DALLAS, March 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 $0.011525 per unit, payable on April 14, 2021, to unit holders of record on
March 31, 2021.
This month's distribution decreased slightly from the previous
month as the result of decreased production accounting due to the
end of the February offset by increased prices for both oil and
gas. The Trust was advised by Blackbeard that the Waddell Ranch
properties were in a profit of $48,225 for the month of January, however with
the deficit decreasing to be recovered to $7.8 million in the months to come. The
Texas Royalty Properties reflected a decrease in both oil and gas
production offset by an increase in both oil and gas
pricing. This reflects the production month of January.
WADDELL RANCH
In reporting January production of the
Underlying Properties for this month's press release, production
for oil volumes was 61,828 bbls and was priced at about
$50.16 per bbl. Production for
gas volumes (including gas liquids) was 218,204 mcf and was priced
at about $2.20 per mcf. Net
revenue for the underlying properties of the Waddell ranch was
$3,918,055 for January. Lease
Operating Expenses were $929,338 and
Capital Expenditures were $2,924,417
for January. This would put the Trust's proceeds as a profit
of $48,225 for the month of January,
leaving an excess cost deficit cumulative of $7.8 million.
TEXAS ROYALTY
PROPERTIES
Production for the underlying properties at the
Texas Royalties was 16,211 of oil and 8,828 Mcf of gas. The
production for the Trust's allocated portion of the Texas Royalties
was 13,882 barrels of oil and 7,560 of gas. The average price
for oil was $49.13 per bbl and for
gas was $5.68 per Mcf. This
would primarily reflect production and pricing for the month of
January for oil and the month of December 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 $846,496. Deducted from these were taxes of
$115,187 resulting in a Net Profit of
$731,309 for the month of
January. 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 $694,743 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
|
61,828
|
218,264
|
46,371
|
163,653*
|
$50.16
|
$2.20**
|
Texas
Royalties
|
16,211
|
8,828
|
13,882
|
7,560*
|
$49.13
|
$5.68**
|
|
|
|
|
|
|
|
Prior
Month
|
|
|
|
|
|
|
Waddell
Ranch
|
60,513
|
198,389
|
45,385
|
148,792*
|
$44.12
|
$2.61**
|
Texas
Royalties
|
18,861
|
13,349
|
17,918
|
12,682*
|
$43.60
|
$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
$157,976 resulting in a distribution
of $537,179 to 46,608,796 units
outstanding, or $0.011525 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 were mailed directly to unit
holders the first week of March 2021. A copy of the 2020 tax
information booklet has been posted on Permian's website. 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. Both calculators have been updated 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