DALLAS, Feb. 15, 2019 /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
$0.031624 per unit, payable on
March 14, 2019, to unit holders of
record on February 28, 2019.
This month's distribution decreased from the previous month due
primarily to a decrease of pricing for oil production of
approximately 15% from the previous month's pricing. Gas
pricing increased approximately 20% for production on the Waddell
Ranch properties. Both Lease Operating Expenses (LOE) and
Capital Expenditures (CapEX) decreased by approximately by 15%
relating to drilling preparation and increased maintenance
costs. These expenditures compared to the previous month,
which in turn, through the allocation of the Trust's production
from the underlying properties, resulted in a decrease in both oil
and gas production allocated to the Trust's interest for the
Waddell Ranch properties. The Texas Royalty Properties saw a
decrease in the production of both oil and gas in addition to a
decrease in the pricing of oil and gas for the month.
WADDELL RANCH
Production for the underlying properties at the Waddell Ranch was
48,625 barrels of oil and 332,340 Mcf of gas. The production
for the Trust's allocated portion of the Waddell Ranch was 6,688
barrels of oil and 49,635 Mcf of gas. The average price for
oil was $41.21 per bbl and for gas
was $3.53 per Mcf. This would
primarily reflect production and pricing for the month of December
for oil and the month of November 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
$3,177,277. Deducted from these
would be the Lease Operating Expense (LOE) of $2,138,860, taxes of $240,161 and Capital Expenditures (CAPEX) of
$220,165 totaling $2,599,186 resulting in a Net Profit of
$578,091 for the month of
January. 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 $433,568 to this month's distribution.
ConocoPhillips has advised the Trust of the 2019 budget for the
Waddell Ranch reflecting 2 new drill wells into the Wolfcamp
formation at an estimated $2.5
million (gross), ($1.2 million
net to the Trust), anticipated to be completed in early 2019.
Also, base well work of $1.6 million
(gross), ($0.7 million net to the
trust) and facilities work of $4.2
million (gross), ($1.8 million
net to the Trust) bringing a total of $6.6
million (gross), ($2.97
million to the trust) of drilling and projects for 2019.
There are no recompletions planned for the wear of 2019.
|
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
|
48,625
|
332,340
|
6,688
|
49,635*
|
$41.21
|
$3.53**
|
Texas
Royalties
|
21,232
|
24,374
|
20,170
|
23,155*
|
$43.02
|
$4.86**
|
|
|
|
|
|
|
|
Prior Month
|
|
|
|
|
|
|
Waddell
Ranch
|
49,017
|
313,405
|
8,017
|
54,217*
|
$48.67
|
$2.96**
|
Texas
Royalties
|
23,160
|
26,504
|
19,999
|
22,889*
|
$52.29
|
$5.98**
|
|
*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
21,232 barrels of oil and 24,374 Mcf of gas. The production
for the Trust's allocated portion of the Texas Royalties was 20,170
barrels of oil and 23,155 of of gas. The average price for
oil was $43.02 per bbl and for gas
was $4.86 per Mcf. This would
primarily reflect production and pricing for the month of December
for oil and the month of November 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 $1,031,948. Deducted from these were taxes
of $36,280 and adding back in the
reimbursement of ad valorem taxes of $216, 947 resulting in a Net Profit of
$1,212,615 for the month of
January. 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 $1,151,984 to
this month's distribution.
General and Administrative Expenses deducted for the month were
$114,356 resulting in a distribution
of $1,473,958 to 46,608,796 units
outstanding, or $0.031624 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 2018 tax information packets are expected to begin mailing
directly to unitholders in early March 2019. A copy of
Permian's 2018 tax information booklet is expected to be posted on
Permian's website by February 28,
2019. 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
unitholder tax preparation, both the income and expense and the
depletion calculators are expected to be updated on Permian's
website by the end of February for 2018 tax reporting.
Permian's cash distribution history, current and prior year
financial reports, including a summary of reserves as of 1/1/2018,
tax information booklets, and a link to filings made with the
Securities and Exchange Commission, all can be found on its website
at http://www.pbt-permian.com/.
View original
content:http://www.prnewswire.com/news-releases/permian-basin-royalty-trust-announces-february-cash-distribution-300796632.html
SOURCE Permian Basin Royalty Trust