SABINE ROYALTY TRUST ANNOUNCES MONTHLY CASH DISTRIBUTION FOR FEBRUARY 2022

Rhea-AI Summary

Simmons Bank, as Trustee for Sabine Royalty Trust (NYSE: SBR), announced a cash distribution of $0.374350 per unit, payable on February 28, 2022. This distribution is based on oil production from November 2021 and gas production from October 2021, totaling approximately 36,010 barrels of oil and 682,527 Mcf of gas. The cash distribution is significantly lower than previous months, primarily due to an extraordinary receipt of $4.1 million in December from new wells. The decline in revenue is expected to continue as the Trust navigates operational delays.

Positive

• The cash distribution of $0.374350 per unit is being made on schedule.
• Preliminary production volumes are significant: approximately 36,010 barrels of oil and 682,527 Mcf of gas.

Negative

• Current month's distribution is significantly lower due to previous extraordinary receipts and lower production volumes.
• Operational delays from January's shelter-at-home orders have affected the posting of revenues.
• Ad Valorem tax deductions increased to $60,000 compared to $45,000 last year.

DALLAS, Feb. 4, 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 $0.374350 per unit, payable on February 28, 2022, to unit holders of record on February 15, 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 November 2021 and the gas production for October 2021. Preliminary production volumes are approximately 36,010 barrels of oil and 682,527 Mcf of gas. Preliminary prices are approximately $72.32 per barrel of oil and $5.29 per Mcf of gas.

This month's distribution is significantly lower than previous month's due to the extraordinary receipt in the month of December of $4.1 million from several new producing horizontal wells in Panola County, Texas.

The production from the new gas wells has contributed approximately $1.6 million reflecting October production. They were averaging about 900 Mcf per day per well during October totaling over 221,000 Mcf during this time frame with an average pricing of $5.59 per Mcf. 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		36,010			682,527			$72.32		$5.29
Prior Month		71,882			2,249,986			$78.95		$4.09

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.

During the month of January, the respective shelter-at-home/work-from-home orders across the spectrum of the industry has significantly affected the posting of revenues for the Trust, until the following month of February. As adjustments are made accordingly, the functions of the Trust are still being performed, although on a delayed basis. We will continue to strive to make the operations of the Trust and its providers, as fluid as possible.

Due to the timing of the end of the month of January, approximately $1,888,043 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, $874,000 in revenue has been received.

Approximately $60,000 for 2021 Ad Valorem taxes was deducted from this month's distribution as compared to $45,000 this time last year. These payments are normal expenditures at this time of year.

The 2021 tax information packets are expected to begin mailing directly to unitholders in early March 2022. A copy of Sabine's 2021 tax information booklet will be posted on Sabine's website by March 1, 2022. 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 2021 tax information by February 28, 2022.

The 2020 Annual Report with Form 10-K and the January 1, 2021 Reserve Summary are now available on the Sabine website at http://www.sbr-sabine.com/. 

Contact:	Ron Hooper - SVP, Royalty Trust Services
	Simmons Bank
	Toll Free (855) 588-7839

 

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SOURCE Sabine Royalty Trust

FAQ

What is the cash distribution announced for Sabine Royalty Trust (SBR) in February 2022?

The cash distribution for February 2022 is $0.374350 per unit.

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

The cash distribution will be payable on February 28, 2022.

Why is the monthly distribution for Sabine Royalty Trust (SBR) lower this month?

The distribution is lower due to significantly reduced production volumes and a previous extraordinary receipt of $4.1 million in December.

What were the preliminary production volumes for Sabine Royalty Trust (SBR) in January?

Preliminary production volumes were approximately 36,010 barrels of oil and 682,527 Mcf of gas.

What are the tax deductions from the February 2022 distribution for Sabine Royalty Trust (SBR)?

The Ad Valorem tax deduction for February 2022 is $60,000.