DALLAS, May 20, 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
$0.035276 per unit, payable on
June 14, 2019, to unit holders of
record on May 31, 2019.
This month's distribution increased from the previous month due
primarily to an increase of oil production and gas
production. This reflects the production month of March,
which would be longer by three production days. Oil pricing
increased, offset by a decline in pricing for gas on the Waddell
Ranch. Capital Expenditures declined to reflect less activity due
to the completion of drilling of the additional wells on the
Waddell Ranch Properties. Lease Operating Expenses (LOE) for the
Waddell Ranch properties increased this month to reflect the
resulting additional work being performed. The Texas Royalty
Properties saw a decrease in the production of oil and gas,
primarily due to the timing of receipt of payment of certain
revenue due to some changes in lease operators. This decrease
in production is offset by an increase in pricing for oil
production, with a slight decrease in gas pricing for the Texas
Royalty Properties.
WADDELL RANCH
Production for the underlying properties
at the Waddell Ranch was 52,548 barrels of oil and 274,457 Mcf of
gas. The production for the Trust's allocated portion of the
Waddell Ranch was 12,051 barrels of oil and 64,726 Mcf of
gas. The average price for oil was $56.15 per bbl and for gas was $2.41 per Mcf. This would primarily reflect
production and pricing for the month of March for oil and the month
of February 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
$3,613,446. Deducted from these
would be the Lease Operating Expense (LOE) of $1,808,496, taxes of $252,187 and Capital Expenditures (CAPEX) of
$490,192 totaling $2,550,875 resulting in a Net Profit of
$1,062,571 for the month of
April. 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 $796,928 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), including $1.7
million, gross, ($.8 million
net to the trust), of 2018 carryover budget, 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 year
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
|
52,548
|
274,457
|
12,051
|
64,726*
|
$56.15
|
$2.41**
|
Texas
Royalties
|
20,236
|
11,913
|
17,096
|
10,063*
|
$51.88
|
$6.50**
|
|
|
|
|
|
|
|
Prior
Month
|
|
|
|
|
|
|
Waddell
Ranch
|
42,945
|
254,542
|
1,464
|
11,260*
|
$48.71
|
$3.15**
|
Texas
Royalties
|
21,074
|
18,009
|
17,683
|
15,251*
|
$46.36
|
$5.09**
|
|
*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 20,236 barrels of oil and 11,913 Mcf of
gas. The production for the Trust's allocated portion of the
Texas Royalties was 17,096 barrels of oil and 10,063 of gas.
The average price for oil was $51.88
per bbl and for gas was $6.50 per
Mcf. This would primarily reflect production and pricing for
the month of March for oil and the month of February 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 $1,127,277. Deducted from these were taxes
of $163,377 resulting in a Net Profit
of $963,900 for the month of
April. 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 $915,705 to
this month's distribution.
General and Administrative Expenses deducted for the month were
$69,746 resulting in a distribution
of $1,644,194 to 46,608,796 units
outstanding, or $0.035276 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.
Permian Basin Royalty Trust, as it does after the end of each
year, had a year-end Reserve Report prepared in accordance with the
Securities and Exchange Commission's requirements. This
report provides an evaluation of the estimated asset value as of
December 31 of each year, which can
be used to estimate the remaining life of the Trust.
The estimated net proved reserves, as of January 1, 2019, attributable to the Trust from
the properties appraised are approximately 4.261 million barrels of
oil and 7.904 billion cubic feet of gas with a future net value of
approximately $270,462,000 with a
discounted value of $139,226,000.
With the estimated quantities of this year's reserve estimate of
4.261 million barrels of oil and 7.904 billion cubic feet of gas
remaining, it could be estimated that the Trust still has a life
span of 9 to 11 years. The report is an exhibit to the
Trust's Annual Report on Form 10-K that was filed on March 18, 2019 and is available to all
unitholders at this time on the SEC website.
Permian's cash distribution history, current and prior year
financial reports, including a summary of reserves as of 1/1/2019,
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/.
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SOURCE Permian Basin Royalty Trust