SABINE ROYALTY TRUST ANNOUNCES MONTHLY CASH DISTRIBUTION FOR FEBRUARY 2023

Rhea-AI Summary

On February 3, 2023, Sabine Royalty Trust (NYSE: SBR) announced a cash distribution of $0.637300 per unit, payable on February 28, 2023. This distribution primarily reflects oil production from November 2022 and gas production from October 2022, with preliminary volumes of 49,802 barrels of oil and 1,121,523 Mcf of gas. The distribution is slightly higher than the previous month, attributed to increased production despite lower oil and gas prices, averaging $84.75 per barrel and $5.53 per Mcf. Tax deductions for 2022 Ad Valorem taxes increased to $193,000 from $60,000 last year.

Positive

• The cash distribution of $0.637300 per unit indicates a consistent payout to unitholders.
• Production volumes increased, with approximately 49,802 barrels of oil and 1,121,523 Mcf of gas produced.

Negative

• Average prices for oil and gas decreased, averaging $84.75 per barrel and $5.53 per Mcf, respectively.
• Ad Valorem taxes deducted from the distribution rose significantly to $193,000 compared to $60,000 last year.

DALLAS, Feb. 3, 2023 /PRNewswire/ -- Argent Trust Company, as Trustee of the Sabine Royalty Trust (NYSE: SBR), today declared a cash distribution to the holders of its units of beneficial interest of $0.637300 per unit, payable on February 28, 2023, to unit holders of record on February 15, 2023. Sabine's cash distribution history, current and prior year financial reports and tax information booklets, a link to filings made with the Securities and Exchange Commission and more can be found on its website at http://www.sbr-sabine.com/.  Additionally, printed reports can be requested and are mailed free of charge.

This distribution reflects primarily the oil production for November 2022 and the gas production for October 2022. Preliminary production volumes are approximately 49,802 barrels of oil and 1,121,523 Mcf of gas. Preliminary prices are approximately $84.75 per barrel of oil and $5.53 per Mcf of gas.

This month's distribution is slightly higher than the previous month's primarily due to increased production due to the timing of receipts through the end of the month as compared to the previous month's timing of receipts, offset by a decrease in both oil and gas pricing.

The production from all the new horizontal gas wells in Panola County, Texas, has contributed approximately $1,804,534 reflecting September production including the recent new wells. All volumes and pricing are included in the tables below.

Additionally, for the other three horizontal wells, also in Panola County, the receipts for two months approximately $704,000 posted for this month's distribution.

As more regular monthly receipts are made in the months to come, additional information will be made available.

The table below compares this month's production and prices to the previous month's:

		Net to Trust Sales
		Volumes						Average Price
		Oil (bbls)			Gas (Mcf)			Oil (per bbl)		Gas (per Mcf)
Current Month		49,802			1,121,523			$84.75		$5.53
Prior Month		39,824			903,315			$88.18		$8.09

Revenues are only distributed after they are received, verified, and posted. Most energy companies normally issue payment of royalties on or about the 25^th of every month, and depending on mail delivery, a varying amount of royalties are not received until after the revenue posting on the last business day of the month. The revenues received after that date will be posted within 30 days of receipt.

Due to the timing of the end of the month of January, approximately $3,462,878 of revenue received will be posted in the following month of February in addition to normal receipts during February. Since the close of business in January and prior to this press release, $560,000 in revenue has been received.

Approximately $193,000 for 2022 Ad Valorem taxes was deducted from this month's distribution as compared to $60,000 this time last year. These payments are normal expenditures at this time of year.

The 2022 tax information packets are expected to begin mailing directly to unitholders in early March 2023. A copy of Sabine's 2022 tax information booklet will be posted on Sabine's website by March 1, 2023. In addition to the tax booklet the Sabine website will also offer two simple calculators for computing the income and expense amounts and the cost depletion. The calculators are currently expected to be updated with the 2022 tax information by February 28, 2023.

The 2021 Annual Report with Form 10-K and the January 1, 2022 Reserve Summary are available on the Sabine website at http://www.sbr-sabine.com/. 

View original content:https://www.prnewswire.com/news-releases/sabine-royalty-trust-announces-monthly-cash-distribution-for-february-2023-301738133.html

SOURCE Sabine Royalty Trust

FAQ

What is the cash distribution amount for Sabine Royalty Trust for February 2023?

The cash distribution for February 2023 is $0.637300 per unit.

When will the Sabine Royalty Trust distribution be paid?

The distribution will be payable on February 28, 2023.

What were the production volumes for Sabine Royalty Trust in November 2022?

The production volumes were approximately 49,802 barrels of oil and 1,121,523 Mcf of gas.

How did the oil and gas prices change for Sabine Royalty Trust in February 2023?

Oil averaged $84.75 per barrel and gas averaged $5.53 per Mcf, both showing a decrease from previous prices.

What is the increase in Ad Valorem taxes for Sabine Royalty Trust this year?

The Ad Valorem taxes deducted from this month's distribution increased to $193,000 from $60,000 last year.