Permianville Royalty Trust Announces Monthly Cash Distribution

Rhea-AI Summary

Permianville Royalty Trust (NYSE: PVL) has announced a cash distribution of $0.015000 per unit, payable on November 15, 2024 to unitholders of record on October 31, 2024. The distribution is based on reported oil production for July 2024 and natural gas production for June 2024, including accrued costs from August 2024.

Key highlights:

• Oil sales volume: 52,287 Bbls (1,687 Bbls/D)
• Natural gas sales volume: 1,105,204 Mcf (36,840 Mcf/D)
• Average oil price: $79.43 per Bbl
• Average natural gas price: $2.44 per Mcf
• Total oil cash receipts: $4.2 million
• Total natural gas cash receipts: $2.7 million

The increase in production and revenues is partly attributed to new wells in the Permian and Haynesville regions. Operating expenses totaled $3.5 million, and capital expenditures were $1.9 million. The Sponsor has withheld $0.5 million to establish a cash reserve for future development expenses.

Positive

• Increase in oil and gas production volumes compared to the prior month
• Higher average prices for both oil and natural gas
• Significant increase in cash receipts: $4.2 million for oil (up $1.2 million) and $2.7 million for natural gas (up $2.1 million)
• Addition of five new Permian wells and two new Haynesville wells contributing to revenue

Negative

• Increase in accrued operating expenses by $1.0 million month-over-month
• Rise in capital expenditures by $1.6 million from the prior period
• Withholding of $0.5 million from current month's net profits for future development expenses

Insights

Financial Analyst

This monthly cash distribution announcement from Permianville Royalty Trust (PVL) provides key insights for investors. The $0.015 per unit distribution, payable on November 15, 2024, reflects the Trust's performance based on July 2024 oil production and June 2024 natural gas production.

Notable points include:

• Significant increases in both oil and gas production volumes and revenues
• Oil cash receipts up $1.2 million to $4.2 million
• Natural gas cash receipts up $2.1 million to $2.7 million
• Five new Permian wells and two new Haynesville wells contributing to revenue growth
• Increased capital expenditures of $1.9 million, up $1.6 million from the prior period
• $0.5 million withheld for future development expenses

The increased production and revenues are positive indicators for the Trust's near-term performance. However, the higher capital expenditures and cash reserve for future development suggest potential for growth but also increased costs. Investors should monitor how these investments translate into future production and distribution levels.

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 $0.015000 per unit, payable on November 15, 2024 to unitholders of record on October 31, 2024. The net profits interest calculation represents reported oil production for the month of July 2024 and reported natural gas production during June 2024. The calculation includes accrued costs incurred in August 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		52,287		1,687		1,105,204		36,840		$ 79.43		$ 2.44
Prior Month		38,579		1,286		374,304		12,074		$ 77.69		$ 1.69

Recorded oil cash receipts from the oil and gas properties underlying the Trust (the “Underlying Properties”) totaled $4.2 million for the current month on realized wellhead prices of $79.43/Bbl, up $1.2 million from the prior month’s oil cash receipts.

Recorded natural gas cash receipts from the Underlying Properties totaled $2.7 million for the current month on realized wellhead prices of $2.44/Mcf, up $2.1 million from the prior month.

The increase in reported oil and gas production and revenues for the current month was due in part to the receipt of first revenues for five new Permian wells operated by a super-major energy company and two new Haynesville wells operated by another super-major energy company.

Total accrued operating expenses for the period were $3.5 million, a $1.0 million increase month-over-month. Capital expenditures increased $1.6 million from the prior period to $1.9 million. The increase in capital expenditures in the current month was due in part to drilling of two new Permian wells by the operator referenced above.

In light of an increase in expected capital expenditures on the Underlying Properties over the next twelve months, COERT Holdings 1 LLC (the “Sponsor”) has withheld $0.5 million from the current month’s net profits to establish a cash reserve for approved, future development expenses expected to be incurred in the near-term. If those expenses are ultimately delayed or are less than expected, or if the outlook changes, amounts reserved but unspent will be released as an incremental cash distribution in a future period.

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 and expectations regarding future capital expenditures on the Underlying Properties. 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/20241018127897/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 November 2024?

Permianville Royalty Trust (PVL) announced a cash distribution of $0.015000 per unit, payable on November 15, 2024 to unitholders of record on October 31, 2024.

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

Permianville Royalty Trust (PVL) reported oil cash receipts of $4.2 million and natural gas cash receipts of $2.7 million for 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 prices for Permianville Royalty Trust (PVL) were $79.43 per Bbl for oil and $2.44 per Mcf for natural gas in the current month.

How many new wells contributed to Permianville Royalty Trust's (PVL) revenue increase in the current month?

Permianville Royalty Trust (PVL) reported that five new Permian wells and two new Haynesville wells contributed to the increase in revenue for the current month.