SABINE ROYALTY TRUST ANNOUNCES MONTHLY CASH DISTRIBUTION FOR APRIL 2025

Rhea-AI Summary

Sabine Royalty Trust (NYSE: SBR) has announced its April 2025 cash distribution of $0.503880 per unit, payable on April 29, 2025, to unitholders of record on April 15, 2025. The distribution reflects oil production for January 2025 and gas production for December 2024.

Preliminary production volumes reached 102,540 barrels of oil and 1,410,501 Mcf of gas. Average prices were $44.22 per barrel of oil and $2.62 per Mcf of gas. The distribution increased from the previous month due to higher oil and gas production volumes and improved natural gas prices, despite lower oil prices. The current month's oil price was notably below market averages due to prior period adjustments, though the actual production month averaged $71.56 per barrel.

Approximately $119,000 of revenue will be posted in April, with an additional $180,000 received since March's close.

Positive

• Significant increase in production volumes: Oil up 123% and gas up 35% from prior month
• Natural gas price improved to $2.62/Mcf from $1.86/Mcf
• Additional revenue of $299,000 to be posted in April

Negative

• Oil price decreased significantly to $44.22/bbl from $69.44/bbl
• Current oil price significantly below market average due to prior period adjustments

Insights

Financial Analyst

Sabine Royalty Trust's April distribution of $0.503880 per unit represents a notable improvement, driven by substantial production increases across both commodities. Oil production jumped 124% (102,540 barrels vs. previous 45,827), while gas production increased 35% (1,410,501 Mcf vs. previous 1,044,259). This robust production growth more than offset the impact of lower realized oil prices.

The artificially depressed $44.22 oil price requires context - it reflects prior period adjustments rather than current market conditions, with the trust noting current production month oil averaged $71.56 per barrel. Meanwhile, natural gas prices improved 41% to $2.62 per Mcf from $1.86.

Royalty trusts like SBR are valued primarily for their distribution yield. With each distribution representing direct cash flow to unitholders, this month's increased payout enhances the trust's current yield profile. The $119,000 in delayed revenue and additional $180,000 received since March's close also suggests potential stability for next month's distribution.

For investors, the substantial production volume growth is particularly significant as it indicates positive developments on properties where SBR holds royalty interests. While commodity price fluctuations remain outside the trust's control, the impressive production increases suggest operators of the underlying properties are successfully optimizing output, which directly benefits SBR unitholders.

DALLAS, April 4, 2025 /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 $0.503880 per unit, payable on April 29, 2025, to unit holders of record on April 15, 2025. 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 January 2025 and the gas production for December 2024, which is considered current production. Preliminary production volumes are approximately 102,540 barrels of oil and 1,410,501 Mcf of gas. Preliminary prices are approximately $44.22 per barrel of oil and $2.62 per Mcf of gas.

This month's distribution is higher than the previous month's primarily due to an increase in oil and gas production, along with an increase in the price of natural gas, partially offset by a decrease in the price of oil. This month's realized oil price of $44.22 per barrel is significantly lower than national averages due to multiple prior period adjustments from various remitters. However, the price of oil for the current production month averaged $71.56 per barrel.

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

		Net to Trust Sales
		Volumes (a)						Average Price (a)
		Oil (bbls)			Gas (Mcf)			Oil (per bbl)		Gas (per Mcf)
Current Month		102,540			1,410,501			$44.22		$2.62
Prior Month		45,827			1,044,259			$69.44		$1.86

(a) Sales volumes are recorded in the month the Trust receives and identifies the related royalty income. Because of this, sales volumes and pricing may fluctuate from month to month based on the timing of cash receipts.

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 March, approximately $119,000 of revenue received will be posted in the following month of April in addition to normal cash receipts received during April. Since the close of business in March and prior to this press release, approximately $180,000 in revenue has been received.

The 2024 Annual Report on Form 10-K has been filed with the Securities and Exchange Commission, and the December 31, 2024, Reserve Summary is available on the Sabine website at http://www.sbr-sabine.com/.

Forward-looking Statements

Any statements in this press release about future events or conditions, and other statements containing the words "estimates," "believes," "anticipates," "plans," "expects," "will," "may," "intends" and similar expressions, other than historical facts, constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Factors or risks that could cause the Trust's actual results to differ materially from the results the Trustee anticipates include, but are not limited to the factors described in Part I, Item 1A, "Risk Factors" of the Trust's Annual Report on Form 10-K for the year ended December 31, 2024, and Part II, Item 1A, "Risk Factors" of subsequently filed Quarterly Reports on Form 10-Q.

Actual results may differ materially from those indicated by such forward-looking statements. In addition, the forward-looking statements included in this press release represent the Trustee's views as of the date hereof. The Trustee anticipates that subsequent events and developments may cause its views to change. However, while the Trustee may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Trustee's views as of any date subsequent to the date hereof.

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SOURCE Sabine Royalty Trust

FAQ

What is the April 2025 distribution amount for Sabine Royalty Trust (SBR)?

Sabine Royalty Trust (SBR) declared a distribution of $0.503880 per unit, payable on April 29, 2025.

How much oil and gas did SBR produce in the latest reporting period?

SBR reported preliminary production of 102,540 barrels of oil and 1,410,501 Mcf of gas.

Why is SBR's April 2025 distribution higher than the previous month?

The distribution increased due to higher oil and gas production volumes and improved natural gas prices, despite lower oil prices.

What are the current commodity prices for SBR's production?

Current prices are $44.22 per barrel of oil (affected by prior period adjustments) and $2.62 per Mcf of gas.

When will SBR unitholders receive their April 2025 distribution?

The distribution will be paid on April 29, 2025, to unitholders of record as of April 15, 2025.