SABINE ROYALTY TRUST
For the period ended Jun 30, 2026. Filed Aug 7, 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.
Jun 30, 2026 · Filed Aug 7, 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 2026-03-31; filed 2026-05-08.
0001193125-26-213810
Item 2. Trustee’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-07.
0001193125-26-339823
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 43 previous paragraphs and 44 current paragraphs.
33 unchanged; 6 reworded; 5 added; 4 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 1 previous and 2 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 (5)
Current report
Royalty income for the quarter ended June 30, 2026, increased approximately $3,106,000 or 17%, compared with the second quarter of 2025. This increase was primarily the result of higher oil and natural gas prices ($2.8 million) and higher oil and natural gas production ($0.6 million), partially offset by increased production taxes, operating expenses, and ad valorem taxes ($0.3 million).
Current report
Royalty income for the six months ended June 30, 2026 decreased approximately $2,097,000, or 6%, compared to the same period in 2025. This decrease was due mainly to lower oil and natural gas production ($7.8 million) and a one-time miscellaneous receipts distribution recognized in the first quarter of 2025 ($0.7 million). These decreases were tempered somewhat by higher oil and natural gas prices ($6.0 million), and lower production taxes, operating expenses and ad valorem taxes ($0.4 million).
Current report
General and administrative expenses for the quarter ended June 30, 2026, increased approximately $31,000 compared to the same quarter of 2025, due primarily to increases in legal and professional expenses of approximately $45,100 and miscellaneous and other expenses of approximately $8,800. These increases were partially offset by decreases in unit holder services of approximately $17,400 and Escrow Agent/Trustee/Bonus fees of approximately $5,500.
Current report
Compared to the previous quarter ended March 31, 2026, general and administrative expenses decreased approximately $276,800, primarily due to decreases related to the timing of payments for legal and professional services of approximately $248,800 and unit holder services of approximately $59,800. These decreases were partially offset by increases in Escrow/Agent/Trustee/Bonus Fees of approximately $22,700 and miscellaneous and other expenses of approximately $9,100.
Current report
General and administrative expenses for the six months ended June 30, 2026, decreased approximately $101,900 compared to the same time period in 2025, primarily due to decreases in Escrow/Agent/Trustee/Bonus fees of approximately $57,800 and unit holder services of approximately $70,700. These decreases were partially offset by increases in legal and professional services of approximately $21,000 and miscellaneous and other expenses of approximately $5,600.
Removed paragraphs (4)
Previous report
while interest income was $72,749. General and administrative expenses totaled $1,222,077 for the three months ended March 31, 2026.
Previous 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).
Previous 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.
Previous report
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.
Reworded paragraphs (6)
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 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:
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 prices of oil and natural gas remained relatively strong during the second quarter of 2026, although both commodities experienced volatility throughout the quarter. Oil prices were supported by geopolitical tensions in key producing regions and concerns regarding potential supply disruptions, while fluctuations in global supply and demand expectations, changes in U.S. trade policy, and broader macroeconomic uncertainty contributed to price movements. Natural gas prices remained supported by continued liquefied natural gas export demand, lower inventory levels, regional supply constraints, and weather-related demand, although prices also fluctuated in response to evolving market conditions. Overall, commodity prices during the second quarter of 2026 remained generally higher than those experienced during the comparable period in 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, 2025. Factors that may impact future commodity prices, including the prices 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 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
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 June 30, 2026, was $20,849,020, or $1.43 per unit. Royalty income for the three months ended June 30, 2026, amounted to $21,689,562 while interest income was $104,767. General and administrative expenses totaled $945,309 for the three months ended June 30, 2026.
Previous 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.
Current wording
Distributions during the period were $0.324970, $0.497900, and $0.502990 per Unit payable to Unit holders of record on April 15, May 15, and June 15, 2026, respectively.
Previous 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).
Current wording
Compared to the preceding quarter ended March 31, 2026, royalty income increased approximately $7,498,000, or 53%, due to higher oil and natural gas prices ($5.5 million) and higher oil and natural gas production ($2.6 million), partially offset by higher production taxes and operating expenses ($0.6 million).
Previous 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.
Current wording
Oil royalty income for the three months ended June 30, 2026, related primarily to production for February through April 2026. The average price of oil as reported by NYMEX for that time period was $86.17 per barrel. The average price of oil was $84.29 per barrel for January through June 2026. Gas royalty income received for the three months ended June 30, 2026, related primarily to production for January through March 2026. The average price of gas reported by Henry Hub for the same time period was $4.24 per Mcf. The average price of gas for Henry Hub was $3.43 per Mcf for January through June 2026. As of July 27, 2026, the price of gas for Henry Hub was $2.37 per Mcf and the price of oil reported by NYMEX was $84.25 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 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.
Current wording
Interest income for the quarter ended June 30, 2026, decreased $14,963 compared with the second quarter of 2025. Compared to the preceding quarter ended March 31, 2026, interest income increased $32,018. Interest income for the six months ended June 30, 2026 decreased $49,174 compared to the same period in 2025. Changes in interest income are the result of changes in interest rates and funds available for investment.