DALLAS, March 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 $0.019331 per unit, payable on April 14, 2022, to unit holders of record on
March 31, 2022.
This month's distribution decreased from the previous month as
the result of a decrease in the production offset by pricing of oil
and gas for the Texas Royalty Properties during the month of
January. The timing of receipts from some of the larger
remitters was delayed due to the end of the month of
February. These receipts will be posted in the following
month. 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 January.
WADDELL RANCH
In reporting January production of the
Underlying Properties for this month's press release, production
for oil volumes was 146,556 (gross) and was priced at about
$81.06 per bbl. Production for
gas volumes (including gas liquids) was 486,150 Mcf (gross) and was
priced at about $6.82 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 $14,428,514 (gross)
for January. Lease Operating Expenses were $2,930,402 (gross) and Capital Expenditures were
$6,322,184 (gross) for January. This
would put the Trust's proceeds as a positive $3,881,946 (net) for the month of January,
leaving an excess cost deficit cumulative of $6.6 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 January, approximately $55.4 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 15,800 barrels of oil and 7,645 Mcf of
gas. The production for the Trust's allocated portion of the
Texas Royalties was 14,073 barrels of oil and 6,798 Mcf of
gas. The average price for oil was $77.97 per bbl and for gas was $13.26 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 $1,333,243.
Deducted from these were taxes of $133,560 resulting in a Net Profit of
$1,199,683 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 $1,139,698 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
|
146,556
|
486,150
|
109,917
|
364,613*
|
$81.06
|
$6.82**
|
Texas
Royalties
|
15,800
|
7,645
|
14,073
|
6,798*
|
$77.97
|
$13.26**
|
|
|
|
|
|
|
|
Prior
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**
|
*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
$238,697 resulting in a distribution
of $901,040 to 46,608,796 units
outstanding, or $0.019331 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 were mailed directly to unit
holders in early March 2022. A copy of Permian's 2021 tax
information booklet is 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. 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