PermRock Royalty Trust Declares Monthly Cash Distribution
PermRock Royalty Trust (NYSE:PRT) announced a monthly cash distribution of $490,223.49 ($0.040295 per Trust Unit) to record holders as of May 31, 2024, payable on June 14, 2024. This distribution is based mainly on March 2024 production.
Oil sales volumes increased to 26,162 barrels, while natural gas sales volumes rose to 28,443 Mcf. The average received prices were $78.88 per barrel for oil and $3.00 per Mcf for natural gas.
Oil cash receipts totaled $2.06 million, up by $0.33 million from the prior month, while natural gas receipts were stable at $0.09 million. Operating expenses decreased slightly to $0.73 million, and severance and ad valorem taxes declined to $0.09 million due to tax reimbursements. Capital expenses dropped to $0.13 million, driven by fewer capital projects. Boaz Energy reserved $184,000 for future capital obligations and expenses.
- Monthly cash distribution of $490,223.49 ($0.040295 per Trust Unit) announced.
- Increased oil sales volumes to 26,162 barrels from 23,156 barrels.
- Rise in oil average received price to $78.88 per barrel from $74.64 per barrel.
- Oil cash receipts increased by $0.33 million to $2.06 million.
- Decrease in operating expenses to $0.73 million, down by $0.01 million.
- Reduction in severance and ad valorem taxes to $0.09 million, down by $0.05 million.
- Capital expenses lowered to $0.13 million, a decrease of $0.10 million.
- Natural gas average received price dropped to $3.00 per Mcf from $3.71 per Mcf.
- Natural gas cash receipts remained unchanged at $0.09 million.
- Boaz Energy reserved $184,000 of funds for future capital obligations, reducing potential distributions.
Insights
The announcement from PermRock Royalty Trust about their monthly cash distribution is significant as it provides insights into their financial health and operational performance. The increase in oil sales volumes and prices resulted in higher oil cash receipts for the month, which is a positive indicator for the Trust's revenue stream. Oil receipts totaled
On the cost side, total direct operating expenses saw a slight decrease of
However, the net profits calculation included
In the context of the broader energy market, these results are promising, especially given the current volatile environment. Retail investors should note the balance between increased earnings and the prudent reservation for future expenses, which reflects sound financial management.
The operational metrics provided by PermRock Royalty Trust offer valuable insights into their performance within the oil and gas sector. The increase in oil sales volumes to 26,162 barrels from the previous month's 23,156 barrels and the price increase to $78.88 per barrel from $74.64 per barrel highlight a favorable production and pricing environment. Natural gas volumes also experienced a slight increase, although the average price declined, reflecting the fluctuating nature of the natural gas market.
For retail investors, understanding these metrics is crucial. The higher oil sales volumes and prices are likely driven by market conditions such as increased global demand or supply constraints. The reduction in direct operating and capital expenses further enhances profitability, though it is essential to monitor future capital expenditures that may arise from the reserved funds.
The oil market's sensitivity to geopolitical events, supply-demand dynamics and regulatory changes makes it imperative for investors to stay informed about such operational and financial updates. Overall, the Trust's performance this month is strong, reflecting positive operational efficiency and market conditions.
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 | 26,162 | 844 | 28,443 | 918 | ||
Prior Month | 23,156 | 798 | 24,949 | 860 | ||
Oil cash receipts for the properties underlying the Trust totaled
Total direct operating expenses, including marketing, lease operating expenses, and workover expenses, were
Boaz Energy informed the Trust that this month's net profits calculation included
About PermRock Royalty Trust
PermRock Royalty Trust is a
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-302149054.html
SOURCE PermRock Royalty Trust
FAQ
What is the cash distribution amount declared by PermRock Royalty Trust for May 2024?
When is the payment date for PermRock Royalty Trust's May 2024 distribution?
What are the sales volumes for oil and natural gas in March 2024 for PermRock Royalty Trust?
What was the average received price for oil and natural gas in March 2024 for PermRock Royalty Trust?
How much did oil cash receipts increase for PermRock Royalty Trust in March 2024?
What were the operating expenses for PermRock Royalty Trust in March 2024?
How much did PermRock Royalty Trust reserve for future capital obligations in March 2024?
