PRT PermRock Royalty Trust

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________

 

FORM 8-K

CURRENT REPORT

 

Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): February 16, 2024

______________

 

PermRock Royalty Trust

(Exact name of registrant as specified in the

Amended and Restated PermRock Royalty Trust Agreement)

______________

 

Delaware	001-38472	82-6725102
(State or other jurisdiction	(Commission	(I.R.S. Employer
of incorporation or organization)	File Number)	Identification Number)

 

Argent Trust Company, Trustee
3838 Oak Lawn Avenue

Suite 1720

Dallas, Texas 75219

(Address of principal executive offices) (Zip Code)

 

(855) 588-7839

(Registrant’s telephone number, including area code)

 

N/A

(Former name or former address, if changed since last report)

______________

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Units of Beneficial Interest	PRT	New York Stock Exchange

 

Securities registered pursuant to Section 12(g) of the Act:

None

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company  ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Item 2.02 Results of Operations and Financial Condition.

On February 16, 2024, PermRock Royalty Trust (the “Trust”) issued a press release, a copy of which is attached hereto as Exhibit 99.1, announcing, among other things, a cash distribution to record holders of its trust units representing beneficial interests in the Trust (“Trust Units”) as of February 29, 2024, and payable on March 14, 2024, in the amount of $422,639.42 ($0.034740 per Trust Unit), based principally upon production during the month of December 2023.

In accordance with general instruction B.2 to Form 8-K, the information in this Form 8-K shall be deemed “furnished” and not “filed” with the Securities and Exchange Commission for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.

Item 9.01

Financial Statements and Exhibits.

(d)       Exhibits.

Exhibit No.	Description
99.1	Press Release dated February 16, 2024.

  

  

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	PERMROCK ROYALTY TRUST By: Argent Trust Company, as Trustee
	By:	/s/ Jana Egeler
		Jana Egeler
		Vice President, Trust Administrator

 

Date: February 16, 2024

(The Trust has no directors or executive officers.)

Exhibit 99.1

 

PermRock Royalty Trust

News Release

PermRock Royalty Trust Declares Monthly Cash Distribution

DALLAS, Texas, February 16, 2024 – PermRock Royalty Trust (NYSE:PRT) (the “Trust”) today declared a monthly cash distribution to record holders of its trust units representing beneficial interests in the Trust (“Trust Units”) as of February 29, 2024, and payable on March 14, 2024, in the amount of $422,639.42 ($0.034740 per Trust Unit), based principally upon production during the month of December 2023.

The following table displays underlying oil and natural gas sales volumes and average received wellhead prices attributable to the current and prior month 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	26,163	844	30,533	985	$70.23	$2.97
Prior Month	25,636	855	26,862	895	$76.98	$2.87

 

Oil cash receipts for the properties underlying the Trust totaled $1.84 million for the current month, a decrease of $0.13 million from the prior month’s distribution period. This decrease was primarily due to a decrease in oil sales prices.

Natural gas cash receipts for the properties underlying the Trust totaled $0.09 million for the current month, an increase of $0.01 million from the prior month’s distribution period. This increase was due to an increase in natural gas prices and sales volumes.

Total direct operating expenses, including marketing, lease operating expenses, and workover expenses, were $0.75 million, a decrease of $0.06 million from the prior month’s distribution period. Severance and ad valorem taxes were $0.15 million, an increase of $0.10 million from the prior month’s distribution. Boaz Energy reports the increase was related to a refund of over-accrued 2023 ad valorem taxes in the prior month’s distribution period. Capital expenses this month were $0.25 million, a decrease of $0.03 million from the prior month’s distribution period.

Boaz Energy informed the Trust that this month’s net profits calculation included $40,000 net to the Trust of funds reserved by Boaz Energy to cover future capital obligations and expenses.

About PermRock Royalty Trust

PermRock Royalty Trust is a Delaware statutory trust formed by Boaz Energy II, LLC (“Boaz Energy”) 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 properties owned by Boaz Energy in the Permian Basin of West Texas. For more information on PermRock Royalty Trust, please visit our website at www.permrock.com.

Cautionary Statement Concerning Forward-Looking Statements

Certain statements contained in this press release constitute “forward-looking statements.” These forward-looking statements represent the Trust’s and Boaz Energy’s expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements include the amount and date of any anticipated distribution to unitholders, future cash retentions, advancements or recoupments from distributions, and statements regarding Boaz Energy’s operations and the resulting impact on the computation of the Trust’s net profits. The amount of 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 volatility in commodity prices and oversupply. Other important factors that could cause actual results to differ materially from those projected in the forward-looking statements include expenses of the Trust and reserves for anticipated future expenses, uncertainties in estimating the cost of drilling activities and risks associated with drilling and operating oil and natural gas wells.

Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, the Trust does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for the Trust to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in the Trust’s Annual Report on Form 10-K filed with the SEC on March 31, 2023, and other public filings filed with the SEC. The risk factors and other factors noted in the Trust's public filings with the SEC could cause its actual results to differ materially from those contained in any forward-looking statement. The Trust’s filed reports are or will be available over the Internet at the SEC’s website at http://www.sec.gov.

Contact:

PermRock Royalty Trust Argent Trust Company, Trustee Jana Egeler, Vice President, Trust Administrator Toll-free: (855) 588-7839 Fax: (214) 559-7010 Website: www.permrock.com e-mail: trustee@permrock.com

---