DALLAS, May 19, 2017 /PRNewswire/ -- Permian Basin
Royalty Trust (NYSE: PBT) ("Permian") today declared a cash
distribution to the holders of its units of beneficial interest of
$0.052169 per unit, payable on
June 14, 2017, to unit holders of
record on May 31, 2017.
This month's distribution decreased from the previous month due
to a decrease in the pricing of oil and gas production for the
combined Waddell Ranch and Texas Royalty Properties.
On January 15, 2017, a fire
occurred due to a lightning strike on the Tubb McKnight Water
Station which disrupted production of both oil and gas. There were
no injuries relating to this incident. The resumption of production
on those properties did not resume until January 31. Most of those wells are back on
production as of February 28, and
will continue to be producing. The full restoration of this
water station should be completed by the end of May. The
Waddell Ranch Properties contributed $1,600,234 to this month's distribution.
The Texas Royalty Properties had a decrease in oil and gas
production, along with a slight decrease in pricing of oil and gas
production. The Texas Royalty Properties contributed
$964,698 to this month's
distribution.
Capital expenditures on the Waddell Ranch continue to be lower
than previous months, with it being mostly facility projects for
the remainder of the year. However, additional expense will be
incurred bringing the Tubb McKnight Water Station back on line of
approximately $1,228,000 (gross) to
the entire project of working interest owners. It is not clear
at this time as to what the cost to Trust will be until it is
incurred and charged to the Trust. It is anticipated that
these expenses will be forthcoming in the following months.
WADDELL RANCH
Production for the underlying properties
at the Waddell Ranch was 59,951 barrels of oil and 354,337 Mcf of
gas. The production for the Trust's allocated portion of the
Waddell Ranch was 26,625 barrels of oil and 159,066 Mcf of gas. The
average price for oil was $45.86 per
bbl and for gas was $2.81 per Mcf.
This would primarily reflect production and pricing for the month
of March for oil and the month of February for gas. These allocated
volumes were significantly impacted by the pricing of both oil and
gas.
This production and pricing for the Underlying Properties
resulted in revenues for the Waddell Ranch Properties of
$3,743,386. Deducted from these would
be the Lease Operating Expense (LOE) of $1,307,112, taxes of $245,596, and Capital Expenditures (CAPEX) of
$57,033 totaling $1,609,741 resulting in a Net Profit of
$2,133,645 for the month of
April. With the Trust's Net Profit Interest (NPI) of 75% of
the underlying properties, this would result in a net contribution
by the Waddell Ranch Properties of $1,600,234 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
|
59,951
|
354,337
|
26,625
|
159,066*
|
$45.86
|
$2.81**
|
Texas
Royalties
|
22,955
|
21,650
|
21,808
|
20,568*
|
$47.26
|
$4.58**
|
|
|
|
|
|
|
|
Prior
Month
|
|
|
|
|
|
|
Waddell
Ranch
|
54,502
|
299,656
|
25,250
|
140,438*
|
$49.02
|
$3.31**
|
Texas
Royalties
|
24,135
|
28,523
|
22,928
|
27,097*
|
$48.74
|
$4.63**
|
|
|
*
|
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.
|
TEXAS ROYALTY
PROPERTIES
Production for the underlying properties at the
Texas Royalties was 22,955 barrels of oil and 21,650 Mcf of gas.
The production for the Trust's allocated portion of the Texas
Royalties was 21,808 barrels of oil and 20,568 Mcf of gas. The
average price for oil was $47.26 per
bbl and for gas was $4.58 per
Mcf. This would primarily reflect production and pricing for
the month of March for oil and the month of February 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 $1,184,022. Deducted from these would be taxes of
$168,550 resulting in a Net Profit of
$1,015,472 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 $964,698 to this month's
distribution.
General and Administrative Expenses deducted for the month were
$134,325 resulting in a distribution
of $2,431,575 to 46,608,796 units
outstanding, or $0.052169 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, 2017, attributable to the Trust from
the properties appraised are approximately 4.5 million barrels of
oil and 8.5 billion cubic feet of gas with a future net value of
approximately $188,269,000 with a
discounted value of $98,077,000.
With the estimated quantities of this year's reserve estimate of
4.5 million barrels of oil and 8.5 billion cubic feet of gas
remaining, it could be estimated that the Trust still has a life
span of 9 to 10 years. The report is an exhibit to the Trust's
Annual Report on Form 10-K that was filed on March 10, 2017 and is available to all
unitholders at this time on the SEC website.
Permian's cash distribution history, current and prior year
financial reports and tax information booklets, a link to filings
made with the Securities and Exchange Commission and more can be
found on its website at http://www.pbt-permian.com/. The new
toll free customer service number for the trust is
1-855-588-7839.
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SOURCE Permian Basin Royalty Trust