Sabine Royalty Trust (SBR): Business Model Canvas [Dec-2025 Updated]

You're digging into Sabine Royalty Trust (SBR) because you want direct, low-hassle exposure to energy cash flow, and honestly, its business model is about as straightforward as it gets: it's a pass-through vehicle collecting royalties from properties managed by operators like Marathon and ExxonMobil. As a seasoned analyst, I see the appeal: it offers passive income with zero operational risk for the trust itself, historically delivering a high distribution yield-we saw one around 7.8% as of May 2025-all managed by the Trustee, Argent Trust Company. If you're looking for the mechanics behind that yield and how they keep overhead low (Q1 2025 G&A was just over $1,355,043), the full Business Model Canvas breakdown below shows exactly where the revenue streams from oil and gas royalties flow to you, the unitholder.

Sabine Royalty Trust (SBR) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep the Sabine Royalty Trust (SBR) running, which is essentially a pass-through vehicle for royalties from oil and gas properties. Since the trust has no operations of its own, these partnerships are everything.

Argent Trust Company acts as the independent Trustee, signing off on the monthly distributions. For instance, on December 5, 2025, Nancy Willis, Director of Royalty Trust Services at Argent Trust Company, signed the Form 8-K announcing the December 2025 distribution. This partnership is central to the trust's governance and cash flow mechanics.

The performance of the Oil and Gas Operators-the third-party companies actually drilling and producing-directly dictates the cash flow. The December 2025 distribution of $0.196670 per unit reflected September 2025 oil production of 28,904 barrels at a preliminary price of $64.19/bbl, and August 2025 gas production of 796,698 Mcf at $2.61/Mcf. The trust is roughly 2/3 oil and 1/3 gas in terms of revenues.

Administrative overhead, which covers the functions performed by the Trustee and other service providers, is a key cost. Historically, about 5%-8% of royalty income is consumed in administrative expenses. For the December 2025 distribution, $457,000 for 2025 Ad Valorem taxes was deducted.

Here's a look at the key financial outputs tied to these relationships for the most recent reporting period:

The Financial Institutions and Legal and Accounting Firms support the Trustee in ensuring compliance and proper cash handling. While specific firm names like JPMorgan Chase or PricewaterhouseCoopers aren't detailed in the latest distribution press release, their function is implied by the reporting structure. For example, the trust's total royalty income was $82.6 million in 2024, all of which must be processed, accounted for, and distributed according to SEC and IRS requirements.

The structure relies on these external parties for:

• Ensuring the December 2025 distribution was payable on December 29, 2025.
• Processing the $1,012,000 in revenue received since the November close.
• Adhering to the SEC filing schedule, with the latest 10-Q filed on November 7, 2025.
• Maintaining the trust's static asset base, which has no further properties that can be added.

The December 2025 distribution of $0.196670 per unit was a decrease of $0.16 from the last dividend paid. Finance: draft Q4 2025 expense reconciliation against 2024 tax deduction of $1,624,000 by next Monday.

Sabine Royalty Trust (SBR) - Canvas Business Model: Key Activities

You're looking at the core mechanics of Sabine Royalty Trust (SBR), which is essentially a passive collection and distribution machine for mineral royalties. The key activities aren't about drilling or selling; they are about administration and flow-through accounting. Here's the quick math on what Argent Trust Company, as Trustee, is actually doing with the cash as of late 2025.

Collecting Royalty Revenue

The primary activity is receiving payments from the operators on the underlying oil and gas properties. This revenue is highly sensitive to commodity prices and production volumes. For the third quarter ended September 30, 2025, Sabine Royalty Trust reported total royalty income of $25,522,605. This represented a significant year-over-year increase of 29% compared to Q3 2024. The underlying production for that quarter totaled 268,602 Bbls of oil and 3,568,824 Mcf of gas. The average realized prices for that period were $68.33 per Bbl for oil and $2.60 per Mcf for gas. The trust is a pass-through vehicle, meaning this collection activity directly fuels the next step.

The timing of collection is also a key operational detail. Most energy companies issue royalty payments around the 25th of every month, and revenues received after the last business day of the month are typically posted in the following month. For instance, the December 5, 2025 distribution of $0.196670 per unit reflected preliminary volumes of approximately 28,904 barrels of oil and 796,698 Mcf of gas, with preliminary prices around $64.19 per barrel of oil and $2.61 per Mcf of gas.

Distributing Net Income

Sabine Royalty Trust passes substantially all net royalty income to unitholders monthly. For the three months ended September 30, 2025, the distributable income was $24,752,168, which translated to $1.70 per unit. This was an increase of 29% compared to the $1.31 per unit distributed in Q3 2024. Over the first nine months of 2025, total distributions per unit reached $4.24, slightly ahead of the $4.19 per unit for the same period in 2024. The December 2025 monthly distribution declared was $0.196670 per unit.

The trust operates with very low administrative drag, which helps maximize the pass-through amount. Historically, about 5%-8% of royalty income is consumed by administrative expenses. For Q3 2025, general and administrative expenses were reported as $925,998 against royalty income of over $25.5 million.

• Q3 2025 Distribution per Unit: $1.70
• Nine-Month 2025 Distribution per Unit: $4.24
• December 2025 Declared Distribution: $0.196670
• November 2025 Declared Distribution: $0.356720

Trust Administration

The Trustee, Argent Trust Company, manages the cash reserves and ensures adherence to the Trust Agreement. A key administrative function is managing the Trust's liquidity. As of September 30, 2025, cash and short-term investments stood at $8.2 million. This was a reduction from the $9.2 million held at the end of 2024. The Trust Corpus, representing the underlying capital base, was valued at $7,539,318 as of September 30, 2025. The trust is permitted to borrow if necessary, but borrowings are not anticipated in the foreseeable future.

Administrative costs are tracked closely. For the three months ended September 30, 2025, general and administrative expenses totaled $926,000. These costs include various fees, such as Escrow Agent/Trustee fees, check stub data exchange services (approximately $79,400 for the nine months), and unit holder services expenses.

Financial Reporting

Sabine Royalty Trust must file quarterly and annual reports with the SEC. The quarterly report, Form 10-Q, is a critical activity for transparency. The Trust filed its Amendment No. 1 to the Q3 2025 10-Q on July 3, 2025, covering the period ended September 30, 2025. The Q3 2025 earnings were reported on November 7, 2025. The trust maintains a website, http://www.sbr-sabine.com/, where financial reports and tax information booklets are available.

The P/E Ratio, a key metric derived from financial reporting, was reported at 14.5x as of early December 2025. The trailing EPS was $5.43. You can track the monthly distribution details, which are a core part of the reporting cadence, via press releases, such as the one on December 5, 2025, announcing the December distribution.

Finance: draft 13-week cash view by Friday.

Sabine Royalty Trust (SBR) - Canvas Business Model: Key Resources

Static Royalty Interests: Fixed portfolio of non-participatory royalty and mineral interests.

The assets of Sabine Royalty Trust (SBR) are static, meaning no further properties can be added to the portfolio. The interests held include landowner's royalties, overriding royalty interests, minerals (excluding executive rights, bonuses, and delay rentals), and production payments. These interests are non-participatory. The conveyances establishing these interests were effective with respect to production on January 1, 1983.

Oil and Gas Properties: Interests located across six US states, including Texas, Louisiana, and New Mexico.

The underlying royalty and mineral interests are located in producing and proved undeveloped oil and gas properties across six US states. These states include:

• Texas
• Louisiana
• New Mexico
• Florida
• Mississippi
• Oklahoma

The revenue stream is structured with approximately 2/3 oil and 1/3 gas in terms of revenues.

Proved Reserves: The underlying oil and gas reserves, which are subject to natural decline.

Independent petroleum engineering consultants estimate the Trust's reserves as of January 1st each year. The estimate as of January 1, 2024, showed remaining reserves of 7.9 million barrels of oil and 46.4 billion cubic feet of gas. The trust has no authorized estimate for its life of reserves. The estimated life span based on the January 1, 2024, reserve estimate was projected to be 8 to 10 years at that time.

The most recent reported production volumes contributing to a distribution (December 2025 distribution, reflecting September 2025 oil and August 2025 gas production) were:

Cash Reserves: Working capital held by the Trustee for expenses and future distributions.

The Trustee holds cash reserves, which are the excess of preceding month's royalty income received over expenses incurred, for administrative costs and subsequent distribution to Unit holders. Royalty income received is invested in short-term investments until distribution. General and administrative expenses for the first quarter of fiscal 2025 (three months ended March 31, 2025) totaled $1,355,043. Interest income earned on temporary cash investments during that same quarter was $106,960. The trust generally consumes about 5% to 8% of royalty income in administrative expenses.

Key financial metrics related to cash flow and market value as of recent reports include:

Sabine Royalty Trust (SBR) - Canvas Business Model: Value Propositions

Passive Income: Provides unitholders with direct, non-operating exposure to energy production cash flow.

Sabine Royalty Trust (SBR) is an express trust that receives royalty and mineral interests in oil and gas properties located in Florida, Louisiana, Mississippi, New Mexico, Oklahoma, and Texas. The trust has no operations, acting only as a pass-through vehicle for royalties. Sabine Royalty Trust had royalty income of $82.6 million in 2024. The trust's assets are static, meaning no further properties can be added. The trust's asset composition is roughly 2/3 oil and 1/3 gas in terms of revenues.

• The trust consists of landowner's royalties, overriding royalty interests, and production payments.
• It is merely a pass-through vehicle for royalties.
• The trust's assets are concentrated in producing and proved undeveloped oil and gas properties.

High Distribution Yield: Historically offers a high yield, which was 7.8% as of May 2025.

The annualized distribution yield based on distributions in the first five months of 2025 was 7.8%. The Forward Dividend Yield was reported as 5.48%. The current dividend yield was listed as 7.6399397850% as of August 5, 2025, and another source listed the Dividend Yield Today as 6.7%. The Year-to-Date (YTD) Total distribution for 2025, as of the December declaration, was $4.967620 per unit. The December 5, 2025 declaration was for a distribution of $0.1967 per share, payable on December 29, 2025.

The following table details recent per-unit distributions for Sabine Royalty Trust (SBR) in 2025:

Operational Simplicity: Zero operational risk or capital expenditure (CapEx) for the trust itself.

The trust has no operations, meaning unitholders bear no direct operational risk. Its minimal operating expenses were reported at $0.3 million annually. The trust's structure is that of a pass-through vehicle for royalties, which inherently limits its need for capital expenditure.

Tax Advantages: Potential for tax-advantaged distributions via depletion allowances.

For some investors, there may be tax advantages resulting from passed-through depletion allowances. The trust's structure is designed to pass through royalty income, which is subject to these allowances.

• The trust was established in 1982.
• The current trustee is Argent Trust Company.
• The trust's P/Book Value was reported as 152.2.

Sabine Royalty Trust (SBR) - Canvas Business Model: Customer Relationships

You're managing a royalty trust, so you know the relationship with unitholders is fundamentally transactional: they provide capital exposure to mineral rights, and you provide direct, regular cash returns. The core of the Sabine Royalty Trust (SBR) customer relationship hinges on the reliability and transparency of these payments.

Automated Distributions: Monthly, transactional cash distributions to unitholders

The primary interaction is the monthly cash distribution, which is the excess of royalty income received over expenses incurred from the preceding month. For the December 2025 distribution, the amount declared was $0.196670 per unit, payable on December 29, 2025, to holders of record on December 15, 2025. This is a pure pass-through mechanism; the trust corpus is not used for these payments, which is why the Payout Ratio for the latest period was reported at 97.10%. The Year-to-Date (YTD) total distribution for 2025, as of the December declaration, reached $4.967620 per unit.

Here's a look at the mechanics of that latest transactional event:

• Payout Frequency: Monthly.
• December 2025 Distribution Amount: $0.196670 per unit.
• Record Date: December 15, 2025.
• Payable Date: December 29, 2025.

Informational Transparency: Providing detailed monthly distribution announcements and SEC filings

To maintain trust, Sabine Royalty Trust provides detailed operational context alongside the payment notice. This is achieved through routine filings and public announcements. The December 5, 2025 announcement, for instance, was furnished to the SEC via a Form 8-K, with the press release attached as Exhibit 99.1. This level of detail helps unitholders understand the drivers behind the payment amount, which reflects primarily the oil production for September 2025 and gas production for August 2025.

The data points provided to contextualize the distribution are quite granular, giving you a clear view of the underlying asset performance:

For broader context, the distributable income for the three months ended September 30, 2025, was $24,752,168, or $1.70 per unit, based on 14,579,345 units outstanding. All historical data, including the 2024 Annual Report with Form 10-K, is made available on the trust website at http://www.sbr-sabine.com/.

Trustee Contact: Direct contact via phone and email for administrative and tax inquiries

While the process is highly automated, direct support is available through the Trustee, Argent Trust Company, for administrative and tax-related questions. This is a necessary touchpoint, especially when dealing with K-1 tax reporting. You can reach them at their principal executive offices located at 3838 Oak Lawn Ave. Suite 1720. Dallas, Texas. 75219-4518. The general Registrant's Telephone Number is listed as 855 588-7839. Honestly, the availability of free printed reports, which can be requested, shows a commitment to accessibility beyond digital channels.

The key contact points for administrative support are:

• Trustee: Argent Trust Company.
• Physical Address: 3838 Oak Lawn Ave. Suite 1720, Dallas, Texas, 75219-4518.
• Telephone: 855 588-7839.
• Printed Reports: Mailed free of charge upon request.

Finance: draft the Q4 2025 cash flow projection by next Wednesday.

Sabine Royalty Trust (SBR) - Canvas Business Model: Channels

You're looking at how Sabine Royalty Trust (SBR) gets its information and trading access out to unitholders as of late 2025. It's a straightforward setup for a trust like this, relying on established financial infrastructure and a dedicated website.

New York Stock Exchange (NYSE): Primary market for trading the units of beneficial interest (SBR).

The units of beneficial interest for Sabine Royalty Trust trade just like common stock on the New York Stock Exchange (NYSE). You cannot buy or sell units directly from Sabine Royalty Trust; that transaction must occur through your broker. As of a recent close reported on December 5, 2025, the stock price was $78.93. The market capitalization stood at $1,150,720,470.

Transfer Agent/Brokerage Accounts: Mechanism for unit ownership and receiving distributions.

Ownership records and the actual receipt of monthly cash distributions flow through brokerage accounts. If you need to update your address information, you must contact your broker or the transfer agent, as Sabine Royalty Trust does not maintain unitholder records directly. Argent Trust Company acts as the Trustee for Sabine Royalty Trust.

• Trustee Contact Phone: 855-588-7839
• Unit Ownership Updates: Broker or Transfer Agent
• Distribution Reporting Form: 1099-Misc

The distributions themselves are the core output of this channel. For instance, the November 2025 distribution was $0.356720 per unit, payable on November 28, 2025. The subsequent December 2025 distribution was declared at $0.196670 per unit, payable on December 29, 2025.

Trust Website: Central hub for financial reports, tax information, and news releases.

The official website, http://www.sbr-sabine.com/, serves as the digital repository for key documents. This is where you find the official announcements and regulatory filings that underpin the monthly payout decisions.

• Website URL: http://www.sbr-sabine.com/
• SEC Filings: Available as soon as practicable after electronic filing
• Tax Information: Booklets mailed generally by March 1st
• Latest Distribution Data: November 2025 distribution announced November 7, 2025

Financial performance data is also channeled here. For example, royalty income for the quarter ended June 30, 2025, showed a decrease of approximately $4,024,000, which is an 18% drop compared to the second quarter of 2024. The forward annual dividend is listed at $5.37 per share, with a corresponding yield of 7.47% and a payout ratio of 97.10%.

Sabine Royalty Trust (SBR) - Canvas Business Model: Customer Segments

You're looking at the core group that keeps the Sabine Royalty Trust (SBR) units trading, and it's all about the cash flow they expect. These are not people looking for capital appreciation from drilling success; they are looking for the royalty check every month.

Income-Focused Investors: Individuals and institutions seeking high, regular cash distributions.

• The primary draw is the Monthly payout frequency.
• The Forward Annual Dividend is pegged at $5.37 per unit.
• This translates to a Forward Dividend Yield of 7.47%.
• The December 2025 declared cash distribution was $0.196670 per unit.
• The previous distribution amount was 35.67c.
• The Payout Ratio stands at a high 97.10%, showing nearly all distributable income is passed through.
• The 1-Year Dividend Growth rate shows a decline of -15.99% as of late 2025.

The cash flow underpinning these distributions for the December 2025 payment reflected preliminary September 2025 oil production of approximately 28,904 barrels at about $64.19 per barrel, and August 2025 gas production of approximately 796,698 Mcf at about $2.61 per Mcf. The Trust holds $8.22M in Total Cash as of the last reported quarter.

Energy Sector Exposure Seekers: Investors wanting commodity price exposure without drilling risk.

This segment buys into the underlying asset base-oil and gas properties across Florida, Louisiana, Mississippi, New Mexico, Oklahoma, and Texas-without taking on the operational risk of exploration or production. They are purely passive recipients of the royalty income generated from those properties. Their exposure is directly tied to the realized prices of oil and gas, as seen in the preliminary prices used for the December 2025 distribution.

Retail and Institutional Unitholders: Diverse ownership base, with institutions holding about 14.68% of the float.

The ownership structure shows a mix of individual and professional money managers. The total float for Sabine Royalty Trust (SBR) is approximately 14.58M units. Here's a quick look at the ownership composition based on recent filings:

The institutional base is comprised of 153 entities filing 13D/G or 13F forms, holding a combined total of 2,305,592 shares as of late 2025. The Market Value of the institutional holdings was reported around $177.22M in one filing. The Trust's Market Cap is listed at 1.15B.

Sabine Royalty Trust (SBR) - Canvas Business Model: Cost Structure

The Cost Structure for Sabine Royalty Trust (SBR) is inherently lean because it is a non-operating entity, meaning its primary costs relate to administration and statutory obligations rather than direct operational expenses like drilling or extraction.

Minimal General and Administrative (G&A) Expenses: Low overhead is a defining characteristic due to the pass-through nature of the Trust. For the three months ended in September 2025, Selling, General, & Admin. expense was reported as $0.93 Mil. The trailing twelve months (TTM) ending September 2025 showed total Selling, General, & Admin. expense of $4.17 Mil. The Trust has no operations; it merely passes through royalties.

Trustee and Administrative Fees are paid to Argent Trust Company for managing the Trust. These costs are a fixed and variable component of the overall administrative burden. For the calendar year 2025, the estimated breakdown of these administrative costs includes:

• Argent's Administration Expenses estimated at $1,855,000.
• A bonus fee to Argent of $92,200.
• Total fees payable to Argent estimated around $2,650,000 for 2025.

Ad Valorem Taxes represent property taxes levied on the underlying mineral interests, which are a significant, variable cost deducted before distributions. The deduction for the December 2025 distribution was $457,000 for 2025 Ad Valorem taxes. This compares to a deduction of $1,624,000 in December 2024, showing a substantial year-over-year reduction in that specific month's tax outlay.

Legal and Accounting Fees are necessary expenditures to maintain compliance and provide financial oversight for the unit holders. Specific components of the 2025 estimated administrative costs include:

Other administrative costs factored into the 2025 estimates include unitholder and printing services of approximately $81,300, and miscellaneous expenses of approximately $9,300.

Finance: review the November 2025 Ad Valorem tax deduction against the December 2025 figure by Monday.

Sabine Royalty Trust (SBR) - Canvas Business Model: Revenue Streams

The revenue streams for Sabine Royalty Trust (SBR) are straightforward, stemming entirely from its mineral and royalty interests in oil and gas properties. You see this reflected in the trust's extremely high gross margins, which approach 100.00%.

Oil Royalty Income

• The largest component, historically around 67% of total revenue.
• For context on the underlying revenue drivers, the December 2025 distribution reflected September 2025 oil production of approximately 28,904 barrels at a preliminary price of \$64.19 per barrel.

Gas Royalty Income

• This makes up the remaining portion, historically around 33% of total revenue.
• The December 2025 distribution reflected August 2025 gas production of approximately 796,698 Mcf at a preliminary price of \$2.61 per Mcf.

Interest Income

This is minimal income earned on cash reserves held prior to the monthly distribution cycle. For the first quarter of 2025, the interest income earned for the three months ended March 31, 2025, was \$106,960.

Total LTM Revenue

The Trailing Twelve Months (LTM) revenue as of September 30, 2025, was reported at \$83.43 million. This LTM revenue resulted in a Net Income of \$79.26 million over the same period.

Here's a quick look at the key revenue-related financial figures we have:

You should note that the Trust's distributable income calculation for any given month is royalty income plus interest income, less expenses, and adjusted for cash reserve changes. For instance, the Q1 2025 distributable income was \$18,146,483.