DALLAS, Feb. 17, 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 $0.029164 per unit, payable on March 14, 2022, to unit holders of record on
February 28, 2022.
This month's distribution decreased from the previous month as
the result of a decrease in the production and pricing of oil and
gas for the Texas Royalty Properties during the month of December.
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 December.
WADDELL RANCH
In reporting December production of the
Underlying Properties for this month's press release, production
for oil volumes was 145,009 (gross) and was priced at about
$70.13 per bbl. Production for
gas volumes (including gas liquids) was 538,676 Mcf (gross) and was
priced at about $6.84 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 $13,126,362 (gross)
for December. Lease Operating Expenses were $3,157,322 (gross) and Capital Expenditures were
$7,707,229 (gross) for December. This
would put the Trust's proceeds as a positive $1,696,358 (net) for the month of December,
leaving an excess cost deficit cumulative of $10.4 million (net).
A review and update on the ongoing 2021 budget are as
follows. The 2021 budget (net to the Trust) has expended
through December 2021, approximately
$56.0 million, recompleting 47.4
existing wells along with drilling 29.7 new wells to completion,
with 4.1 recompletions and 4.1 new drills remaining to be fully
completed for the 2021 budget. This has resulted in
production of approximately 655,000 barrels of oil and 1.5 Bcf of
gas, generating $51.1 million in
gross revenue through December 2021,
all net to the Trust.
As of the end of December, approximately $51.5 million of net profit revenue has been
generated by the 2020-2021 budgeted projects.
Blackbeard has advised the Trustee of the projected 2022 capital
expenditure budget for the Waddell Ranch Properties to be an
estimated $92 million (net to the
Trust) with a projected about 47 new drill wells and 45
recompletions along with about 19 plug and abandoned wells.
Of the new drill wells, about 13 will be horizontal drills and
about 34 vertical drill wells. In the Form 10-K, to be filed
in March, further discussion will be provided.
TEXAS ROYALTY
PROPERTIES
Production for the underlying properties at the
Texas Royalties was 19,178 of oil and 13,138 Mcf of gas. The
production for the Trust's allocated portion of the Texas Royalties
was 19,250 barrels of oil and 13,194 of gas. The average
price for oil was $71.62 per bbl and
for gas was $6.94 per Mcf. This
would primarily reflect production and pricing for the month of
December for oil and the month of November 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 $1,464,699. Deducted from these were taxes
of $138,405 and adding a
reimbursement of ad valorem taxes of $159,619 resulting in a Net Profit of
$1,485,913 for the month
of December. 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 $1,411,617 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
|
145,009
|
538,676
|
108,757
|
404,007*
|
$70.13
|
$6.84**
|
Texas
Royalties
|
19,178
|
13,138
|
19,250
|
13,194*
|
$71.62
|
$6.94**
|
|
|
|
|
|
|
|
Prior
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**
|
*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
$59,892 resulting in a distribution
of $1,359,339 to 46,608,796 units
outstanding, or $0.029164 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 have been updated on Permian's website 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.
Contact: Ron Hooper, Senior Vice
President, Simmons Bank, Trustee,
Toll Free – 1.855.588.7839
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SOURCE Permian Basin Royalty Trust