Learn Portuguese (Portugal): A banda é ótima, só que o barulho excede o limite. - The band is great, but the noise exceeds the limit.

While both mean but, só que is a conversational connector widely used in spoken Portuguese to introduce a catch or a slight complication to what was just said. It perfectly sets up a positive statement and then introduces a specific problem or limitation.

Why is the verb excede in the indicative mood? Doesn't the word que often trigger the subjunctive?

While many expressions ending in que do trigger the subjunctive, só que is an exception because it introduces a factual statement rather than a doubt, wish, or emotion. Since it is a concrete fact that the noise exceeds the limit, it strictly requires the indicative mood excede.

Could we split this into two sentences and start the second one with Só que?

Yes! In everyday spoken Portuguese, it is very common to finish your thought, pause, and then start the next sentence with Só que o barulho excede o limite. You just cannot use it to start a brand new conversation, because it always requires a previous statement to contrast against.

Is excede used for the exact same contexts as the English word exceed?

Yes, exceder is a true cognate. You can use it exactly as you would in English, both for measurable physical limits like noise, capacity, and speed, as well as abstract limits like exceeding someone's expectations.