Sabine Royalty Trust Announces Monthly Cash Distribution For July 2020

Rhea-AI Summary

Simmons Bank, as Trustee of the Sabine Royalty Trust (NYSE: SBR), announced a cash distribution of $0.327320 per unit, payable on July 29, 2020, to unit holders of record by July 15, 2020. This distribution is affected by June's operational delays and the ongoing impact of declining energy prices, which will be reflected in future revenues. Preliminary production for April 2020 was reported at approximately 100,689 barrels of oil and 1,287,659 Mcf of gas, with average prices of $36.69 per barrel and $1.55 per Mcf.

Positive

• Declared cash distribution of $0.327320 per unit for July 2020.
• Reported preliminary production of 100,689 barrels of oil and 1,287,659 Mcf of gas.

Negative

• Operational delays due to shelter-at-home orders affecting revenue posting.
• Future revenues negatively impacted by drastic drops in energy pricing.
• Concerns over the ability of producers/operators to make payments to the Trust.

DALLAS, July 2, 2020 /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 $0.327320 per unit, payable on July 29, 2020, to unit holders of record on July 15, 2020. 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.

During the month of June, 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 July. 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.

Also, the impact of the precipitous drop in energy pricing are not reflected in this month's revenue, however will be seen in the months to come. With the assets of the Royalty Trust being almost true royalty interest ownership of established production streams, production should continue, however the over-supply of existing industry inventories will affect the ability to transport on down the production stream. As the result of these aforementioned factors, various producers/operators/purchasers may not be able to continue as they have been and could affect payment to the Trust. We are taking steps to monitor those various entities as they have a direct relationship with the Trust. The ownership of the Trust's various royalty interests should not be diminished, as that will continue.

This distribution reflects primarily the oil production for April 2020 and the gas production for March 2020. Preliminary production volumes are approximately 100,689 barrels of oil and 1,287,659 Mcf of gas. Preliminary prices are approximately $36.69 per barrel of oil and $1.55 per Mcf of gas.

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		100,689		1,287,659		$36.69		$1.55
Prior Month		51,854		393,748		$42.82		$1.56

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 June, approximately $1,162,000 of revenue received will be posted in the following month of July in addition to normal receipts during July. Since the close of business in June and prior to this press release, there has been no revenue received.

The 2019 Annual Report with Form 10-K and the January 1, 2020 Reserve Summary is available 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 in July 2020?

The cash distribution amount for July 2020 is $0.327320 per unit.

When will the cash distribution for Sabine Royalty Trust be payable?

The cash distribution will be payable on July 29, 2020.

What are the preliminary production volumes reported for April 2020?

The preliminary production volumes for April 2020 are approximately 100,689 barrels of oil and 1,287,659 Mcf of gas.

How did COVID-19 affect Sabine Royalty Trust's operations in June 2020?

COVID-19 led to shelter-at-home orders that significantly delayed revenue posting for the Trust.

What is the impact of falling energy prices on Sabine Royalty Trust?

Falling energy prices will negatively affect future revenues of the Trust as current revenue does not reflect these drops.