PermRock Royalty Trust Declares Monthly Cash Distribution

Rhea-AI Summary

On April 18, 2023, PermRock Royalty Trust (NYSE:PRT) announced a cash distribution of $375,777.62, approximately $0.030888 per Trust Unit, for holders of its Trust Units as of April 28, 2023. This distribution is based on production data from February 2023. Key figures include oil sales of 25,096 Bbls and natural gas sales of 33,908 Mcf, with oil prices averaging $73.41 per Bbl and natural gas at $4.23 per Mcf. However, oil cash receipts fell by $0.16 million and natural gas receipts decreased by $0.03 million compared to the previous month, attributed to lower sales volumes and prices. Operating expenses increased slightly by $0.02 million to $0.77 million, while capital expenses rose by $0.09 million, totaling $0.59 million. The Trust's financial outlook is affected by commodity price volatility and operational risks.

Positive

• Monthly distribution of $375,777.62 reflects ongoing cash generation.
• Production figures indicate consistent oil and natural gas outputs.

Negative

• Oil cash receipts decreased by $0.16 million from the previous month.
• Natural gas cash receipts fell by $0.03 million compared to the prior month.
• Operating expenses increased by $0.02 million, impacting overall profitability.
• Capital expenses rose by $0.09 million, raising concerns about cash flow.

DALLAS, April 18, 2023 /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 28, 2023, and payable on May 12, 2023, in the amount of $375,777.62 ($0.030888 per Trust Unit), based principally upon production during the month of February 2023.

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	25,096	896	33,908	1,211	$73.41	$4.23
Prior Month	26,629	859	36,924	1,191	$74.99	$4.63

Oil cash receipts for the properties underlying the Trust totaled $1.84 million for the current month, a decrease of $0.16 million from the prior month's distribution period.  This decrease was due to a decrease in oil sales volumes and prices, as well as a shorter calendar month for production in February. 

Natural gas cash receipts for the properties underlying the Trust totaled $0.14 million for the current month, a decrease of $0.03 million from the prior month's distribution period.  This decrease was due to a decrease in natural gas sales volumes and prices, as well as a shorter calendar month for production in February.

Total direct operating expenses, including marketing, lease operating expenses, and workover expenses, were $0.77 million reflecting a $0.02 million increase from the prior month. Severance and ad valorem taxes were $0.16 million.  

Capital expenses this month were $0.59 million, an increase of $0.09 million from the prior month's distribution. Boaz Energy reports the increase in capital expenses this month was primarily due to a well recompletion and the conversion of an injector well to a producer well in the Permian Abo area.

Boaz Energy informed the Trust that this month's net profits calculation included the application of $300,000 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, oversupply and the economic effects of the COVID-19 pandemic. 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, 2023, 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 
                        Ron E. Hooper, SVP Royalty Trust Management 
                        Toll-free: (855) 588-7839 
                        Fax: (817) 298-5579 
                        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-301799708.html

SOURCE PermRock Royalty Trust

FAQ

What is the cash distribution amount declared by PermRock Royalty Trust for May 2023?

PermRock Royalty Trust declared a cash distribution of $375,777.62, or $0.030888 per Trust Unit, payable on May 12, 2023.

Which month’s production data is used for the current distribution by PermRock Royalty Trust?

The distribution is based on production data from February 2023.

What were the oil and natural gas sales volumes reported by PermRock Royalty Trust?

The Trust reported oil sales of 25,096 Bbls and natural gas sales of 33,908 Mcf for the current month.

When is the record date for the cash distribution declared by PermRock Royalty Trust?

The record date for the cash distribution is April 28, 2023.

What factors contributed to the decrease in cash receipts reported by PermRock Royalty Trust?

The decrease in cash receipts was due to lower oil and natural gas sales volumes and prices, as well as a shorter calendar month for production.