PermRock Royalty Trust Declares Monthly Cash Distribution

Rhea-AI Summary

PermRock Royalty Trust (NYSE:PRT) has declared a monthly cash distribution of $289,632.56 ($0.023807 per Trust Unit) for April 2025, based on February 2025 production. The distribution will be paid on May 14, 2025, to unitholders of record as of April 30, 2025.

Key production metrics show oil sales of 21,413 barrels (765 Bbls/D) at $70.27 per barrel, down from prior month's 22,173 barrels at $72.98. Natural gas sales reached 25,759 Mcf (920 Mcf/D) at $4.15 per Mcf, compared to previous 25,576 Mcf at $3.98.

Oil receipts decreased by $0.12 million to $1.50 million due to lower prices and volumes. Natural gas receipts increased by $0.01 million to $0.11 million. Operating expenses decreased by $0.05 million to $0.66 million, with $0.14 million in taxes and $0.05 million in capital expenses. T2S reserved $48,000 for future capital obligations.

Positive

• Natural gas sales volume increased to 920 Mcf/D from 825 Mcf/D
• Natural gas price improved to $4.15 per Mcf from $3.98
• Operating expenses decreased by $0.05 million
• Capital expenses reduced by $0.01 million

Negative

• Monthly distribution decreased to $289,632.56
• Oil revenue declined by $0.12 million to $1.50 million
• Oil price dropped to $70.27 per barrel from $72.98
• Oil sales volume decreased to 21,413 barrels from 22,173 barrels

Insights

Financial Analyst

PermRock's monthly distribution reflects lower oil revenue offset by reduced expenses and improved natural gas performance amid typical commodity fluctuations.

PermRock Royalty Trust has declared its monthly distribution of $0.023807 per unit, totaling $289,632.56 based on February 2025 production. This announcement provides critical operational metrics that directly impact unitholder returns.

The production data reveals mixed performance. Oil volumes decreased to 21,413 barrels from the prior month's 22,173 barrels, though daily production actually increased to 765 Bbls/d from 715 Bbls/d due to February's shorter calendar. Meanwhile, natural gas production remained relatively stable at 25,759 Mcf compared to 25,576 Mcf previously, with daily production increasing to 920 Mcf/d.

Commodity prices showed diverging trends, with oil prices declining 3.7% to $70.27 per barrel while natural gas prices improved 4.3% to $4.15 per Mcf. This resulted in oil receipts decreasing by $0.12 million to $1.50 million, partially offset by a $0.01 million increase in natural gas receipts to $0.11 million.

On the expense side, there's positive news as direct operating expenses decreased by $0.05 million to $0.66 million, and capital expenses slightly declined to $0.05 million. However, it's worth noting that the trust's operator, T2S Permian, reserved $48,000 for future capital obligations, effectively reducing the current distribution.

For royalty trusts like PRT, which function primarily as pass-through entities for energy production income, these monthly distributions represent the core investment return mechanism. The current distribution reflects the typical tension in commodity-based royalty trusts between production volumes, commodity prices, and operating expenses – a declining oil price environment partially mitigated by cost control and improved natural gas prices.

DALLAS, April 17, 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 April 30, 2025, and payable on May 14, 2025, in the amount of $289,632.56 ($0.023807 per Trust Unit), based principally upon production during the month of February 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	21,413	765		25,759	920		$70.27		$4.15
Prior Month	22,173	715		25,576	825		$72.98		$3.98

Oil cash receipts for the properties underlying the Trust totaled $1.50 million for the current month, a decrease of $0.12 million from the prior month's distribution period. This decrease was primarily due to a decrease in oil sales prices and volumes. Barrels of oil per day ("Bbls/d") increased compared to the prior month, however, total volumes were lower given a shorter production month in February 2025.

Natural gas cash receipts for the properties underlying the Trust totaled $0.11 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 $0.66 million, a decrease of $0.05 million from the prior month's distribution period. Severance and ad valorem taxes included in this month's net profits calculation were $0.14 million. Capital expenses were $0.05 million, a slight decrease of $0.01 million from the prior month's distribution period.

T2S Permian Acquisition II LLC ("T2S"), as the new operator of the properties underlying the Trust, informed the Trust that this month's net profits calculation included $48,000 net to the Trust of funds reserved by T2S to cover future capital obligations and expenses.

About PermRock Royalty Trust

PermRock Royalty Trust is a Delaware statutory trust formed 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 now owned and operated by T2S 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 T2S'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 T2S'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 March 31, 2025, 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 the April 2025 distribution amount for PermRock Royalty Trust (PRT)?

PermRock Royalty Trust declared a distribution of $289,632.56 ($0.023807 per Trust Unit) for April 2025, payable on May 14, 2025.

How did PRT's oil production and prices change in February 2025?

Oil production decreased to 21,413 barrels from 22,173 barrels, and prices dropped to $70.27 per barrel from $72.98 in the prior month.

What were PRT's natural gas sales metrics for February 2025?

Natural gas sales were 25,759 Mcf (920 Mcf/D) at $4.15 per Mcf, showing increased volume and price compared to the previous month.

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

Total direct operating expenses decreased by $0.05 million to $0.66 million compared to the prior month's distribution period.