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Stocks on the Run: Sabine Royalty Trust (NYSE:SBR)

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On Friday, Shares of Sabine Royalty Trust (NYSE:SBR), added 0.41% and closed at $36.65 in the last trading session. The last trading range of the stock ranges between $36.55 and $37.30.

Southwest Bank, as Trustee of the Sabine Royalty Trust (NYSE: SBR), recently declared a cash distribution to the holders of its units of beneficial interest of $0.342310 per unit, payable on April 28, 2017, to unit holders of record on April 17, 2017.  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/.

This distribution reflects mainly the oil production for January 2017 and the gas production for December 2016.  Preliminary production volumes are about 74,011 barrels of oil and 697,677 Mcf of gas.  Preliminary prices are about $48.21 per barrel of oil and $2.84 per Mcf of gas.

Revenues are only posted and distributed when they are received.  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.

Because of the timing of the end of the month of March, about $291,000 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 before this press release, about $268,000 in revenue has been 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, 2017, attributable to the Trust from the properties appraised are about 6 million barrels of oil and 35.6 billion cubic feet of gas with a future net value of about $238,365,000 with a discounted value at 10% of $121,084,000.  With these estimated quantities of this year’s reserve estimate of 6 million barrels of oil and 35.6 billion cubic feet of gas remaining, it could be estimated that the Trust still has a life span of 10 to 11 years.  The report is an exhibit to the Trust’s Annual Report on Form 10-K that was filed on March 10, 2017 and is available to all unitholders at this time on the SEC website and Sabine’s website.

Analyst recommendation for this stock stands at N/A.