PermRock Royalty Trust Declares Monthly Cash Distribution

Rhea-AI Summary

PermRock Royalty Trust (NYSE:PRT) has declared a monthly cash distribution of $489,294.60 ($0.040219 per Trust Unit) for February 2025, payable on March 14, 2025. The distribution is based on December 2024 production data.

Key performance metrics show oil sales volumes increased to 24,965 barrels (805 Bbls/D) from 22,491 barrels, while natural gas volumes decreased to 25,214 Mcf (813 Mcf/D) from 28,372 Mcf. Oil prices slightly decreased to $67.55 per barrel, while natural gas prices increased to $3.12 per Mcf.

Oil cash receipts increased by $0.17 million to $1.69 million, while natural gas receipts rose by $0.01 million to $0.08 million. Operating expenses decreased by $0.27 million to $0.70 million, and capital expenses dropped by $0.03 million to $0.02 million. The Trust reserved $96,000 for future capital obligations.

Positive

• Oil sales volumes increased by 11% to 24,965 barrels
• Natural gas prices increased by 23.3% to $3.12 per Mcf
• Oil cash receipts increased by $0.17 million to $1.69 million
• Total operating expenses decreased by $0.27 million to $0.70 million
• Capital expenses decreased by $0.03 million to $0.02 million

Negative

• Natural gas sales volumes decreased by 11.1% to 25,214 Mcf
• Oil prices slightly decreased to $67.55 per barrel from $67.80
• $96,000 reserved for future capital obligations reduces current distribution

Insights

Financial Analyst

The latest distribution figures from PermRock Royalty Trust demonstrate notable operational improvements and strategic management of resources. The 10.9% increase in oil production volumes, reaching 24,965 barrels, represents significant progress in the Trust's primary revenue stream. This production boost, combined with stable oil prices around $67.55 per barrel, has positively impacted cash receipts.

A particularly encouraging development is the 38.5% reduction in direct operating expenses to $0.70 million. This substantial cost reduction while maintaining higher production levels indicates improved operational efficiency and effective cost management strategies. The decrease in capital expenses by $0.03 million, following the completion of a recompletion project, suggests prudent capital allocation.

The Trust's decision to reserve $96,000 for future capital obligations demonstrates forward-thinking financial management, though it temporarily reduces current distribution amounts. This conservative approach helps ensure sustainable long-term operations and more stable future distributions, particularly important given the cyclical nature of energy commodity prices.

The shift in production mix - higher oil and lower natural gas volumes - appears strategically sound given the current commodity price environment. The 23.3% increase in natural gas prices to $3.12 per Mcf helped offset the reduced gas volumes, maintaining healthy overall revenue streams.

DALLAS, Feb. 18, 2025 /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 February 28, 2025, and payable on March 14, 2025, in the amount of $489,294.60 ($0.040219 per Trust Unit), based principally upon production during the month of December 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	24,965		805		25,214		813		$67.55		$3.12
Prior Month	22,491		750		28,372		946		$67.80		$2.53

Oil cash receipts for the properties underlying the Trust totaled $1.69 million for the current month, an increase of $0.17 million from the prior month's distribution period.  This increase was primarily due to an increase in oil sales volumes.

Natural gas cash receipts for the properties underlying the Trust totaled $0.08 million for the current month, an increase of $0.01 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 $0.70 million, a decrease of $0.27 million from the prior month's distribution period. Severance and ad valorem taxes included in this month's net profits calculation were $0.07 million.

Capital expenses were $0.02 million, a decrease of $0.03 million from the prior month's distribution period. Boaz Energy reports the decrease was primarily related to the conclusion of a recompletion project on a well in the Permian Shelf area.

Boaz Energy informed the Trust that this month's net profits calculation included $96,000 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 monthly distribution amount for February 2025?

PermRock Royalty Trust (PRT) declared a monthly distribution of $489,294.60, or $0.040219 per Trust Unit, payable on March 14, 2025.

How did PRT's oil production volumes change in December 2024?

Oil production increased to 24,965 barrels (805 Bbls/D) from 22,491 barrels (750 Bbls/D) in the previous month.

What were PRT's average oil and gas prices in December 2024?

The average oil price was $67.55 per barrel and natural gas price was $3.12 per Mcf.

How much did PRT's operating expenses decrease in the current period?

Total direct operating expenses decreased by $0.27 million to $0.70 million compared to the prior month.

What amount did PRT reserve for future capital obligations?

PRT reserved $96,000 to cover future capital obligations and expenses.