DALLAS, Jan. 19, 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
$0.011453 per unit, payable on
February 12, 2021, to unit holders of
record on January 29, 2021.
This month's distribution decreased slightly from the previous
month as the result of increased general and administrative
expense. However, production and pricing for both oil and gas on
the Waddell properties increased for the month of November. General
and administrative expenses were slightly higher this month
compared to the previous month. The Trust was advised by Blackbeard
that the Waddell Ranch properties were in a deficit of $1.1 million for the month of November, with the
deficit increasing to be recovered to $7.6
million in the months to come. The Texas Royalty Properties
reflected a decrease in oil pricing offset by an increase in gas
pricing but with a decrease in both oil and gas
production. This reflects the production month of
November.
WADDELL RANCH
In reporting November production of the
Underlying Properties for this month's press release, production
for oil volumes was 57,767 bbls and was priced at about
$38.22 per bbl. Production for
gas volumes ( including gas liquids) was 178,972 mcf and was priced
at about $0.90 per mcf. Net
revenue for the underlying properties of the Waddell ranch was
$2,716,375 for November. Lease
Operating Expenses were $893,986
after some prior period adjustments and Capital Expenditures were
$3,575,598 for November. This
would put the Trust's proceeds as a deficit of $1,014,907 for the month of November, leaving a
cost deficit cumulative of $7.6
million.
Blackbeard advised that through November
2020, approximately two new drill wells were initiated, with
three completions resulting of previous drilling.
TEXAS ROYALTY
PROPERTIES
Production for the underlying properties at the
Texas Royalties was 18,638 barrels of oil and 13,094 Mcf of
gas. The production for the Trust's allocated portion of the
Texas Royalties was 15,734 barrels of oil and 11,038 of
gas. The average price for oil was $37.41 per bbl and for gas was $4.01 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 $749,816. Deducted
from these were taxes of $111,404
resulting in a Net Profit of $638,412
for the month of November. 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 $606,491 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
|
55,767
|
178,972
|
41,825
|
134,229*
|
$38.22
|
$0.90**
|
Texas
Royalties
|
18,638
|
13,094
|
15,734
|
11,055*
|
$37.41
|
$4.01**
|
|
|
|
|
|
|
|
Prior
Month
|
|
|
|
|
|
|
Waddell
Ranch
|
50,396
|
128,670
|
37,797
|
96,503*
|
$36.37
|
$0.65**
|
Texas
Royalties
|
19,830
|
16,077
|
16,897
|
13,683*
|
$37.88
|
$3.65**
|
*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
$73,069 resulting in a distribution
of $533,853 to 46,608,796 units
outstanding, or $0.011453 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 2020 tax information packets are expected to begin mailing
directly to unit holders in early March 2021. A copy of
Permian's 2020 tax information booklet is expected to be posted on
Permian's website by February 28,
2021. 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 2021 for 2020 tax reporting.
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