DALLAS, Nov. 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 $0.022527 per unit, payable on December 14, 2021, to unit holders of record on
November 30, 2021.
This month's distribution increased slightly from the previous
month as the result of a slight increase in the pricing for oil
for the Texas Royalty Properties during the month of
September. Currently, only the Texas Royalty Properties are
contributing to the monthly distribution.
Since the Waddell Ranch is in current deficit for the
foreseeable future, any increase or decrease of the distribution by
revenues received, will only be reflective of the activity of the
Texas Royalty Properties. The activity of the Waddell Ranch
will be discussed with the following narrative until it contributes
back to the distribution. This reflects the production month
of September.
WADDELL RANCH
In reporting August production of the Underlying Properties for
this month's press release, production for oil volumes was 120,643
(gross) and was priced at about $70.09 per bbl. Production for gas volumes
(including gas liquids) was 265,108 mcf (gross) and was priced at
about $6.36 per mcf, which now
includes the value received from plant products and natural gas
liquids. Net revenue for the underlying properties of the
Waddell ranch was $9,706,724 (gross)
for September. Lease Operating Expenses were $2,669,276 (gross) and Capital Expenditures were
$7,995,429 (gross) for September.
This would put the Trust's proceeds as a negative $718,486 (net) for the month of September,
leaving an excess cost deficit cumulative of $18.8 million (net).
There have been a lot of questions and requests for
clarification of the activity of the 2021 budget regarding the
Waddell Ranch. The Trustee would like to simplify the understanding
of the impact of that activity on the unitholders of the
Trust. First, Blackbeard is the majority operator the Waddell
Ranch. They have approximately 51% ownership while other partners
have the remaining 49% of working interest ownership. Of
Blackbeard's 51% ownership, it is burden by the Trust's net profit
interest (NPI) of 75% of Blackbeard's ownership, resulting in the
Trust's net ownership of approximately 38% in the certain
properties in the Waddell Ranch. So, when the Gross Budget
are numbers are discussed they are speaking of the entire
project. However, for the relevancy to the unitholder's
understanding, only the numbers net to the Trust will be presented
going forward.
The original 2021 budget for Waddell Ranch, net to the Trust,
was conservatively projected to be $32.5
million, with approximately 34.1 new drill wells, 9
recompletions and 32.6 plug and abandonments for the year. However,
Blackbeard, after reviewing the various potential of the Waddell
Ranch, has increased the 2021 budget to $51
million for the year, with 32.25 drill wells and 52.5
recompletions on properties relating to the Trust's ownership,
along with the projected 32.6 plugged and abandonment wells.
In their view, there was lot of potential production behind pipe
and the recompletions program would be very cost effective.
As of the November reporting, approximately $45.3 million has been spent along this new
budget.
Resulting producing well count relating to activity on the
Waddell Ranch properties (net to the Trust) through the month of
September reflects 36.1 recompletion wells that are producing and
with first sales. New producing drill well count (net to the Trust)
through the month of September were 18.4 new drill wells that are
producing and with first sales. As of September, there are
22.2 new drill wells waiting on completion along with 30.5
recompletions that are in progress, all net to the Trust.
As of the end of September, approximately $36.6 million of revenue has been generated by
the 2020-2021 budgeted projects.
TEXAS ROYALTY
PROPERTIES
Production for the underlying properties at the Texas Royalties
was 17,123 of oil and 10,650 Mcf of gas. The production for
the Trust's allocated portion of the Texas Royalties was 15,191
barrels of oil and 9,442 of gas. The average price for oil
was $68.94 per bbl and for gas was
$7.36 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 $1,258,759. Deducted from these were taxes
of $130,194 resulting in a Net Profit
of $1,128,566 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 $1,072,138
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
|
120,643
|
265,108
|
90,482
|
198,831*
|
$70.09
|
$6.36**
|
Texas
Royalties
|
17,123
|
10,650
|
15,191
|
9,442*
|
$68.94
|
$7.36**
|
|
|
|
|
|
|
|
Prior
Month
|
|
|
|
|
|
|
Waddell
Ranch
|
108,522
|
257,857
|
81,392
|
193,393*
|
$66.66
|
$6.38***
|
Texas
Royalties
|
17,941
|
9,871
|
15,927
|
8,757*
|
$66.39
|
$8.01**
|
*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.
***Reflects pricing correction from October announcement
reporting.
General and Administrative Expenses deducted for the month were
$22,621 resulting in a distribution
of $1,049,981 to 46,608,796
units outstanding, or $0.022527 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 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