SABINE ROYALTY TRUST ANNOUNCES MONTHLY CASH DISTRIBUTION FOR FEBRUARY 2025

Rhea-AI Summary

Sabine Royalty Trust (NYSE: SBR) has announced its February 2025 cash distribution of $0.439510 per unit, payable on February 28, 2025, to unitholders of record on February 18, 2025. The distribution reflects oil production for November 2024 and gas production for October 2024.

Preliminary production volumes were 68,827 barrels of oil and 1,444,799 Mcf of gas, with average prices of $69.88 per barrel of oil and $1.99 per Mcf of gas. This month's distribution decreased compared to the previous month due to lower production volumes, partially offset by higher oil and gas prices. The previous month saw 76,247 barrels of oil and 1,617,815 Mcf of gas production.

Approximately $265,000 of revenue will be posted in February, and $307,000 in revenue has been received since January's close. The distribution reflects a deduction of $115,000 for 2024 Ad Valorem taxes, compared to $384,000 in the previous year.

Positive

• Increase in oil prices from $67.70 to $69.88 per barrel
• Increase in gas prices from $1.61 to $1.99 per Mcf
• Lower Ad Valorem tax deduction ($115,000 vs $384,000 last year)

Negative

• Monthly distribution decreased from previous month
• Oil production declined by 9.7% (from 76,247 to 68,827 barrels)
• Gas production decreased by 10.7% (from 1,617,815 to 1,444,799 Mcf)

Insights

Financial Analyst

The February distribution announcement reveals several key insights for investors. The $0.439510 per unit payout reflects a complex interplay of factors affecting the trust's performance. The 10% decline in oil production (68,827 vs 76,247 barrels) and 11% drop in gas production (1.44M vs 1.62M Mcf) represents a notable decrease that warrants attention.

However, the commodity price environment shows resilience, with oil prices increasing 3.2% to $69.88 per barrel and gas prices jumping 23.6% to $1.99 per Mcf. This price improvement partially mitigated the production decline's impact on distribution.

A significant positive development is the 70% reduction in Ad Valorem tax deduction ($115,000 vs $384,000 year-over-year), which helps preserve more distributable cash flow. The trust's revenue recognition timing, with $265,000 pending February posting and an additional $307,000 received post-January closing, indicates healthy ongoing cash generation despite the production challenges.

The production decline merits monitoring as it could signal natural depletion in the underlying assets, though month-to-month fluctuations are common in royalty trusts due to various operational factors. The improved pricing environment, particularly in natural gas, provides a welcome buffer against production variability.

DALLAS, Feb. 7, 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 $0.439510 per unit, payable on February 28, 2025, to unit holders of record on February 18, 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 November 2024 and the gas production for October 2024, which is considered current production. Preliminary production volumes are approximately 68,827 barrels of oil and 1,444,799 Mcf of gas. Preliminary prices are approximately $69.88 per barrel of oil and $1.99 per Mcf of gas.

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

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		68,827			1,444,799			$69.88		$1.99
Prior Month		76,247			1,617,815			$67.70		$1.61

(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 January, approximately $265,000 of revenue received will be posted in the following month of February, in addition to normal cash receipts received during February. Since the close of business in January and prior to this press release, approximately $307,000 in revenue has been received.

Approximately $115,000 for 2024 Ad Valorem taxes was deducted from this month's distribution as compared to $384,000 this time last year. Ad Valorem tax payments are normal expenditures at this time of year.

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/. 

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, 2023, 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 SBR's February 2025 distribution amount per unit?

Sabine Royalty Trust's February 2025 distribution is $0.439510 per unit, payable on February 28, 2025.

How much did SBR's oil and gas production decrease in the latest report?

Oil production decreased by 9.7% to 68,827 barrels, and gas production decreased by 10.7% to 1,444,799 Mcf compared to the previous month.

What are the current oil and gas prices for SBR's February 2025 distribution?

The average prices are $69.88 per barrel of oil and $1.99 per Mcf of gas.

How much are the Ad Valorem taxes deducted from SBR's February 2025 distribution?

The February 2025 distribution includes a deduction of $115,000 for 2024 Ad Valorem taxes, down from $384,000 in the previous year.

What is the record date for SBR's February 2025 distribution?

The record date for the February 2025 distribution is February 18, 2025.