Sabine Royalty Trust Announces Monthly Cash Distribution For June 2021

Rhea-AI Summary

On June 4, 2021, Simmons Bank, as Trustee of the Sabine Royalty Trust (NYSE: SBR), declared a cash distribution of $0.293880 per unit, payable on June 29, 2021. This distribution corresponds to oil production from March and gas production from February 2021, with preliminary production volumes of approximately 45,851 barrels of oil and 476,918 Mcf of gas. Current prices are around $59.10 per barrel and $4.87 per Mcf. The trust's estimated net proved reserves are approximately 6.3 million barrels of oil and 39.8 billion cubic feet of gas.

Positive

• Declared monthly cash distribution of $0.293880 per unit.
• Preliminary production volumes show increase in oil and gas output.
• Estimated net proved reserves stand at approximately $229,432,000.

Negative

• Revenue recognition affected by delays due to shelter-at-home orders.
• Approximately $918,000 of revenue will be posted in the following month of June.

DALLAS, Texas, June 4, 2021 /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 $0.293880 per unit, payable on June 29, 2021, to unit holders of record on June 15, 2021.  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 March 2021 and the gas production for February 2021.  Preliminary production volumes are approximately 45,851 barrels of oil and 476,918 Mcf of gas.  Preliminary prices are approximately $59.10 per barrel of oil and $4.87 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		45,851			476,918			$59.10		$4.87
Prior Month		43,616			863,460			$54.69		$2.48

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 May, 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 June.  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 May, approximately $918,000 of revenue received will be posted in the following month of June in addition to normal receipts during June.  Since the close of business in May and prior to this press release, there has been approximately $1,151,000 in revenue received.

Sabine Royalty Trust, as it does after the end of each year, had a year-end Reserve Report prepared in accordance with the Securities and Exchange Commission's requirements.  This report provides an evaluation of the estimated asset value as of December 31 of each year, which can be used to estimate the remaining life of the Trust.

The estimated net proved reserves, as of January 1, 2021, attributable to the Trust from the properties appraised are approximately 6.3 million barrels of oil and 39.8 billion cubic feet of gas with a future net value of approximately $229,432,000 with a discounted value at 10% of $120,769,000.  With these estimated quantities of this year's reserve estimate of 6.3 million barrels of oil and 39.8 billion cubic feet of gas remaining, it could be estimated that the Trust still has a life span of 9 to 12 years.  The report is an exhibit to the Trust's Annual Report on Form 10-K that was filed on March 26, 2021 and is available to all unitholders at this time on the SEC website and Sabine's website.

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/. 

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SOURCE Sabine Royalty Trust

FAQ

What is the cash distribution amount declared by Sabine Royalty Trust for June 2021?

The cash distribution amount declared is $0.293880 per unit.

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

The cash distribution will be paid on June 29, 2021.

What are the preliminary production volumes for oil and gas for March 2021?

Preliminary production volumes are approximately 45,851 barrels of oil and 476,918 Mcf of gas.

What are the current prices for oil and gas production reported by Sabine Royalty Trust?

Current prices are approximately $59.10 per barrel of oil and $4.87 per Mcf of gas.

What are the estimated net proved reserves for Sabine Royalty Trust?

The estimated net proved reserves are approximately 6.3 million barrels of oil and 39.8 billion cubic feet of gas.