This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
Sabine Royalty Trust is a pure-play upstream fossil fuel entity whose sole business is owning royalty interests in the gross production of oil and gas from properties across Texas, Oklahoma, New Mexico, and Louisiana. The trust does not operate wells but derives 100% of its income from the ongoing extraction and production of these fossil fuels by its lessees. Its financial performance is directly tied to the volume and price of oil and gas produced from its depleting reserves.
The trust’s structure is passive and finite, with reserves originally estimated to last 9-10 years at its founding. Its annual reports acknowledge that demand for fossil fuels could be tempered by climate policy and energy transition risks, yet the trust has no transition plan, invests in no renewable assets, and exists solely to monetize the remaining production from its fossil fuel portfolio. As a royalty trust, it provides capital to and profits from the upstream operators who perform the physical extraction.
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Companies appear on our exclusion list based on our investment judgment — not because they've done anything illegal. This is a difference of values and opinion, not an accusation of wrongdoing. Exclusion does not constitute a recommendation against investing in any company, and absence from the list does not constitute a recommendation to invest.
This information is provided for educational and transparency purposes only and should not be relied upon as investment advice. Data is drawn from independent watchdogs, NGOs, government registries, and Ethical Capital's ongoing research — see Research Sources for the full list.
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