Permianville Royalty Trust Announces Monthly Cash Distribution

Rhea-AI Summary

Permianville Royalty Trust (NYSE: PVL) has announced a cash distribution of $0.014000 per unit to unitholders, payable on October 15, 2024. This distribution is based on reported oil production for June 2024 and natural gas production for May 2024, including accrued costs from July 2024. The Trust's underlying properties recorded oil cash receipts of $3.0 million at an average price of $77.69/Bbl, down $0.3 million from the previous month. Natural gas cash receipts totaled $0.6 million at $1.69/Mcf, up $0.1 million. Total accrued operating expenses increased by $0.6 million to $2.5 million, while capital expenditures decreased by $0.2 million to $0.4 million.

Positive

• Natural gas cash receipts increased by $0.1 million from the prior month
• Capital expenditures decreased by $0.2 million to $0.4 million

Negative

• Oil cash receipts decreased by $0.3 million from the prior month
• Total accrued operating expenses increased by $0.6 million to $2.5 million
• Oil production volumes decreased from 41,469 Bbls to 38,579 Bbls
• Natural gas production volumes decreased from 394,278 Mcf to 374,304 Mcf

Insights

Financial Analyst

The $0.014 per unit cash distribution announced by Permianville Royalty Trust is a routine monthly payout, reflecting the Trust's operational performance. While the distribution provides income for unitholders, it's important to note the decrease in oil production (-7%) and natural gas production (-5%) compared to the previous month. This decline, coupled with lower oil prices (-2.3%), suggests potential challenges in maintaining future distribution levels.

However, the increase in natural gas prices (+21.6%) partially offsets these negatives. The $0.6 million increase in operating expenses and $0.2 million decrease in capital expenditures indicate potential shifts in operational strategy. Investors should monitor these trends closely, as they may impact the Trust's ability to sustain distributions in the long term.

Energy Sector Analyst

The reported figures reveal interesting dynamics in the Permian Basin. The decline in oil and gas production volumes could be attributed to natural field depletion or temporary operational issues. However, the contrasting price movements of oil and natural gas are noteworthy. The slight dip in oil prices aligns with broader market trends, while the significant jump in natural gas prices (21.6%) is particularly intriguing.

This price divergence could lead to a shift in production focus towards natural gas-rich areas within the Trust's portfolio. The reduction in capital expenditures might indicate a cautious approach or completion of major projects. Investors should watch for any strategic changes in the Trust's operations that could capitalize on the favorable natural gas pricing environment.

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 $0.014000 per unit, payable on October 15, 2024 to unitholders of record on September 30, 2024. The net profits interest calculation represents reported oil production for the month of June 2024 and reported natural gas production during May 2024. The calculation includes accrued costs incurred in July 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		38,579		1,286		374,304		12,074		$ 77.69		$ 1.69
Prior Month		41,469		1,338		394,278		13,143		$ 79.53		$ 1.39

Recorded oil cash receipts from the oil and gas properties underlying the Trust (the “Underlying Properties”) totaled $3.0 million for the current month on realized wellhead prices of $77.69/Bbl, down $0.3 million from the prior month’s oil cash receipts.

Recorded natural gas cash receipts from the Underlying Properties totaled $0.6 million for the current month on realized wellhead prices of $1.69/Mcf, up $0.1 million from the prior month.

Total accrued operating expenses for the period were $2.5 million, a $0.6 million increase month-over-month. Capital expenditures decreased $0.2 million from the prior period to $0.4 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/20240916862566/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 October 2024?

Permianville Royalty Trust (PVL) announced a cash distribution of $0.014000 per unit, payable on October 15, 2024 to unitholders of record on September 30, 2024.

How did oil and natural gas cash receipts change for Permianville Royalty Trust (PVL) in the current month?

Oil cash receipts decreased by $0.3 million to $3.0 million, while natural gas cash receipts increased by $0.1 million to $0.6 million in the current month.

What were the average wellhead prices for oil and natural gas for Permianville Royalty Trust (PVL) in the current month?

The average wellhead price for oil was $77.69 per barrel, and for natural gas, it was $1.69 per Mcf in the current month.

How did operating expenses and capital expenditures change for Permianville Royalty Trust (PVL) in the current period?

Total accrued operating expenses increased by $0.6 million to $2.5 million, while capital expenditures decreased by $0.2 million to $0.4 million in the current period.