Sabine Royalty Trust(SBR) - 2025 Q1 - Quarterly Report

Financial Performance - Distributable income for the three months ended March 31, 2025, was $18,146,483, down from $19,921,427 in the same period of 2024, representing a decrease of about 8.9%[12] - Royalty income decreased to $19,394,566 for the three months ended March 31, 2025, compared to $20,758,805 in 2024, a decline of approximately 6.6%[12] - Interest income for the three months ended March 31, 2025, was $106,960, down from $151,926 in the same period of 2024, representing a decrease of approximately 29.6%[12] - The price of oil fell significantly in early 2025 due to weak demand and increasing supply, impacting distributable income[49] - Royalty income decreased by approximately $1,364,000, or 7%, compared to Q1 2024, primarily due to lower oil and natural gas prices[55] Assets and Liabilities - Total assets increased to $9,955,144 as of March 31, 2025, compared to $9,250,361 on December 31, 2024, reflecting a growth of approximately 7.6%[10] - Total liabilities decreased to $441,128 as of March 31, 2025, down from $543,429 on December 31, 2024, a decline of about 18.8%[10] - Trust corpus at the end of the period was $9,514,016, an increase from $8,706,932 at the beginning of the period, reflecting a growth of about 9.2%[14] - Cash and short-term investments increased to $9,878,062 as of March 31, 2025, compared to $9,169,742 on December 31, 2024, marking an increase of approximately 7.7%[10] Expenses - General and administrative expenses rose to $1,355,043 in Q1 2025, up from $989,304 in Q1 2024, indicating an increase of about 37%[12] - General and administrative expenses increased approximately $365,700 for the three months ended March 31, 2025, compared to the same period in 2024, primarily due to increases in various fees and expenses[60] - Compared to the previous quarter ended December 31, 2024, general and administrative expenses increased approximately $379,000, mainly due to timing of audit and legal fees[61] Production and Pricing - Oil production for Q1 2025 was 211,707 barrels, while gas production was 3,883,612 Mcf[57] - Average realized price for oil in Q1 2025 was $59.17 per barrel, down from $80.20 in Q1 2024, while gas averaged $2.19 per Mcf compared to $2.37[57] - The average price of gas reported by Henry Hub for Q1 2025 was $3.15 per Mcf, with a decline to $2.66 per Mcf by April 28, 2025[57] Distributions - Distributions per unit decreased to $1.19 for the three months ended March 31, 2025, down from $1.27 in the same period of 2024, a reduction of approximately 6.3%[14] - The Trust declared distributions of $0.503880 and $0.447780 per unit for April and May 2025, respectively[46] Accounting and Compliance - There have been no significant changes to the critical accounting policies during the three months ended March 31, 2025[64] - The Trust does not invest in derivative financial instruments and is not subject to any material interest rate risk due to the short-term nature of its borrowings and investments[69] - The Trustee concluded that the Trust's disclosure controls and procedures are effective in ensuring timely decisions regarding required disclosures[70] - No material changes to risk factors have occurred during the three months ended March 31, 2025[74] - There are no new accounting pronouncements expected to have a significant impact on the Trust's financial statements[66] Future Outlook - The Trust has not anticipated borrowing funds in the foreseeable future, relying instead on royalty income for cash flow[48]