Welcome to our dedicated page for PermRock Royalty Trust Trust Unit news (Ticker: PRT), a resource for investors and traders seeking the latest updates and insights on PermRock Royalty Trust Trust Unit stock.
PermRock Royalty Trust (NYSE: PRT) is a Delaware statutory trust created by Boaz Energy II, LLC to own a net profits interest, which entitles the Trust to receive 80% of the net profits from the sale of oil and natural gas production from properties owned by Boaz Energy in the Permian Basin of West Texas. The Trust's primary function is to distribute the cash it receives from these net profits to its unitholders and to carry out certain administrative duties.
The Trust has a unique structure where it does not operate any oil and gas wells directly but earns income from the production activities conducted on the underlying properties. This model ensures that the Trust benefits when the prices of oil and natural gas are favorable, though it is also subject to the volatility in these commodity prices. Recently, the Trust has been steady in declaring monthly cash distributions to its unitholders. For instance, in May 2024, the Trust announced a cash distribution of $490,223.49, reflecting an increase in oil sales volumes and prices for the month of March 2024.
Boaz Energy, as the operator and trustor, reports on the performance and financial metrics, such as oil and natural gas sales volumes and prices, direct operating expenses, and capital expenditures. For instance, in June 2024, the Trust's total direct operating expenses amounted to $0.74 million, with severance and ad valorem taxes standing at $0.14 million. The Trust also reported capital expenses of $0.30 million, primarily due to the conversion of a well to an injector in Terry County, Texas.
PermRock Royalty Trust's financial health and the amount of cash available for distribution are influenced by various factors including commodity price fluctuations, production volumes, and operating expenses. It is also impacted by decisions made by Boaz Energy regarding capital projects and reserves for future expenses. Despite these variables, the Trust continues to provide a steady stream of income to its unitholders, underscoring its commitment to leveraging its net profits interest for their benefit.
About PermRock Royalty Trust: PermRock Royalty Trust, through its net profits interest, secures a significant share of the profits from oil and natural gas production activities in one of the most prolific oil-producing regions in the United States. The Trust’s ongoing distributions, transparent operations, and strategic management by Boaz Energy aim to deliver consistent value to its stakeholders.
On April 18, 2023, PermRock Royalty Trust (NYSE:PRT) announced a cash distribution of $375,777.62, approximately $0.030888 per Trust Unit, for holders of its Trust Units as of April 28, 2023. This distribution is based on production data from February 2023. Key figures include oil sales of 25,096 Bbls and natural gas sales of 33,908 Mcf, with oil prices averaging $73.41 per Bbl and natural gas at $4.23 per Mcf. However, oil cash receipts fell by $0.16 million and natural gas receipts decreased by $0.03 million compared to the previous month, attributed to lower sales volumes and prices. Operating expenses increased slightly by $0.02 million to $0.77 million, while capital expenses rose by $0.09 million, totaling $0.59 million. The Trust's financial outlook is affected by commodity price volatility and operational risks.
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