Sabine Royalty Trust: Leveraging Energy And Inflation

Apr. 25, 2022 3:04 AM ETSabine Royalty Trust (SBR)15 Comments
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Fade The Market


  • SBR has gained over 85% in the previous 1 year and over 50% YTD on the back of rising oil & gas prices.
  • The trust offers good dividends that are aligned with inflationary pressures and are sustainable with the fuel price projections.
  • Russia Ukraine crisis is putting inflationary pressure on the US, as well as increasing oil & gas prices.
  • I rate the stock a buy because it stands to benefit from rising inflation and oil & gas prices while distributing solid payments.

Rise in gasoline prices concept with double exposure of digital screen with financial chart graphs and oil pumps on a field.

peshkov/iStock via Getty Images

Investment Thesis

Sabine Royalty Trust (NYSE:SBR) has gained about 85% in the previous 52-weeks and around 50% YTD. As the trust distributes income received as royalties from its vested interests in producing and proven oil & gas properties in the

Data by YCharts
SBR distributions and oil prices 2020 and 2021

Sabine Royalty Trust Annual Report 2021

US Equity Sector Performance in High (+3% on Average) and Rising Inflation Environments, 1973-2021 | Average 12-month inflation-adjusted return,

Hartford Funds

Consumer Price Index Summary

Bureau of Labor Statistics

Data by YCharts

Data by YCharts

SBR Dividend Yield Summary

Seeking Alpha

SBR Dividend Growth Summary

Seeking Alpha

This article was written by

Fade The Market profile picture
"A fade is a contrarian investment strategy that involves trading against the prevailing trend."  We look at low-cap stocks that are not covered by mainstream investment firms in search of early opportunities spanning a variety of investment philosophies. The best opportunities are found when looking where others won't. Let us know if you want us to cover any specific tickers and we'll be sure to take a look! Formerly Moonshot Equity Analysis.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. Business relationship disclosure: This article was researched and written by Waleed M. Tariq.

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