10-Q

10-Q 1 sbr_10-q_2025-06-30.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period to

Commission File Number: 1-8424

SABINE ROYALTY TRUST

(Exact name of registrant as specified in its charter)


Texas	75-6297143
( State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
Argent Trust Company 3838 Oak Lawn Ave, Suite 1720 Dallas, Texas 75219-4518
(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (855) 588-7839

Securities registered pursuant to Section 12(b) of the Act:


	Trading Symbol(s)	Name of each exchange on which registered
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Units of Beneficial Interest	SBR	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☐ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes☐ No ☒

Number of units of beneficial interest outstanding at August 8, 2025: 14,579,345


PART I — FINANCIAL INFORMATION		3
	Item 1. Financial Statements	3
	Item 2. Trustee’s Discussion and Analysis of Financial Condition and Results of Operations	14
	Item 3. Quantitative and Qualitative Disclosures About Market Risk	16
	Item 4. Controls and Procedures	16
PART II — OTHER INFORMATION		18
	Item 1. Legal Proceedings	18
	Item 1A. Risk Factors	18
	Item 5. Other Information	18
	Item 6. Exhibits	18
SIGNATURES		19
EX-31
EX-32


	Page
Condensed Statements of Assets, Liabilities, and Trust Corpus	4
Condensed Statements of Distributable Income (Unaudited)	5
Condensed Statements of Changes in Trust Corpus (Unaudited)	7


			June 30,		December 31,
			2025		2024
	Note		(UNAUDITED)
Assets
Cash and short-term investments			$	7,889,388	$	9,169,742
Royalty interests in oil and gas properties (less accumulated amortization of $22,320,834 and $22,314,566 at June 30, 2025 and December 31, 2024)				74,351		80,619
Total Assets			$	7,963,739	$	9,250,361
Liabilities and Trust Corpus
Trust expenses payable		4	$	250,620	$	311,784
Other payables		4		505,365		231,645
Total liabilities				755,985		543,429
Contingencies		5
Trust corpus — 14,579,345 units of beneficial interest authorized and outstanding				7,207,754		8,706,932
Total Liabilities and Trust Corpus			$	7,963,739	$	9,250,361


		Three Months Ended June 30,
	Notes	2025			2024
Royalty income		$	18,583,570		$	22,607,108
Interest income			119,730			175,353
Total			18,703,300			22,782,461
General and administrative expenses			(914,305	)		(703,464	)
Distributable income		$	17,788,995		$	22,078,997
Distributable income per unit (14,579,345 units outstanding)	1,3,5	$	1.22		$	1.51


		Six Months Ended June 30,
	Notes	2025			2024
Royalty income		$	37,978,136		$	43,365,913
Interest income			226,690			327,279
Total			38,204,826			43,693,192
General and administrative expenses			(2,269,348	)		(1,692,768	)
Distributable income		$	35,935,478		$	42,000,424
Distributable income per unit (14,579,345 units outstanding)	1,3,5	$	2.46		$	2.88


Notification Date	Monthly Record Date	Payment Date	Distribution per Unit
July 3, 2025	July 15, 2025	July 29, 2025	$	0.345930
August 5, 2025	August 15, 2025	August 29, 2025	$	0.744730


			Quarter Ended
	June 30,		June 30,		March 31,
	2025		2024		2025
Production
Oil (Bbls)		155,573		220,438		211,707
Gas (Mcfs)		3,046,325		3,869,375		3,883,612
Average Realized Price
Oil (per Bbl)	$	68.17	$	78.89	$	59.17
Gas (per Mcf)	$	3.26	$	1.99	$	2.19


	Six Months Ended
	June 30, 2025		June 30, 2024
Production
Oil (Bbls)		367,280		394,440
Gas (Mcfs)		6,929,937		7,804,325
Average Realized Price
Oil (Bbls)	$	62.98	$	79.47
Gas (Mcfs)	$	2.66	$	2.18


4(a)*	Sabine Corporation Amended and Restated Royalty Trust Agreement effective as of May 22, 2014

(b)**	Amendment No. 1 to the Amended and Restated Royalty Trust Agreement of Sabine Royalty Trust, dated May 2, 2022

(c)***	Sabine Corporation Louisiana Royalty Trust Agreement effective as of December 31, 1982, by and between Sabine Corporation and Hibernia National Bank in New Orleans, as trustee, and joined by InterFirst Bank Dallas, N.A., as trustee. (P)

31	Trustee Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32 99	Trustee Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 Item 1A, and 7 to the Annual Report on Form 10-K for Sabine Royalty Trust filed with the Securities and Exchange Commission on February, 27, 2025 (incorporated herein by reference).


SABINE ROYALTY TRUST

By:		Argent Trust Company, Trustee

By:		/s/ Nancy Willis
		Nancy Willis
		Director of Royalty Trust Services


	Three Months ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Trustee Fee	$	136,932	$	109,145	$	279,884	$	211,260
Escrow Agent Fee		410,798		327,432		839,653		633,774
Trustee Bonus Fee (1)		92,271		—		184,542		—
Total Fees	$	640,001	$	436,577	$	1,304,079	$	845,034

SEC Form 10-Q filed by Sabine Royalty Trust