Sabine Royalty Trust: Make Sure You Understand This Before You Invest

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Long PlayerInvesting Group LeaderFollow5ShareSavePlay(8min)Comment(1)SummarySabine Royalty Trust remains a hold due to complex tax implications.SBR’s exposure to natural gas could appeal to select investors. Natural gas prices are expected to strengthen.Distributions are variable.A potential recession and industry contraction suggest waiting for more constructive conditions.Oil prices are currently weak. Oil prices usually dominate distribution considerations. TheKaran/iStock via Getty Images As the last article noted, Sabine Royalty Trust (SBR) is a fairly complicated situation for investors. This is a passive entity that passes through taxes to the investor. That can be both good andThis article was written byLong Player24.83K FollowersFollowLong Player believes oil and gas is a boom-bust, cyclical industry. It takes patience, and it certainly helps to have experience. He has been focusing on this industry for years. He is a retired CPA, and holds an MBA and MA. He leads the investing group Oil & Gas Value Research. He looks for under-followed oil companies and out-of-favor midstream companies that offer compelling opportunities. The group includes an active chat room in which Oil & Gas investors discuss recent information and share ideas. Learn more.Analyst’s 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. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Disclaimer: I am not an investment advisor, and this article is not meant to be a recommendation of the purchase or sale of stock. Investors are advised to review all company documents and press releases to see if the company fits their own investment qualifications.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
