Permianville Royalty Trust Announces Monthly Cash Distribution

Rhea-AI Summary

Permianville Royalty Trust (NYSE: PVL) announced a cash distribution of $0.016000 per unit, payable on April 14, 2022, to unitholders of record by March 31, 2022. This distribution reflects net profits from oil production in December 2021 and natural gas in November 2021. Total cash receipts from oil were $3.0 million, while natural gas receipts were $1.4 million. Operating expenses increased to $2.3 million, with capital expenditures rising to $0.9 million.

Positive

• Cash distribution of $0.016000 per unit reflects ongoing profitability.
• Despite a drop in cash receipts, regular monthly distributions indicate stable operations.

Negative

• Oil cash receipts fell by $0.4 million compared to the prior month.
• Natural gas cash receipts decreased by $0.3 million from the previous month's distribution.
• Operating expenses increased by $0.2 million, impacting profitability.

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 $0.016000 per unit, payable on April 14, 2022 to unitholders of record on March 31, 2022. The net profits interest calculation represents reported oil production for the month of December 2021 and reported natural gas production during November 2021. The calculation includes accrued costs incurred in January 2022.

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		40,390		1,303		290,847		9,695		$	73.25		$	4.96
Prior Month		44,180		1,473		325,962		10,515		$	76.45		$	5.31

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 $73.25/Bbl, down $0.4 million from the prior month distribution period.

Recorded natural gas cash receipts from the Underlying Properties totaled $1.4 million for the current month on realized wellhead prices of $4.96/Mcf, down $0.3 million from the prior month distribution period.

Total accrued operating expenses for the period were $2.3 million, an increase of $0.2 million from the prior period. Capital expenditures increased $0.3 million from the prior period to $0.9 million, primarily associated with four non-operated wells being drilled by a private equity-backed operator in the Permian.

Given the increase in rig count and operator activity on the Underlying Properties, COERT Holdings 1 LLC, the sponsor of the Trust (the “Sponsor”), has withheld $0.3 million from the current month’s net profits to establish a cash reserve for approved, future development expenses expected to be incurred this year. To date, the Sponsor has established a total reserve of $0.3 million for approved development expenses expected to be incurred this year.

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 have experienced significant fluctuation since the beginning of 2020 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 the effect, impact, potential duration or other implications of the COVID-19 pandemic. In addition, future monthly capital expenditures may exceed the average levels experienced in 2020 and prior periods. 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, 2020, filed with the SEC on March 23, 2021. 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/20220318005355/en/

Permianville Royalty Trust

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

Sarah Newell 1 (512) 236-6555

Source: Permianville Royalty Trust

FAQ

What is the recent cash distribution for Permianville Royalty Trust (PVL)?

Permianville Royalty Trust announced a cash distribution of $0.016000 per unit.

When is the distribution date for PVL's cash distribution?

The distribution date is set for April 14, 2022.

What were the total oil and natural gas cash receipts for PVL in the latest report?

Total oil cash receipts were $3.0 million, and natural gas receipts were $1.4 million.

How have the operating expenses changed for Permianville Royalty Trust (PVL)?

Operating expenses increased to $2.3 million, up by $0.2 million from the prior period.

What factors affected the cash receipts for PVL during the reported period?

Cash receipts were affected by realized wellhead prices and reported production volumes.