SBR Stock: Get Paid Every Month by This 8%-Yielder
August 18, 2025
Sabine Royalty’s August Payout More Than Doubles
In the income investing spotlight today: SBR stock.
Jed Clampett, the patriarch of the Clampett/Bodine clan on the classic 1960s TV show, “The Beverly Hillbillies.” was fortunate enough to strike it rich in oil and gas. He did so entirely by mistake—crude bubbled up from the ground while he was shooting at a rabbit.
For virtually everyone else who has ever worked in oil and gas, it’s been a lot tougher to find oil. And once you do find it, it’s expensive to extract. For offshore wells, it can cost as much as $100.0 million per well. For onshore wells, you’ll need at least $6.0 million to get things started. (Source: “How Much Does It Cost to Drill an Oil Well? A Comprehensive Overview of Expenses Involved,” Energy Field Invest, October 8, 2025.)
Instead of spending millions to wildcat, an investor could instead look at Sabine Royalty Trust (NYSE:SBR), a midstream oil and gas company.
Dallas-Texas-based Sabine Royalty Trust is an oil and gas trust that has royalty and mineral interests in producing and undeveloped oil and gas properties located in Florida, Louisiana, Mississippi, New Mexico, Oklahoma, and Texas. (Source: “About Us,” Sabine Royalty Trust, last accessed August 6, 2025.)
That means that it has no real operations or capital expenses. It was formed in 1982 by Sabine Corporation as a trust, so Sabine Royalty is primarily used as a flow-through entity for royalties. Virtually all of the royalty income it receives gets passed onto unitholders. That also means it isn’t exploring for or investing in new wells.
When the trust was formed in 1982, it had estimated reserves of approximately nine million barrels of oil and 62 billion cubic feet of gas. At that time, Sabine Royalty was expected to have a lifespan of nine to 10 years and be fully depleted by 1993.
That didn’t happen.
Since then, the trust has produced roughly 24 million barrels of oil and 307 billion cubic feet of gas. This has resulted in Sabine Royalty paying out roughly $1.7 billion to unitholders.
Based on current reserve estimates, the trust has total liquids of eight million barrels of oil worth future gross revenue of $625.8 million. Sabine Royalty Trust believes its properties still have a lifespan of more than eight years. (Source: “2024 Report of Reserves,” United States Securities and Exchange Commission, February 21, 2025.)
SBR Stock: Monthly Payout Increased to $0.74/Unit
Sabine Royalty’s monthly results are directly impacted by supply and demand and the price of oil and gas. As a result, the results and distributions change from month to month.
For the month of August, Sabine Royalty declared a monthly cash distribution of $0.744730 per unit, or $5.05 per unit on an annual basis, for a distribution yield of approximately eight percent. (Source: “SABINE ROYALTY TRUST ANNOUNCES MONTHLY CASH DISTRIBUTION FOR AUGUST 2025,” Sabine Royalty Trust, August 5, 2025.)
The distribution reflects the oil production from May 2025 and gas production for April 2025. So, the current price of oil and gas is not reflected in its financial results for around three months. Keep in mind that oil prices soared in June, so September’s distribution could be materially higher.
During the production period, the company generated 121,894 barrels of oil at $69.53 per barrel and 1.28 million cubic feet (Mcf) of gas at $2.77 per Mcf of gas. In the prior month, Sabine announced oil production of 42,748 barrels of oil at $65.46 per barrel and 940,600 Mcf of gas at $3.24 per Mcf of gas, resulting in an April payout of $0.345930 per unit.
As expected, SBR stock’s distribution changes from year to year, too. Take a look at the below table.
| Year | Distribution |
| 2024 | $5.45 |
| 2023 | $6.38 |
| 2022 | $8.61 |
| 2021 | $3.21 |
| 2020 | $2.39 |
So far this year Sabine Royalty stock has distributed $3.65 per unit. For comparison’s sake, over the first eight months of 2024, it paid out $3.76 per unit. (Source: “Cash Distributions,” Sabine Royalty Trust, last accessed August 6, 2025.)
Getting paid monthly is a great way to help ride out market volatility. And while there is a lot of uncertainty out there right now, SBR stock is doing exceptionally well. As of August 6, SBR stock is up 7.75% year to date and 20% on an annual basis.
Currently trading hands at $66.82 per unit, SBR stock has a lot of upside. It hit a record high of $91.10 in January, 2023.
Chart courtesy of StockCharts.com
The Lowdown on SBR Stock
Sabine Royalty Trust is an oil and gas midstream company with a reliable monthly dividend. As long as oil and gas are coming out of the ground, unitholders will get paid. In fact, SBR stock hasn’t missed a payout since 2005.
Most recently, in August, the trust increased its monthly payout approximately 117% on a sequential basis to $0.744730 per unit. SBR stock also been doing well, up 20% over the last 12 months.
There is growing optimism regarding SBR stock on Wall Street. When I last looked at the trust back in May, there were 129 institutional holders; today, this number has increased to 141. Some of the biggest holders include Fayez Sarofim & Co, Morgan Stanley and Two Sigma Investments, LP. (Source: “Sabine Royalty Trust (SBR),” Yahoo! Finance, last accessed August 6, 2025.)
