DALLAS, May 18, 2021 /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 $0.021243 per unit, payable on June 14, 2021, to unit holders of record on
May 28, 2021.
This month's distribution increased slightly from the previous
month as the result of increased prices for both oil and gas offset
by decreased production on the Waddell Properties due to the end of
the February and weather-related outage. The Trust was advised by
Blackbeard that the Waddell Ranch properties were in a deficit of
$257,024 for the month of March with
the deficit increasing to be recovered to $8.2 million in the months to come. The
Texas Royalty Properties reflected an increase in both oil and gas
production along with an increase in both oil and gas
pricing. This reflects the production month of
March.
WADDELL RANCH
In reporting March production of the
Underlying Properties for this month's press release, production
for oil volumes was 74,075 bbls (gross) and was priced at about
$61.36 per bbl. Production for
gas volumes (including gas liquids) was 157,614 mcf (gross) and was
priced at about $3.38 per mcf.
Net revenue for the underlying properties of the Waddell ranch was
$4,922,291 (gross) for March.
Lease Operating Expenses were $1,895,949 (gross) and Capital Expenditures were
$3,369,041 (gross) for March.
This would put the Trust's proceeds as a deficit of $(257,024) (net) for the month of March, leaving
an excess cost deficit cumulative of $8.2
million (net). Resulting well count and production
relating to activity on the Waddell Ranch properties on a quarter
by quarter basis will be reflected in the Trust's quarterly 10Q
filing.
Blackbeard Operating has advised the Trust of the 2021 capital
budget of $86.6 million (gross),
($32.5 million net to the Trust) for
the Waddell Ranch proposing 91 (gross) drill wells, with 24 (gross)
recompletions.
TEXAS ROYALTY
PROPERTIES
Production for the underlying properties at the
Texas Royalties was 17,920 of oil and 12,115 Mcf of gas. The
production for the Trust's allocated portion of the Texas Royalties
was 15,902 barrels of oil and 10,598 of gas. The average
price for oil was $58.09 per bbl and
for gas was $6.86 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 $1,124,022. Deducted from these were taxes
of $5,630 resulting in a Net Profit
of $1,118,393 for the month of
March. 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 $1,062,472 to
this month's distribution.
|
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
|
74,075
|
157,614
|
55,556
|
118,211*
|
$61.36
|
$3.38**
|
Texas
Royalties
|
17,920
|
12,115
|
15,902
|
10,598*
|
$58.09
|
$6.86**
|
|
|
|
|
|
|
|
Prior
Month
|
|
|
|
|
|
|
Waddell
Ranch
|
50,757
|
190,570
|
38,068
|
142,928*
|
$58.09
|
$2.28**
|
Texas
Royalties
|
19,947
|
12,461
|
17,556
|
10,948*
|
$52.80
|
$5.89**
|
*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
$72,775 resulting in a distribution
of $990,121 to 46,608,796 units
outstanding, or $0.021243 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, 2021, attributable to the Trust from
the properties appraised are approximately 4.5 million barrels of
oil and 6.4 billion cubic feet of gas with a future net value of
approximately $170,446,000 with a discounted value of
$80,091,000.
With the estimated quantities of this year's reserve estimate of
4.5 million barrels of oil and 6.4 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 31, 2021 and is available to all
unitholders at this time on the SEC website.
The 2020 Annual Report with Form 10-K and the January 1, 2021 Reserve Summary are 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