Permianville Royalty Trust Announces Monthly Operational Update
March 18 2021 - 4:15PM
Business Wire
Permianville Royalty Trust (NYSE: PVL, the “Trust”) today
announced the net profits interest calculation for March 2021. The
net profits interest calculation represents reported oil production
for the month of December 2020 and reported natural gas production
during November 2020. The calculation includes accrued costs
incurred in January 2021.
This month, excluding prior net profits interest shortfalls,
income from the distributable net profits interest would have been
approximately $0.2 million. As a result of the cumulative
outstanding net profits shortfall of approximately $1.3 million,
however, no distribution will be paid to the Trust’s unitholders of
record on March 31, 2021 in April 2021. Distributions to the Trust
will resume once the cumulative net profits shortfall, which
continues to decrease and now totals approximately $1.0 million, is
eliminated.
The following table displays reported underlying oil and natural
gas sales volumes and average received wellhead prices attributable
to the current and prior month recorded net profits interest
calculations.
Underlying Sales
Volumes
Average Price
Oil
Natural Gas
Oil
Natural Gas
Bbls
Bbls/D
Mcf
Mcf/D
(per Bbl)
(per Mcf)
Current Month
55,192
1,780
326,841
10,895
$ 40.85
$ 1.96
Prior Month
45,410
1,514
194,932
6,288
$ 38.27
$ 1.84
Recorded oil cash receipts from the oil and gas properties
underlying the Trust (the “Underlying Properties”) totaled $2.3
million for the current month on realized wellhead prices of
$40.85/Bbl, up $0.6 million from the prior month distribution
period.
Recorded natural gas cash receipts from the Underlying
Properties totaled $0.6 million for the current month, up $0.2
million from the prior month’s distribution period.
Total accrued operating expenses for the period were $2.2
million, a $0.4 million increase month-over-month from the prior
period. Capital expenditures increased $0.3 million from the prior
period, as a portion of the non-operating capital expenditures for
new wells drilled in the Haynesville and New Mexico Delaware shales
were paid in the current month. The operators of these wells expect
to begin production in the first half of 2021.
The remaining cumulative shortfall in net profits for the prior
months will be deducted from any net profits in next month’s net
profits interest calculation. At this time based on current
commodity prices, COERT Holdings 1 LLC (the “Sponsor”) anticipates
that the Underlying Properties will continue to generate positive
net profits to reduce the cumulative shortfall before returning to
monthly distributions again.
About Permianville Royalty Trust
Permianville Royalty Trust is a Delaware statutory trust formed
to own a net profits interest representing the right to receive 80%
of the net profits from the sale of oil and natural gas production
from certain, predominantly non-operated, oil and gas properties in
the states of Texas, Louisiana and New Mexico. As described in the
Trust’s filings with the Securities and Exchange Commission (the
“SEC”), the amount of the periodic distributions is expected to
fluctuate, depending on the proceeds received by the Trust as a
result of actual production volumes, oil and gas prices, the amount
and timing of capital expenditures, and the Trust’s administrative
expenses, among other factors. Future distributions are expected to
be made on a monthly basis. For additional information on the
Trust, please visit www.permianvilleroyaltytrust.com.
Forward-Looking Statements and Cautionary Statements
This press release contains statements that are “forward-looking
statements” within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended. All statements contained in this
press release, other than statements of historical facts, are
“forward-looking statements” for purposes of these provisions.
These forward-looking statements include the amount and date of any
anticipated distribution to unitholders, expected expenses,
including capital expenditures, and expectations regarding the
ability of the Underlying Properties to continue to generate
positive net profits before returning to monthly distributions. The
anticipated distribution is based, in large part, on the amount of
cash received or expected to be received by the Trust from the
Sponsor with respect to the relevant period. The amount of such
cash received or expected to be received by the Trust (and its
ability to pay distributions) has been and will continue to be
directly affected by the volatility in commodity prices, which have
declined since the beginning of 2020 in response to the economic
effects of the COVID-19 pandemic and the dispute over production
levels between Russia and the members of the Organization of
Petroleum Exporting Countries, including Saudi Arabia, resulting in
an oversupply of crude oil and exacerbating the decline in crude
oil prices, and could remain low for an extended period of time.
Continued low oil and natural gas prices will reduce profits to
which the Trust is entitled, which will reduce the amount of cash
available for distribution to unitholders and in certain periods
could result in no distributions to unitholders. Other important
factors that could cause actual results to differ materially
include expenses of the Trust, reserves for anticipated future
expenses and the effect, impact, potential duration or other
implications of the COVID-19 pandemic. In addition, future monthly
capital expenditures may exceed the average levels experienced in
2019 and prior periods. Statements made in this press release are
qualified by the cautionary statements made in this press release.
Neither the Sponsor nor the Trustee intends, and neither assumes
any obligation, to update any of the statements included in this
press release. An investment in units issued by the Trust is
subject to the risks described in the Trust’s filings with the SEC,
including the risks described in the Trust’s Annual Report on Form
10-K for the year ended December 31, 2019, filed with the SEC on
March 16, 2020, and the Trust’s Quarterly Report on Form 10-Q for
the period ended September 30, 2020, filed with the SEC on November
6, 2020. The Trust’s quarterly and other filed reports are or will
be available over the Internet at the SEC’s website at
http://www.sec.gov.
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version on businesswire.com: https://www.businesswire.com/news/home/20210318005861/en/
Permianville Royalty Trust The Bank of New York Mellon Trust
Company, N.A., as Trustee Sarah Newell 1 (512) 236-6555
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