SABINE ROYALTY TRUST ANNOUNCES MONTHLY CASH DISTRIBUTION FOR NOVEMBER 2024

Rhea-AI Summary

Sabine Royalty Trust (NYSE: SBR) has declared a cash distribution of $0.514350 per unit for November 2024, payable on November 29 to unitholders of record on November 15. The distribution reflects oil production of 70,299 barrels at $76.90 per barrel and gas production of 1,898,789 Mcf at $1.78 per Mcf. This month's distribution increased from the previous month due to higher production volumes, despite slightly lower oil and gas prices. Approximately $167,000 was deducted for 2024 Ad Valorem taxes, compared to $851,000 last year.

Positive

• Higher oil production volume: 70,299 barrels vs 64,075 barrels in prior month
• Increased gas production: 1,898,789 Mcf vs 1,182,039 Mcf in prior month
• Lower Ad Valorem tax deduction: $167,000 vs $851,000 year-over-year

Negative

• Decreased oil price: $76.90/bbl vs $79.00/bbl in prior month
• Lower gas price: $1.78/Mcf vs $1.81/Mcf in prior month

Insights

Financial Analyst

This monthly distribution announcement reveals positive operational trends. The $0.514350 per unit distribution showcases strong production growth with oil volumes increasing by 9.7% to 70,299 barrels and gas production surging by 60.6% to 1,898,789 Mcf. Despite slight price declines in both commodities, the substantial volume increases more than compensate.

The reduced Ad Valorem tax deduction of $167,000 compared to last year's $851,000 provides additional cash flow benefit. However, investors should note the $418,000 in delayed revenue posting and potential variations in future tax deductions. The trust's ability to maintain robust distributions despite commodity price fluctuations demonstrates operational resilience and effective cost management.

DALLAS, Nov. 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 $0.514350 per unit, payable on November 29, 2024, to unit holders of record on November 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 August 2024 and the gas production for July 2024, which is considered current production. Preliminary production volumes are approximately 70,299 barrels of oil and 1,898,789 Mcf of gas. Preliminary prices are approximately $76.90 per barrel of oil and $1.78 per Mcf of gas.

This month's distribution is higher than the previous month's primarily due to an increase in oil and gas production, slightly offset by a decrease in the pricing of both oil and natural 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		70,299			1,898,789			$76.90		$1.78
Prior Month		64,075			1,182,039			$79.00		$1.81

(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 October, approximately $418,000 of revenue received will be posted in the following month of November, in addition to normal cash receipts received during November. Since the close of business in October and prior to this press release, approximately $183,000 in revenue has been received.

Approximately $167,000 for 2024 Ad Valorem taxes was deducted from this month's distribution as compared to $851,000 this time last year. The trustee has been advised that some of the tax renditions have been delayed somewhat this year, so the amounts to be deducted in the December 2024, January 2025, and February 2025 distributions may be different relative to the same time periods last year. Ad Valorem tax payments are normal expenditures at this time of year.

The 2023 Annual Report with Form 10-K and the January 1, 2024 Reserve Summary are 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, 2023, 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 Sabine Royalty Trust's (SBR) distribution amount for November 2024?

Sabine Royalty Trust (SBR) declared a cash distribution of $0.514350 per unit for November 2024.

When is SBR's November 2024 distribution payable?

The distribution is payable on November 29, 2024, to unitholders of record on November 15, 2024.

What were SBR's production volumes for the current distribution period?

The Trust reported approximately 70,299 barrels of oil and 1,898,789 Mcf of gas production.

How much were the Ad Valorem taxes deducted from SBR's November 2024 distribution?

Approximately $167,000 was deducted for 2024 Ad Valorem taxes, compared to $851,000 in the previous year.