Key Highlights

  • Sabine's $0.355450 per unit October distribution has an October 15, 2026 record date and is payable October 29.
  • Second-quarter distributable income was $20.85 million, or $1.43 per unit, versus $17.79 million, or $1.22.
  • Second-quarter royalty income was $21.69 million, up approximately 17%, on higher oil and natural gas prices and production.
  • Average realized prices in the quarter were $76.98 per barrel of oil and $3.73 per Mcf of gas.

Sabine Royalty Trust's (NYSE:SBR) $0.355450 per unit distribution yields 6.10% and sits beside second-quarter distributable income of $1.43 per unit. Argent Trust Company, as trustee, declared it on October 5, 2026. The trust makes monthly distributions of the excess of the preceding month's royalty income received over expenses incurred.

Distribution Program and Unit Holder Returns

The trustee declared a cash distribution of $0.355450 per unit on October 5, 2026, payable October 29 to unit holders of record on October 15.

The trust's 10-Q reports distributions of $0.324970, $0.497900 and $0.502990 per unit to unit holders of record on April 15, May 15 and June 15, 2026. It also reports subsequent declarations of $0.429150 per unit for the July 15 record date, payable July 29, and $0.619430 per unit for the August 17 record date, payable August 31.

Under the trust agreement, unit holders of record on the monthly record date, generally the 15th of each month, receive the calculated monthly income amount on or before 10 business days after that date. Second-quarter distributions totaled $1.33 per unit versus $1.38, and first-half distributions were $2.22 versus $2.57.

About the Trust

Sabine Royalty Trust was established effective December 31, 1982 and holds royalty and mineral interests in producing and proved undeveloped oil and gas properties in Florida, Louisiana, Mississippi, New Mexico, Oklahoma and Texas. Its units trade on the New York Stock Exchange, and Argent Trust Company serves as trustee. The Internal Revenue Service has ruled the trust is a grantor trust for federal income tax purposes.

Financial Performance Behind the Distribution

Second-quarter royalty income was $21,689,562 versus $18,583,570, and distributable income was $20,849,020, or $1.43 per unit on 14,579,345 units, versus $17,788,995, or $1.22. General and administrative expenses were $945,309 versus $914,305.

The trustee attributed the 17% increase in royalty income primarily to higher oil and natural gas prices ($2.8 million) and higher production ($0.6 million), partly offset by higher production taxes, operating expenses and ad valorem taxes ($0.3 million). Compared with the first quarter, royalty income increased approximately $7.5 million, or 53%.

First-half distributable income was $33,891,316, or $2.32 per unit, versus $35,935,478, or $2.46. First-half royalty income was $35.9 million, down approximately 6%, which the trustee attributed mainly to lower production ($7.8 million) and a one-time receipts distribution in the first quarter of 2025 ($0.7 million), partly offset by higher prices ($6.0 million).

Production, Prices and Reporting Basis

Second-quarter production was 159,396 barrels of oil and 3,125,306 Mcf of gas, versus 155,573 barrels and 3,046,325 Mcf. Average realized prices were $76.98 per barrel and $3.73 per Mcf, versus $68.17 and $3.26. First-half average realized prices were $67.63 per barrel and $3.28 per Mcf, versus $62.98 and $2.66.

The trust reports on a modified cash basis, recognizing royalty income in the month received rather than the month of production. Cash and short-term investments were $9.68 million at June 30, 2026 versus $7.57 million at December 31, 2025.

Outlook

Sabine does not provide earnings guidance. The trustee states that the trust's income and monthly distributions are heavily influenced by commodity prices and production volumes, which are beyond its control, and that these factors reduce the predictability of future cash distributions.