Sabine Royalty Trust (SBR) Q3 2024 earnings summary

Executive summary

• Distributable income for Q3 2024 was $19.1 million ($1.31 per unit), up 39% year-over-year, driven by higher oil and gas production and increased oil prices, partially offset by lower gas prices and higher taxes and expenses.

• Royalty income for Q3 2024 rose 38% to $19.8 million compared to Q3 2023, with oil and gas production increases contributing $6.3 million and oil price increases $0.8 million, offset by a $1.3 million decrease from lower gas prices.

• Compared to Q2 2024, royalty income decreased 12% due to lower production and prices, partially offset by reduced taxes and expenses.

• Distributable income for the nine months ended September 30, 2024, was $61.1 million ($4.19 per unit), up 8% year-over-year.

Financial highlights

• Q3 2024 royalty income: $19.8 million; interest income: $145,868; general/admin expenses: $859,880.

• Q3 2024 distributable income per unit: $1.31 (vs. $0.94 in Q3 2023).

• Nine months ended September 30, 2024: royalty income $63.2 million, distributable income $61.1 million ($4.19 per unit), up from $56.7 million ($3.89 per unit) in 2023.

• Cash and short-term investments at September 30, 2024: $8.67 million (down from $9.3 million at December 31, 2023).

• Distributions per unit for Q3 2024: $0.379040 (July), $0.450890 (August), $0.421310 (September).

Outlook and guidance

• Oil and gas prices remain volatile due to geopolitical tensions, weather, and global economic factors; future distributions are unpredictable.

• October and November 2024 distributions declared at $0.435840 and $0.514350 per unit, respectively.