Sabine Royalty Trust Reports 11% Decrease in Royalty Income for Fiscal Year 2024

Sabine Royalty Trust reported a decrease in financial performance for the fiscal year ending December 31, 2024, with total royalty income of $82.6 million, down 11% from $93.0 million in 2023. The decline in revenue was primarily attributed to lower oil and natural gas prices, which fell by approximately $21.4 million, alongside a slight increase in operating expenses and taxes. Despite these challenges, the Trust experienced an increase in production volumes, with natural gas volumes rising from 11.8 million Mcf in 2023 to 16.5 million Mcf in 2024, and oil volumes sold increasing from 780,930 barrels to 815,811 barrels during the same period.

The average price received for oil decreased from $79.60 per barrel in 2023 to $77.04 per barrel in 2024, while the average price for natural gas dropped significantly from $3.52 per Mcf to $1.88 per Mcf. The Trust's total distributable income for 2024 was reported at $79.6 million, translating to a distributable income per unit of $5.46, compared to $90.3 million and $6.19 per unit in 2023. General and administrative expenses slightly decreased to approximately $3.53 million in 2024 from $3.56 million in 2023, primarily due to reduced escrow agent and trustee fees.

Operationally, the Trust's assets consist of royalty interests in oil and gas properties across six states, including Texas, Oklahoma, Louisiana, Mississippi, New Mexico, and Florida. As of December 31, 2024, the Trust's estimated net proved developed producing reserves were valued at approximately $280.3 million, an increase from $257.5 million in 2023. This increase was primarily driven by higher volumes in the reserve report, despite fluctuations in oil and gas prices. The Trust's total assets were reported at $9.25 million, with cash and short-term investments amounting to $9.17 million.

Looking ahead, the Trust's financial outlook remains contingent on the volatile nature of oil and gas prices, which are influenced by various external factors including geopolitical conditions, market demand, and regulatory changes. The Trust's ability to generate revenue and make distributions to unit holders is closely tied to these market dynamics. The Trustee has indicated that while the Trust is not expected to engage in capital projects or incur production costs, it remains vigilant in monitoring the performance of its royalty interests and the broader market conditions affecting its operations.