SABINE ROYALTY TRUST ANNOUNCES MONTHLY CASH DISTRIBUTION FOR MARCH 2025

Rhea-AI Summary

Sabine Royalty Trust (NYSE: SBR) has announced its March 2025 cash distribution of $0.301230 per unit, payable on March 31, 2025, to unitholders of record on March 17, 2025.

The distribution reflects December 2024 oil production of 45,827 barrels at approximately $69.44 per barrel and November 2024 gas production of 1,044,259 Mcf at $1.86 per Mcf. This month's distribution is lower than the previous month due to decreased oil and gas production and prices.

The distribution includes a $400,000 settlement payment from TGNR East Texas II, for unpaid royalties on wells in Panola County, Texas. Additionally, approximately $1,104,000 in revenue has been received since February's close of business.

Positive

• Received $400,000 settlement payment from TGNR East Texas II
• Additional $1,104,000 in revenue received after February closing

Negative

• Lower distribution compared to previous month
• Decreased oil and gas production
• Decline in oil and gas prices

Insights

Financial Analyst

Sabine Royalty Trust's March distribution of $0.301230 per unit represents a decrease from February, driven by dual headwinds of reduced production volumes and lower commodity prices. The trust reported oil production of 45,827 barrels at $69.44 per barrel and gas production of 1,044,259 Mcf at $1.86 per Mcf.

This distribution includes a $400,000 settlement from TGNR East Texas II for unpaid royalties on wells in Panola County, Texas. Without this one-time payment, the distribution decrease would have been more pronounced, as both production volumes and commodity prices declined simultaneously.

The trust's revenue recognition methodology means only verified receipts are distributed, with $1,104,000 in revenue received after February's closing but before this announcement. This amount will be included in future distributions, providing some visibility into next month's potential figures.

For royalty trusts like SBR, distribution fluctuations directly impact unitholder returns, with no operational levers to pull when facing production declines or price weakness. The settlement recovery demonstrates the value of SBR's ongoing revenue audits as an important secondary mechanism to protect unitholder interests beyond the primary production-based revenue stream.

DALLAS, March 7, 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 $0.301230 per unit, payable on March 31, 2025, to unit holders of record on March 17, 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 December 2024 and the gas production for November 2024, which is considered current production. Preliminary production volumes are approximately 45,827 barrels of oil and 1,044,259 Mcf of gas. Preliminary prices are approximately $69.44 per barrel of oil and $1.86 per Mcf of gas.

This month's distribution is lower than the previous month's primarily due to a decrease in oil and gas production, along with a decrease in the price of oil and gas.

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		45,827			1,044,259			$69.44		$1.86
Prior Month		68,827			1,444,799			$69.88		$1.99

 

(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.

 

Receipt of Settlement Proceeds

The March distribution includes a $400,000 settlement payment received by Sabine Royalty Trust ("Sabine"), pursuant to the Settlement Agreement between Sabine and TGNR East Texas II, LLC (TGNR) dated February 18, 2025. This settlement payment relates to unpaid royalties on various TGNR operated wells in Panola County, Texas. These unpaid royalties were discovered during Sabine's ongoing revenue audit.

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 February, essentially all revenue received was posted. Since the close of business in February and prior to this press release, approximately $1,104,000 in revenue has been received.

The 2024 Annual Report on Form 10-K has been filed with the Securities and Exchange Commission, and the December 31, 2024, Reserve Summary is 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, 2024, 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 the March 2025 distribution amount for Sabine Royalty Trust (SBR)?

SBR's March 2025 distribution is $0.301230 per unit, payable on March 31, 2025, to unitholders of record on March 17, 2025.

Why did SBR's distribution decrease in March 2025?

The distribution decreased due to lower oil and gas production volumes, combined with decreased prices for both oil and gas.

What was SBR's oil and gas production for the current distribution period?

Production was 45,827 barrels of oil at $69.44/barrel and 1,044,259 Mcf of gas at $1.86/Mcf.

How much settlement payment did SBR receive from TGNR East Texas II?

SBR received a $400,000 settlement payment for unpaid royalties on TGNR-operated wells in Panola County, Texas.