SBR
- Sabine Royalty Trust
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Overview
Company Summary
Sabine Royalty Trust is a company that operates as a trust, primarily engaging in the collection and distribution of royalty and mineral interests. The trust owns overriding royalty interests and participating royalty interests in various oil and gas properties located in the United States.
As an owner of royalty and mineral interests, the company does not directly engage in the exploration, development, or production of oil and gas. Instead, it acts as a passive entity that receives royalty payments from the operators of these properties.
The royalty interests owned by Sabine Royalty Trust entitle the company to receive a percentage of the sales proceeds from the production and sale of oil, gas, and other minerals from the properties. The exact percentage of the royalty interest depends on the specific terms and agreements for each property.
After receiving these royalty payments, Sabine Royalty Trust deducts applicable expenses and then distributes the remaining funds to its unitholders (individuals or entities who have invested in the trust). The distribution of funds is usually made on a monthly or quarterly basis.
The company's revenue and profitability are directly tied to the level of production and sales from the properties it owns royalty interests in. Factors such as oil and gas prices, production volumes, and operational costs in the industry impact the trust's financial performance.
In summary, Sabine Royalty Trust is a company that operates as a trust, collecting royalty payments from oil and gas operators in exchange for the ownership of royalty and mineral interests. Its primary role is to distribute these funds to its unitholders.