SABINE ROYALTY TRUST

Oil

The Trust’s average per barrel oil price decreased from $77.04 in 2024 to $64.85 in 2025. In 2024, oil prices remained fairly constant throughout the year, with increases in the spring and summer months followed by decreases during the remainder of the year. In 2025, average oil prices were lower overall compared to the prior year. The Trustee believes that the price of oil was affected by higher oil inventories, along with uncertainty in the economy due to U.S. economic and political conditions.

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 2025 on natural gas volumes sold of $2.61 per thousand cubic feet (“Mcf”) represented an increase from the $1.88 per Mcf average price received in 2024, mainly due to lower supply as drilling activity declined following the low prices experienced in 2024, along with periods of stronger seasonal demand during 2025. Although prices remained volatile during the year, these factors resulted in a higher average price compared to 2024.