Permian Basin Royalty Trust Announces September Cash Distribution

Rhea-AI Summary

Permian Basin Royalty Trust (PBT) announced a cash distribution of $0.012354 per unit, payable on October 15, 2020, for unit holders on record by September 30, 2020. The increase from the previous month was attributed to rising oil prices, although gas prices remained low. For July, Waddell Ranch produced 49,622 bbls of oil at $37.38 per bbl, while gas production reached 131,393 mcf at $0.98 per mcf. Texas Royalties contributed $611,270 to the distribution, after tax deductions of $109,528. Market conditions pose uncertainties for future distributions.

Positive

• Cash distribution increased to $0.012354 per unit from the previous month.
• Waddell Ranch reported oil production of 49,622 bbls at $37.38 per bbl.
• Texas Royalties contributed $611,270 to this month's distribution.

Negative

• Gas prices remain low, adversely impacting overall revenue.
• Market conditions create uncertainty regarding future cash distributions.

DALLAS, Sept. 18, 2020 /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 $0.012354 per unit, payable on October 15, 2020, to unit holders of record on September 30, 2020.

This month's distribution increased from the previous month as the result of rebounding prices for oil but offset by lower prices for gas across the industry. General and administrative expenses were significantly lower this month compared to the previous month. The Trust was advised by Blackbeard that the Waddell Ranch properties were in deficit for the month of July, providing details as to production levels and pricing received. The Texas Royalty Properties reflected an increase in both oil and gas pricing in addition to an increase in both oil and gas production. This reflects the production month of July.

WADDELL RANCH
In reporting July production of the Underlying Properties for this month's press release, production for oil volumes was 49,622 bbls and was priced at about $37.38 per bbl. Production for gas volumes (including gas liquids) was 131,393 mcf and was priced at about $0.98 per mcf. Net revenue for the underlying properties of the Waddell ranch was $2,244,995 for July. Lease Operating Expenses were $1,696,989 and Capital Expenditures were $1,383,171 for July.

TEXAS ROYALTY PROPERTIES
Production for the underlying properties at the Texas Royalties was 20,462 barrels of oil and 15,469 Mcf of gas. The production for the Trust's allocated portion of the Texas Royalties was 17,290 barrels of oil and 13,060 of gas. The average price for oil was $34.37 per bbl and for gas was $3.21 per Mcf. This would primarily reflect production and pricing for the month of July for oil and the month of June 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 $752,970. Deducted from these were taxes of $109,528 resulting in a Net Profit of $643,442 for the month of July. 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 $611,270 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	49,622	131,393	37,217	98,545*	$37.38	$0.98**
Texas Royalties	20,462	15,469	17,290	13,060*	$34.37	$3.21**
Prior Month
Waddell Ranch	45,469	86,621	34,102	64,966*	$35.55	$1.48**
Texas Royalties	17,674	10,901	15,225	9,393*	$29.84	$3.02**
*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. *** Blackbeard Operating reported that Waddell Ranch was in a deficit for the month of July.

 

General and Administrative Expenses deducted for the month were $35,910 resulting in a distribution of $575,819 to 46,608,796 units outstanding, or $0.012354 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 2019 Annual Report with Form 10-K and the January 1, 2020 Reserve Summary is 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.

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SOURCE Permian Basin Royalty Trust

FAQ

What is the distribution amount for PBT in September 2020?

The cash distribution for Permian Basin Royalty Trust (PBT) in September 2020 is $0.012354 per unit.

When will the September distribution for PBT be paid?

The September distribution for PBT will be paid on October 15, 2020.

What were the oil production figures for Waddell Ranch in July 2020?

Waddell Ranch produced 49,622 barrels of oil in July 2020.

How much did Texas Royalties contribute to PBT's distribution?

Texas Royalties contributed $611,270 to PBT's distribution for the month.