PermRock Royalty Trust Declares Monthly Cash Distribution

Rhea-AI Summary

PermRock Royalty Trust (NYSE: PRT) has declared a monthly cash distribution of $612,260.75 ($0.050326 per Trust Unit) for December 2024, payable on January 15, 2025. The distribution is based on October 2024 production. Key metrics show oil sales volumes increased to 24,938 barrels (804 Bbls/D) with an average price of $70.24 per barrel, while natural gas volumes were 27,951 Mcf (902 Mcf/D) at $2.37 per Mcf.

Oil cash receipts increased by $0.20 million to $1.75 million, while natural gas receipts rose slightly by $0.02 million to $0.07 million. Operating expenses decreased by $0.14 million to $0.59 million, and capital expenses dropped by $0.60 million to $0.11 million. Boaz Energy reserved $32,000 for future capital obligations.

Positive

• Oil sales volumes increased from 749 to 804 Bbls/D
• Oil price improved from $68.87 to $70.24 per barrel
• Natural gas price increased from $1.66 to $2.37 per Mcf
• Operating expenses decreased by $0.14 million
• Capital expenses decreased by $0.60 million

Negative

• Natural gas sales volumes decreased from 932 to 902 Mcf/D
• $32,000 reserved for future capital obligations reduces current distribution

Insights

Financial Analyst

The monthly distribution announcement reveals several key operational metrics worth noting. The Trust's oil sales volumes increased by 10.6% month-over-month to 24,938 barrels, while realizing a higher average oil price of $70.24 per barrel, up from $68.87. This combination led to a $0.20 million increase in oil cash receipts to $1.75 million.

Particularly noteworthy is the significant reduction in capital expenses to $0.11 million, down $0.60 million from the previous month, primarily due to the completion of recompletion projects. The $0.14 million decrease in operating expenses to $0.59 million further supports operational efficiency. The distribution of $0.050326 per unit demonstrates stable cash flow generation, though investors should monitor the $32,000 reserve for future capital obligations as it impacts distributable cash flow.

Oil & Gas Industry Expert

The operational metrics show encouraging trends in both production and pricing. The daily oil production rate increased to 804 barrels per day, up from 749 barrels per day, while maintaining stable natural gas production at 902 Mcf per day. The improvement in natural gas pricing to $2.37 per Mcf from $1.66 is particularly positive, though natural gas remains a minor contributor to overall revenues.

The completion of recompletion projects in Permian Clearfork and Permian Platform regions suggests strategic asset optimization efforts are proceeding as planned. The reduction in capital expenses indicates the Trust is entering a period of lower capital intensity, which should benefit near-term distributions. The modest reserve of $32,000 for future obligations appears prudent given the ongoing operational requirements in the Permian Basin region.

DALLAS, Dec. 20, 2024 /PRNewswire/ -- 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 December 31, 2024, and payable on January 15, 2025, in the amount of $612,260.75 ($0.050326 per Trust Unit), based principally upon production during the month of October 2024.

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	24,938	804	27,951	902	$70.24	$2.37
Prior Month	22,464	749	27,970	932	$68.87	$1.66

Oil cash receipts for the properties underlying the Trust totaled $1.75 million for the current month, an increase of $0.20 million from the prior month's distribution period.  This increase was primarily due to an increase in oil sales prices and volumes.

Natural gas cash receipts for the properties underlying the Trust totaled $0.07 million for the current month, a slight increase of $0.02 million from the prior month's distribution period. This increase was primarily due to an increase in natural gas sales prices. 

Total direct operating expenses, including marketing, lease operating expenses, and workover expenses, were $0.59 million, a decrease of $0.14 million from the prior month's distribution period. Severance and ad valorem taxes included in this month's net profits calculation were $74,108, an increase of $108,984 from last month when an ad valorem tax credit of $(100,000) was applied to offset non-operated ad valorem charges that were included in lease operating expenses.

Capital expenses were $0.11 million, a decrease of $0.60 million from the prior month's distribution period. Boaz Energy reports the decrease was primarily related to the conclusion of recompletion projects in Permian Clearfork and Permian Platform, as well as to costs related to preparation for a non-operated drill well in Permian Shelf in the prior month.

Boaz Energy informed the Trust that this month's net profits calculation included $32,000 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 April 1, 2024, 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

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SOURCE PermRock Royalty Trust

FAQ

What is PRT's December 2024 distribution amount per unit?

PermRock Royalty Trust's December 2024 distribution is $0.050326 per Trust Unit.

When will PRT's December 2024 distribution be paid?

The distribution will be paid on January 15, 2025, to unitholders of record as of December 31, 2024.

What was PRT's average oil price per barrel in October 2024?

The average oil price for PRT in October 2024 was $70.24 per barrel.

How much did PRT's oil production increase in the current period?

Oil production increased from 749 to 804 barrels per day.

What was the total amount of PRT's oil cash receipts for the current month?

Oil cash receipts totaled $1.75 million for the current month.

How much did PRT's capital expenses decrease compared to the prior month?

Capital expenses decreased by $0.60 million from the prior month's distribution period.