SABINE ROYALTY TRUST ANNOUNCES MONTHLY CASH DISTRIBUTION FOR MARCH 2024

Rhea-AI Summary

Argent Trust Company, as Trustee of Sabine Royalty Trust (NYSE: SBR), announced a cash distribution of $0.411450 per unit, reflecting oil and gas production for December 2023 and November 2023. The distribution, payable on March 28, 2024, to unit holders of record on March 15, 2024, is lower than the previous month due to decreased oil production but offset by higher oil and gas prices.

Insights

Financial Analyst

The recent announcement by Argent Trust Company regarding the Sabine Royalty Trust's cash distribution reflects a nuanced change in the Trust's financial activity. The distribution of $0.411450 per unit, while a direct return to investors, is notably less than the previous month, indicating a decrease in oil production despite an increase in commodity prices. This decrease could signal operational challenges or natural production declines, which are critical for investors to monitor as they can affect future distributions.

Furthermore, the preliminary production volumes and prices provide an indication of the Trust's operational performance. The average price increases for oil and gas may cushion the impact of reduced production volumes on revenues. However, investors should consider the volatility in commodity prices and the potential for price swings to significantly affect future revenues and distributions. The fact that revenues are only distributed after being received and verified adds a layer of complexity to the Trust's cash flow timing, which must be factored into any financial analysis.

Market Research Analyst

From a market perspective, the detailed breakdown of production and pricing for the Sabine Royalty Trust offers insights into broader industry trends. The increase in oil and gas prices mirrors a global pattern of fluctuating energy prices, which can be attributed to geopolitical tensions, changes in global demand and other macroeconomic factors. Investors should be aware of these external influences as they can have a profound impact on the Trust's performance.

Additionally, the shift towards digital accessibility and transparency, as evidenced by the Trust's updated website and the availability of printed reports, reflects a growing investor demand for immediate and comprehensive access to financial data. This trend towards digital communication and reporting is becoming standard across the industry, enhancing investor relations and potentially impacting investor sentiment and trust performance.

Energy Sector Analyst

Analyzing the operational data provided, the decrease in production volumes, especially in oil, could be indicative of reservoir performance or operational efficiency. It's essential to understand the specific causes, as they could range from maintenance issues to natural depletion of the reservoir. The Sabine Royalty Trust's performance must be contextualized within the larger energy sector, where such production dynamics are not uncommon and can significantly influence the valuation of energy trusts.

Moreover, the Trust's reliance on commodity prices, with the preliminary prices of $89.38 per barrel of oil and $2.45 per Mcf of gas, underscores the inherent risks and opportunities within the energy market. Stakeholders should be cognizant of the price sensitivity of the Trust's distributions and the potential impact of market fluctuations on their investment. Long-term trends in energy supply and demand, as well as the transition towards renewable energy sources, could also affect the Trust's future profitability and viability.

DALLAS, March 5, 2024 /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 $0.411450 per unit, payable on March 28, 2024, to unit holders of record on March 15, 2024. 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, which has recently been updated with a new look, 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 2023 and the gas production for November 2023, which is considered current production. Preliminary production volumes are approximately 48,104 barrels of oil and 1,046,545 Mcf of gas. Preliminary prices are approximately $89.38 per barrel of oil and $2.45 per Mcf of gas.

This month's distribution is less than the previous month's primarily due to a decrease in oil production. This was offset slightly by increased oil and gas prices.

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		48,104			1,046,545			$89.38		$2.45
Prior Month		56,969			1,346,113			$76.54		$2.28

(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.

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 $488,700 of revenue received will be posted in the following month of March, in addition to normal cash receipts received during March. Since the close of business in February and prior to this press release, $5,600 in revenue has been received.

Approximately $2,800 for 2024 Ad Valorem taxes was deducted from this month's distribution. These payments are normal expenditures at this time of year.

The 2022 Annual Report with Form 10-K and the January 1, 2023 Reserve Summary are available on the Sabine website at http://www.sbr-sabine.com/. 

View original content:https://www.prnewswire.com/news-releases/sabine-royalty-trust-announces-monthly-cash-distribution-for-march-2024-302079501.html

SOURCE Sabine Royalty Trust

FAQ

What is the cash distribution per unit announced by Argent Trust Company for Sabine Royalty Trust (NYSE: SBR)?

Argent Trust Company declared a cash distribution of $0.411450 per unit.

When is the cash distribution payable to unit holders of Sabine Royalty Trust (NYSE: SBR)?

The cash distribution is payable on March 28, 2024, to unit holders of record on March 15, 2024.

What factors influenced the decrease in this month's distribution for Sabine Royalty Trust (NYSE: SBR)?

The decrease in this month's distribution was primarily due to a decrease in oil production, partially offset by higher oil and gas prices.

What were the preliminary oil and gas production volumes for Sabine Royalty Trust (NYSE: SBR) for the current month?

The preliminary production volumes for the current month were approximately 48,104 barrels of oil and 1,046,545 Mcf of gas.

What were the average prices for oil and gas for Sabine Royalty Trust (NYSE: SBR) in the current month?

The average price for oil was approximately $89.38 per barrel, and for gas, it was $2.45 per Mcf.