DALLAS, Jan. 21, 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 $0.043114 per unit, payable on February 14, 2020, to unit holders of record on
January 31, 2020.
This month's distribution increased from the previous month due
primarily to an increase in the pricing for oil production offset
by a decrease in production for both oil and gas and a decrease in
the pricing of gas on the Waddell Ranch. This reflects the
production month of November. Capital Expenditures increased to
reflect end of year facility work. Lease Operating Expenses (LOE)
for the Waddell Ranch properties increased this month to reflect
increased electricity rates and year end facilities work on the
Waddell Ranch for the year. The Texas Royalty Properties saw
an increase in the posting of production of oil and gas, primarily
due to the timing of receipts in the month of November.
Pricing for oil and gas production both increased for the Texas
Royalty Properties.
WADDELL RANCH
Production for the underlying properties
at the Waddell Ranch was 49,150 barrels of oil and 330,903 Mcf of
gas. The production for the Trust's allocated portion of the
Waddell Ranch was 13,009 barrels of oil and 87,452 Mcf of
gas. The average price for oil was $60.81 per bbl and for gas was $1.47 per Mcf. This would primarily reflect
production and pricing for the month of November for oil and the
month of October 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
$3,475,878. Deducted from these
would be the Lease Operating Expense (LOE) of $1,707,901, taxes of $255,639 and Capital Expenditures (CAPEX) of
$342,473 totaling $2,306,013 resulting in a Net Profit of
$1,169,865 for the month of
December. 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 $877,398 to this month's distribution.
ConocoPhillips has advised the Trust of the 2020 budget for the
Waddell Ranch reflecting no new drill wells on the Waddell
Ranch. Also, base well work of $700,000, gross, ($300,000 net to the trust) and facilities work of
$700,000, gross, ($300,000 net to the Trust) bringing a total of
$1.4 million, gross, ($600,000 to the trust) of projects for 2020.
There are no recompletions planned for the year of 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
|
49,150
|
330,903
|
13,009
|
87,452*
|
$60.81
|
$1.47**
|
|
Texas
Royalties
|
25,046
|
14,854
|
21,752
|
12,908*
|
$55.62
|
$4.51**
|
|
|
|
|
|
|
|
|
Prior
Month
|
|
|
|
|
|
|
|
Waddell
Ranch
|
51,466
|
293,012
|
17,826
|
119,167*
|
$52.70
|
$1.60**
|
|
Texas
Royalties
|
19,367
|
13,815
|
16,283
|
11,625*
|
$53.15
|
$4.06**
|
*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 25,046 barrels of oil and 14,854 Mcf of
gas. The production for the Trust's allocated portion of the
Texas Royalties was 21,752 barrels of oil and 12,908 of gas.
The average price for oil was $55.62
per bbl and for gas was $4.51 per
Mcf. This would primarily reflect production and pricing for
the month of November for oil and the month of October 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 $1,460,057. Deducted from these were taxes
of $180,913 resulting in a Net Profit
of $1,279,145 for the month of
December. 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 $1,215,187
to this month's distribution.
General and Administrative Expenses deducted for the month were
$84,496 resulting in a distribution
of $2,009,534 to 46,608,796
units outstanding, or $0.043114 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 2019 tax information packets are expected to begin mailing
directly to unit holders in early March 2020. A copy of
Permian's 2019 tax information booklet is expected to be posted on
Permian's website by February 28,
2020. 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 2020 for
2019 tax reporting.
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 Permian's
website at http://www.pbt-permian.com/.
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SOURCE Permian Basin Royalty Trust