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): August 5, 2022

 

 

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.)

 

Simmons Bank 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 August 5, 2022, the Registrant issued a press release announcing its monthly cash distribution to unitholders of record on August 15, 2022. 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 August 5, 2022.

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.

 

Date: August 8, 2022

Exhibit 99.1

Sabine Royalty Trust

News Release

SABINE ROYALTY TRUST ANNOUNCES

MONTHLY CASH DISTRIBUTION FOR AUGUST 2022

Dallas, Texas, August 5, 2022 – 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 $0.829410 per unit, payable on August 29, 2022, to unit holders of record on August 15, 2022. 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 May 2022 and the gas production for April 2022. Preliminary production volumes are approximately 56,325 barrels of oil and 1,258,547 Mcf of gas. Preliminary prices are approximately $103.82 per barrel of oil and $5.95 per Mcf of gas.

This month’s distribution is higher than the previous month’s due to increased production of oil and gas, primarily due to the timing of receipts through the end of the previous month.

The production from the new horizontal gas wells in Panola County, Texas, has contributed approximately $860,000 reflecting April production. They were averaging about 716 Mcf per well, per day during April totaling over 172,000 Mcf with an average pricing of $5.37 per Mcf. In addition to these proceeds, the additional 8 new wells which were paid upon for the month of April, contributing approximately $220,000, reflecting an average of 196 Mcf per well, per day.

Additionally, another 3 new horizontal wells, also in Panola County, were paid on by another operator for the month of production for April 2022 and May 2022, respectively, with production of 1,486 and 1,414 Mcf per well, per day with the respective pricing of $5.37 and $6.98 per Mcf resulting in approximately $670,000 and $860,000 being received by the Trust in July.

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			56,325				1,258,547			$	103.82			$	5.95
Prior Month			40,082				1,024,821			$	105.12			$	4.57

Revenues are only distributed after they are received, verified, and posted. Most energy companies normally issue payment of royalties on or about the 25^th 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 July, approximately $2,532,000 of revenue received will be posted in the following month of August in addition to normal receipts during August. Since the close of business in July and prior to this press release, $5,108,000 in revenue has been received.

The 2021 Annual Report with Form 10-K and the January 1, 2022 Reserve Summary has been posted on the Sabine website at http://www.sbr-sabine.com/.

*        *         *

 

Contact:		Ron Hooper - SVP, Royalty Trust Services
		Simmons Bank
		Toll Free (855) 588-7839