PermRock Royalty Trust Declares Monthly Cash Distribution

Rhea-AI Summary

PermRock Royalty Trust (NYSE:PRT) has announced its monthly cash distribution of $486,905.16 ($0.040022 per Trust Unit) for March 2025, based on January 2025 production. The distribution will be paid on April 14, 2025, to unitholders of record as of March 31, 2025.

Key financial highlights include:

• Oil receipts decreased by $0.07 million to $1.62 million due to lower sales volumes
• Natural gas receipts increased by $0.02 million to $0.10 million, driven by higher prices and volumes
• Operating expenses totaled $0.71 million, up $0.01 million from previous month
• Severance and ad valorem taxes were $0.15 million
• Capital expenses increased by $0.04 million to $0.06 million
• $144,000 of previously reserved funds were applied to this month's net profits calculation

Positive

• Natural gas receipts increased by $0.02 million due to higher prices and volumes
• $144,000 of previously reserved funds released for distribution

Negative

• Oil receipts decreased by $0.07 million due to lower sales volumes
• Operating expenses increased by $0.01 million to $0.71 million
• Capital expenses increased by $0.04 million to $0.06 million

Insights

Financial Analyst

PermRock's monthly distribution of $486,905.16 ($0.040022 per unit) reveals some operational headwinds affecting the royalty trust's performance. The decrease in oil cash receipts by $70,000 due to lower sales volumes is concerning since oil represents the trust's primary revenue source at $1.62 million compared to just $100,000 from natural gas.

While natural gas receipts showed modest improvement on better pricing and volumes, the overall cost structure moved in an unfavorable direction. Operating expenses increased by $10,000 and capital expenses jumped by $40,000, creating additional pressure on distributable cash flow.

The release indicates that Boaz Energy applied $144,000 from previously reserved funds to support this month's distribution calculation. This utilization of reserves rather than relying solely on current operational performance suggests the distribution might have been lower without this financial engineering.

For royalty trusts like PermRock, distribution sustainability is paramount to valuation. The current monthly payout translates to approximately $0.48 per unit annually, representing a yield of about 11.9% at the current $4.02 share price. However, the operational metrics point to potential distribution pressure if production volumes continue declining and costs keep rising.

DALLAS, March 21, 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 March 31, 2025, and payable on April 14, 2025, in the amount of $486,905.16 ($0.040022 per Trust Unit), based principally upon production during the month of January 2025.

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	22,173	715	25,576	825	$72.98	$3.98
Prior Month	24,965	805	25,214	813	$67.55	$3.12

Oil cash receipts for the properties underlying the Trust totaled $1.62 million for the current month, a decrease of $0.07 million from the prior month's distribution period. This decrease was primarily due to a decrease in oil sales volumes.

Natural gas cash receipts for the properties underlying the Trust totaled $0.10 million for the current month, an 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 and volumes.

Total direct operating expenses, including marketing, lease operating expenses, and workover expenses, were $0.71 million, an increase of $0.01 million from the prior month's distribution period. Severance and ad valorem taxes included in this month's net profits calculation were $0.15 million. Capital expenses were $0.06 million, an increase of $0.04 million from the prior month's distribution period.

Boaz Energy informed the Trust that this month's net profits calculation included the application of $144,000 net to the Trust of funds previously 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

View original content:https://www.prnewswire.com/news-releases/permrock-royalty-trust-declares-monthly-cash-distribution-302407329.html

SOURCE PermRock Royalty Trust

FAQ

What is the March 2025 distribution amount per unit for PRT shareholders?

PRT's March 2025 distribution is $0.040022 per Trust Unit

When is the payment date for PRT's March 2025 distribution?

The distribution will be paid on April 14, 2025, to unitholders of record as of March 31, 2025

How much did PRT's oil receipts decrease in the current distribution period?

Oil receipts decreased by $0.07 million to $1.62 million due to lower sales volumes

What was the change in PRT's natural gas receipts for the current period?

Natural gas receipts increased by $0.02 million to $0.10 million due to higher prices and volumes

How much previously reserved funds were applied to PRT's current distribution?

$144,000 of previously reserved funds were applied to this month's net profits calculation