Sabine Royalty Stock Price, News & Analysis

Sabine Royalty Trust (SBR) is an express trust formed to receive royalty and mineral interests that originated with Sabine Corporation. According to available information, these interests include landowner's royalties, overriding royalty interests, mineral production payments and other similar, non-participatory interests in certain royalty properties. The Trust’s producing and proved undeveloped oil and gas royalty properties are located in Florida, Louisiana, Mississippi, New Mexico, Oklahoma and Texas.

The Trust is associated with the finance and insurance sector and is classified in miscellaneous intermediation. Its units of beneficial interest trade on the New York Stock Exchange under the ticker symbol SBR. Argent Trust Company acts as the Trustee of Sabine Royalty Trust and is identified as the party that declares monthly cash distributions to holders of units of beneficial interest.

Business structure and royalty interests

Sabine Royalty Trust does not describe itself as an operating oil and gas producer in the provided materials. Instead, it holds non-participatory royalty and mineral interests in underlying oil and gas properties. These interests entitle the Trust to receive a share of revenues from oil and gas production on the Royalty Properties, rather than to operate wells directly. The Polygon description notes that the Trust’s interests cover both producing and proved undeveloped oil and gas royalty properties in multiple U.S. states.

The royalty interests referenced include:

• Landowner's royalties
• Overriding royalty interests
• Minerals production payments
• Other similar, non-participatory royalty interests in the Royalty Properties

Because these interests are non-participatory, the Trust’s role as described in the sources centers on receiving and distributing royalty income rather than managing exploration or production operations.

Cash distributions and income handling

In multiple press releases, Argent Trust Company, as Trustee of Sabine Royalty Trust, announces a monthly cash distribution to holders of units of beneficial interest. Each release specifies a cash amount per unit, a payment date, and a record date for unitholders. The releases state that the distribution for a given month reflects primarily oil production and gas production from specific prior months, which is characterized as current production.

The press releases explain that sales volumes are recorded in the month the Trust receives and identifies the related royalty income. As a result, reported 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. The materials note that most energy companies issue payment of royalties on or about the 25th of every month, and that royalties received after the revenue posting on the last business day of the month are posted within 30 days of receipt.

Each monthly announcement also describes how timing differences in royalty receipts can cause a portion of revenue received near the end of a month to be posted in the following month, in addition to normal cash receipts. The press releases provide examples of amounts of revenue that will be posted in the subsequent month and amounts received since the close of business in the prior month.

Oil and gas production context

Sabine Royalty Trust’s distributions are tied to oil and natural gas production volumes and realized prices on the Royalty Properties. The press releases provide preliminary production volumes in barrels of oil and Mcf of gas, as well as preliminary prices per barrel of oil and per Mcf of gas for the production months that underlie each distribution. The Trust also comments on whether a given month’s distribution is higher or lower than the previous month and attributes these changes to factors such as:

• Increases or decreases in oil and natural gas production
• Changes in oil and natural gas pricing
• Deductions for Ad Valorem taxes

These explanations illustrate how commodity price movements, production levels and tax deductions can influence the cash available for distribution to unitholders.

Ad Valorem taxes and normal expenditures

The press releases frequently refer to Ad Valorem taxes deducted from monthly distributions. They note that Ad Valorem tax payments are normal expenditures at certain times of the year. The amounts of these taxes can vary from year to year and may affect the comparison of one month’s distribution to another. In some releases, the Trustee explains that delays in tax renditions in a prior year affected the timing of Ad Valorem tax deductions across specific months.

Regulatory filings and reporting

Sabine Royalty Trust files reports with the Securities and Exchange Commission (SEC). The SEC filings provided include multiple Form 8-K reports in which the Trust reports that it has issued a press release announcing its monthly cash distribution. These filings identify Sabine Royalty Trust as a Texas entity, list a Commission File Number and Employer Identification Number, and state that the Form 8-K is furnished under Item 2.02, Results of Operations and Financial Condition.

The press releases and filings indicate that the Trust makes its cash distribution history, financial reports, tax information booklets, a link to SEC filings and a reserve summary available through its own channels. They also state that printed reports can be requested and are mailed free of charge. The releases reference the availability of an Annual Report with Form 10-K and a Reserve Summary as of December 31 of a given year.

Location and governance framework

The SEC filings list Sabine Royalty Trust as associated with the state of Texas. Argent Trust Company, acting as Trustee, is identified with an address in Dallas, Texas in the Form 8-K filings. The materials do not provide additional detail about the internal governance of the Trust beyond identifying Argent Trust Company as Trustee and describing its role in declaring and announcing monthly cash distributions.

Role within the finance and energy-related ecosystem

Within the classifications provided, Sabine Royalty Trust is part of the finance and insurance sector under the category of miscellaneous intermediation. At the same time, its underlying assets are oil and gas royalty interests in multiple U.S. states. The Trust’s public materials focus on how royalty income from oil and gas production is received, recorded and distributed to unitholders, rather than on direct operational activities in exploration or production.

Through its structure as an express trust holding non-participatory royalty interests, Sabine Royalty Trust provides a mechanism for investors to hold units of beneficial interest that are tied to royalty income from producing and proved undeveloped oil and gas properties. The Trust’s recurring public disclosures emphasize monthly cash distributions, the relationship between distributions and underlying production and pricing, and the impact of taxes and timing of receipts on distributable income.

Key characteristics summarized

• Express trust formed to receive Sabine Corporation’s royalty and mineral interests in certain Royalty Properties
• Holds landowner's royalties, overriding royalty interests, minerals production payments and similar non-participatory interests
• Royalty properties include producing and proved undeveloped oil and gas properties in Florida, Louisiana, Mississippi, New Mexico, Oklahoma and Texas
• Classified in the finance and insurance sector under miscellaneous intermediation
• Units of beneficial interest trade on the New York Stock Exchange under the symbol SBR
• Argent Trust Company serves as Trustee and declares monthly cash distributions
• Distributions are based on royalty income from oil and gas production and are influenced by production volumes, commodity prices, taxes and timing of receipts
• Sabine Royalty Trust files SEC reports, including Form 8-K for monthly distribution announcements, and makes annual reports and reserve summaries available