SABINE ROYALTY TRUST
For the period ended Mar 31, 2026. Filed May 8, 2026.
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, 2026 · Filed May 8, 2026
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 2025-11-07; filed 2025-11-07.
0001193125-25-271873
Item 2. Trustee’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-08.
0001193125-26-213810
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 43 current paragraphs.
30 unchanged; 9 reworded; 4 added; 5 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 (4)
Current report
public health concerns;
Current report
while interest income was $72,749. General and administrative expenses totaled $1,222,077 for the three months ended March 31, 2026.
Current report
Royalty income for the quarter ended March 31, 2026, decreased approximately $5,203,000, or 27%, compared with the first quarter of 2025. This decrease was primarily due to lower production of both oil and natural gas ($7.0 million), lower miscellaneous and settlement income ($0.7 million), and lower oil prices ($0.5 million), partially offset by higher natural gas prices ($2.3 million) and lower operating expenses and taxes ($0.7 million).
Current report
General and administrative expenses decreased approximately $133,000 for the three months ended March 31, 2026, compared to the same time period in 2025 due to a decrease in Escrow Agent/Trustee fees of approximately $52,300, professional and legal fees of approximately $24,100, unitholder services cost of approximately $53,400 and miscellaneous expenses of approximately $3,200.
Removed paragraphs (5)
Previous report
public health concerns, such as COVID-19;
Previous report
Royalty income for the quarter ended September 30, 2025, increased approximately $5,738,000, or 29%, compared with the third quarter of 2024. This increase was primarily due to an increase in oil production ($4.2 million), increase in natural gas prices ($4.1 million), and lower operating expenses ($0.1 million), partially offset by lower natural gas production ($0.6 million), lower oil prices ($1.9 million), and higher production taxes and ad valorem taxes ($0.2 million).
Previous report
Royalty income for the nine months ended September 30, 2025, increased approximately $350,000, or 1%, compared to the same 2024 period. This increase was primarily the result of higher oil production ($2.3 million), higher natural gas prices ($7.5 million), a one-time miscellaneous receipts distribution recognized in the first quarter of 2025 ($0.7 million), lower operating expenses ($0.4 million), and lower production taxes and ad valorem taxes ($0.3 million). This increase was partially offset by lower natural gas production ($2.7 million), and lower oil prices ($8.2 million).
Previous report
General and administrative expenses for the quarter ended September 30, 2025, increased approximately $66,100 compared to the same quarter of 2024, primarily due to increases in Escrow Agent/Trustee/Bonus fees of approximately $190,800, professional services of approximately $38,000, and courier expenses of approximately $50,100. These were offset by a decrease in legal services of approximately $90,400, check stub data exchange (“CDEX”) services of approximately $79,400, tax reporting services of approximately $16,500, and approximately $26,500 in unit holder services expenses.
Previous report
Compared to the previous quarter ended June 30, 2025, general and administrative expenses increased approximately $11,700, primarily due to increases in courier expenses of approximately $50,000, professional services of approximately $69,000, and Escrow Agent/Trustee fees of approximately $30,800. These increases were partially offset by decreases in printing services of approximately $82,000, processing services of approximately $18,000, miscellaneous expenses of approximately $6,300, and unit holder and other related expenses of approximately $31,800.
Reworded paragraphs (9)
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’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. In early May 2025 oil prices dropped sharply, to a nearly two-year low. The decline was driven by a combination of weak demand and rising supply concerns after a surge in global inventories. As concerns over a trade war and energy tariffs subsided, prices were able to rally throughout the rest of May and June 2025. The change in the third quarter price of oil was primarily caused by a combination of factors including an increase in the supply from OPEC+ production increases, weakening global demand due to concerns about economic growth and trade tensions, and geopolitical risks that created some volatility. The natural gas markets faced heightened volatility, driven by a milder-than-expected winter in late 2024 in major consuming regions like the US and Europe leading to weaker heating demand. 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. Geopolitical tensions, particularly instability in the Middle East affecting shipping routes, added upward pressure through May and June 2025, pushing prices back above US $4.00 by mid-June 2025. In the third quarter 2025, a mix of factors caused natural gas prices to fluctuate, including high demand from a heatwave in July, a midsummer lull driven by strong storage injections, and a later price rebound fueled by lower-than-expected supply and increased demand for liquified natural gas and data centers. Geopolitical tensions also played a role, creating volatility before a ceasefire in the Middle East in late June stabilized prices, while infrastructure issues like pipeline maintenance and Light Liquid Hydrocarbon and Natural Gas Liquid plant interruptions caused localized price drops, especially in the Permian Basin. 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 …
Excerpt shortened here; the source contains the full paragraph.
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 strength in early 2026, with oil prices rising primarily due to improving demand expectations, continued production discipline among major exporting countries, and geopolitical tensions, including ongoing conflicts in key producing regions, that heightened concerns over potential supply disruptions. Natural gas prices rose in the first quarter of 2026 amid tighter market conditions and increased demand. Colder-than-normal winter weather led to higher consumption and reduced inventory levels, while increased liquefied natural gas exports and supply constraints in certain regions further contributed to higher prices during the first quarter of 2026. 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, 2025. Factors that may impact future commodity prices, including the price of oil and natural gas, include but are not limited to:
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, 2025, was $24,752,168, or $1.70 per unit. Royalty income for the three months ended September 30, 2025, amounted to $25,522,605 while interest income was $155,561. General and administrative expenses totaled $925,998 for the three months ended September 30, 2025.
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, 2026, was $13,042,296, or $0.89 per unit. Royalty income for the three months ended March 31, 2026, amounted to $14,191,624
Previous wording
Distributions during the period were $0.345930, $0.744730, and $0.584110 per Unit payable to Unit holders of record on July 15, August 15, and September 15, 2025, respectively.
Current wording
Distributions during the period were $0.321550, $0.283370, and $0.286230 per Unit payable to Unit holders of record on January 15, February 17, and March 16, 2026, respectively.
Previous wording
Compared to the preceding quarter ended June 30, 2025, royalty income increased approximately $6,939,000, or 37%, due mainly to increased oil and natural gas production ($9.1 million), partially offset by lower natural gas prices ($2.0 million), and higher production taxes and ad valorem taxes ($0.2 million).
Current wording
Compared to the preceding quarter ended December 31, 2025, royalty income increased by approximately $631,000, or 5%, mainly due to higher natural gas prices ($1.0 million), along with lower operating expenses and taxes ($2.4 million). These increases were partially offset by lower production of oil and natural gas ($1.8 million), along with lower oil prices ($1.0 million).
Previous wording
Oil royalty income for the three months ended September 30, 2025, related primarily to production for May through July 2025. The average price of oil reported by NYMEX for that time period was $66.25 per barrel. The average price of oil was $67.31 per barrel for January through September 2025. Gas royalty income received for the three months ended September 30, 2025, related primarily to production for April through June 2025. The average price of gas reported by the Henry Hub for the April through June 2025 period was $2.87 per thousand cubic feet (“Mcf”). The average price of gas reported by the Henry Hub was $3.10 per Mcf for January through September 2025. As of October 27, 2025, the average price of oil reported by NYMEX was $62.13 per barrel and the average price of gas for the Henry Hub was 2.97 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, 2026, related primarily to production for November 2025 through January 2026. The average price of oil as reported by NYMEX for that time period was $59.29 per barrel. The average price of oil was $72.74 per barrel for January through March 2026. Gas royalty income received for the three months ended March 31, 2026, related primarily to production for October through December 2025. The average price of gas reported by Henry Hub for the same time period was $3.35 per thousand cubic feet (“Mcf”). The average price of gas for Henry Hub was $4.24 per Mcf for January through March 2026. As of April 27, 2026, the price of gas reported by Henry Hub was $2.45 per Mcf and the price of oil reported by NYMEX was $99.89 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, 2025, increased $9,700 compared to the third quarter of 2024. Compared to the preceding quarter ended June 30, 2025, interest income increased $35,800. Interest income for the nine months ended September 30, 2025, decreased approximately $90,900 compared to the same period in 2024. 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, 2026, decreased approximately $34,200 compared with the first quarter of 2025. Compared to the preceding quarter ended December 31, 2025, interest income decreased approximately $16,800. Changes in interest income are the result of changes in interest rates and funds available for investment.
Previous wording
General and administrative expenses increased approximately $642,700 for the nine months ended September 30, 2025, compared to the same period in 2024, due primarily to increases in Escrow Agent/Trustee/Bonus fees of approximately $649,000 and an increase in miscellaneous expenses of approximately $4,300. These were slightly offset by a decrease in tax reporting services of approximately $10,600.
Current wording
Compared to the previous quarter ended December 31, 2025, general and administrative expenses increased approximately $327,400. This increase was primarily due to an increase in professional and legal fees of approximately $225,500, and unitholder services costs of approximately $150,600. These increases were partially offset by a decrease in Escrow Agent/Trustee/Bonus fees of approximately $9,800, and miscellaneous and other expenses of approximately $39,100.
Previous wording
A disclosure of critical accounting policies and the more significant judgments and estimates used in the preparation of the Trust’s financial statements is included in Item 7 of the Trust’s Annual Report on Form 10-K for the year ended December 31, 2024. There have been no significant changes to the critical accounting policies during the three and nine months ended September 30, 2025.
Current wording
A disclosure of critical accounting policies and the more significant judgments and estimates used in the preparation of the Trust’s financial statements is included in Item 7 of the Trust’s Annual Report on Form 10-K for the year ended December 31, 2025. There have been no significant changes to the critical accounting policies during the three months ended March 31, 2026.