DALLAS, Nov. 19, 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 $0.013566 per unit, payable on December 14, 2020, to unit holders of record on
November 30, 2020.
This month's distribution increased slightly from the previous
month as the result of increased prices for gas, generally, but
offset by lower prices for oil. General and administrative
expenses were lower this month compared to the previous month. The
Trust was advised by Blackbeard that the Waddell Ranch properties
were in profit of $347,000 for the
month of September, however a deficit remains to be recovered from
the previous month's activity of approximately $4.3 million in the months to come. The
Texas Royalty Properties reflected a decrease in both oil and gas
pricing offset by an increase in both oil and gas production.
This reflects the production month of September.
WADDELL RANCH
In reporting September production of the Underlying Properties
for this month's press release, production for oil volumes was
49,410 bbls and was priced at about $36.51 per bbl. Production for gas volumes
( including gas liquids) was 151,151 mcf and was priced at about
$1.10 per mcf. Net revenue for
the underlying properties of the Waddell ranch was $2,228,348 for September. Lease Operating
Expenses were $745,752 after some
prior period adjustments and Capital Expenditures were $1,019,533 for September. This would put
the Trust's proceeds as a profit of $347,00 for the month of September, however the
deficit would still be in excess cost deficit cumulative of
$4.3 million.
Blackbeard advised that through September
2020, approximately three new drills were initiated, with
two completions resulting of such.
TEXAS ROYALTY
PROPERTIES
Production for the underlying properties at the Texas Royalties
was 19,312 barrels of oil and 16,186 Mcf of gas. The
production for the Trust's allocated portion of the Texas Royalties
was 16,470 barrels of oil and 13,799 of gas. The average
price for oil was $39.27 per bbl and
for gas was $3.57 per Mcf. This
would primarily reflect production and pricing for the month of
September for oil and the month of August 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 $816,233. Deducted from these were taxes of
$114,207 resulting in a Net Profit of
$702,027 for the month of
September. 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 $666,925 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
|
49,410
|
151,151
|
37,058
|
113,363*
|
$36.51
|
$1.10**
|
Texas
Royalties
|
19,312
|
16,186
|
16,470
|
13,799*
|
$39.27
|
$3.57**
|
|
|
|
|
|
|
|
Prior
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**
|
|
*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
$35,044 resulting in a distribution
of $632,337 to 46,608,796 units
outstanding, or $0.013566 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