Sabine Royalty Trust reported its financial results for the first quarter of 2025, revealing a distributable income of $18.1 million, or $1.24 per unit, a decrease from $19.9 million, or $1.37 per unit, in the same period of 2024. The Trust's total revenue for the quarter was $19.5 million, down from $20.9 million year-over-year. This decline was primarily attributed to a decrease in royalty income, which fell to $19.4 million from $20.8 million, driven by lower oil and natural gas prices and reduced production volumes.
The Trust's total assets increased to $9.96 million as of March 31, 2025, compared to $9.25 million at the end of 2024. This growth was mainly due to an increase in cash and short-term investments, which rose to $9.88 million from $9.17 million. However, total liabilities decreased to $441,128 from $543,429, reflecting a reduction in other payables. The Trust's corpus also saw an increase, ending the quarter at $9.51 million, up from $8.71 million at the end of the previous year.
Operationally, the Trust experienced a decrease in oil production, with 174,002 barrels produced in the first quarter of 2025 compared to 211,707 barrels in the same quarter of 2024. Natural gas production increased slightly to 3.93 million Mcf from 3.88 million Mcf year-over-year. The average realized price for oil rose to $80.20 per barrel, while the average price for natural gas was $2.37 per Mcf, reflecting market fluctuations and varying demand.
The Trust's general and administrative expenses increased significantly, totaling $1.36 million for the quarter, compared to $989,304 in the prior year. This rise was attributed to higher trustee fees, including a bonus fee to Argent Trust Company, which became the Trust's trustee in December 2022. The Trust's management noted that the ongoing volatility in oil and gas prices continues to impact its financial performance and distributions to unit holders.
Looking ahead, the Trust remains cautious about future commodity price fluctuations, which are influenced by various external factors, including geopolitical conditions and market demand. The Trustee emphasized that while the Trust is not currently planning to undertake capital projects or incur significant liabilities, it will continue to monitor market conditions closely to manage distributions effectively.
About SABINE ROYALTY TRUST
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