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): April 6, 2023
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 Park Place 2911 Turtle Creek Blvd. Suite 850 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 April 6, 2023, the Registrant issued a press release announcing its monthly cash distribution to unitholders of record on April 17, 2023. 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 |
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/ RON E. HOOPER | |
| Ron E. Hooper | ||
| SVP Royalty Trust Services | ||
Date: April 6, 2023
Exhibit 99.1
Sabine Royalty Trust
| News Release
|
||||||
SABINE ROYALTY TRUST ANNOUNCES
MONTHLY CASH DISTRIBUTION FOR APRIL 2023
Dallas, Texas, April 6, 2023 – 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 $0.699540 per unit, payable on April 28, 2023, to unit holders of record on April 17, 2023. 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.
This distribution reflects primarily the oil production for January 2023 and the gas production for December 2022. Preliminary production volumes are approximately 68,608 barrels of oil and 1,259,109 Mcf of gas. Preliminary prices are approximately $80.65 per barrel of oil and $4.71 per Mcf of gas.
This month’s distribution is higher than the previous month’s primarily due to increased production due to the timing of receipts through the end of the month as compared to the previous month’s timing of receipts, including an increase in oil pricing.
The production from all the new horizontal gas wells in Panola County, Texas, has contributed approximately $1,642,812 reflecting December production including the recent new wells. All volumes and pricing are included in the tables below.
Additionally, for the other three horizontal wells, also in Panola County, there were two months receipts totaling $544,000 posted for this month’s distribution.
As more regular monthly receipts are made in the months to come, additional information will be made available.
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 |
68,608 | 1,259,109 | $ | 80.65 | $ | 4.71 | ||||||||||
| Prior Month |
41,257 | 978,107 | $ | 76.76 | $ | 4.72 | ||||||||||
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 $1,663,000 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, $2,493,000 in revenue has been received.
The 2022 tax information packets were mailed in early March. A copy of Sabine’s 2022 tax information booklet is now available on Sabine’s website. In addition to the tax booklet the Sabine website will also offers two simple calculators for computing the income and expense amounts and the cost depletion. The calculators have been updated with the 2022 tax information.
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, 2023, attributable to the Trust from the properties appraised are approximately 5.9 million barrels of oil and 47.4 billion cubic feet of gas with a future net value of approximately $657,947,000 with a discounted value at 10% of $327,149,000. With these estimated quantities of this year’s reserve estimate of 5.9 million barrels of oil and 47.4 billion cubic feet of gas remaining, it could be estimated that the Trust still has a life span of 8 to 10 years. The report is an exhibit to the Trust’s Annual Report on Form 10-K that was filed on February 28, 2023 and is available to all unitholders at this time on the SEC website and Sabine’s website.
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: |
Ron Hooper—SVP, Royalty Trust Services | |
| Argent Trust Company | ||
| Toll Free (855) 588-7839 |