Permianville Royalty Trust Announces Monthly Cash Distribution

Rhea-AI Summary

Permianville Royalty Trust (NYSE: PVL) has announced a cash distribution of $0.035000 per unit, payable on September 16, 2024, to unitholders of record on August 30, 2024. The distribution is based on reported oil production for May 2024 and natural gas production for April 2024, including accrued costs from June 2024.

Key points:

• Oil cash receipts: $3.3 million (down $4.6 million from prior month)
• Natural gas cash receipts: $0.5 million (down $0.9 million from prior month)
• Total accrued operating expenses: $1.8 million (decreased $1.4 million month-over-month)
• Capital expenditures: $0.6 million (increased $0.2 million from prior period)

The decrease in production and receipts is largely due to the prior month's inclusion of new Permian wells with production and revenues from previous periods.

Positive

• Expense reimbursement from an operator in the Permian area benefited the Underlying Properties and the Trust
• Operating expenses decreased by $1.4 million month-over-month

Negative

• Oil cash receipts decreased by $4.6 million from the prior month
• Natural gas cash receipts decreased by $0.9 million from the prior month
• Oil and natural gas production volumes decreased significantly compared to the prior month
• Capital expenditures increased by $0.2 million from the prior period

Insights

Financial Analyst

The Trust's monthly distribution of $0.035 per unit reflects a modest payout based on reported oil and gas production. The significant decrease in sales volumes and cash receipts compared to the prior month is noteworthy. Oil cash receipts dropped by $4.6 million, while natural gas receipts fell by $0.9 million. This decline is primarily attributed to the absence of new Permian wells that boosted the previous month's figures.

The reduction in operating expenses by $1.4 million due to prior period adjustments is a positive factor, partially offsetting the revenue decline. However, the increase in capital expenditures by $0.2 million could impact future distributions. Investors should monitor these fluctuations closely, as they directly affect the Trust's ability to maintain consistent payouts.

Oil and Gas Industry Expert

The reported figures reveal some concerning trends in the underlying properties' performance. The sharp decline in production volumes - oil down by 57.6% and natural gas by 59% - is significant. While partly explained by the absence of new Permian wells, this drop warrants closer scrutiny.

The slight decrease in realized prices (1.6% for oil and 4.8% for natural gas) aligns with market conditions but adds pressure to revenues. The Trust's non-operated status in predominantly mature fields may limit its ability to quickly respond to production challenges. Investors should consider how these factors might impact the Trust's long-term sustainability and growth prospects in a volatile energy market.

HOUSTON--(BUSINESS WIRE)-- Permianville Royalty Trust (NYSE: PVL, the “Trust”) today announced a cash distribution to the holders of its units of beneficial interest of $0.035000 per unit, payable on September 16, 2024 to unitholders of record on August 30, 2024. The net profits interest calculation represents reported oil production for the month of May 2024 and reported natural gas production during April 2024. The calculation includes accrued costs incurred in June 2024.

The following table displays reported underlying oil and natural gas sales volumes and average received wellhead prices attributable to the current and prior month recorded 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		41,469		1,338		394,278		13,143		$	79.53		$	1.39
Prior Month		97,721		3,257		961,635		31,020		$	80.84		$	1.46

Recorded oil cash receipts from the oil and gas properties underlying the Trust (the “Underlying Properties”) totaled $3.3 million for the current month on realized wellhead prices of $79.53/Bbl, down $4.6 million from the prior month’s oil cash receipts. Oil production and oil cash receipts decreased month-over-month largely because last month’s receipts reflected the inclusion of new Permian wells that included production and revenues attributable to prior periods.

Recorded natural gas cash receipts from the Underlying Properties totaled $0.5 million for the current month on realized wellhead prices of $1.39/Mcf, down $0.9 million from the prior month. Natural gas cash production and receipts decreased month-over-month largely because last month’s receipts reflected the inclusion of new Permian wells that included production and revenues attributable to prior periods.

Total accrued operating expenses for the period were $1.8 million, a $1.4 million decrease month-over-month, primarily due to multiple prior period adjustments from an operator of the Underlying Properties in the Permian area, which was an expense reimbursement to the benefit of the Underlying Properties and the Trust. The operating expenses were also lower on a month-over-month basis given lower reported production for the Underlying Properties in the current month. Capital expenditures increased $0.2 million from the prior period to $0.6 million.

About Permianville Royalty Trust

Permianville Royalty Trust is a Delaware statutory trust formed 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, predominantly non-operated, oil and gas properties in the states of Texas, Louisiana and New Mexico. As described in the Trust’s filings with the Securities and Exchange Commission (the “SEC”), the amount of the periodic distributions is expected to fluctuate, depending on the proceeds received by the Trust as a result of actual production volumes, oil and gas prices, the amount and timing of capital expenditures, and the Trust’s administrative expenses, among other factors. Future distributions are expected to be made on a monthly basis. For additional information on the Trust, please visit www.permianvilleroyaltytrust.com.

Forward-Looking Statements and Cautionary Statements

This press release contains statements that are “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release, other than statements of historical facts, are “forward-looking statements” for purposes of these provisions. These forward-looking statements include the amount and date of any anticipated distribution to unitholders. The anticipated distribution is based, in large part, on the amount of cash received or expected to be received by the Trust from the Sponsor with respect to the relevant period. The amount of such 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 the volatility in commodity prices, which can fluctuate significantly as a result of a variety of factors that are beyond the control of the Trust and the Sponsor. Low oil and natural gas prices will reduce profits to which the Trust is entitled, which will reduce the amount of cash available for distribution to unitholders and in certain periods could result in no distributions to unitholders. Other important factors that could cause actual results to differ materially include expenses of the Trust, reserves for anticipated future expenses, and public health concerns, such as the COVID‑19 pandemic. In addition, future monthly capital expenditures may exceed the average levels experienced in 2023 and prior periods, which could reduce the amount of cash available for distribution to unitholders and in certain periods could result in no distributions to unitholders. Statements made in this press release are qualified by the cautionary statements made in this press release. Neither the Sponsor nor the Trustee intends, and neither assumes any obligation, to update any of the statements included in this press release. An investment in units issued by the Trust is subject to the risks described in the Trust’s filings with the SEC, including the risks described in the Trust’s Annual Report on Form 10‑K for the year ended December 31, 2023, filed with the SEC on March 22, 2024. The Trust’s quarterly and other filed reports are or will be available over the Internet at the SEC’s website at http://www.sec.gov.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240816212359/en/

Permianville Royalty Trust

The Bank of New York Mellon Trust Company, N.A., as Trustee

601 Travis Street, 16^th Floor

Houston, Texas 77002

Sarah Newell 1 (512) 236-6555

Source: Permianville Royalty Trust

FAQ

What is the cash distribution amount per unit for Permianville Royalty Trust (PVL) in September 2024?

Permianville Royalty Trust (PVL) announced a cash distribution of $0.035000 per unit, payable on September 16, 2024, to unitholders of record on August 30, 2024.

How did oil and natural gas cash receipts change for PVL in the current month compared to the prior month?

Oil cash receipts decreased by $4.6 million to $3.3 million, and natural gas cash receipts decreased by $0.9 million to $0.5 million compared to the prior month.

What caused the decrease in oil and natural gas production for PVL in the current month?

The decrease in production was largely due to the prior month's inclusion of new Permian wells that included production and revenues attributable to prior periods, resulting in higher figures for the previous month.

How did operating expenses change for PVL in the current month?

Total accrued operating expenses decreased by $1.4 million month-over-month to $1.8 million, primarily due to expense reimbursements from an operator in the Permian area and lower reported production.