FORT WORTH, Texas, Aug. 21, 2020 /PRNewswire/ -- PermRock
Royalty Trust (NYSE: PRT) (the "Trust") today declared there will
be no monthly cash distribution to record holders of its trust
units representing beneficial interests in the Trust ("Trust
Units") as of August 31, 2020.
The net profits calculation was based principally upon production
during the month of June 2020 and
includes $45,428 in net profits
income to be distributed to the Trust, which amount will be used to
cover Trust administrative expenses.
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
(per Bbl)
|
Natural Gas
(per Mcf)
|
|
Bbls
|
Bbls/D
|
Mcf
|
Mcf/D
|
Current
Month
|
38,850
|
1.295
|
37,935
|
1,265
|
$35.75
|
$1.64
|
Prior
Month
|
17,201
|
555
|
51,084
|
1,648
|
$16.28
|
$0.93
|
Oil cash receipts for the properties underlying the Trust
totaled $1.39 million for the current
month, an increase of $1.11 million
from the prior month distribution period due to increased
production and oil prices in June
2020. Boaz Energy reported that normal production operations
resumed in early June 2020 following
the shut in of a material amount of production from the properties
underlying the Trust during portions of May
2020 due to oil price uncertainties.
Natural gas cash receipts for the properties underlying the
Trust totaled $0.06 million for the
current month, an increase of $0.01
million from the prior month's distribution period due to an
increase in sales volumes and natural gas prices.
Total direct operating expenses, including marketing, lease
operating expenses and workover expenses, were $0.64 million reflecting a $0.29 million increase from the prior month.
Severance and ad valorem taxes were $0.18
million.
Capital expenditures were $0.05
million in the current month reflecting a $0.02 million increase from the prior
month. Boaz Energy reported these expenditures primarily
related to drilling and completion operations on non-operated
properties in Crane County.
Boaz Energy informed the Trust that this month's net profits
calculation included $320,960 net to
the Trust of funds reserved by Boaz Energy to cover capital
obligations and expenses. Boaz Energy indicated $140,606 of those funds were applied as
recoupment of the $140,606
advancement Boaz Energy made to the Trust in July 2020, while the remaining $180,354 was reserved by Boaz Energy to cover
Boaz Energy's future capital obligations and
expenses.
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,
advancements or recoupments from distributions, and Boaz Energy's
operations with regard to producing leases, anticipated drilling
and completion activities and the resulting impact on the
computation of the Trust's net profits. The amount of cash received
or expected to be received by the Trust (and its ability to pay
distributions) has been and will continue to be directly affected
by the volatility in commodity prices, which have declined since
the beginning of 2020 in response to the economic effects of the
COVID-19 pandemic and the dispute over production levels between
Russia and the members of the
Organization of Petroleum Exporting Countries, including
Saudi Arabia, resulting in an
oversupply of crude oil and exacerbating the decline in crude oil
prices, and could remain low for an extended period of time.
Further, continued low oil and natural gas prices may continue to
result in no distributions to unitholders for an unknown period of
time. 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, 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 March 30,
2020 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