Sabine Royalty Trust

What they do

The Trust holds royalty and mineral interests and receives royalty income from oil and gas production on those properties. It does not operate wells; it collects royalty payments from operators, which Argent Trust Company as Trustee verifies and distributes. Distributable income is paid monthly to unit holders after receipt and posting of revenues.

Revenue drivers

• Oil royalties — Royalty income from crude oil production, with preliminary June 2026 volumes of approximately 39,647 barrels at an average price of $79.10 per barrel in the September 2026 distribution.
• Natural gas royalties — Royalty income from natural gas production, with preliminary May 2026 volumes of approximately 1,094,091 Mcf at an average price of $2.33 per Mcf in the September 2026 distribution.
• Royalty and mineral interests — The Trust's assets are royalty and mineral interests in oil and gas properties; income is derived from production on those interests rather than from operations.

Recent performance

The Trust declared a September 2026 cash distribution of $0.331680 per unit, payable September 29, 2026 to holders of record September 15, 2026. This distribution reflects primarily June 2026 oil production and May 2026 gas production, with preliminary volumes of approximately 39,647 barrels of oil and 1,094,091 Mcf of gas. Preliminary prices were approximately $79.10 per barrel of oil and $2.33 per Mcf of gas. The distribution was lower than the prior month primarily due to lower oil and natural gas production and lower oil pricing, slightly offset by higher natural gas pricing. The prior month had volumes of 72,119 barrels of oil and 1,408,574 Mcf of gas at $98.43 per barrel of oil and $2.21 per Mcf of gas.

Strategy

The Trust's stated approach is to collect royalty revenues, verify and post them, and distribute distributable income to unit holders. Revenues are distributed only after they are received, verified and posted. Because most energy companies pay royalties around the 25th of each month, some receipts arrive after the last business day posting and are posted within 30 days of receipt. The Trust reports that approximately $199,000 of revenue received will be posted in September in addition to normal September receipts. No separate investment or expansion program is described in the provided excerpts.

Risks

• Commodity price risk — Distributions depend on oil and gas prices, which fluctuated sharply between the two most recent months ($98.43 to $79.10 per barrel of oil, $2.21 to $2.33 per Mcf of gas).
• Production volume volatility — Royalty volumes vary month to month, as shown by oil declining from 72,119 to 39,647 barrels and gas from 1,408,574 to 1,094,091 Mcf between the prior and current month.
• Payment timing risk — Royalty receipts depend on operator payment timing and mail delivery, so revenues received after the month-end posting are recorded in a later period.
• Trust structure and termination — The Trust is a fixed express trust with limited powers and duration terms set by the Trust Agreement, and unit holders have limited voting rights.

Outlook

The provided excerpts do not include forward guidance on future distributions or production. The September 2026 distribution reflects current production and pricing as of the release date. The Trust continues to direct unit holders to its website and mailed reports for distribution history, financial reports and tax information. Forward-looking statements in the release are limited to the Trustee's views as of the release date.