DALLAS, Oct. 20, 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
$0.012620 per unit, payable on
November 16, 2020, to unit holders of
record on October 30, 2020.
This month's distribution increased from the previous month as
the result of rebounding prices for oil but offset by lower prices
for gas across the industry. General and administrative
expenses were higher this month compared to the previous month. The
Trust was advised by Blackbeard that the Waddell Ranch properties
were in deficit for the month of August, providing details as
to production levels and pricing received. The Texas Royalty
Properties reflected an increase in both oil and gas pricing offset
by a decline in both oil and gas production. This reflects
the production month of August.
WADDELL RANCH
In reporting August production of the
Underlying Properties for this month's press release, production
for oil volumes was 51,002 bbls and was priced at about
$39.48 per bbl. Production for
gas volumes (including gas liquids) was 144,302 mcf and was priced
at about $0.87 per mcf. Net
revenue for the underlying properties of the Waddell ranch was
$2,434,130 for August. Lease
Operating Expenses were $2,015,965
and Capital Expenditures were $2,058,333 for August. This would put the
Trust's proceeds as a deficit of $1.2
million with the total excess cost deficit cumulative of
$2.1 million.
Blackbeard advised that through August
2020, approximately five new drills were initiated, with
three completions resulting of such. Also, two recompletions
were performed in August.
TEXAS ROYALTY
PROPERTIES
Production for the underlying properties at the
Texas Royalties was 18,786 barrels of oil and 12,593 Mcf of
gas. The production for the Trust's allocated portion of the
Texas Royalties was 15,995 barrels of oil and 10,606 of gas.
The average price for oil was $40.13
per bbl and for gas was $3.90 per
Mcf. This would primarily reflect production and pricing for
the month of August for oil and the month of July 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 $803,151. Deducted from these were taxes of
$116,188 resulting in a Net Profit of
$686,963 for the month of
August. 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 $652,615 to
this month's distribution.
Blackbeard Operating has advised the Trust of the second half of
2020 capital budget for the Waddell Ranch reflecting 9.4 new drill
wells at an estimated $7.5 million,
net to the Trust. Also, workovers at an estimated
$700,000, Plug & Abandonment
(P&A) of 8.3 wells at an estimated cost of $200,000 net to the trust, and facilities work of
$1.3 million net to the Trust. There
are 4.5 recompletions planned for the year of 2020 at an estimated
cost of $800,000, net to the Trust.
This would bring the total capital expenditure budget to
$10.6 million net to the trust of
drilling and projects for 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
|
51,002
|
144,302
|
38,252
|
108,227*
|
$39.48
|
$0.87**
|
|
Texas
Royalties
|
18,786
|
12,593
|
15,995
|
10,606*
|
$40.13
|
$3.90**
|
|
|
|
|
|
|
|
|
Prior
Month
|
|
|
|
|
|
|
|
Waddell
Ranch
|
49,622
|
131,393
|
37,217
|
98,545*
|
$37.38
|
$0.98**
|
|
Texas
Royalties
|
20,462
|
15,469
|
17,290
|
13,060*
|
$34.37
|
$3.21**
|
*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.
*** Blackbeard Operating reported that Waddell Ranch was in a
deficit for the month of July.
General and Administrative Expenses deducted for the month were
$64,811 resulting in a distribution
of $588,231 to 46,608,796 units
outstanding, or $0.012620 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 Annual Report with Form 10-K and the January 1, 2020 Reserve Summary is 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