Sabine Royalty Trust (SBR) Q1 2025 earnings summary

Executive summary

• Distributable income for Q1 2025 was $18.1 million ($1.24 per unit), down from $19.9 million ($1.37 per unit) in Q1 2024, mainly due to lower oil and gas prices and production volumes.

• Royalty income for Q1 2025 was $19.4 million, a 7% decrease year-over-year, partially offset by higher oil production and lower taxes.

• The Trust's assets consist solely of royalty interests in producing and proved undeveloped oil and gas properties across several states.

• March distribution included a $400,000 settlement payment related to unpaid royalties from TGNR East Texas II, LLC.

Financial highlights

• Q1 2025 royalty income: $19,394,566; interest income: $106,960; general and administrative expenses: $1,355,043.

• Distributable income per unit for Q1 2025: $1.24, compared to $1.37 in Q1 2024.

• Trust corpus increased to $9,514,016 at March 31, 2025, from $8,706,932 at December 31, 2024.

• Cash and short-term investments at March 31, 2025: $9,878,062.

• Oil production for Q1 2025: 211,707 Bbls at $59.17 per Bbl; gas production: 3,883,612 Mcfs at $2.19 per Mcf.

Outlook and guidance

• Future distributions and income remain highly sensitive to oil and gas price volatility, production volumes, and macroeconomic factors.

• Administration expenses for 2025 are estimated at $1,855,000, with total fees to Argent projected at $2,650,000.

• Additional Trust costs and expenses for 2025 are estimated at $1,800,000.

• Commodity prices in early 2025 were impacted by weak demand, increased supply, and global trade tensions; natural gas prices rose due to colder weather and higher demand.