PermRock Royalty Trust Declares Monthly Cash Distribution

Rhea-AI Summary

PermRock Royalty Trust (NYSE:PRT) has declared a monthly cash distribution of $365,300.26 ($0.030026 per Trust Unit) for record holders as of September 30, 2024, payable on October 15, 2024. This distribution is based on July 2024 production. Key highlights include:

- Oil sales: 23,434 Bbls at $78.98 per Bbl
- Natural gas sales: 29,276 Mcf at $2.25 per Mcf
- Oil cash receipts: $1.85 million, up $0.10 million from prior month
- Natural gas cash receipts: $0.07 million, slight increase from prior month
- Total direct operating expenses: $0.72 million, up $0.04 million
- Capital expenses: $0.62 million, up $0.38 million

Boaz Energy applied $172,000 net to the Trust from previously reserved funds for future capital obligations and expenses.

Positive

• Increase in oil sales volumes and prices, leading to higher oil cash receipts
• Slight increase in natural gas sales prices and cash receipts
• Application of $172,000 net to the Trust from previously reserved funds

Negative

• Increase in total direct operating expenses by $0.04 million
• Significant increase in capital expenses by $0.38 million
• Slight increase in severance and ad valorem taxes

Insights

Financial Analyst

The $0.030026 per unit distribution represents a 3.90% increase from the previous month, signaling improved performance. Key factors include a 2.96% rise in oil sales volumes and a 2.69% increase in oil prices. However, the 2.75% decrease in natural gas sales volumes is a concern. The $0.38 million increase in capital expenses for well upgrades could potentially boost future production. The release of $172,000 from reserves suggests confidence in near-term financial stability. Overall, this distribution reflects modest improvement in the Trust's performance, but investors should monitor natural gas trends and the impact of capital investments on future distributions.

Energy Sector Analyst

The Trust's performance reflects the broader energy market dynamics. The increase in oil prices to $78.98 per barrel aligns with global market trends, driven by OPEC+ production cuts and geopolitical tensions. The slight uptick in natural gas prices to $2.25 per Mcf, while positive, remains historically low due to abundant U.S. supply. The focus on upgrading a well in the Permian Platform is strategic, as this region continues to be a key driver of U.S. oil production growth. However, the Trust's relatively small scale makes it vulnerable to production fluctuations and price volatility. Investors should consider the Trust's performance in the context of larger industry trends and its ability to maintain or grow production in a competitive landscape.

DALLAS, Sept. 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 September 30, 2024, and payable on October 15, 2024, in the amount of $365,300.26 ($0.030026 per Trust Unit), based principally upon production during the month of July 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	23,434		756		29,276		944		$78.98		$2.25
Prior Month	22,761		759		30,104		1,003		$76.91		$2.09

Oil cash receipts for the properties underlying the Trust totaled $1.85 million for the current month, an increase of $0.10 million from the prior month's distribution period.  This increase was primarily due to an increase in oil sales volumes and prices.

Natural gas cash receipts for the properties underlying the Trust totaled $0.07 million for the current month, a slight increase 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 $0.72 million, an increase of $0.04 million from the prior month's distribution period. Severance and ad valorem taxes were $0.15 million, a slight increase from the prior month's distribution period. Capital expenses were $0.62 million, an increase of $0.38 million from the prior month's distribution period. Boaz Energy reports the increase was primarily related to upgrading a well in the Permian Platform.

Boaz Energy informed the Trust that this month's net profits calculation included the application of $172,000 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-302253795.html

SOURCE PermRock Royalty Trust

FAQ

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

PermRock Royalty Trust (PRT) declared a monthly cash distribution of $365,300.26, or $0.030026 per Trust Unit, for September 2024.

What were the oil and natural gas sales volumes for PRT in July 2024?

In July 2024, PRT reported oil sales of 23,434 Bbls and natural gas sales of 29,276 Mcf.

How did oil cash receipts change for PRT compared to the previous month?

Oil cash receipts for PRT increased by $0.10 million compared to the previous month, totaling $1.85 million.

What was the reason for the increase in capital expenses for PRT in July 2024?

The increase in capital expenses of $0.38 million was primarily related to upgrading a well in the Permian Platform, as reported by Boaz Energy.