quarter of 2023, the price of oil and gas began to increase, due mainly to OPEC cutting oil production and colder weather during the winter. Oil prices have continued to fluctuate during the first nine months of 2024, due mainly to weather conditions and geopolitical conditions in Eastern Europe and the Middle East. Factors which may affect commodity prices are discussed below and under “Item 1A—Risk Factors” in the Trust’s Form 10-K for the year ended December 31, 2023. Factors that may impact future commodity prices, including the price of oil and natural gas, include but are not limited to:
Current wording
The Trust’s income and monthly distributions are heavily influenced by commodity prices. Commodity prices may fluctuate widely in response to (i) relatively minor changes in the supply of and demand for oil and natural gas, (ii) market uncertainty and (iii) a variety of additional factors that are beyond the Trustee’s control. The price of oil and natural gas showed weakness in early 2024, unable to gain much strength through the fourth quarter, due mainly to higher inflation, the uncertainty brought about by the November U.S. presidential election, and warmer weather in the fall and early winter in 2024. The price of oil rose in early 2025 and then fell through the remainder of the first quarter of 2025 primarily due to weak demand, increasing supply, and tariffs and trade tensions between the U.S. and China. Natural gas prices rose in the first quarter of 2025 amid tight conditions and rising demand. Colder-than-normal weather in January and February 2025 led to increased natural gas consumption and large natural gas withdrawals from inventories, which contributed to higher prices in the first quarter 2025. Factors which may affect commodity prices are discussed below and under “Item 1A—Risk Factors” in the Trust’s Form 10-K for the year ended December 31, 2024. Factors that may impact future commodity prices, including the price of oil and natural gas, include but are not limited to:
Previous wording
political conditions in major oil producing regions, especially in the Middle East and Eastern Europe, including the conflicts between Russia and Ukraine, Israel and Hamas, and Israel and Iran;
Current wording
political conditions in major oil producing regions, especially in the Middle East and Eastern Europe;
Previous wording
Distributable income consists of royalty income plus interest income plus any decrease in cash reserves established by the Trustee less general and administrative expenses of the Trust less any increase in cash reserves established by the Trustee. Distributable income for the three months ended September 30, 2024, was $19,070,466, or $1.31 per unit. Royalty income for the three months ended September 30, 2024, amounted to $19,784,478 while interest income was $145,868. General and administrative expenses totaled $859,880 for the three months ended September 30, 2024.
Current wording
Distributable income consists of royalty income plus interest income plus any decrease in cash reserves established by the Trustee less general and administrative expenses of the Trust less any increase in cash reserves established by the Trustee. Distributable income for the three months ended March 31, 2025, was $18,146,483, or $1.24 per unit. Royalty income for the three months ended March 31, 2025, amounted to $19,394,566 while interest income was $106,960. General and administrative expenses totaled $1,355,043 for the three months ended March 31, 2025.
Previous wording
Distributions during the period were $0.379040, $0.450890, and $0.421310 per Unit payable to Unit holders of record on July 15, August 15, and September 16, 2024, respectively.
Current wording
Distributions during the period were $0.448330, $0.439510, and $0.301230 per Unit payable to Unit holders of record on January 15, February 18, and March 17, 2025, respectively.
Previous wording
Compared to the preceding quarter ended June 30, 2024, royalty income decreased approximately $2,823,000, or 12%, due mainly to decreased oil and natural gas production ($1.1 million), and lower oil and natural gas prices ($2.1 million). These decreases to royalty income were partially offset by lower production taxes, operating expenses, and ad valorem taxes ($0.4 million).
Current wording
Compared to the preceding quarter ended December 31, 2024, royalty income decreased approximately $25,000, due mainly to lower oil and natural gas production ($2.6 million), and lower oil prices ($2.8 million). These decreases were offset partially by an increase in the price of natural gas ($2.9 million), and lower ad valorem taxes and production taxes ($1.9 million), and miscellaneous receipts ($0.6 million).
Previous wording
Oil royalty income for the three months ended September 30, 2024, related primarily to production for May through July 2024. The average price of oil reported by NYMEX for the May through July 2024 period was $80.57 per barrel. The average price of oil was $78.58 per barrel for January through September 2024. Gas royalty income received for the three months ended September 30, 2024, related primarily to production for April through June 2024. The average price of gas reported by the Henry Hub for the April through June 2024 period was $1.86 per thousand cubic feet ("Mcf"). The average price of gas reported by the Henry Hub was $1.90 per Mcf for January through September 2024. As of October 28, 2024, the average price of oil reported by NYMEX was $67.65 per barrel and the average price of gas for the Henry Hub was $1.83 per Mcf. It is difficult to estimate future prices of oil and gas, and any assumptions concerning future prices may prove to be incorrect.
Current wording
Oil royalty income for the three months ended March 31, 2025, related primarily to production for November 2024 through January 2025. The average price of oil as reported by NYMEX for that time period was $71.94 per barrel. The average price of oil was $71.78 per barrel for January through March 2025. Gas royalty income received for the three months ended March 31, 2025, related primarily to production for October through December 2024. The average price of gas reported by Henry Hub for the same time period was $2.79 per Mcf. The average price of gas for Henry Hub was $3.15 per Mcf for January through March 2025. As of April 28, 2025, the average price of gas reported by Henry Hub was $2.66 per Mcf and the average price of oil reported by NYMEX was $63.30 per barrel. It is difficult to estimate future prices of oil and gas, and any assumptions concerning future prices may prove to be incorrect.
Previous wording
Interest income for the quarter ended September 30, 2024, increased $16,900 compared to the third quarter of 2023. Compared to the preceding quarter ended June 30, 2024, interest income decreased $29,500. Interest income for the nine months ended September 30, 2024, decreased approximately $57,500 compared to the same period in 2023. Changes in interest income are the result of changes in interest rates and funds available for investment.
Current wording
Interest income for the quarter ended March 31, 2025, decreased $44,966 compared with the first quarter of 2024. Compared to the preceding quarter ended December 31, 2024, interest income decreased $21,348. Changes in interest income are the result of changes in interest rates and funds available for investment.
Previous wording
General and administrative expenses decreased approximately $209,000 for the nine months ended September 30, 2024, compared to the same period in 2023 due primarily to a decrease in Escrow Agent fees of approximately $236,000, offset by an increase in CDEX account services of $27,000.
Current wording
General and administrative expenses increased approximately $365,700 for the three months ended March 31, 2025, compared to the same time period in 2024 due primarily to an increase in Escrow Agent/Trustee fees of approximately $163,400, a bonus fee to Argent of approximately $92,200, professional and legal fees of approximately $101,600, and miscellaneous expenses of approximately $8,800.