SABINE ROYALTY TRUST ANNOUNCES MONTHLY CASH DISTRIBUTION FOR JANUARY 2025

Rhea-AI Summary

Sabine Royalty Trust (NYSE: SBR) has announced its January 2025 cash distribution of $0.448330 per unit, payable on January 29, 2025, to unitholders of record on January 15, 2025. The distribution reflects oil production for October 2024 and gas production for September 2024.

Preliminary production volumes reached 76,247 barrels of oil and 1,617,815 Mcf of gas, with prices at approximately $67.70 per barrel of oil and $1.61 per Mcf of gas. This month's distribution increased from the previous month due to higher oil and gas production volumes, increased natural gas pricing, and lower ad valorem taxes, partially offset by decreased oil prices.

The Trust reported that approximately $232,000 of revenue will be posted in January due to December timing, with an additional $116,000 received since December's close. Ad Valorem taxes of $259,000 were deducted from this distribution, compared to $223,000 in the previous year.

Positive

• Increased gas production from 1,536,640 to 1,617,815 Mcf
• Higher oil production from 68,183 to 76,247 barrels
• Natural gas price increased from $1.39 to $1.61 per Mcf

Negative

• Oil price decreased from $71.76 to $67.70 per barrel
• Higher Ad Valorem taxes ($259,000 vs $223,000 year-over-year)

Insights

Financial Analyst

This monthly distribution announcement reveals several key operational and financial metrics worth noting. The $0.448330 per unit distribution represents a meaningful payout to unitholders, driven by production increases in both oil (76,247 barrels, up 11.8% month-over-month) and gas (1.62 million Mcf, up 5.3%).

The pricing dynamics show interesting trends - while oil prices decreased to $67.70 per barrel from $71.76, natural gas prices improved to $1.61 per Mcf from $1.39. The reduced ad valorem tax burden ($259,000 vs $223,000 year-over-year) helps offset some pricing pressures. The $232,000 in deferred revenue recognition could provide additional support for next month's distribution.

For investors, it's important to understand that Sabine's distributions directly reflect commodity price movements and production volumes, making it a pure-play energy royalty investment. The increased production volumes suggest healthy underlying asset performance, though the volatile commodity price environment continues to impact monthly payouts.

Energy Market Analyst

The production and pricing metrics reveal important dynamics in the energy markets. The 11.8% increase in oil production coupled with the 5.3% rise in gas output indicates robust operational performance from the underlying assets. The divergent price movements - oil declining by 5.7% while natural gas rising by 15.8% - reflect the current market conditions where natural gas prices are showing relative strength.

The improved gas pricing is particularly noteworthy given the seasonal factors and broader market dynamics. The $1.61 per Mcf rate, while still historically modest, represents a meaningful improvement that helps compensate for oil price weakness. The timing of revenue recognition and tax adjustments adds another layer of complexity to the trust's monthly performance metrics, requiring careful analysis to understand the true operational trajectory.

DALLAS, Jan. 3, 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 $0.448330 per unit, payable on January 29, 2025, to unit holders of record on January 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 October 2024 and the gas production for September 2024, which is considered current production. Preliminary production volumes are approximately 76,247 barrels of oil and 1,617,815 Mcf of gas. Preliminary prices are approximately $67.70 per barrel of oil and $1.61 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, as well as an increase in the pricing of natural gas, along with a decrease in ad valorem taxes paid by the Trust, partially offset by a decrease in the price of oil.

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		76,247			1,617,815			$67.70		$1.61
Prior Month		68,183			1,536,640			$71.76		$1.39

(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 December, approximately $232,000 of revenue received will be posted in the following month of January, in addition to normal cash receipts received during January. Since the close of business in December and prior to this press release, approximately $116,000 in revenue has been received.

Approximately $259,000 for 2024 Ad Valorem taxes was deducted from this month's distribution as compared to $223,000 this time last year. The trustee has been advised that some of the tax renditions have been delayed somewhat this year, so the amount to be deducted in the February 2025 distribution may be different relative to the same time period 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 Sabine Royalty Trust's (SBR) January 2025 distribution amount?

Sabine Royalty Trust announced a cash distribution of $0.448330 per unit for January 2025, payable on January 29, 2025, to unitholders of record on January 15, 2025.

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

SBR reported preliminary production volumes of 76,247 barrels of oil and 1,617,815 Mcf of gas.

What were the oil and gas prices for SBR's latest distribution?

The preliminary prices were approximately $67.70 per barrel of oil and $1.61 per Mcf of gas.

How did SBR's January 2025 production volumes compare to the previous month?

Oil production increased from 68,183 to 76,247 barrels, and gas production increased from 1,536,640 to 1,617,815 Mcf compared to the previous month.

What factors influenced SBR's January 2025 distribution?

The distribution was higher due to increased oil and gas production, higher natural gas pricing, and lower ad valorem taxes, partially offset by decreased oil prices.