DALLAS, Dec. 18, 2020 /PRNewswire/ -- Simmons Bank,
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 $0.013413 per unit, payable on January 14, 2021, to unit holders of record on
December 31, 2020.
This month's distribution decreased slightly from the previous
month as the result of decreased prices for both oil and gas,
generally. General and administrative expenses were slightly
higher this month compared to the previous month. The Trust was
advised by Blackbeard that the Waddell Ranch properties were in a
deficit of $2.4 million for the month
of October, with the deficit increasing to be recovered to
$6.6 million in the months to come.
The Texas Royalty Properties reflected a decrease in both oil
and gas pricing offset by an increase in oil production but with a
decrease in gas production. This reflects the production
month of October.
WADDELL RANCH
In reporting October production of the Underlying Properties for
this month's press release, production for oil volumes was 50,396
bbls and was priced at about $36.37
per bbl. Production for gas volumes ( including gas liquids)
was 128,670 mcf and was priced at about $0.65 per mcf. Net revenue for the
underlying properties of the Waddell ranch was $2,179,814 for October. Lease Operating
Expenses were $1,664,737 after some
prior period adjustments and Capital Expenditures were $3,617,735 for October. This would put the
Trust's proceeds as a deficit of $2,326,993 for the month of October, leaving a
cost deficit cumulative of $6.6
million.
Blackbeard advised that through October
2020, approximately five new drill wells were initiated,
with three completions resulting of previous drilling.
TEXAS ROYALTY
PROPERTIES
Production for the underlying properties at the Texas Royalties
was 19,830 barrels of oil and 16,077 Mcf of gas. The
production for the Trust's allocated portion of the Texas Royalties
was 16,897 barrels of oil and 13,683 of gas. The average
price for oil was $37.88 per bbl and
for gas was $3.65 per Mcf. This
would primarily reflect production and pricing for the month of
October for oil and the month of September 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 $809,839. Deducted from these were taxes of
$113,969 resulting in a Net Profit of
$695,869 for the month of
October. 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 $661,076 to
this month's distribution.
Blackbeard Operating has advised the Trust of the second half of
2020 capital budget for the Waddell Ranch reflecting 9.4 new drill
wells at an estimated $7.5 million,
net to the Trust. Also, workovers at an estimated
$700,000, Plug & Abandonment
(P&A) of 8.3 wells at an estimated cost of $200,000 net to the trust, and facilities work of
$1.3 million net to the Trust. There
are 4.5 recompletions planned for the year of 2020 at an estimated
cost of $800,000, net to the Trust.
This would bring the total capital expenditure budget to
$10.6 million net to the trust of
drilling and projects for 2020.
|
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
|
50,396
|
128,670
|
37,797
|
96,503*
|
$36.37
|
$0.65**
|
|
Texas
Royalties
|
19,830
|
16,077
|
16,897
|
13,683*
|
$37.88
|
$3.65**
|
|
|
|
|
|
|
|
|
Prior
Month
|
|
|
|
|
|
|
|
Waddell
Ranch
|
49,410
|
151,151
|
37,058
|
113,363*
|
$36.51
|
$1.10**
|
|
Texas
Royalties
|
19,312
|
16,186
|
16,470
|
13,799*
|
$39.27
|
$3.57**
|
*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
$36,365 resulting in a distribution
of $625,166 to 46,608,796 units
outstanding, or $0.013413 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.
The 2020 tax information packets are expected to begin mailing
directly to unit holders in early March 2021. A copy of
Permian's 2020 tax information booklet is expected to be posted on
Permian's website by February 28,
2021. In addition to the tax booklet the Permian website
also offers two simple calculators for computing the income and
expense amounts and the cost depletion. To facilitate unit
holder tax preparation, both the income and expense and the
depletion calculators are expected to be updated on Permian's
website by late February 2021
for 2020 tax reporting.
The 2019 Annual Report with Form 10-K and the January 1, 2020 Reserve Summary is now available
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.
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SOURCE Permian Basin Royalty Trust