Sabine Royalty Trust (SBR) Q2 2024 earnings summary

Executive summary

• Distributable income for Q2 2024 was $22.1 million ($1.51 per unit), up 32% year-over-year, driven by higher oil and gas production and increased oil prices, partially offset by lower natural gas prices and higher taxes and expenses.

• Royalty income for Q2 2024 rose 30% to $22.6 million compared to Q2 2023, with oil and gas production increases offsetting lower gas prices.

• Distributable income for the six months ended June 30, 2024, was $42.0 million ($2.88 per unit), down 2% year-over-year due to lower natural gas prices despite higher production volumes.

Financial highlights

• Q2 2024 royalty income: $22.6 million (up $5.2 million or 30% year-over-year); interest income: $175,353.

• General and administrative expenses for Q2 2024: $703,464, down $186,300 from Q2 2023 due to lower trustee and professional fees.

• Six-month royalty income: $43.4 million (down 3% year-over-year); distributable income: $42.0 million (down 2%).

• Distributions per unit for Q2 2024: $0.5355, $0.5977, and $0.5376 for April, May, and June record dates, respectively.

Outlook and guidance

• Future distributions are highly dependent on commodity prices, which remain volatile due to geopolitical and economic factors.

• Subsequent distributions declared: $0.379040 per unit for July and $0.450890 per unit for August 2024.