SABINE ROYALTY TRUST

Oil

The Trust’s average per barrel oil price decreased from $90.41 in 2022 to $79.60 in 2023. The Trustee believes that the war in Ukraine and the resulting sanctions against Russia caused the availability of oil to decrease, which in turn put upward pressure on the price in 2022, with the peak price occurring in the summer of 2022, then declining through the rest of 2022 and the first few months of 2023. As 2023 went on, the price of oil did increase somewhat, but the average prices were still below that of the previous year.

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 2023 on natural gas volumes sold of $3.52 per Mcf represented a decrease from the $5.96 per Mcf average price received in 2022, due largely to lower supply in 2022 because of the war in Ukraine and the resulting sanctions against Russia. Like oil, natural gas prices peaked in the summer of 2022, decreasing somewhat afterwards.