PermRock Royalty Trust Declares No Monthly Cash Distribution for June

Rhea-AI Summary

PermRock Royalty Trust (NYSE:PRT) has announced that there will be no cash distribution to unit holders for June 30, 2020. This decision stems from the net profits calculation based on April 2020 production, yielding only $79,552.27 for administrative expenses. Oil cash receipts fell by $0.68 million to $0.59 million due to decreased sales volumes and prices. Natural gas receipts showed minimal change. Capital expenditures remained steady at $0.19 million, primarily related to ongoing drilling operations. The Trust continues to manage its financial obligations and reserves.

Positive

• The Trust's capital expenditures of $0.19 million relate to ongoing drilling and completion operations, indicating potential for future income.
• Total direct operating expenses were stable at $0.41 million, suggesting effective cost management.

Negative

• No cash distribution for June 2020 underscores financial difficulties facing the Trust.
• Oil cash receipts decreased by $0.68 million from the prior month, attributed to lower sales volumes and prices.

FORT WORTH, Texas, June 19, 2020 /PRNewswire/ -- PermRock Royalty Trust (NYSE:PRT) (the "Trust") today declared there will be no monthly cash distribution to record holders of its trust units representing beneficial interests in the Trust ("Trust Units") as of June 30, 2020.  The net profits calculation was based principally upon production during the month of April 2020 and includes $79,552.27 in net profits income to be distributed to the Trust, which amount will be used to cover Trust administrative expenses.

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	40,203	1,340	47,490	1,583	$14.69	$0.33
Prior Month	42,418	1,368	44,525	1,436	$29.85	$0.52

Oil cash receipts for the properties underlying the Trust totaled $0.59 million for the current month, a decrease of $0.68 million from the prior month distribution period.  This decrease was due to a decrease in sales volumes and oil prices. 

Natural gas cash receipts for the properties underlying the Trust totaled $0.02 million for the current month and did not reflect a significant change from the prior month's distribution period.

Total direct operating expenses, including marketing, lease operating expenses and workover expenses, were $0.41 million and did not reflect a significant change from the prior month. Severance and ad valorem taxes were $0.14 million.

Capital expenditures were $0.19 million in the current month and did not reflect a significant change from the prior month.  Boaz Energy reported these expenditures primarily related to drilling and completion operations on non-operated properties in Crane County.  Boaz Energy previously held back funds to cover future capital obligations and expenses.  Boaz Energy indicated this month's net profits calculation included the application of $359,561 ($287,649 net to the Trust) of those funds Boaz Energy previously held back. The current balance of capital Boaz Energy has held back to cover future expenses is $204,901 ($192,721 net to the Trust).

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 or recoupments from distributions, and Boaz Energy's anticipated drilling and completion activities and the resulting impact on the computation of the Trust's net profits. Any anticipated distribution is based, in part, on the amount of cash received or expected to be received by the Trust from Boaz Energy with respect to the relevant period. Any differences in actual cash receipts by the Trust could affect this distributable amount. 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, Boaz Energy's ability to obtain the required permits for anticipated drilling activities, 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 Securities and Exchange Commission (the "SEC") on March 30, 2020 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
	Simmons Bank, Trustee
	Lee Ann Anderson, Senior Vice President
	Toll-free: (855) 588-7839
	Fax: (817) 298-5579
	Website:  www.permrock.com
	e-mail:  trustee@permrock.com

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SOURCE PermRock Royalty Trust

FAQ

Why is PermRock Royalty Trust not distributing cash in June 2020?

PermRock Royalty Trust declared no cash distribution for June 2020 due to insufficient net profits from oil and natural gas production.

What were the oil and natural gas sales figures for PermRock Royalty Trust in June 2020?

In June 2020, the Trust reported oil sales volumes of 40,203 Bbls and natural gas sales volumes of 47,490 Mcf.

What is the reason for the decrease in oil cash receipts for PermRock Royalty Trust?

The decrease in oil cash receipts to $0.59 million was primarily due to a decline in sales volumes and oil prices.

What are the total operating expenses reported by PermRock Royalty Trust?

Total direct operating expenses for the Trust were reported at $0.41 million, with no significant changes from the previous month.

How much did PermRock Royalty Trust spend on capital expenditures in June 2020?

PermRock Royalty Trust reported capital expenditures of $0.19 million in June 2020.