SABINE ROYALTY TRUST ANNOUNCES MONTHLY CASH DISTRIBUTION FOR MAY 2025

Rhea-AI Summary

Sabine Royalty Trust (NYSE: SBR) has declared a cash distribution of $0.447780 per unit for May 2025, payable on May 29 to unitholders of record on May 15. The distribution reflects February 2025 oil production of 53,621 barrels at $71.45/barrel and January 2025 gas production of 1,100,895 Mcf at $3.30/Mcf. This month's distribution decreased compared to the previous month due to lower production volumes, despite higher oil and gas prices. Oil production declined by 48% and gas production fell by 22% compared to the prior month. Approximately $122,000 in revenue will be posted in May, and $289,000 in revenue has been received since March's close.

Positive

• Oil price increased significantly from $44.22 to $71.45 per barrel
• Natural gas price improved from $2.62 to $3.30 per Mcf
• Additional revenue of $289,000 received since March

Negative

• Monthly distribution decreased from previous month
• Oil production declined 48% to 53,621 barrels
• Gas production decreased 22% to 1,100,895 Mcf

Insights

Energy Trust Financial Analyst

Sabine's May distribution falls due to substantial production decline, partially offset by improved commodity prices.

Sabine Royalty Trust declared a May 2025 distribution of $0.447780 per unit, reflecting February oil and January gas production. This distribution represents a decline from the previous month, driven by significant production decreases that outweighed price improvements.

The production figures reveal concerning volume reductions: oil production fell 47.7% (from 102,540 to 53,621 barrels) while gas production decreased 21.9% (from 1,410,501 to 1,100,895 Mcf). Despite these substantial production drops, commodity prices showed marked improvement with oil prices increasing 61.6% to $71.45 per barrel and gas prices rising 26.0% to $3.30 per Mcf.

The press release clarifies that last month's unusually low realized oil price ($44.22) resulted from multiple prior period adjustments, with the January 2025 production month actually averaging $71.56 per barrel. This suggests the previous month's distribution was negatively affected by these adjustments, while the current distribution benefits from more normalized pricing.

Additional revenues of approximately $289,000 have been received since March, and another $122,000 will be posted in May due to timing of receipts. These supplemental revenues will contribute to future distributions but don't offset the impact of the substantial production decline on the current distribution.

DALLAS, May 5, 2025 /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 $0.447780 per unit, payable on May 29, 2025, to unit holders of record on May 15, 2025. 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 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 February 2025 and the gas production for January 2025, which is considered current production. Preliminary production volumes are approximately 53,621 barrels of oil and 1,100,895 Mcf of gas. Preliminary prices are approximately $71.45 per barrel of oil and $3.30 per Mcf of gas.

This month's distribution is lower than the previous month's primarily due to a decrease in oil and gas production, partially offset by an increase in the price of oil and natural gas. Last month's realized oil price of $44.22 per barrel is significantly lower than national averages due to multiple prior period adjustments from various remitters. However, the price of oil for the January 2025 production month averaged $71.56 per barrel.

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		53,621			1,100,895			$71.45		$3.30
Prior Month		102,540			1,410,501			$44.22		$2.62
(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 April, approximately $122,000 of revenue received will be posted in the following month of May in addition to normal cash receipts received during May. Since the close of business in March and prior to this press release, approximately $289,000 in revenue has been received.

The 2024 Annual Report with Form 10-K and the December 31, 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, 2024, 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 SBR's dividend distribution amount for May 2025?

Sabine Royalty Trust (SBR) declared a cash distribution of $0.447780 per unit for May 2025.

When is the payment date for SBR's May 2025 distribution?

The distribution will be paid on May 29, 2025, to unitholders of record as of May 15, 2025.

Why did SBR's distribution decrease in May 2025?

The distribution decreased primarily due to lower oil and gas production volumes, despite higher prices for both commodities.

What were SBR's oil and gas production volumes for the current distribution?

Current production volumes were 53,621 barrels of oil and 1,100,895 Mcf of gas.

What are the current oil and gas prices for SBR's May 2025 distribution?

The prices were approximately $71.45 per barrel of oil and $3.30 per Mcf of gas.