Sabine Royalty Trust Announces Monthly Cash Distribution for March 2021

Rhea-AI Summary

Simmons Bank, Trustee of the Sabine Royalty Trust (SBR), has announced a monthly cash distribution of $0.210990 per unit, payable on March 29, 2021. Unit holders of record as of March 15 will receive this payment. The distribution is primarily based on oil and gas production volumes from December 2020 and November 2020, totaling approximately 51,259 barrels of oil and 719,512 Mcf of gas at prices of $41.30 per barrel and $2.44 per Mcf respectively. The Trust's revenues have been impacted by energy pricing and operational delays due to shelter-in-place orders.

Positive

• Distribution of $0.210990 per unit for March 2021.
• Production volumes of 51,259 barrels of oil and 719,512 Mcf of gas indicate stable output.

Negative

• Revenue impacted by the decline in energy prices and operational delays.
• Potential inability of producers to continue operations affecting Trust payments.

DALLAS, March 5, 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 $0.210990 per unit, payable on March 29, 2021, to unit holders of record on March 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.

During the month of February, 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 March. 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.

The impact of the precipitous drop in energy pricing are not reflected in this month's revenue, however it has been seen in the previous months. 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 December 2020 and the gas production for November 2020. Preliminary production volumes are approximately 51,259 barrels of oil and 719,512 Mcf of gas. Preliminary prices are approximately $41.30 per barrel of oil and $2.44 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		51,259			719,512			$41.30		$2.44
Prior Month		46,433			657,693			$38.90		$1.80

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, approximately $184,000 of revenue received will be posted in the following month of March in addition to normal receipts during March. Since the close of business in February and prior to this press release, there has been approximately $1,469,000 in revenue received.

The 2020 tax information packets were mailed directly to unitholders as of March 4. A copy of Sabine's 2020 tax information booklet is available on Sabine's website. In addition to the tax booklet the Sabine website also has available two simple calculators for computing the income and expense amounts and the cost depletion. 

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/. 

View original content:http://www.prnewswire.com/news-releases/sabine-royalty-trust-announces-monthly-cash-distribution-for-march-2021-301241250.html

SOURCE Sabine Royalty Trust

FAQ

What is the cash distribution amount for Sabine Royalty Trust in March 2021?

The cash distribution amount for Sabine Royalty Trust in March 2021 is $0.210990 per unit.

When will the distribution for Sabine Royalty Trust be paid?

The distribution for Sabine Royalty Trust will be paid on March 29, 2021.

What are the oil and gas production volumes for Sabine Royalty Trust in December 2020?

In December 2020, Sabine Royalty Trust produced approximately 51,259 barrels of oil and 719,512 Mcf of gas.

How have energy prices affected Sabine Royalty Trust's revenues?

Energy prices have significantly impacted Sabine Royalty Trust's revenues, leading to delays and potential issues with payments.

What is the average price per barrel of oil for Sabine Royalty Trust in the latest report?

The average price per barrel of oil for Sabine Royalty Trust is $41.30.