PermRock Royalty Trust Declares Monthly Cash Distribution for September

Rhea-AI Summary

PermRock Royalty Trust (NYSE:PRT) announced a cash distribution of $0.010000 per trust unit for record holders as of September 30, 2020, to be paid on October 15, 2020. The net profits calculation was based on production from July 2020, totaling $121,657, with $75,626 allocated for administrative expenses. Oil cash receipts increased to $1.43 million, up $0.04 million month-over-month, while natural gas receipts rose to $0.08 million, a $0.02 million increase. Total operating expenses were $0.69 million, reflecting an increase of $0.05 million.

Positive

• Increased oil cash receipts of $1.43 million, a $0.04 million rise from last month, driven by higher oil prices.
• Natural gas cash receipts increased to $0.08 million, an uptick of $0.02 million.
• Distribution of $0.010000 per trust unit reflects ongoing profitability despite industry challenges.

Negative

• Total direct operating expenses increased to $0.69 million, up $0.05 million from the previous month.
• Production levels saw a slight decrease, although it was offset by higher oil prices.

FORT WORTH, Texas, Sept. 18, 2020 /PRNewswire/ -- PermRock Royalty Trust (NYSE:PRT) (the "Trust") today declared a $0.010000 cash distribution to record holders of its trust units representing beneficial interests in the Trust ("Trust Units") as of September 30, 2020.  The distribution will be paid on October 15, 2020.  The net profits calculation was based principally upon production during the month of July 2020 and includes $121,657 in net profits income to be distributed to the Trust, $75,626 of which amount will be used to cover Trust administrative expenses.

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 (per Bbl)	Natural Gas (per Mcf)
	Bbls	Bbls/D	Mcf	Mcf/D
Current Month	38,186	1,232	42,273	1,364	$37.36	$1.98
Prior Month	38,850	1,295	37,935	1,265	$35.75	$1.64

Oil cash receipts for the properties underlying the Trust totaled $1.43 million for the current month, an increase of $0.04 million from the prior month distribution period due to increased oil prices in July 2020 that offset the slight decrease in production. Boaz Energy reported that normal production operations resumed in early June 2020 following the shut in of a material amount of production from the properties underlying the Trust during portions of May 2020 due to oil price uncertainties.

Natural gas cash receipts for the properties underlying the Trust totaled $0.08 million for the current month, an increase of $0.02 million from the prior month's distribution period due to an increase in sales volumes and natural gas prices.

Total direct operating expenses, including marketing, lease operating expenses and workover expenses, were $0.69 million reflecting a $0.05 million increase from the prior month. Severance and ad valorem taxes were $0.18 million.

Capital expenditures were $0.13 million in the current month reflecting a $0.08 million increase from the prior month.  Boaz Energy reported these expenditures primarily related to drilling and completion operations on non-operated properties in Crane County.  Boaz Energy informed the Trust that this month's net profits calculation included $117,802 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 Boaz Energy's operations with regard to producing leases, anticipated drilling and completion activities 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 the volatility in commodity prices, which have declined since the beginning of 2020 in response to the economic effects of the COVID-19 pandemic and the dispute over production levels between Russia and the members of the Organization of Petroleum Exporting Countries, including Saudi Arabia, resulting in an oversupply of crude oil and exacerbating the decline in crude oil prices, and could remain low for an extended period of time. Further, continued low oil and natural gas prices may continue to result in no distributions to unitholders for an unknown period of time. 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 Securities and Exchange Commission (the "SEC") on March 30, 2020 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
	Simmons Bank, Trustee
	Lee Ann Anderson, Senior Vice President
	Toll-free: (855) 588-7839
	Fax: (817) 298-5579
	Website: www.permrock.com
	e-mail: trustee@permrock.com

 

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SOURCE PermRock Royalty Trust

FAQ

What is the cash distribution amount declared by PermRock Royalty Trust for September 2020?

PermRock Royalty Trust declared a cash distribution of $0.010000 per trust unit for September 2020.

When will the cash distribution be paid to unitholders of PermRock Royalty Trust?

The cash distribution will be paid on October 15, 2020.

What were the oil and natural gas cash receipts for PermRock Royalty Trust in July 2020?

The oil cash receipts were $1.43 million, and natural gas cash receipts were $0.08 million for July 2020.

How much profit is allocated for administrative expenses by PermRock Royalty Trust?

Out of the total net profits income of $121,657, $75,626 will be used to cover administrative expenses.