SABINE ROYALTY TRUST ANNOUNCES MONTHLY CASH DISTRIBUTION FOR SEPTEMBER 2024

Rhea-AI Summary

Sabine Royalty Trust (NYSE: SBR) has announced a cash distribution of $0.421310 per unit for September 2024, payable on September 30, 2024, to unitholders of record on September 16, 2024. This distribution primarily reflects oil production for June 2024 and gas production for May 2024. Preliminary production volumes are approximately 64,743 barrels of oil and 1,359,603 Mcf of gas, with prices at about $78.14 per barrel of oil and $1.52 per Mcf of gas. The distribution is lower than the previous month's due to a decrease in oil production, partially offset by increased prices for both oil and natural gas and higher natural gas production.

Positive

• Increased oil price from $77.48 to $78.14 per barrel
• Increased gas price from $1.20 to $1.52 per Mcf
• Increased gas production from 1,346,957 to 1,359,603 Mcf

Negative

• Decreased oil production from 76,461 to 64,743 barrels
• Lower cash distribution compared to the previous month

Insights

Financial Analyst

This monthly cash distribution announcement from Sabine Royalty Trust (SBR) is routine but offers valuable insights into the trust's performance. The $0.421310 per unit distribution represents a decrease from the previous month, primarily due to lower oil production. However, this was partially offset by increased prices for both oil and gas, as well as higher gas production.

The trust's exposure to commodity price fluctuations is evident, with oil prices at $78.14 per barrel and gas at $1.52 per Mcf. These figures, along with the production volumes, provide a snapshot of the trust's current operational performance. Investors should note the volatility in monthly distributions, which is typical for royalty trusts and reflects the dynamic nature of energy markets.

Energy Sector Analyst

The production figures reveal interesting trends in SBR's portfolio. While oil production decreased by 15.3% month-over-month, gas production saw a slight increase of 0.9%. This shift in production mix, coupled with price changes, highlights the importance of diversification in mitigating risks associated with commodity price volatility.

The increase in natural gas prices from $1.20 to $1.52 per Mcf is particularly noteworthy, representing a 26.7% jump. This significant price improvement in gas could signal changing market dynamics or seasonal factors affecting demand. Investors should monitor these trends closely, as they can have substantial impacts on the trust's future distributions and overall valuation.

DALLAS, Sept. 6, 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 $0.421310 per unit, payable on September 30, 2024, to unit holders of record on September 16, 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 June 2024 and the gas production for May 2024, which is considered current production. Preliminary production volumes are approximately 64,743 barrels of oil and 1,359,603 Mcf of gas. Preliminary prices are approximately $78.14 per barrel of oil and $1.52 per Mcf of gas.

This month's distribution is lower than the previous month's primarily due to a decrease in oil production, partially offset by an increase in the price of both oil and natural gas and an increase in natural gas production.

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		64,743			1,359,603			$78.14		$1.52
Prior Month		76,461			1,346,957			$77.48		$1.20

(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 August, approximately $89,000 of revenue received will be posted in the following month of September, in addition to normal cash receipts received during September. Since the close of business in August and prior to this press release, approximately $302,000 in revenue has been received.

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/. 

View original content:https://www.prnewswire.com/news-releases/sabine-royalty-trust-announces-monthly-cash-distribution-for-september-2024-302239857.html

SOURCE Sabine Royalty Trust

FAQ

What is the cash distribution amount for Sabine Royalty Trust (SBR) in September 2024?

Sabine Royalty Trust (SBR) announced a cash distribution of $0.421310 per unit for September 2024.

When is the payment date for SBR's September 2024 distribution?

The payment date for SBR's September 2024 distribution is September 30, 2024.

What are the preliminary production volumes for SBR in the current month?

The preliminary production volumes for SBR are approximately 64,743 barrels of oil and 1,359,603 Mcf of gas.

How do the current month's oil and gas prices compare to the previous month for SBR?

The current month's oil price increased to $78.14 per barrel from $77.48, and the gas price increased to $1.52 per Mcf from $1.20 compared to the previous month.