Sabine Royalty Trust Announces Monthly Cash Distribution For October 2020
Simmons Bank, as Trustee of the Sabine Royalty Trust (NYSE: SBR), announced a cash distribution of $0.195890 per unit, payable on October 29, 2020, to unit holders of record on October 15, 2020. The Trust's revenue posting has been affected by shelter-in-place orders. Although cash distributions reflect production volumes of 64,823 barrels of oil and 667,860 Mcf of gas, past energy price declines may impact future earnings. Approximately $460,000 in revenue will be posted in October, alongside $849,000 received since the end of September.
- Cash distribution of $0.195890 per unit announced.
- Total production includes approximately 64,823 barrels of oil and 667,860 Mcf of gas.
- Revenue posting significantly affected by shelter-in-place orders.
- Potential future revenue decline due to previous drops in energy prices.
DALLAS, Oct. 5, 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
During the month of September, 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 October. 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 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 July 2020 and the gas production for June 2020. Preliminary production volumes are approximately 64,823 barrels of oil and 667,860 Mcf of gas. Preliminary prices are approximately
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 | 64,823 | 667,860 | ||||||||
Prior Month | 74,927 | 645,426 | ||||||||
Revenues are only distributed after they are received, verified and posted. Most energy companies normally issue payment of royalties on or about the 25th 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 September, approximately
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
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