Cash Distribution - The Registrant announced a monthly cash distribution to unitholders of record on January 15, 2026[6] - The press release regarding the cash distribution was issued on January 5, 2026[6] - The cash distribution details are included in Exhibit 99.1 attached to the report[8]

Group 1 - The article discusses the analysis of oil and gas companies, focusing on identifying undervalued entities within the sector, including Sabine Royalty Trust [1] - Sabine Royalty Trust is characterized as a passive entity that passes through taxes to investors, presenting both advantages and challenges [2] - The oil and gas industry is described as cyclical, requiring patience and experience for successful investment [2] Group 2 - The investing group, Oil & Gas Value Research, seeks under-followed oil companies and out-of-favor midstream companies that present compelling investment opportunities [2] - The group facilitates discussions among oil and gas investors through an active chat room, allowing for the sharing of recent information and ideas [2]

Core Viewpoint - The share price of Sabine Royalty Trust (NYSE:SBR) has experienced a significant decline due to a substantial cut in its monthly dividend, marking a challenging period for the company in the energy sector [1][2][3]. Group 1: Dividend and Production Changes - Sabine Royalty Trust announced a monthly dividend of $0.19667 per share, which is a decrease of nearly 45% from the previous month's distribution of $0.3567 [3]. - The company reported preliminary production volumes of approximately 28,904 barrels of oil in September, a significant drop from 65,727 barrels in the prior month [3]. - Natural gas production also decreased, coming in at 796,698 Mcf compared to 1,135,345 Mcf previously [3]. Group 2: Historical Context and Market Reaction - This marks the fourth consecutive cut in monthly distributions by Sabine Royalty Trust, resulting in the lowest dividend since 2021 [4]. - Despite the recent slump, the company has gained over 10% in share price so far this year [5].

Core Viewpoint - Monthly dividends are preferred over quarterly payouts due to more frequent cash flow and often higher annual yields, with examples yielding between 8% and 19.8% [2] Group 1: Monthly Dividend Stocks - Monthly dividend stocks can provide substantial annual income, with potential earnings ranging from $40,000 to $99,000 on a $500,000 investment [2] - The article discusses four specific monthly dividend payers, highlighting their unique characteristics and performance [2] Group 2: Sabine Royalty Trust (SBR) - Sabine Royalty Trust is a passive income vehicle that pays distributions from income generated by natural resources, primarily from the Permian Basin [3] - The trust has no debt and has outperformed the broader energy sector, but it is sensitive to commodity prices and has variable distributions [4][7] - SBR's asset base is fixed, and it may terminate if gross revenues fall below $2 million for two consecutive years or if unitholders vote for closure [6] Group 3: Capital Southwest Corp. (CSWC) - Capital Southwest Corp. is a business development company that provides capital to lower middle market firms, with a portfolio of 122 firms [8] - The company has a high percentage of floating-rate debt, which can be advantageous in rising rate environments, and it has outperformed its peers and the S&P 500 [10] - CSWC's dividends are well-covered, and it pays monthly, with a portion of the yield coming from supplemental dividends [10] Group 4: PennantPark Floating Rate Capital (PFLT) - PennantPark Floating Rate Capital targets midsized companies and invests primarily through first-lien floating-rate debt [12][14] - The company has faced tight dividend coverage, with the possibility of a dividend reduction, but management is optimistic about growth through joint ventures [14] Group 5: Orchid Island Capital (ORC) - Orchid Island Capital is a mortgage REIT that deals in agency residential mortgage-backed securities, currently offering a yield close to 20% [16] - The company has experienced significant price declines since its IPO, leading to a reverse stock split, and has a history of reducing dividends [18][19]

Group 1 - The article provides a market analysis covering several companies including Capital Southwest Corporation, Orchid Island Capital Inc, Sabine Royalty Trust, and PennantPark Floating Rate Capital Ltd [1] Group 2 - The analysis highlights the investment opportunities and risks associated with the mentioned companies, indicating a focus on their financial performance and market positioning [1]

Group 1: AI Investment Opportunity - Artificial intelligence is considered the greatest investment opportunity of our lifetime, with a strong emphasis on the urgency to invest now [1] - Wall Street is investing hundreds of billions into AI, but there is a critical question regarding the energy supply needed to support this technology [2] - AI data centers consume as much energy as small cities, leading to concerns about power grid strain and rising electricity prices [2] Group 2: Company Overview - A specific company is highlighted as a key player in the AI energy sector, owning critical energy infrastructure assets that are essential for meeting the increasing energy demands of AI [3][6] - This company is not a chipmaker or cloud platform but is positioned to benefit significantly from the upcoming AI energy spike [3] - It is involved in U.S. LNG exportation and is expected to thrive under the "America First" energy doctrine [7] Group 3: Financial Position - The company is completely debt-free and has a cash reserve equal to nearly one-third of its market cap, making it financially robust compared to other energy firms [8] - It trades at less than 7 times earnings, indicating it is undervalued relative to its potential [10] Group 4: Market Trends - The company is poised to benefit from the AI infrastructure supercycle, the onshoring boom due to tariffs, and a surge in U.S. LNG exports [14] - The influx of talent into the AI sector is expected to drive rapid advancements and innovation, further solidifying the importance of investing in AI [12] Group 5: Investment Potential - The company is described as a "toll booth" operator in the AI energy boom, collecting fees on energy exports and benefiting from the growing demand for electricity [5][6] - There is a potential for significant returns, with projections suggesting a 100+% return within 12 to 24 months [15]

[FORM 8-K Filing Information](index=1&type=section&id=FORM%208-K%20Filing%20Information) This section details the administrative information for the Form 8-K filing, including registrant identification and exchange listing [Registrant Details and Exchange Listing](index=1&type=section&id=Registrant%20Details%20and%20Exchange%20Listing) This section details the registrant's legal name, contact information, and New York Stock Exchange listing under SBR - Registrant Name: **SABINE ROYALTY TRUST**[2](index=2&type=chunk) Securities Registered | Title of each class | Symbol(s) | Name of each exchange on which registered | | :----------------------- | :-------- | :---------------------------------------- | | Units of Beneficial Interest | SBR | New York Stock Exchange | [Current Report Items](index=2&type=section&id=Current%20Report%20Items) This section outlines key reported events, including financial condition updates and accompanying exhibits [Item 2.02 Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) SABINE ROYALTY TRUST announced a monthly cash distribution to unitholders, furnished under Section 18 of the Securities Exchange Act - A press release on **October 3, 2025**, announced the monthly cash distribution to unitholders of record on **October 15, 2025**[6](index=6&type=chunk) - The furnished information is not considered 'filed' under Section 18 of the Securities Exchange Act of 1934, thus avoiding associated liabilities[7](index=7&type=chunk) [Item 9.01 Financial Statements and Exhibits](index=2&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits) This item lists the Form 8-K exhibits, identifying the October 3, 2025 press release as Exhibit 99.1 - **Exhibit 99.1**: Press Release dated **October 3, 2025**[8](index=8&type=chunk) [SIGNATURES](index=3&type=section&id=SIGNATURES) This section confirms the official signing of the report by the authorized trustee representative [Signature Details](index=3&type=section&id=Signature%20Details) The report was signed by Argent Trust Company, Trustee for SABINE ROYALTY TRUST, on October 3, 2025 - The report was signed by **Argent Trust Company**, Trustee, on behalf of **SABINE ROYALTY TRUST**[11](index=11&type=chunk) - Signatory: **Nancy Willis**, Director of Royalty Trust Services[11](index=11&type=chunk) - Date of signature: **October 3, 2025**[11](index=11&type=chunk)

Core Points - Argent Trust Company, as Trustee of the Sabine Royalty Trust, declared a cash distribution of $0.368910 per unit, payable on October 29, 2025, to unit holders of record on October 15, 2025 [1] - The distribution is primarily based on oil production for July 2025 and gas production for June 2025, with preliminary production volumes of approximately 48,527 barrels of oil and 1,111,528 Mcf of gas [2] - This month's distribution is lower than the previous month due to a decrease in oil and natural gas production and a decrease in oil pricing, partially offset by an increase in natural gas pricing [3] Production and Pricing Summary - Current month production volumes: 48,527 barrels of oil and 1,111,528 Mcf of gas, with average prices of $65.48 per barrel of oil and $2.62 per Mcf of gas [3] - Prior month production volumes: 97,403 barrels of oil and 1,181,086 Mcf of gas, with average prices of $68.79 per barrel of oil and $2.40 per Mcf of gas [3] - The decrease in production and pricing reflects the timing of cash receipts, as sales volumes and pricing may fluctuate from month to month [3][4] Revenue Posting Information - Revenues are distributed only after they are received, verified, and posted, with most energy companies issuing royalty payments around the 25th of each month [4] - Approximately $423,000 of revenue received in September will be posted in October, in addition to normal cash receipts for that month [5] - As of the date of the press release, approximately $109,000 in revenue has already been received [5]

Group 1 - Sabine Royalty Trust (NYSE:SBR) is recognized as one of the most profitable oil stocks currently available for investment, with a recent acquisition by Moody National Bank Trust Division of 35,185 shares, amounting to approximately $2,346,000, representing nearly 0.24% ownership in the company [1] - The company offers an attractive dividend yield of 6.70%, making it appealing for investors seeking stable income while benefiting from the oil and gas cycle [2] - Over the past five years, Sabine Royalty Trust has delivered a return exceeding 300%, significantly outperforming the market's return of nearly 100% [3] Group 2 - Sabine Royalty Trust operates as a Texas-based holder of royalty and mineral interests in various producing oil and gas properties, and it has been committed to providing cash distributions to its unitholders since its founding in 1982 [3]

Distribution Announcement - Argent Trust Company declared a cash distribution of $0.584110 per unit for the Sabine Royalty Trust, payable on September 29, 2025, to unit holders of record on September 15, 2025 [1] Production and Revenue Details - The distribution reflects oil production for June 2025 and gas production for May 2025, with preliminary production volumes of approximately 97,403 barrels of oil and 1,181,086 Mcf of gas [2] - Preliminary prices for the current month are approximately $68.79 per barrel of oil and $2.40 per Mcf of gas [2] - This month's distribution is lower than the previous month due to a decrease in oil and natural gas production, as well as a decrease in pricing [3] Comparative Analysis - Current month production and pricing compared to the prior month: - Oil volumes decreased from 121,894 barrels to 97,403 barrels - Gas volumes decreased from 1,280,573 Mcf to 1,181,086 Mcf - Average oil price decreased from $69.53 to $68.79 per barrel - Average gas price decreased from $2.77 to $2.40 per Mcf [3] Revenue Posting Information - Revenues are distributed after being received, verified, and posted, with most energy companies issuing royalty payments around the 25th of each month [4] - Approximately $498,000 of revenue received in August will be posted in September, in addition to normal cash receipts [5]