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Permrock Royalty Trust - PRT STOCK NEWS

Welcome to our dedicated page for Permrock Royalty Trust news (Ticker: PRT), a resource for investors and traders seeking the latest updates and insights on Permrock Royalty Trust stock.

Overview of PermRock Royalty Trust

PermRock Royalty Trust is a Delaware statutory trust that represents a distinct investment vehicle in the energy sector. The trust is structured to own an 80% net profits interest in oil and natural gas production from underlying properties predominantly located in the Permian Basin of West Texas. By holding this net profits interest, PermRock Royalty Trust is entitled to receive a major portion of the net revenue generated from the sale of hydrocarbons, which it then distributes on a regular basis to its unitholders.

Business Model and Operations

The core business model of PermRock Royalty Trust is centered on capturing and reallocating the net profits generated from oil and natural gas production. The trust performs several key administrative functions, including the collection, calculation, and distribution of cash flows received as a result of the production activities on properties owned by its trustor, Boaz Energy II, LLC. This model facilitates a direct link between commodity sales revenue and distributions to trust investors, while operating within the framework of established financial and legal norms that govern statutory trusts.

Industry Context and Market Position

Operating in the highly competitive energy sector, PermRock Royalty Trust occupies a specialized niche as a royalty trust. Using its net profits interest, the trust benefits from the operational activities in oil and gas production without the need to directly engage in the extraction or upstream exploration processes. This operational model provides a passive income mechanism for investors, positioned within an environment characterized by market volatility, regulatory oversight, and complex pricing dynamics. The trust is actively involved in ensuring that operating expenses, production volumes, and commodity pricing factors are optimally managed to secure periodic distributions.

Key Operational Functions

PermRock Royalty Trust performs several critical functions:

  • Net Profits Interest Collection: Acquires revenues stemming from the sale of oil and natural gas, ensuring that 80% of the net profits are retained for distribution.
  • Cash Distribution Management: Administers regular distributions to trust unit holders based on the production and realized revenue from underlying properties.
  • Administrative Oversight: Undertakes various administrative duties necessary for the trust’s operation, ensuring compliance with statutory requirements and efficient management of resources.

Operational and Business Considerations

The financial mechanics behind the trust’s earnings include oil and natural gas cash receipts, direct operating expenses, severance and ad valorem taxes, and capital expenditures related to production enhancement. The trust’s structure enables it to seamlessly assimilate fluctuations in production volumes and market dynamics, ensuring that distributions are reflective of current operational performance. This integrative approach is particularly important in an industry where subtle shifts in commodity prices and operational costs can have material implications on net profits.

Competitive Landscape and Differentiation

Within the energy sector, PermRock Royalty Trust competes with other royalty trusts and investment vehicles that rely on production-based revenue streams. However, its distinct emphasis on receiving a significant 80% net profits interest sets it apart, offering a straightforward connection between production outcomes and investor returns. The trust’s governance by a strict statutory framework further fortifies its operational transparency and reliability, fostering confidence among its unit holders.

Expertise and Industry Terminology

The verification of complex elements like the net profits interest and the specifics of oil and natural gas production highlights the trust’s reliance on rigorous administrative processes. By employing industry-specific terminology such as "net profits interest", "oil cash receipts", and "underlying properties", the trust demonstrates a deep understanding of both the technical and financial aspects of the energy industry. The clear articulation of these factors is designed to assist investors and industry analysts in grasping the trust’s operational ethos and business craftsmanship.

Conclusion

PermRock Royalty Trust exemplifies a specialized financial product within the energy sector, leveraging a simple yet effective business model that directly ties production efficacy to investor distributions. With its substantial share in net profits and robust administrative framework, the trust provides a transparent and reliable mechanism for unitholders to participate in the success of oil and natural gas production activities in the Permian Basin. This comprehensive overview underscores not only the trust’s operational mechanics, but also its strategic positioning within a dynamic and often volatile market environment.

Rhea-AI Summary

PermRock Royalty Trust (NYSE: PRT) has declared a monthly cash distribution of $486,890.73 ($0.040021 per Trust Unit) for July 2024, based on May 2024 production. Key highlights include:

- Oil sales volume increased to 24,389 barrels (787 Bbls/D) from 23,159 barrels in the prior month.
- Natural gas sales volume rose to 30,833 Mcf (995 Mcf/D) from 27,916 Mcf.
- Oil price decreased to $78.30 per Bbl from $83.14 per Bbl.
- Natural gas price dropped to $1.88 per Mcf from $2.31 per Mcf.
- Oil cash receipts decreased by $0.02 million to $1.91 million.
- Total direct operating expenses increased by $0.04 million to $0.78 million.
- Capital expenses decreased by $0.10 million to $0.20 million.

Boaz Energy reserved $54,800 net to the Trust for future capital obligations and expenses.

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PermRock Royalty Trust (NYSE: PRT) declared a monthly cash distribution of $486,630.74 ($0.040000 per Trust Unit) to record holders as of June 28, 2024. The distribution, payable on July 15, 2024, is based on April's production. Oil sales volumes were 23,159 Bbls at $83.14 per Bbl, and natural gas sales were 27,916 Mcf at $2.31 per Mcf. Compared to the prior month, oil receipts decreased by $0.13 million, and natural gas receipts fell by $0.03 million. Operating expenses increased by $0.01 million to $0.74 million, while severance and ad valorem taxes rose by $0.06 million to $0.14 million. Capital expenses jumped by $0.17 million to $0.30 million due to well conversion in Texas. Boaz Energy applied $14,048 to cover future obligations.

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PermRock Royalty Trust (NYSE:PRT) announced a monthly cash distribution of $490,223.49 ($0.040295 per Trust Unit) to record holders as of May 31, 2024, payable on June 14, 2024. This distribution is based mainly on March 2024 production.

Oil sales volumes increased to 26,162 barrels, while natural gas sales volumes rose to 28,443 Mcf. The average received prices were $78.88 per barrel for oil and $3.00 per Mcf for natural gas.

Oil cash receipts totaled $2.06 million, up by $0.33 million from the prior month, while natural gas receipts were stable at $0.09 million. Operating expenses decreased slightly to $0.73 million, and severance and ad valorem taxes declined to $0.09 million due to tax reimbursements. Capital expenses dropped to $0.13 million, driven by fewer capital projects. Boaz Energy reserved $184,000 for future capital obligations and expenses.

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PermRock Royalty Trust (NYSE:PRT) has declared a monthly cash distribution of $373,183.26 ($0.030674 per Trust Unit) to record holders as of April 30, 2024, based on production in February 2024. Oil cash receipts increased to $1.73 million, while natural gas cash receipts decreased to $0.09 million. Total direct operating expenses rose to $0.74 million, with capital expenses decreasing to $0.23 million.
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PermRock Royalty Trust (NYSE:PRT) announced a monthly cash distribution of $279,468.85 ($0.022971 per Trust Unit) for March 2024, based on January 2024 production. Oil sales volumes decreased, leading to a $0.21 million drop in oil cash receipts, while natural gas cash receipts increased by $0.01 million. Operating expenses decreased, but capital expenses rose due to drilling activities.
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PermRock Royalty Trust (PRT) declares a monthly cash distribution to record holders of Trust Units, totaling $422,639.42 ($0.034740 per Trust Unit) based on December 2023 production. Oil cash receipts decreased, but natural gas cash receipts increased. Operating expenses decreased, while taxes increased. Capital expenses decreased, and $40,000 was reserved for future obligations.
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PermRock Royalty Trust (PRT) has declared a monthly cash distribution to record holders of its trust units, amounting to $420,393.59 ($0.034555 per Trust Unit), based on production during November 2023. The oil and natural gas sales volumes and average received wellhead prices have been detailed, with a decrease in cash receipts for both oil and natural gas. Operating expenses have increased, while taxes and capital expenses have seen fluctuations.
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PermRock Royalty Trust (PRT) declared a monthly cash distribution of $0.030299 per Trust Unit, based on production during October 2023. Oil cash receipts decreased by $0.07 million, and natural gas cash receipts decreased by $0.01 million compared to the prior month. Direct operating expenses decreased by $0.10 million, but capital expenses increased by $0.37 million due to non-operated drilling of a well in Glasscock County, Texas.
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PermRock Royalty Trust (NYSE:PRT) declared a monthly cash distribution of $490,308.12 ($0.040302 per Trust Unit) to record holders of its Trust Units. The distribution is based on production during September 2023, with an increase in oil sales volumes and prices contributing to higher oil cash receipts. However, natural gas cash receipts decreased due to a decrease in natural gas sales volumes. Total direct operating expenses increased by $0.11 million from the prior month. Capital expenses remained essentially unchanged, with Boaz Energy reporting expenses primarily related to stimulation of a well in the Permian Shelf to increase production.
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PermRock Royalty Trust declares monthly cash distribution based on production in August 2023
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FAQ

What is the current stock price of Permrock Royalty Trust (PRT)?

The current stock price of Permrock Royalty Trust (PRT) is $3.76 as of April 4, 2025.

What is the market cap of Permrock Royalty Trust (PRT)?

The market cap of Permrock Royalty Trust (PRT) is approximately 48.1M.

What is PermRock Royalty Trust?

PermRock Royalty Trust is a Delaware statutory trust that holds an 80% net profits interest in oil and natural gas production from underlying properties, predominantly in the Permian Basin.

How does PermRock Royalty Trust generate revenue?

The trust earns revenue by receiving a major portion of the net profits from oil and gas sales derived from its underlying properties, which it then distributes to its unit holders.

What role does Boaz Energy play with the trust?

Boaz Energy II, LLC is the trustor that formed PermRock Royalty Trust and operates the underlying production assets, facilitating the earnings that flow to the trust.

How are distributions determined for unitholders?

Distributions are calculated based on the net profits generated from the sale of oil and natural gas, after accounting for operating expenses and other deductions, ensuring a consistent payout of 80% of the net profits.

What distinguishes a royalty trust from other energy investment vehicles?

A royalty trust does not engage directly in production operations but rather collects revenues from production activities and distributes earnings to investors, offering a more passive investment approach.

What are some of the key expenses included in the production net profits?

Expenses typically include direct operating costs, marketing expenses, lease operating expenses, severance and ad valorem taxes, and capital expenditures related to production activities.

How does the trust maintain transparency and reliability?

The trust is governed by a strict statutory framework and detailed administrative processes, ensuring that earnings are accurately calculated and periodically distributed to unit holders.

In which geographic area are the trust's underlying properties located?

The underlying properties are primarily located in the Permian Basin of West Texas, a region known for its significant oil and natural gas production activities.
Permrock Royalty Trust

NYSE:PRT

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PRT Stock Data

48.05M
7.27M
40.23%
1.71%
0.29%
Oil & Gas E&P
Crude Petroleum & Natural Gas
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United States
DALLAS