Sabine Royalty Trust reported a decline in financial performance for the second quarter of 2025, with total distributable income of $17.8 million, or $1.22 per unit, compared to $22.1 million, or $1.51 per unit, in the same period of 2024. The Trust's royalty income for the quarter was $18.6 million, down 18% from $22.6 million a year earlier, primarily due to decreased oil and natural gas production and lower oil prices. Interest income also fell to $119,730 from $175,353 in the prior year. For the first half of 2025, distributable income totaled $35.9 million, down from $42.0 million in the same period of 2024.
The Trust's total assets decreased to $7.96 million as of June 30, 2025, from $9.25 million at the end of 2024. This decline was attributed to a reduction in cash and short-term investments, which fell to $7.9 million from $9.2 million. Liabilities increased to $756,000 from $543,000, driven by higher other payables. The Trust's corpus also decreased, ending the quarter at $7.2 million compared to $7.7 million a year earlier.
Operationally, the Trust experienced a significant drop in production volumes, with oil production decreasing to 155,573 barrels from 220,438 barrels in the second quarter of 2024, and natural gas production falling to 3,046,325 Mcf from 3,869,375 Mcf. The average realized price for oil was $68.17 per barrel, down from $78.89, while the average price for natural gas rose to $3.26 per Mcf from $1.99. The Trust's general and administrative expenses increased to $914,305 for the quarter, up from $703,464 in the prior year, largely due to higher escrow agent and trustee fees.
Looking ahead, the Trust's financial outlook remains closely tied to commodity prices, which have shown volatility due to various market factors, including geopolitical tensions and changes in supply and demand. The Trust does not anticipate borrowing funds in the near future, relying instead on royalty income to fund distributions. The Trustee noted that while the current market conditions present challenges, they are actively monitoring the situation to manage expenses and maintain distributions to unit holders.
About SABINE ROYALTY TRUST
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