DALLAS, Feb. 4, 2021 /PRNewswire/ -- Simmons Bank, as Trustee of the Sabine Royalty
Trust (NYSE: SBR), today declared a cash distribution to the
holders of its units of beneficial interest of $0.155290 per unit, payable on February 26, 2021, to unit holders of record on
February 16, 2021. 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.
During the month of January, the respective
shelter-at-home/work-from-home orders across the spectrum of the
industry has significantly affected the posting of revenues for the
Trust, until the following month of November. As adjustments
are made accordingly, the functions of the Trust are still being
performed, although on a delayed basis. We will continue to
strive to make the operations of the Trust and its providers, as
fluid as possible.
Also, the impact of the precipitous drop in energy pricing are
not reflected in this month's revenue, however it has been seen in
the previous months. With the assets of the Royalty Trust
being almost true royalty interest ownership of established
production streams, production should continue, however the
over-supply of existing industry inventories will affect the
ability to transport on down the production stream. As the result
of these aforementioned factors, various
producers/operators/purchasers may not be able to continue as they
have been and could affect payment to the Trust. We are taking
steps to monitor those various entities as they have a direct
relationship with the Trust. The ownership of the Trust's
various royalty interests should not be diminished, as that will
continue.
This distribution reflects primarily the oil production for
November 2020 and the gas production
for October 2020. Preliminary production volumes are
approximately 46,433 barrels of oil and 657,693 Mcf of
gas. Preliminary prices are approximately $38.90 per barrel of oil and $1.80 per Mcf of gas.
The table below compares this month's production and prices to
the previous month's:
|
|
Net to Trust
Sales
|
|
|
|
|
Volumes
|
|
Average
Price
|
|
|
Oil (bbls)
|
|
Gas (Mcf)
|
|
Oil
(per bbl)
|
|
Gas
(per Mcf)
|
|
|
|
|
|
|
|
|
|
Current
Month
|
|
46,433
|
|
657,693
|
|
$38.90
|
|
$1.80
|
|
|
|
|
|
|
|
|
|
Prior
Month
|
|
52,258
|
|
675,539
|
|
$37.24
|
|
$1.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues are only distributed after they are received, verified
and posted. Most energy companies normally issue payment of
royalties on or about the 25th 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 January,
approximately $638,000 of revenue
received will be posted in the following month of February in
addition to normal receipts during February. Since the close
of business in January and prior to this press release, there has
been approximately $964,000 in
revenue received.
Approximately $45,000 for 2020 Ad
Valorem taxes was deducted from this month's distribution as
compared to $145,000 this time last
year. These payments are normal expenditures at this time of
year.
The 2020 tax information packets are expected to begin mailing
directly to unitholders in early March 2021. A copy of
Sabine's 2020 tax information
booklet will be posted on Sabine's
website by March 1, 2021. In
addition to the tax booklet the Sabine website will also offer two simple
calculators for computing the income and expense amounts and the
cost depletion. The calculators are currently expected to be
updated with the 2020 tax information by February 26, 2021.
The 2019 Annual Report with Form 10-K and the January 1, 2020 Reserve Summary is available on
the Sabine website at
http://www.sbr-sabine.com/.
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SOURCE Sabine Royalty Trust