SABINE ROYALTY TRUST ANNOUNCES MONTHLY CASH DISTRIBUTION FOR APRIL 2022 AND 2022 RESERVE QUANTITIES

Rhea-AI Summary

Simmons Bank, Trustee of the Sabine Royalty Trust (SBR), declared a cash distribution of $0.730190 per unit, payable on April 29, 2022, to holders of record by April 18, 2022. The distribution is driven by January oil production and December gas production, amounting to approximately 70,536 barrels of oil and 1,430,163 Mcf of gas. This month’s distribution increased due to new horizontal gas wells in Panola County, Texas, contributing about $1.1 million. The estimated net proved reserves are 6.0 million barrels of oil and 42.8 billion cubic feet of gas, with a future net value of $470,140,000.

Positive

• Monthly cash distribution increased to $0.730190 per unit.
• New horizontal gas wells significantly contributed $1.1 million to revenue.
• Total production volumes for oil and gas rose compared to the previous month.

Negative

• Some revenue of approximately $2,231,000 was deferred for April posting.

DALLAS, April 6, 2022 /PRNewswire/ -- Simmons Bank, as Trustee of the Sabine Royalty Trust (NYSE: SBR), today declared a cash distribution to the holders of its units of beneficial interest of $0.730190 per unit, payable on April 29, 2022, to unit holders of record on April 18, 2022. 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 2022 and the gas production for December 2021. Preliminary production volumes are approximately 70,536 barrels of oil and 1,430,163 Mcf of gas. Preliminary prices are approximately $76.67 per barrel of oil and $4.62 per Mcf of gas.

This month's distribution is higher than the previous month's due to the increased production of both oil and gas.

The production from the new horizontal gas wells in Panola County, Texas, has contributed approximately $1.1 million reflecting December production. They were averaging about 882 Mcf per day per well during December totaling over 219,000 Mcf during this time frame with an average pricing of $5.03 per Mcf.  In addition to these proceeds, an additional 8 new wells were paid upon, contributing approximately $900,000, reflecting an average of 297 Mcf per well, per day. 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		70,536			1,430,163			$76.67		$4.62
Prior Month		42,203			902,216			$71.21		$5.38

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 $2,231,000 of revenue received will be posted in the following month of April in addition to normal receipts during April. Since the close of business in March and prior to this press release, $448,000 in revenue has been received.

Sabine Royalty Trust, as it does after the end of each year, had a year-end Reserve Report prepared in accordance with the Securities and Exchange Commission's requirements. This report provides an evaluation of the estimated asset value as of December 31 of each year, which can be used to estimate the remaining life of the Trust.

The estimated net proved reserves, as of January 1, 2022, attributable to the Trust from the properties appraised are approximately 6.0 million barrels of oil and 42.8 billion cubic feet of gas with a future net value of approximately $470,140,000 with a discounted value at 10% of $207,703,000.  With these estimated quantities of this year's reserve estimate of 6.0 million barrels of oil and 42.8 billion cubic feet of gas remaining, it could be estimated that the Trust still has a life span of  8 to 10 years.  The report is an exhibit to the Trust's Annual Report on Form 10-K that was filed on March 25, 2022 and is available to all unitholders at this time on the SEC website and Sabine's website.

The 2021 Annual Report with Form 10-K and the January 1, 2022 Reserve Summary will be posted in the month of April on the Sabine website at http://www.sbr-sabine.com/. 

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SOURCE Sabine Royalty Trust

FAQ

What is the cash distribution amount for Sabine Royalty Trust (SBR) in April 2022?

The cash distribution for April 2022 is $0.730190 per unit.

When will the Sabine Royalty Trust (SBR) cash distribution be paid?

The cash distribution will be paid on April 29, 2022.

What are the estimated proved reserves for Sabine Royalty Trust (SBR)?

The estimated net proved reserves are 6.0 million barrels of oil and 42.8 billion cubic feet of gas.

How did the production volumes for Sabine Royalty Trust (SBR) change from the previous month?

Production volumes increased with 70,536 barrels of oil and 1,430,163 Mcf of gas reported.