DALLAS, June 20,
2023 /PRNewswire/ -- Argent Trust Company, as Trustee
of the Permian Basin Royalty Trust (NYSE: PBT) ("Permian") today
declared a cash distribution to the holders of its units of
beneficial interest of $0.052371 per
unit, payable on July 17, 2023, to
unit holders of record on June 30,
2023.
This month's distribution increased from the previous month
primarily due to an increase in the price of oil offset by a
decrease in both oil and gas production and gas pricing on the
Waddell Ranch Properties during the month of April.
WADDELL RANCH
In
reporting April production of the Underlying Properties for this
month's press release, production for oil volumes was 221,817
(gross) and was priced at about $77.35 per bbl. Production for gas volumes
(including gas liquids) was 722,843 Mcf (gross) and was priced at
about $0.41 per Mcf, which now
includes the value received from plant products and natural gas
liquids. Net revenue for the underlying properties of the Waddell
ranch was $16,636,068 (gross) for
April. Lease Operating Expenses were $3,542,941 (gross) and Capital Expenditures
(CAPEX) were $11,222,365 (gross) for
April, netting to a positive Net Profit Interest (NPI) of
$1,870,762. This would put the
trust's proceeds of 75% as a positive $1,403,072 (net) for the month of April. For the
month of April, there was an increase of CAPEX relating
specifically to the 2023 budgeted projects, primarily additional
fracking costs. Given that if current oil and gas pricing
continues, Waddell Ranch may or may
not be able to continue to contribute to the distribution in the
foreseeable future, to cover the ongoing CAPEX budget.
First sales received for the month of April 2023 wells were as follows: (all net to the
Trust), 1.9 new drill wells, including 0.0 horizontal wells, 3.8
recompleted wells. Waiting on completion, as of 4/30/2023, were
1.1drill wells, including 1.1 horizontal wells and 4.1 recompletion
wells. Also, 1.9 wells, plugged and abandoned, were completed.
Blackbeard has provided the projected 2023 capital expenditure
budget for the Waddell Ranch Properties to be an estimated
$96.8 million (net to the Trust) with
a projection of about 30.75 new drill wells and 45 recompletions
along with about 37.5 plug and abandoned wells. At this point
in time, approximately 32% of that budget has been incurred.
TEXAS ROYALTY
PROPERTIES
Production for the underlying properties at the
Texas Royalties was 17,415 barrels of oil and 22,217 Mcf of gas.
The production for the Trust's allocated portion of the Texas
Royalties was 15,559 barrels of oil and 19,827 Mcf of gas. The
average price for oil was $75.10 per
bbl and for gas was $4.07 which
includes significant NGL pricing per Mcf. This would primarily
reflect production and pricing for the month of April for oil and
the month of March for gas. These allocated volumes were impacted
by the pricing of both oil and gas. This production and pricing for
the underlying properties resulted in revenues for the Texas
Royalties of $1,398,153. Deducted
from these were taxes of $147,057
resulting in a Net Profit of $1,251,096 for the month of April. With the
Trust's Net Profit Interest (NPI) of 95% of the Underlying
Properties, this would result in net contribution by the Texas
Royalties of $1,188,541 to this
month's distribution.
|
Underlying
Properties
|
Net to Trust
Sales
|
|
|
|
Volumes
|
Volumes
|
Average
|
Price
|
|
Oil
(bbls)
|
Gas
(Mcf)
|
Oil
(bbls)
|
Gas
(Mcf)
|
Oil
(per
bbl)
|
Gas
(per Mcf)
|
Current
Month
|
|
|
|
|
|
|
Waddell
Ranch
|
221,817
|
722,843
|
166,363
|
542,132*
|
$77.35
|
$0.41**
|
Texas
Royalties
|
17,415
|
22,217
|
15,559
|
19,827*
|
$75.10
|
$4.07
|
|
|
|
|
|
|
|
Prior
Month
|
|
|
|
|
|
|
Waddell
Ranch
|
242,702
|
807,905
|
182,027
|
605,929*
|
$71.07
|
$1.35**
|
Texas
Royalties
|
16,939
|
21,165
|
15,079
|
18,807*
|
$72.21
|
$4.42
|
|
*These volumes are the
net to the trust, after allocation of expenses to Trust's net
profit interest, including any prior period adjustments.
|
**This pricing includes
sales of gas liquid products.
|
General and Administrative Expenses deducted for the month were
$160,011 resulting in a distribution
of $2,440,950 to 46,608,796 units
outstanding, or $0.052371 per
unit.
The worldwide market conditions continue to affect the pricing
for domestic production. It is difficult to predict what effect
these conditions will have on future distributions.
Permian Basin Royalty Trust, as it does after the end of each
year, had a year-end Reserve Report prepared in accordance with the
Securities and Exchange Commission's requirements. This
report provides an evaluation of the estimated asset value as of
December 31 of each year, which can
be used to estimate the remaining life of the Trust.
The estimated net proved reserves, as of January 1, 2023, attributable to the Trust from
the properties appraised are approximately 11.6 million barrels of
oil and 25.7 billion cubic feet of gas with a future net value of
approximately $1,205,228,000 with a discounted value of
$686,468,000.
With the estimated quantities of this year's reserve estimate of
11.6 million barrels of oil and 25.7 billion cubic feet of gas
remaining, it could be estimated that the Trust still has a life
span of 15 years. The report is an exhibit to the Trust's
Annual Report on Form 10-K that was filed on March 1, 2023 and is available to all unitholders
at this time on the SEC website.
The 2022 Annual Report with Form 10-K and the January 1, 2023 Reserve Summary are posted on
Permian's website. Permian's cash distribution history, current and
prior year financial reports, tax information booklets, and a link
to filings made with the Securities and Exchange Commission, all
can be found on Permian's website at
http://www.pbt-permian.com/. Additionally, printed
reports can be requested and are mailed free of charge.
Contact: Ron Hooper, Senior Vice President,
Argent Trust Company, Trustee, Toll Free – 1.855.588.7839
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SOURCE Permian Basin Royalty Trust