Sabine Royalty Trust Reports Monthly Distribution Update

Monthly Cash Distribution Announcement
Argent Trust Company, acting as Trustee of the Sabine Royalty Trust (NYSE: SBR), has declared a cash distribution amounting to $0.426490 per unit to the holders of its units of beneficial interest. This distribution demonstrates the Trust's commitment to delivering value to its investors and will be payable on the last day of the month to all unit holders recorded before a specified date.
Insights into Current Production
The current distribution primarily results from oil production observed in a previous month, further supplemented by gas production from a prior period. The highlighted production figures indicate that the Trust has recorded approximately 58,818 barrels of oil and 1,004,988 Mcf of gas. Additionally, favorable pricing conditions were also noted during this time, with preliminary prices hovering around $67.59 per barrel of oil and approximately $3.22 per Mcf for gas.
Analysis of Distribution Changes
This month’s distribution exhibits a decline compared to the previous month. This change is significantly attributed to a drop in natural gas production levels as well as a reduction in oil and natural gas prices. Despite these challenges, an uptick in oil production has positively influenced the overall financial outcome.
Comparative Production and Pricing
Comparing the current month's figures to those from earlier periods provides insight into market dynamics and production efficacy:
- Oil Production: Current Month: 58,818 bbls; Prior Month: 53,621 bbls
- Gas Production: Current Month: 1,004,988 Mcf; Prior Month: 1,100,895 Mcf
- Average Price for Oil: Current Month: $67.59/bbl; Prior Month: $71.45/bbl
- Average Price for Gas: Current Month: $3.22/Mcf; Prior Month: $3.30/Mcf
Understanding Revenue Distribution Timing
The revenue generated from oil and gas production is distributed to unit holders after thorough verification and posting, with most energy companies typically issuing royalty payments around the 25th of each month. Due to the timing of transactions, some revenues may only get classified in the subsequent reporting period. This results in a notable amount of revenue from the end of the previous month that gets accounted for in the subsequent month, ensuring that unit holders receive accurate and timely payment.
Future Projections and Revenue Updates
The upcoming annual financial report, including details on reserves, will provide a comprehensive overview of the Trust's performance and future outlook. Recent estimates suggest that significant revenue has been accrued, further strengthening the Trust’s profile as a reliable source of income for its unit holders.
Frequently Asked Questions
What is the current cash distribution amount for Sabine Royalty Trust?
The recent cash distribution is set at $0.426490 per unit for unit holders.
When will the distribution be payable?
The cash distribution will be payable on the last day of the month to unit holders of record prior to a designated date.
How does natural gas production impact distributions?
Variations in natural gas production can significantly affect overall distributions, particularly as a decrease can lead to lower cash payouts.
What factors influence oil and gas pricing?
Market dynamics, including supply and demand, geopolitical events, and seasonal factors, play crucial roles in influencing pricing for oil and gas.
How frequently does Sabine Royalty Trust review its revenue?
Revenue is reviewed every month, with careful consideration taken to verify and post earnings received within a specific timeframe.
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