Sabine Royalty Trust Announces Monthly Cash Distribution For September 2020

Rhea-AI Summary

Sabine Royalty Trust (SBR) has declared a cash distribution of $0.203290 per unit, payable on September 29, 2020, to unit holders of record by September 15, 2020. The distribution reflects oil and gas production from June and May 2020, respectively, with preliminary volumes of 74,927 barrels of oil and 645,426 Mcf of gas. The average prices were $36.42 per barrel and $1.54 per Mcf. The Trust faces revenue impacts from ongoing energy price declines and operational delays due to industry disruptions.

Positive

• Declared cash distribution of $0.203290 per unit.
• Preliminary production: 74,927 barrels of oil and 645,426 Mcf of gas.
• Average prices improved compared to prior month.

Negative

• Revenue expected to decline due to falling energy prices.
• Operational delays affecting revenue posting.
• Potential ability of producers/operators to continue payments may be compromised.

DALLAS, Sept. 3, 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 $0.203290 per unit, payable on September 29, 2020, to unit holders of record on September 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 August, 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 September.  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 June 2020 and the gas production for May 2020.  Preliminary production volumes are approximately 74,927 barrels of oil and 645,426 Mcf of gas.  Preliminary prices are approximately $36.42 per barrel of oil and $1.54 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		74,927			645,426			$36.42		$1.54
Prior Month		58,895			587,427			$23.83		$1.37

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 August, approximately $991,000 of revenue received will be posted in the following month of September in addition to normal receipts during September.  Since the close of business in August and prior to this press release, there has been approximately $423,000 in 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 declared by Sabine Royalty Trust (SBR) for September 2020?

The cash distribution amount is $0.203290 per unit.

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

The cash distribution will be paid on September 29, 2020.

What are the preliminary production volumes for Sabine Royalty Trust (SBR) in August 2020?

The preliminary production volumes are 74,927 barrels of oil and 645,426 Mcf of gas.

How does the average price of oil and gas for Sabine Royalty Trust (SBR) compare to the previous month?

The average price of oil is $36.42 per barrel and gas is $1.54 per Mcf, which shows an increase from the prior month.

What impacts are expected on Sabine Royalty Trust's (SBR) revenue due to the energy market?

Revenue is expected to decline due to falling energy prices and operational delays.