DALLAS, June 20, 2017 /PRNewswire/ -- Permian Basin
Royalty Trust (NYSE: PBT) ("Permian") today declared a cash
distribution to the holders of its units of beneficial interest of
$0.041151 per unit, payable on
July 17, 2017, to unit holders of
record on June 30, 2017.
This month's distribution decreased slightly from the previous
month due to a decline in oil and gas production for the Waddell
Ranch 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 $1,187,892 to this month's distribution.
ConocoPhillips has notified the Trustee that they are evaluating
retroactive prior-period adjustments and expect that these will be
applied to next month's distribution.
The Texas Royalty Properties had an increase in oil and gas
production, by a slight decrease in pricing of oil
production. The Texas Royalty Properties contributed
$1,006,056 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
52,641 barrels of oil and 327,112 Mcf of gas. The production
for the Trust's allocated portion of the Waddell Ranch was 18,668
barrels of oil and 118,274 Mcf of gas. The average price for
oil was $47.23 per bbl and for gas
was $3.00 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
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
$3,468,559. Deducted from these
would be the Lease Operating Expense (LOE) of $1,270,862, taxes of $232,382, and Capital Expenditures (CAPEX) of
$381,459 totaling $1,884,703 resulting in a Net Profit of
$1,583,856 for the month of
May. 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 $1,187,892 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
|
52,641
|
327,112
|
18,668
|
118,274*
|
$47.23
|
$3.00**
|
Texas
Royalties
|
24,397
|
26,249
|
23,177
|
24,937*
|
$44.15
|
$5.43**
|
|
|
|
|
|
|
|
Prior
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**
|
|
*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
24,397 barrels of oil and 26,249 Mcf of gas. The production
for the Trust's allocated portion of the Texas Royalties was 23,177
barrels of oil and 24,937 Mcf of gas. The average price for
oil was $44.15 per bbl and for gas
was $5.43 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 $1,219,507. Deducted from these would be
taxes of $160,501 resulting in a Net
Profit of $1,059,006 for the month of
May. 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 $1,006,056 to this
month's distribution.
General and Administrative Expenses deducted for the month were
$276,966 resulting in a distribution
of $1,918,038 to 46,608,796 units
outstanding, or $0.041151 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/.
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SOURCE Permian Basin Royalty Trust