DALLAS, Jan. 21,
2022 /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 $0.031614 per
unit, payable on February 14, 2022,
to unit holders of record on January 31,
2022.
This month's distribution increased slightly from the previous
month as the result of an increase in the production of oil and gas
for the Texas Royalty Properties during the month of November.
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
November.
WADDELL RANCH
In reporting November production
of the Underlying Properties for this month's press release,
production for oil volumes was 140,043 (gross) and was priced at
about $77.33 per bbl. Production for
gas volumes (including gas liquids) was 538,872 mcf (gross) and was
priced at about $7.32 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 $13,859,258 (gross) for
November. Lease Operating Expenses were $2,302,863 (gross) and Capital Expenditures were
$7,496,435 (gross) for November. This
would put the Trust's proceeds as a positive $3,044,970 (net) for the month of November,
leaving an excess cost deficit cumulative of $12.2 million (net).
A review and update on the 2020 budget is as follows. The
2020 budget (net to the Trust) expended $8.9
million, recompleting 4.5 existing wells along with drilling
7.5 new drill wells to completion. This resulted in production of
approximately 98,000 barrels of oil and 690,000 Mcf of gas,
generating $4.5 million in gross
revenues through December 2020, all
net to the trust.
A review and update on the ongoing 2021 budget are as such. The
2021 budget (net to the Trust) has expended through November 2021, approximately $50.3 million, recompleting 44.8 existing wells
along with drilling 26.3 new wells to completion, with 3
recompletions and 1.9 new drills remaining to be fully completed
for the 2021 budget. This has resulted in production of
approximately 547,000 barrels of oil and1.8 Bcf of gas, generating
$40.3 million in gross revenue though
November 2021, all net to the
Trust.
As of the end of November, approximately $49.9 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 22,336 of oil and 14,570 Mcf of gas. The
production for the Trust's allocated portion of the Texas Royalties
was 20,214 barrels of oil and 13,180 of gas. The average
price for oil was $73.80 per bbl and
for gas was $7.51 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 $1,757,807. Deducted from these were taxes of
$150,093 resulting in a Net Profit of
$1,607,714 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 $1,527,329
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
|
140,043
|
538,872
|
105,032
|
404,154*
|
$77.33
|
$7.32**
|
Texas
Royalties
|
22,336
|
14,750
|
20,214
|
13,180*
|
$73.80
|
$7.51**
|
|
|
|
|
|
|
|
Prior
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**
|
*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
$54,266 resulting in a distribution
of $1,473,505 to 46,608,796 units
outstanding, or $0.031614 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 2021 tax information packets are expected to begin mailing
directly to unit holders in early March
2022. A copy of Permian's 2021 tax information booklet is
expected to be posted on Permian's website by February 28, 2022. 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
2022 for 2021 tax reporting.
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