Zegnus Deuce
Long/short equity, value, special situations, event-driven

Sabine Is Too Expensive Above $50

Sabine Royalty Trust (NYSE:SBR) was created in 1982 to hold royalty interests on oil and gas properties located in Florida, Louisiana, Mississippi, New Mexico, Oklahoma and Texas. Initially, the trust's life was expected to be 9-10 years; however, the energy assets continue to produce for more than 30 years after its creation. As of January 1st, 2013, independent consultants estimate the trust's properties have reserves of 6.5M barrels of oil and 41.6B cubic feet of gas - a year-over-year increase of 12% in oil reserves and a 14% increase in natural gas reserves. The trust generates approximately 42% of its revenues from natural gas production and 58% from oil production.

Sabine has gained 30% year-to-date due to the...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details