10-Q

10-Q 1 sbr_10-q_2026-06-30.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period to

Commission File Number: 1-8424

SABINE ROYALTY TRUST

(Exact name of registrant as specified in its charter)


Texas	75-6297143
( State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
Argent Trust Company 3838 Oak Lawn Ave, Suite 1720 Dallas, Texas 75219-4518
(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (855) 588-7839

Securities registered pursuant to Section 12(b) of the Act:


	Trading Symbol(s)	Name of each exchange on which registered
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Units of Beneficial Interest	SBR	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☐ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes☐ No ☒

Number of units of beneficial interest outstanding at August 7, 2026: 14,579,345


PART I — FINANCIAL INFORMATION		3
	Item 1. Financial Statements	3
	Item 2. Trustee’s Discussion and Analysis of Financial Condition and Results of Operations	14
	Item 3. Quantitative and Qualitative Disclosures About Market Risk	16
	Item 4. Controls and Procedures	16
PART II — OTHER INFORMATION		18
	Item 1. Legal Proceedings	18
	Item 1A. Risk Factors	18
	Item 5. Other Information	18
	Item 6. Exhibits	18
SIGNATURES		19
EX-31
EX-32


	Page
Condensed Statements of Assets, Liabilities, and Trust Corpus	4
Condensed Statements of Distributable Income (Unaudited)	5
Condensed Statements of Changes in Trust Corpus (Unaudited)	7


			June 30,		December 31,
			2026		2025
	Note		(UNAUDITED)
Assets
Cash and short-term investments			$	9,682,365	$	7,574,257
Royalty interests in oil and gas properties (less accumulated amortization of $22,330,203 and $22,325,577 at June 30, 2026 and December 31, 2025)				64,982		69,608
Total Assets			$	9,747,347	$	7,643,865
Liabilities and Trust Corpus
Trust expenses payable		4	$	306,884	$	289,128
Other payables		4		1,028,749		507,158
Total liabilities				1,335,633		796,286
Contingencies		5
Trust corpus — 14,579,345 units of beneficial interest authorized and outstanding				8,411,714		6,847,579
Total Liabilities and Trust Corpus			$	9,747,347	$	7,643,865


		Three Months Ended June 30,
	Notes	2026			2025
Royalty income		$	21,689,562		$	18,583,570
Interest income			104,767			119,730
Total			21,794,329			18,703,300
General and administrative expenses	6		(945,309	)		(914,305	)
Distributable income		$	20,849,020		$	17,788,995
Distributable income per unit (14,579,345 units outstanding)	1,3,5	$	1.43		$	1.22


		Six Months Ended June 30,
	Notes	2026			2025
Royalty income		$	35,881,186		$	37,978,136
Interest income			177,516			226,690
Total			36,058,702			38,204,826
General and administrative expenses	6		(2,167,386	)		(2,269,348	)
Distributable income		$	33,891,316		$	35,935,478
Distributable income per unit (14,579,345 units outstanding)	1,3,5	$	2.32		$	2.46


Notification Date	Monthly Record Date	Payment Date	Distribution per Unit
July 2, 2026	July 15, 2026	July 29, 2026	$	0.429150
August 7, 2026	August 17, 2026	August 31, 2026	$	0.619430


			Quarter Ended
	June 30,		June 30,		March 31,
	2026		2025		2026
Production
Oil (Bbls)		159,396		155,573		139,120
Gas (Mcfs)		3,125,306		3,046,325		2,838,284
Average Realized Price
Oil (per Bbl)	$	76.98	$	68.17	$	56.91
Gas (per Mcf)	$	3.73	$	3.26	$	2.78


	Six Months Ended
	June 30, 2026		June 30, 2025
Production
Oil (Bbls)		298,516		367,280
Gas (Mcfs)		5,963,589		6,929,937
Average Realized Price
Oil (Bbls)	$	67.63	$	62.98
Gas (Mcfs)	$	3.28	$	2.66


4(a)*	Sabine Corporation Amended and Restated Royalty Trust Agreement effective as of May 22, 2014

(b)**	Amendment No. 1 to the Amended and Restated Royalty Trust Agreement of Sabine Royalty Trust, dated May 2, 2022

(c)***	Sabine Corporation Louisiana Royalty Trust Agreement effective as of December 31, 1982, by and between Sabine Corporation and Hibernia National Bank in New Orleans, as trustee, and joined by InterFirst Bank Dallas, N.A., as trustee. (P)

31	Trustee Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32 99	Trustee Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 Item 1A, and 7 to the Annual Report on Form 10-K for Sabine Royalty Trust filed with the Securities and Exchange Commission on February, 27, 2026 (incorporated herein by reference).


SABINE ROYALTY TRUST

By:		Argent Trust Company, Trustee

By:		/s/ Nancy Willis
		Nancy Willis
		Director of Royalty Trust Services


	Three Months ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Trustee Fee	$	135,793	$	136,932	$	265,911	$	279,884
Escrow Agent Fee		407,381		410,798		797,732		839,653
Trustee Bonus Fee (1)		91,320		92,271		182,640		184,542
Total Fees	$	634,494	$	640,001	$	1,246,283	$	1,304,079