PermRock Royalty Trust Declares Monthly Cash Distribution

Rhea-AI Summary

PermRock Royalty Trust (NYSE:PRT) has declared a monthly cash distribution of $488,593.20 ($0.040161 per Trust Unit) for August 2024, based on June 2024 production. Oil sales volumes decreased from 24,389 Bbls to 22,761 Bbls, with average prices dropping from $78.30 to $76.91 per Bbl. Natural gas sales volumes slightly decreased, but prices increased from $1.88 to $2.09 per Mcf.

Oil cash receipts declined by $0.16 million, while natural gas receipts remained stable. Total direct operating expenses decreased by $0.10 million, and capital expenses increased by $0.04 million, primarily due to fracking a well in Crane County, Texas. Boaz Energy applied $156,000 net to the Trust from previously reserved funds for future capital obligations and expenses.

Positive

• Natural gas prices increased from $1.88 to $2.09 per Mcf
• Total direct operating expenses decreased by $0.10 million
• Application of $156,000 net to the Trust from previously reserved funds

Negative

• Monthly cash distribution decreased to $488,593.20 ($0.040161 per Trust Unit)
• Oil sales volumes decreased from 24,389 Bbls to 22,761 Bbls
• Oil prices dropped from $78.30 to $76.91 per Bbl
• Oil cash receipts declined by $0.16 million
• Capital expenses increased by $0.04 million

Insights

Financial Analyst

This monthly distribution announcement provides key insights into PermRock Royalty Trust's financial health. The $488,593.20 distribution, equating to $0.040161 per Trust Unit, reflects a slight decrease from the previous month. This decline is primarily attributed to lower oil sales volumes and prices, with oil cash receipts dropping by $0.16 million.

Despite the decrease, the Trust's ability to maintain a steady distribution amidst fluctuating commodity prices demonstrates resilience. The application of $156,000 from previously reserved funds suggests prudent financial management. However, investors should monitor the trend of declining oil sales volumes, as it could impact future distributions if sustained.

Energy Sector Specialist

The production data reveals interesting trends in the Trust's underlying assets. Oil production decreased from 787 Bbls/D to 759 Bbls/D, a 3.56% drop, while natural gas production slightly increased from 995 Mcf/D to 1,003 Mcf/D. The marginal increase in gas production couldn't offset the oil decline's impact on revenue.

The fracking activity in Crane County is noteworthy, as it indicates ongoing efforts to enhance production. This capital expenditure, while increasing short-term costs, could potentially boost future output and distributions. Investors should watch for the results of this activity in upcoming months to gauge its effectiveness in offsetting natural production declines.

Market Analyst

The Trust's performance should be viewed in the context of broader energy market dynamics. The slight decrease in oil prices from $78.30 to $76.91 per barrel aligns with recent market fluctuations. Conversely, natural gas prices saw a modest increase from $1.88 to $2.09 per Mcf, potentially offsetting some of the oil revenue decline.

Investors should note the Trust's vulnerability to commodity price volatility. While the current distribution remains stable, future payouts will heavily depend on oil and gas price trends. The Trust's ability to manage expenses, as evidenced by the $0.10 million decrease in operating costs, provides some buffer against price fluctuations. However, the capital-intensive nature of the industry, highlighted by the fracking expenses, underscores the ongoing need for reinvestment to maintain production levels.

DALLAS, Aug. 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 August 30, 2024, and payable on September 16, 2024, in the amount of $488,593.20 ($0.040161 per Trust Unit), based principally upon production during the month of June 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	22,761	759	30,104	1,003	$76.91	$2.09
Prior Month	24,389	787	30,833	995	$78.30	$1.88

Oil cash receipts for the properties underlying the Trust totaled $1.75 million for the current month, a decrease of $0.16 million from the prior month's distribution period.  This decrease was primarily due to a decrease in oil sales volumes and prices.

Natural gas cash receipts for the properties underlying the Trust totaled $0.06 million for the current month, essentially unchanged from the prior month's distribution period.  Total direct operating expenses, including marketing, lease operating expenses, and workover expenses, were $0.68 million, a decrease of $0.10 million from the prior month's distribution period. Severance and ad valorem taxes were $0.14 million, essentially unchanged from the prior month's distribution period. Capital expenses were $0.24 million, an increase of $0.04 million from the prior month's distribution period. Boaz Energy reports the increase was primarily related to expenses associated with fracking a well in Crane County, Texas.

Boaz Energy informed the Trust that this month's net profits calculation included the application of $156,000 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-302225607.html

SOURCE PermRock Royalty Trust

FAQ

What is the monthly cash distribution for PermRock Royalty Trust (PRT) in August 2024?

PermRock Royalty Trust (PRT) declared a monthly cash distribution of $488,593.20, or $0.040161 per Trust Unit, for August 2024, based on June 2024 production.

How did oil sales volumes and prices change for PermRock Royalty Trust (PRT) in the current month?

Oil sales volumes decreased from 24,389 Bbls to 22,761 Bbls, and oil prices dropped from $78.30 to $76.91 per Bbl in the current month compared to the prior month.

What was the change in natural gas prices for PermRock Royalty Trust (PRT) in the current month?

Natural gas prices for PermRock Royalty Trust (PRT) increased from $1.88 to $2.09 per Mcf in the current month compared to the prior month.

How much did PermRock Royalty Trust's (PRT) oil cash receipts change in the current month?

PermRock Royalty Trust's (PRT) oil cash receipts decreased by $0.16 million in the current month compared to the prior month's distribution period.