UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 5, 2024

 

 

SABINE ROYALTY TRUST

(Exact name of Registrant as specified in its charter)

 

 

 

Texas   1-8424   75-6297143

(State or other jurisdiction of

incorporation or organization)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification No.)

Argent Trust Company

3838 Oak Lawn Ave

Suite 1720

Dallas, Texas

    75219
(Address of principal executive offices)     (Zip Code)

Registrant’s Telephone Number, including area code: (855) 588-7839

Not Applicable

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange

on which registered

Units of Beneficial Interest   SBR   New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

 


Item 2.02.

Results of Operations and Financial Condition.

On January 5, 2024, the Registrant issued a press release announcing its monthly cash distribution to unitholders of record on January 16, 2024. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

This Report on Form 8-K is being furnished pursuant to Item 2.02, Results of Operations and Financial Condition. The information furnished is not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, is not subject to the liabilities of that section and is not deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

 

Item 9.01.

Financial Statements and Exhibits.

 

d.    Exhibits
99.1    Press Release dated January 5, 2024.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

SABINE ROYALTY TRUST
By: ARGENT TRUST COMPANY, TRUSTEE
By:   /s/ NANCY WILLIS
  Nancy Willis
  Vice President

Date: January 5, 2024

Exhibit 99.1

Sabine Royalty Trust

News Release

SABINE ROYALTY TRUST ANNOUNCES

MONTHLY CASH DISTRIBUTION FOR JANUARY 2024

Dallas, Texas, January 5, 2024 – 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 $0.437160 per unit, payable on January 30, 2024, to unit holders of record on January 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 October 2023 and the gas production for September 2023, which is considered current production. Preliminary production volumes are approximately 58,697 barrels of oil and 1,015,516 Mcf of gas. Preliminary prices are approximately $86.27 per barrel of oil and $2.30 per Mcf of gas.

This month’s distribution is less than the previous month’s primarily due to a decrease in both oil and gas production, along with a decrease in the price of natural gas. The decrease in production for the month is partially attributable to that fact that production includes production from September and October from the previously disclosed fourteen new wells located in Martin County, Texas, compared to last month’s distribution which included production from May, 2022 through August, 2023 for the new wells. These decreases were partially offset by an increase in the price of oil.

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

     58,697        1,015,516      $ 86.27      $ 2.30  

Prior Month

     189,898        1,378,406      $ 81.73      $ 2.60  

 

(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 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 December, approximately $370,424 of revenue received will be posted in the following month of January, in addition to normal cash receipts received during January. Since the close of business in December and prior to this press release, $1,732,176 in revenue has been received. At the beginning of the fourth quarter, Sabine Royalty Trust engaged a new revenue processor.

Approximately $223,000 for 2023 Ad Valorem taxes was deducted from this month’s distribution as compared to $744,000 this time last year. These payments are normal expenditures at this time of year.

The 2022 Annual Report with Form 10-K and the January 1, 2023 Reserve Summary are available on the Sabine website at http://www.sbr-sabine.com/.

*        *        *


Contact:    Nancy Willis - VP, Royalty Trust Services
  

Argent Trust Company

Toll Free (855) 588-7839


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