Exhibit 99.1
Permian Basin Royalty Trust
PERMIAN
BASIN ROYALTY TRUST
ANNOUNCES AUGUST CASH DISTRIBUTION
DALLAS, Texas, August 21, 2023 Argent Trust Company, 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 $0.024535 per unit, payable on September 15, 2023, to unit holders of record on August 31, 2023.
This months distribution increased slightly from the previous month primarily due to a decrease in the pricing of both oil and gas
offset by an increase in both oil and gas production on the Texas Royalty Properties for this month. The Waddell Ranch Properties did not contribute to the distribution for the month of June.
WADDELL RANCH
In reporting June
production of the Underlying Properties for this months press release, production for oil volumes was 232,996 (gross) and was priced at about $68.45 per bbl. Production for gas volumes (including gas liquids) was 782,776 Mcf (gross) and was
priced at about $1.10 per Mcf, which now includes the value received from plant products and natural gas liquids. Net revenue for the underlying properties of the Waddell ranch was $16,008,164 (gross) for June. Lease Operating Expenses were
$4,575,594 (gross) and Capital Expenditures (CAPEX) were $10,081,006 (gross) for June, netting to a positive Net Profit Interest (NPI) of $1,351,564. This would put the trusts proceeds of 75% as a positive $1,013,673 (net), decreasing the
cumulative deficit 9to a negative $(1,762,024.69) for the month of June. For the month of June, there was a decrease of CAPEX relating specifically to the 2023 budgeted projects, with fracking costs declining from last month to this month, along
with other capital budget items resulted in a decrease to CAPEX. Given that if current oil and gas pricing continues, Waddell Ranch may or may not be able to continue to contribute to the distribution in the foreseeable future, to cover the ongoing
CAPEX budget. The Waddell Ranch Properties NPI did not contribute to this months distribution.
First sales received for the month
of June 2023 wells were as follows: (all net to the Trust), 2.6 new drill wells, including 1.5 horizontal wells, 3.8 recompleted wells. Waiting on completion, as of 6/30/2023, were 2.6 drill wells, including 0.8 horizontal wells and 6.0 recompletion
wells. Also, 0.4 wells, plugged and abandoned, were completed.
Blackbeard has provided the projected 2023 capital expenditure budget for
the Waddell Ranch Properties to be an estimated $96.8 million (net to the Trust) with a projection of about 30.75 new drill wells and 45 recompletions along with about 37.5 plug and abandoned wells. At this point in time, approximately 42% of
that budget has been incurred.
TEXAS ROYALTY PROPERTIES
Production for the underlying properties at the Texas Royalties was 19,131 barrels of oil and 23,417 Mcf of gas. The production for the
Trusts allocated portion of the Texas Royalties was 17,105 barrels of oil and 20,986 Mcf of gas. The average price for oil was $69.48 per bbl and for gas was $3.53 which includes significant NGL pricing per Mcf. This would primarily reflect
production and pricing for the month of June for oil and the month of May 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 $1,411,994. Deducted from these were taxes of $139,675 resulting in a Net Profit of $1,272,319 for the month of June. With the Trusts Net Profit Interest (NPI) of 95% of the Underlying Properties, this would result in net
contribution by the Texas Royalties of $1,208,703 to this months distribution.
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Underlying Properties |
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Net to Trust Sales |
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Volumes |
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Volumes |
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Average |
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Price |
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Oil (bbls) |
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Gas (Mcf) |
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Oil (bbls) |
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Gas (Mcf) |
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Oil (per bbl) |
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Gas (per Mcf) |
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Current Month |
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Waddell Ranch |
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232,996 |
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782,776 |
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174,747 |
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587,082 |
* |
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$ |
68.45 |
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$ |
1.10 |
** |
Texas Royalties |
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19,131 |
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23,417 |
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17,105 |
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20,986 |
* |
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$ |
69.48 |
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$ |
3.53 |
** |
Prior Month |
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Waddell Ranch |
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235,077 |
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839,630 |
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176,308 |
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629,723 |
* |
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$ |
69.38 |
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$ |
0.24 |
** |
Texas Royalties |
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15,730 |
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12,872 |
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13,926 |
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11,412 |
* |
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$ |
73.01 |
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$ |
5.79 |
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* |
These volumes are the net to the trust, after allocation of expenses to Trusts 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 $74,344 resulting in a distribution of $1,143,576 to 46,608,796 units
outstanding, or $0.024535 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.