DALLAS, Dec. 20, 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
$0.024625 per unit, payable on
January 14, 2022, to unit holders of
record on December 31, 2021.
This month's distribution increased slightly from the previous
month as the result of an increase in the pricing for oil for
the Texas Royalty Properties during the month of October.
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
October.
WADDELL RANCH
In reporting October production of the
Underlying Properties for this month's press release, production
for oil volumes was 133,626 (gross) and was priced at about
$80.18 per bbl. Production for
gas volumes (including gas liquids) was 369,258 mcf (gross) and was
priced at about $8.89 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 $13,412,816 (gross)
for October. Lease Operating Expenses were $2,111,672 (gross) and Capital Expenditures were
$6,522,153 (gross) for October. This
would put the Trust's proceeds as a positive $3,584,243 (net) for the month of October,
leaving an excess cost deficit cumulative of $15.2 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 $49.9
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
October reflects 41.0 recompletion wells that are producing and
with first sales. New producing drill well count (net to the Trust)
through the month of October were 22.9 new drill wells that are
producing and with first sales. As of October, there are 7.9
new drill wells waiting on completion along with 8.7 recompletions
that are in progress, all net to the Trust. Blackbeard has
advised that 3 horizontal wells were drilled and completed.
As of the end of October, approximately $47.4 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 18,096 of oil and 12,056 Mcf of gas. The
production for the Trust's allocated portion of the Texas Royalties
was 16,200 barrels of oil and 10,787 of gas. The average price
for oil was $74.85 per bbl and for
gas was $7.46 per Mcf. This
would primarily reflect production and pricing for the month of
October for oil and the month of September 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 $1,444,346. Deducted from these were taxes
of $137,594 resulting in a Net Profit
of $1,306,753 for the month of
October. 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 $1,241,415 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
|
133,626
|
369,258
|
100,220
|
276,944*
|
$80.18
|
$8.89**
|
Texas
Royalties
|
18,096
|
12,056
|
16,200
|
10,787*
|
$74.85
|
$7.46**
|
|
|
|
|
|
|
|
Prior
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**
|
*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
$94,095 resulting in a distribution
of $1,147,760 to 46,608,796 units
outstanding, or $0.024625 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.
View original
content:https://www.prnewswire.com/news-releases/permian-basin-royalty-trust-announces-december-cash-distribution-301448082.html
SOURCE Permian Basin Royalty Trust