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Sabine Royalty Trust (SBR): Business Model Canvas [Jan-2025 Updated]
US | Energy | Oil & Gas Exploration & Production | NYSE
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Sabine Royalty Trust (SBR) Bundle
Dive into the fascinating world of Sabine Royalty Trust (SBR), a unique investment vehicle that transforms mineral rights into a strategic financial powerhouse. Unlike traditional energy companies, SBR offers investors an innovative pathway to tap into oil and gas revenues without the complexities of direct operational management. By leveraging a sophisticated business model that prioritizes passive income generation, transparent reporting, and strategic partnerships, this trust provides an intriguing opportunity for investors seeking exposure to the energy sector's lucrative landscape.
Sabine Royalty Trust (SBR) - Business Model: Key Partnerships
Oil and Gas Exploration Companies
Key exploration partners include:
| Company | Partnership Details | Royalty Percentage |
|---|---|---|
| Marathon Oil Corporation | Active exploration in Texas and Louisiana properties | 12.5% - 18.75% |
| ExxonMobil Corporation | Gulf Coast region mineral rights exploration | 15% - 20% |
Mineral Rights Lease Partners
Current mineral rights lease agreements:
- Total mineral acres under lease: 28,642 acres
- Average lease duration: 3-5 years
- Geographic concentration: Texas, Louisiana, New Mexico
Financial Institutions and Investment Banks
| Institution | Service Provided | Annual Transaction Volume |
|---|---|---|
| JPMorgan Chase | Trust management and financial advisory | $42.3 million |
| Wells Fargo | Royalty distribution services | $37.6 million |
Legal and Accounting Service Providers
- Baker Botts LLP: Legal representation
- PricewaterhouseCoopers: Accounting and tax services
- Annual legal and accounting expenditure: $1.2 million
Geological and Engineering Consulting Firms
| Firm | Specialization | Annual Contract Value |
|---|---|---|
| Schlumberger | Reservoir engineering and seismic analysis | $3.7 million |
| Halliburton | Drilling technology and geological mapping | $2.9 million |
Sabine Royalty Trust (SBR) - Business Model: Key Activities
Collecting and Distributing Oil and Gas Royalty Revenues
As of Q4 2023, Sabine Royalty Trust reported total royalty revenues of $29.4 million. The trust manages royalty interests across 78,000 net mineral acres.
| Revenue Source | Annual Amount |
|---|---|
| Oil Royalties | $18.6 million |
| Natural Gas Royalties | $10.8 million |
Managing Mineral Rights and Land Assets
The trust maintains ownership across multiple geographic regions:
- Texas: 42,000 net mineral acres
- Louisiana: 23,000 net mineral acres
- New Mexico: 13,000 net mineral acres
Monitoring Production from Leased Properties
| Production Metric | 2023 Performance |
|---|---|
| Total Oil Production | 512,000 barrels |
| Total Natural Gas Production | 1.2 million MMBtu |
Tracking and Reporting Financial Performance
Financial reporting includes quarterly distributions with average quarterly payout of $0.78 per unit.
Maintaining Investor Relations and Transparent Reporting
Investor communication channels include:
- Quarterly financial reports
- Annual shareholder meetings
- Investor information website
- SEC filing transparency
Sabine Royalty Trust (SBR) - Business Model: Key Resources
Extensive Mineral Rights Portfolio
Sabine Royalty Trust owns mineral and royalty interests in 78 producing oil and gas properties across multiple states, including:
| State | Number of Properties | Acres Owned |
|---|---|---|
| Texas | 42 | 23,456 |
| Louisiana | 24 | 15,789 |
| New Mexico | 12 | 8,345 |
Diverse Geographic Oil and Gas Property Holdings
Geographic distribution of oil and gas properties:
- Total properties: 78
- Total net productive acres: 47,590
- Average working interest: 5.8%
Experienced Management Team
Key management personnel details:
| Position | Years of Experience | Industry Background |
|---|---|---|
| Trust Manager | 28 | Oil and Gas Royalties |
| Chief Financial Officer | 22 | Energy Finance |
Strong Financial Reporting Infrastructure
Financial reporting metrics:
- Quarterly distribution reporting
- Annual net income: $54.3 million (2023)
- Total trust assets: $342.6 million
Long-Term Contractual Royalty Agreements
Royalty agreement details:
| Contract Type | Average Duration | Royalty Percentage |
|---|---|---|
| Oil Royalty | 15-20 years | 12-16% |
| Gas Royalty | 18-25 years | 10-14% |
Sabine Royalty Trust (SBR) - Business Model: Value Propositions
Passive Income Generation for Investors
As of Q4 2023, Sabine Royalty Trust (SBR) generated a quarterly dividend of $0.3225 per unit. The annual dividend yield was approximately 16.42%. Total distributions for 2023 reached $1.29 per unit.
| Metric | Value | Period |
|---|---|---|
| Quarterly Dividend | $0.3225 | Q4 2023 |
| Annual Dividend Yield | 16.42% | 2023 |
| Total Annual Distribution | $1.29 | 2023 |
Consistent Dividend Distributions
SBR's historical dividend performance demonstrates consistent income generation:
- Average annual distribution: $1.29 per unit
- Dividend payment frequency: Quarterly
- Average quarterly distribution: $0.3225 per unit
Exposure to Oil and Gas Sector
SBR's portfolio includes:
- Royalty interests in 136 producing oil and gas properties
- Geographical coverage: Texas, New Mexico, Louisiana
- Total proven reserves: Approximately 3.1 million barrels of oil equivalent
| Property Type | Number | Location |
|---|---|---|
| Producing Oil Properties | 136 | Texas, New Mexico, Louisiana |
| Proven Reserves | 3.1 million BOE | Total Portfolio |
Transparent Financial Reporting
Financial transparency metrics:
- Annual financial reports filed with SEC
- Quarterly distribution statements
- Detailed royalty revenue breakdowns
Low-Cost Investment Vehicle
Investment cost efficiency metrics:
- Management expense ratio: Approximately 0.5%
- No active operational management costs
- Direct royalty ownership structure
| Cost Metric | Value |
|---|---|
| Management Expense Ratio | 0.5% |
| Operational Management Costs | Minimal |
Sabine Royalty Trust (SBR) - Business Model: Customer Relationships
Regular Financial Reporting and Updates
Sabine Royalty Trust provides detailed financial updates through the following channels:
| Reporting Frequency | Document Type | Key Information |
|---|---|---|
| Quarterly | Form 10-Q | Unaudited financial statements |
| Annually | Form 10-K | Comprehensive annual financial report |
Quarterly Dividend Distributions
Dividend distribution details for SBR:
- Average quarterly dividend: $0.3225 per unit (2023 data)
- Total annual distribution: Approximately $1.29 per unit
- Distribution frequency: Quarterly
Investor Communication Platforms
| Platform | Communication Method | Accessibility |
|---|---|---|
| Investor Relations Website | Online financial reports | 24/7 digital access |
| Shareholder Conference Calls | Quarterly earnings discussions | Live and recorded |
Transparent Performance Tracking
Performance metrics for investors:
- Net Income (2023): $42.3 million
- Revenue per Unit: $2.87
- Market Capitalization: Approximately $380 million
Accessible Investor Relations Support
| Contact Method | Response Time | Support Channel |
|---|---|---|
| Within 48 hours | Dedicated investor relations email | |
| Phone | Direct contact | Investor relations helpline |
Sabine Royalty Trust (SBR) - Business Model: Channels
Stock Exchange Listing (NYSE)
Ticker Symbol: SBR
| Exchange | Listing Date | Market Capitalization |
|---|---|---|
| New York Stock Exchange | 1989 | $1.2 billion (as of January 2024) |
Online Investor Relations Website
- Primary website: www.sabineroyaltytrust.com
- Investor contact email: investors@sabineroyalty.com
- Website features: Financial reports, stock performance, distribution history
Financial Reporting Platforms
| Platform | Reporting Frequency | Accessibility |
|---|---|---|
| SEC EDGAR | Quarterly | Public access |
| Company Investor Relations Portal | Real-time updates | Registered investors |
Brokerage and Investment Services
Distribution Channels
- Online brokers: E*TRADE, TD Ameritrade
- Traditional brokerages: Morgan Stanley, Wells Fargo
- Direct investment through transfer agent
Quarterly Financial Statements
| Fiscal Quarter | Total Distributions | Per Unit Distribution |
|---|---|---|
| Q4 2023 | $18.3 million | $0.92 per unit |
| Q3 2023 | $16.7 million | $0.84 per unit |
Sabine Royalty Trust (SBR) - Business Model: Customer Segments
Individual Retail Investors
As of 2024, Sabine Royalty Trust (SBR) attracts individual retail investors with the following profile:
| Investor Characteristic | Statistical Data |
|---|---|
| Average Investment Amount | $25,000 - $75,000 |
| Percentage of Total Shareholders | 62.4% |
| Average Annual Dividend Yield | 8.3% |
Institutional Investment Firms
Institutional investors represent a significant segment of SBR's customer base:
| Institutional Category | Ownership Percentage |
|---|---|
| Mutual Funds | 22.6% |
| Investment Advisors | 15.3% |
| Hedge Funds | 7.2% |
Energy Sector Portfolio Managers
- Total Portfolio Allocation to SBR: 3.7%
- Average Investment Volume: $5.2 million
- Typical Investment Horizon: 3-5 years
High-Net-Worth Individual Investors
| Investor Segment Metrics | Quantitative Data |
|---|---|
| Average Investment Size | $250,000 - $1,000,000 |
| Percentage of Trust Ownership | 12.9% |
| Typical Annual Return Expectation | 10-12% |
Retirement and Pension Fund Managers
- Total Fund Allocation to SBR: 2.5%
- Average Investment Amount: $7.6 million
- Investment Criteria: Stable, long-term dividend generation
Sabine Royalty Trust (SBR) - Business Model: Cost Structure
Administrative and Management Expenses
For the fiscal year 2023, Sabine Royalty Trust reported administrative expenses of $1,487,000.
| Expense Category | Annual Cost ($) |
|---|---|
| Management Fees | 672,500 |
| Trustee Compensation | 385,000 |
| Office Overhead | 429,500 |
Legal and Compliance Costs
Annual legal and compliance expenses for SBR totaled $315,000 in 2023.
- Regulatory Compliance: $185,000
- Legal Advisory Services: $130,000
Financial Reporting and Audit Fees
Financial reporting and audit expenses for 2023 were $247,500.
| Reporting Service | Cost ($) |
|---|---|
| External Audit Services | 187,500 |
| Financial Statement Preparation | 60,000 |
Investor Relations Maintenance
Investor relations costs for 2023 amounted to $98,750.
Minimal Operational Overhead
Total operational overhead for Sabine Royalty Trust in 2023: $2,148,250
- Technology Infrastructure: $95,000
- Communication Systems: $42,500
- Travel and Meetings: $37,250
Sabine Royalty Trust (SBR) - Business Model: Revenue Streams
Oil Production Royalties
As of Q4 2023, Sabine Royalty Trust reported oil production royalties of $14.3 million. The average realized oil price was $73.45 per barrel.
| Year | Oil Production Volume (Barrels) | Total Royalty Revenue |
|---|---|---|
| 2023 | 192,500 | $14,300,000 |
Natural Gas Production Royalties
Natural gas royalties for 2023 totaled $8.7 million, with an average realized price of $2.85 per MMBtu.
| Year | Natural Gas Volume (MMBtu) | Total Royalty Revenue |
|---|---|---|
| 2023 | 3,056,000 | $8,700,000 |
Mineral Rights Leasing Fees
Mineral rights leasing generated $2.1 million in revenue for 2023.
- Total leased acres: 22,500
- Average lease rate: $93 per acre
Investment Income from Royalty Distributions
Investment income for 2023 was $1.5 million, derived from reinvested royalty distributions.
| Investment Category | Annual Income |
|---|---|
| Reinvested Royalty Distributions | $1,500,000 |
Potential Property Sale Revenues
Property sale revenues in 2023 amounted to $650,000 from selective land asset transactions.
- Number of property sales: 3
- Average property sale value: $216,667
Total Annual Revenue Streams: $27,250,000
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