DALLAS, April 5, 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 $0.237940 per unit, payable on April 29, 2021, to unit holders of record on
April 15, 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 March, 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 April. 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.
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
January 2021 and the gas production
for December 2020. Preliminary production volumes are
approximately 50,741 barrels of oil and 650,124 Mcf of gas.
Preliminary prices are approximately $49.56 per barrel of oil and $2.56 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
|
|
50,741
|
|
650,124
|
|
$49.56
|
|
$2.56
|
|
|
|
|
|
|
|
|
|
Prior
Month
|
|
51,259
|
|
719,512
|
|
$41.30
|
|
$2.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 March,
approximately $966,000 of revenue
received will be posted in the following month of April in addition
to normal receipts during April. Since the close of business
in March and prior to this press release, there has been
approximately $987,000 in revenue
received.
Sabine Royalty Trust, as it does after the end of each year, had
a year-end Reserve Report prepared in accordance with the
Securities and Exchange Commission's requirements. This
report provides an evaluation of the estimated asset value as of
December 31 of each year, which can
be used to estimate the remaining life of the Trust.
The estimated net proved reserves, as of January 1, 2021, attributable to the Trust from
the properties appraised are approximately 6.3 million barrels of
oil and 39.8 billion cubic feet of gas with a future net value of
approximately $229,432,000 with a
discounted value at 10% of $120,769,000. With these estimated
quantities of this year's reserve estimate of 6.3 million barrels
of oil and 39.8 billion cubic feet of gas remaining, it could be
estimated that the Trust still has a life span of 9 to 12
years. The report is an exhibit to the Trust's Annual Report
on Form 10-K that was filed on March 26,
2021 and is available to all unitholders at this time on the
SEC website and Sabine's website.
The 2020 Annual Report with Form 10-K and the January 1, 2021 Reserve Summary will be posted in
the month of April on the Sabine website at
http://www.sbr-sabine.com/.
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SOURCE Sabine Royalty Trust