SABINE ROYALTY TRUST ANNOUNCES MONTHLY CASH DISTRIBUTION FOR AUGUST 2024

Rhea-AI Summary

Sabine Royalty Trust (NYSE: SBR) has declared a cash distribution of $0.450890 per unit for August 2024, payable on August 29 to unitholders of record on August 15. This distribution primarily reflects oil production for May 2024 and gas production for April 2024. Preliminary production volumes are approximately 76,461 barrels of oil and 1,346,957 Mcf of gas, with average prices of $77.48 per barrel of oil and $1.20 per Mcf of gas.

The distribution is higher than the previous month's, mainly due to increased oil production, partially offset by decreased prices for both oil and natural gas and reduced natural gas production. Approximately $212,000 of revenue received after July's end will be posted in August, and about $264,000 in revenue has been received since July's close.

Positive

• Increased cash distribution to $0.450890 per unit
• Higher oil production (76,461 barrels) compared to the previous month (55,484 barrels)
• Additional $264,000 in revenue received since July's close

Negative

• Decreased oil price from $82.07 to $77.48 per barrel
• Reduced natural gas production from 1,414,577 Mcf to 1,346,957 Mcf
• Decreased natural gas price from $1.29 to $1.20 per Mcf

Insights

Financial Analyst

The $0.450890 per unit distribution for August 2024 represents a significant increase from the previous month, primarily driven by higher oil production. This positive trend in cash flow is noteworthy for investors, as it directly impacts the trust's income potential.

Key points to consider:

• Oil production increased by 37.8% month-over-month, from 55,484 to 76,461 barrels.
• Gas production decreased by 4.8%, from 1,414,577 to 1,346,957 Mcf.
• Oil prices dropped by 5.6% to $77.48 per barrel, while gas prices fell by 7% to $1.20 per Mcf.

The substantial increase in oil production outweighed the price declines, resulting in a net positive impact on the distribution. Investors should monitor these production and price trends closely, as they directly affect the trust's performance and distributions.

Energy Market Analyst

The fluctuations in Sabine Royalty Trust's production and pricing reflect broader energy market dynamics. The significant increase in oil production (37.8%) is particularly noteworthy, as it bucked the trend of declining prices. This suggests potential improvements in extraction efficiency or new well productivity in the trust's assets.

However, the decrease in natural gas production and prices aligns with current market challenges in the gas sector. The $1.20 per Mcf price is notably low, indicating potential oversupply issues or seasonal demand fluctuations.

Investors should consider how these trends might evolve, especially given the trust's fixed asset base. The ability to increase oil production in a declining price environment is a positive sign, but the sustainability of this trend will be important for future distributions.

DALLAS, Aug. 5, 2024 /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 $0.450890 per unit, payable on August 29, 2024, to unit holders of record on August 15, 2024. 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, which has recently been updated with a new look, 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 May 2024 and the gas production for April 2024, which is considered current production. Preliminary production volumes are approximately 76,461 barrels of oil and 1,346,957 Mcf of gas. Preliminary prices are approximately $77.48 per barrel of oil and $1.20 per Mcf of gas.

This month's distribution is greater than the previous month's primarily due to an increase in oil production, partially offset by a decrease in the price of both oil and natural gas and a decrease in natural gas production.

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		76,461			1,346,957			$77.48		$1.20
Prior Month		55,484			1,414,577			$82.07		$1.29

(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 July, approximately $212,000 of revenue received will be posted in the following month of August, in addition to normal cash receipts received during August. Since the close of business in July and prior to this press release, approximately $264,000 in revenue has been received.

The 2023 Annual Report with Form 10-K and the January 1, 2024 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-august-2024-302213502.html

SOURCE Sabine Royalty Trust

FAQ

What is the cash distribution amount for Sabine Royalty Trust (SBR) in August 2024?

Sabine Royalty Trust (SBR) declared a cash distribution of $0.450890 per unit for August 2024.

When is the payment date for Sabine Royalty Trust's (SBR) August 2024 distribution?

The payment date for Sabine Royalty Trust's (SBR) August 2024 distribution is August 29, 2024.

What are the preliminary production volumes for Sabine Royalty Trust (SBR) in the current month?

The preliminary production volumes for Sabine Royalty Trust (SBR) are approximately 76,461 barrels of oil and 1,346,957 Mcf of gas.

How does Sabine Royalty Trust's (SBR) August 2024 distribution compare to the previous month?

Sabine Royalty Trust's (SBR) August 2024 distribution is greater than the previous month's, primarily due to an increase in oil production, partially offset by decreases in oil and gas prices and gas production.