Permian Basin Royalty Trust Announces April 2021 Cash Distribution And 2021 Reserve Quantities

Rhea-AI Summary

Simmons Bank, Trustee of the Permian Basin Royalty Trust (NYSE: PBT), announced a cash distribution of $0.018156 per unit, payable on May 14, 2021. This represents a slight increase due to higher oil and gas prices, but production from the Waddell Properties faced challenges due to a weather-related outage. The Trust reported a deficit of $460,647 for February, expected to recover to $8.0 million. The Texas Royalty Properties contributed a net profit of $955,700 to the distribution. As of January 1, 2021, estimated reserves include 4.5 million barrels of oil and 6.4 billion cubic feet of gas.

Positive

• Increased cash distribution to $0.018156 per unit from the previous month.
• Texas Royalty Properties generated a net profit of $955,700 for February.
• Higher production and pricing for Texas Royalty Properties.
• Estimated future net value of reserves at $170,446,000.

Negative

• Waddell Properties faced a $460,647 deficit in February, increasing expected recoverable deficit to $8.0 million.
• Decreased production volumes from Waddell Ranch due to weather-related outages.

DALLAS, April 20, 2021 /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 $0.018156 per unit, payable on May 14, 2021, to unit holders of record on April 30, 2021.

This month's distribution increased slightly from the previous month as the result of increased prices for both oil and gas offset by decreased production on the Waddell Properties due to the end of the February and weather-related outage. The Trust was advised by Blackbeard that the Waddell Ranch properties were in a deficit of $460,647 for the month of February with the deficit increasing to be recovered to $8.0 million in the months to come.  The Texas Royalty Properties reflected an increase in both oil and gas production along with an increase in both oil and gas pricing.  This reflects the production month of February.

WADDELL RANCH
In reporting February production of the Underlying Properties for this month's press release, production for oil volumes was 50,757 bbls and was priced at about $58.09 per bbl.  Production for gas volumes (including gas liquids) was 190,570 mcf and was priced at about $2.28 per mcf.  Net revenue for the underlying properties of the Waddell ranch was $3,283,121 for February.  Lease Operating Expenses were $2,069,051 and Capital Expenditures were $1,828,265 for February.  This would put the Trust's proceeds as a profit of $(460,647) for the month of February, leaving an excess cost deficit cumulative of $8.0 million.

Blackbeard Operating has advised the Trust of the 2020 capital budget of $10.4 million(gross) results for the Waddell Ranch reflecting 16 (gross) drill wells completed, with 4 (gross) drill wells in progress of 12/31/20 and 4 (gross) workovers in progress as of 12/31/20.  Resulting production from these new wells for 5 months production through the December 31, 2020 were 47,374 barrels (gross) of oil and 60,712 mcf (gross) of gas, the Trust's portions, respectfully, were 17,765 barrels of oil and 22,767 mcf of gas.  There were 21 (gross) plugged and abandoned wells for 2020.

Blackbeard Operating has advised the Trust of the 2021 capital budget of $86.6 million (gross), ($32.5 million net to the Trust) for the Waddell Ranch proposing 91 (gross) drill wells, with 24 (gross) recompletions. 

TEXAS ROYALTY PROPERTIES
Production for the underlying properties at the Texas Royalties was 19,947 of oil and 12,461 Mcf of gas.  The production for the Trust's allocated portion of the Texas Royalties was 17,556 barrels of oil and 10,948 of gas.  The average price for oil was $52.80 per bbl and for gas was $5.89 per Mcf.  This would primarily reflect production and pricing for the month of February for oil and the month of January 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 $1,126,585.  Deducted from these were taxes of $120,585 resulting in a Net Profit of $1,006,000 for the month of February.  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 $955,700 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	50,757	190,570	38,068	142,928*	$58.09	$2.28**
Texas Royalties	19,947	12,461	17,556	10,948*	$52.80	$5.89**
Prior Month
Waddell Ranch	61,828	218,264	46,371	163,653*	$50.16	$2.20**
Texas Royalties	16,211	8,828	13,882	7,560*	$49.13	$5.68**

*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 $109,902 resulting in a distribution of $846,238 to 46,608,796 units outstanding, or $0.018156 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.

Permian Basin Royalty Trust, as it does after the end of each year, had a year-end Reserve Report prepared in accordance with the Securities and Exchange Commission's requirements.  This report provides an evaluation of the estimated asset value as of December 31 of each year, which can be used to estimate the remaining life of the Trust.

The estimated net proved reserves, as of January 1, 2021, attributable to the Trust from the properties appraised are approximately 4.5 million barrels of oil and 6.4 billion cubic feet of gas with a future net value of approximately $170,446,000 with a discounted value of $80,091,000.                                                                     

With the estimated quantities of this year's reserve estimate of 4.5 million barrels of oil and 6.4 billion cubic feet of gas remaining, it could be estimated that the Trust still has a life span of 9 to 11 years.  The report is an exhibit to the Trust's Annual Report on Form 10-K that was filed on March 31, 2021 and is available to all unitholders at this time on the SEC website.

The 2020 Annual Report with Form 10-K and the January 1, 2021 Reserve Summary will be available on Permian's website by May 1st.  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

FAQ

What is the cash distribution per unit for PBT in April 2021?

The cash distribution for April 2021 is $0.018156 per unit.

When is the cash distribution for Permian Basin Royalty Trust (PBT) payable?

The cash distribution is payable on May 14, 2021.

What was the production deficit for Waddell Properties in February 2021?

The production deficit for Waddell Properties in February 2021 was $460,647.

What are the estimated reserves for PBT as of January 1, 2021?

The estimated reserves as of January 1, 2021, are approximately 4.5 million barrels of oil and 6.4 billion cubic feet of gas.