Sabine Royalty Trust (SBR) Q2 2025 earnings summary

Executive summary

• Distributable income for Q2 2025 was $17.79 million ($1.22 per unit), down from $22.08 million ($1.51 per unit) in Q2 2024, mainly due to lower oil and gas production and oil prices, partially offset by higher natural gas prices and lower taxes and expenses.

• For the six months ended June 30, 2025, distributable income was $35.94 million ($2.46 per unit), compared to $42.00 million ($2.88 per unit) in the same period of 2024.

• The Trust's income and distributions are highly sensitive to commodity price fluctuations, with recent volatility driven by global supply/demand, geopolitical tensions, and weather patterns.

Financial highlights

• Q2 2025 royalty income was $18.58 million, down 18% year-over-year; interest income was $119,730, and general/admin expenses were $914,305.

• Six-month royalty income was $37.98 million, down 12% year-over-year; interest income was $226,690, and general/admin expenses were $2.27 million.

• Distributions per unit for Q2 2025 were $1.38, compared to $1.67 in Q2 2024; for the six months, $2.57 per unit versus $2.94 in 2024.

• Cash and short-term investments at June 30, 2025, were $7.89 million, down from $9.17 million at year-end 2024.

Outlook and guidance

• The Trust expects continued volatility in oil and gas prices due to geopolitical events, weather, and global economic conditions, impacting future distributable income and distributions.

• No material changes to risk factors or critical accounting policies are anticipated for the remainder of 2025.