FORT WORTH, Texas, Feb. 18, 2020 /PRNewswire/ -- PermRock Royalty
Trust (NYSE:PRT) (the "Trust") today declared a monthly cash
distribution to record holders of its trust units representing
beneficial interests in the Trust ("Trust Units") as of
February 28, 2020, and payable on
March 13, 2020 in the amount of
$621,858.66 ($0.051115 per Trust Unit), based principally upon
production during the month of December
2019.
The following table displays underlying oil and natural gas
sales volumes and average received wellhead prices attributable to
the current and prior month net profits interest calculations:
|
Underlying Sales
Volumes
|
Average
Price
|
|
Oil
|
Natural
Gas
|
Oil
|
Natural
Gas
|
|
Bbls
|
Bbls/D
|
Mcf
|
Mcf/D
|
(per
Bbl)
|
(per
Mcf)
|
Current
Month
|
46,231
|
1,491
|
48,848
|
1,576
|
$58.07
|
$2.13
|
Prior
Month
|
43,639
|
1,455
|
49,694
|
1,656
|
$54.86
|
$1.99
|
Oil cash receipts for the properties underlying the Trust
totaled $2.68 million for the current
month, an increase of $0.29 million
from the prior month distribution period. This increase was
due to an increase in sales volumes and oil prices.
Natural gas cash receipts for the properties underlying the
Trust totaled $0.10 million for the
current month, which was essentially unchanged from the prior month
distribution period.
Total direct operating expenses, including marketing, lease
operating expenses and workover expenses, were $0.44 million, a decrease of $0.24 million from the prior month. Severance and
ad valorem taxes were $0.15
million.
Capital expenditures were $0.48
million in the current month, a decrease of $0.32 million from the prior month. Boaz
Energy indicated that the decrease was primarily due to a reduction
in Boaz-operated drilling and completion activity in Terry County, Texas. As previously reported,
Boaz Energy advanced funds to the Trust to cover capital
obligations in prior months. Boaz Energy indicated this
month's net profits calculation included $625,000 ($500,000
net to the Trust) in recoupment of the previously advanced
amounts. Boaz Energy intends to recoup the balance of
$322,000 in development expenses over
the next two to four months.
The Trustee has retained $100,000
from the distributions the Trust received in February 2020 as a cash reserve. Pursuant
to the amended and restated Trust Agreement, dated as of
May 4, 2018, by and among Boaz
Energy, the Trustee and Wilmington Trust, National Association (the
"Trust Agreement"), the Trustee was authorized to begin retaining
cash up to an aggregate of $1.0
million from the distributions the Trust receives to be used
by the Trust in the event that its cash on hand (including
available cash reserves) is not sufficient to pay ordinary course
administrative expenses as they become due. Accordingly, the
Trustee will retain cash from distributions in amounts as the
Trustee determines, but not less than $25,000 per month or more than $100,000 per month until such time as the Trust's
cash reserve equals or exceeds $1.0
million. Including the amount retained this month, the
Trust's cash reserve totals $800,000.
About PermRock Royalty Trust
PermRock Royalty Trust is a Delaware statutory trust formed by Boaz Energy
II, LLC ("Boaz Energy") to own a net profits interest representing
the right to receive 80% of the net profits from the sale of oil
and natural gas production from certain properties owned by Boaz
Energy in the Permian Basin of West Texas. For more
information on PermRock Royalty Trust, please visit our website at
www.permrock.com.
Cautionary Statement Concerning Forward-Looking
Statements
Certain statements contained in this press release constitute
"forward-looking statements." These forward-looking statements
represent the Trust's and Boaz Energy's expectations or beliefs
concerning future events, and it is possible that the results
described in this press release will not be achieved. These
forward-looking statements include the amount and date of any
anticipated distribution to unitholders, future cash retentions or
recoupments from distributions, and Boaz Energy's anticipated
drilling and completion activities and the resulting impact on the
computation of the Trust's net profits. The anticipated
distribution is based, in part, on the amount of cash received or
expected to be received by the Trust from Boaz Energy with respect
to the relevant period. Any differences in actual cash receipts by
the Trust could affect this distributable amount. Other important
factors that could cause actual results to differ materially from
those projected in the forward-looking statements include expenses
of the Trust and reserves for anticipated future expenses, Boaz
Energy's ability to obtain the required permits for anticipated
drilling activities, uncertainties in estimating the cost of
drilling activities and risks associated with drilling and
operating oil and natural gas wells.
Any forward-looking statement speaks only as of the date on
which it is made, and, except as required by law, the Trust does
not undertake any obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise. New factors emerge from time to time,
and it is not possible for the Trust to predict all such factors.
When considering these forward-looking statements, you should keep
in mind the risk factors and other cautionary statements in the
Trust's Annual Report on Form 10-K filed with the Securities and
Exchange Commission (the "SEC") on April 1,
2019 and other public filings filed with the SEC. The risk
factors and other factors noted in the Trust's public filings with
the SEC could cause its actual results to differ materially from
those contained in any forward-looking statement. The Trust's filed
reports are or will be available over the Internet at the SEC's
website at http://www.sec.gov.
Contact:
|
PermRock Royalty
Trust
|
|
Simmons Bank,
Trustee
|
|
Lee Ann Anderson,
Senior Vice President
|
|
Toll-free: (855)
588-7839
|
|
Fax: (817)
298-5579
|
|
Website:
www.permrock.com
|
|
e-mail:
trustee@permrock.com
|
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SOURCE PermRock Royalty Trust