An email has been sent to your address with instructions for changing your password.
There is no user registered with this email.
Sign Up
To create a free account, please fill out the form below.
Thank you for signing up!
A confirmation email has been sent to your email address. Please check your email and follow the instructions in the message to complete the registration process. If you do not receive the email, please check your spam folder or contact us for assistance.
Welcome to our platform!
Oops!
Something went wrong while trying to create your new account. Please try again and if the problem persist, Email Us to receive support.
Permianville Royalty Trust (NYSE: PVL) announced the net profits interest calculation for April 2024, revealing a shortfall of approximately $1.9 million due to elevated capital expenditures. As a result, no monthly distribution will be paid in May 2024. The Trust will resume distributions once the cumulative net profits shortfall of approximately $4.5 million is eliminated. Recorded sales volumes and cash receipts increased significantly month-over-month, driven by new Permian wells. Total accrued operating expenses and capital expenditures also saw notable increases. The Sponsor indicated that the Trust is expected to return to generating positive net profits later in 2024.
Permianville Royalty Trust (NYSE: PVL) ha annunciato il calcolo del reddito netto per aprile 2024, rivelando un deficit di circa 1,9 milioni di dollari a causa di spese in conto capitale elevate. Di conseguenza, non verrà effettuato alcun pagamento di distribuzione nel maggio 2024. Il Trust riprenderà le distribuzioni una volta eliminato il deficit cumulativo di circa 4,5 milioni di dollari. I volumi di vendita registrati e gli incassi sono significativamente aumentati su base mensile, grazie ai nuovi pozzi nel Permiano. Anche le spese operative accumulate e le spese in conto capitale hanno registrato significativi aumenti. Lo sponsor ha indicato che si prevede che il Trust tornerà a generare utili netti positivi più avanti nel 2024.
Permianville Royalty Trust (NYSE: PVL) anunció el cálculo del beneficio neto correspondiente a abril de 2024, revelando un déficit de aproximadamente 1,9 millones de dólares debido a elevados gastos de capital. Como resultado, no se realizará ninguna distribución mensual en mayo de 2024. El fideicomiso reanudará las distribuciones una vez que se elimine el déficit acumulado de aproximadamente 4,5 millones de dólares. Los volúmenes de ventas registrados y los ingresos en efectivo aumentaron significativamente de mes a mes, impulsados por los nuevos pozos en el Pérmico. Los gastos operativos totales acumulados y los gastos de capital también experimentaron aumentos notables. El patrocinador indicó que se espera que el fideicomiso vuelva a generar beneficios netos positivos más adelante en 2024.
Permianville Royalty Trust (NYSE: PVL)는 2024년 4월 순이익 계산을 발표하면서, 높은 자본 지출로 인해 약 1.9백만 달러의 결손이 발생했다고 밝혔습니다. 결과적으로 2024년 5월에는 월별 배당금이 지급되지 않습니다. Trust는 약 4.5백만 달러에 달하는 누적 순이익 결손이 해소되면 배당을 재개할 예정입니다. Permian 새 우물로 인해 월 대 월로 등록된 매출량과 현금 수입이 크게 증가했습니다. 총 누적 운영 비용과 자본 지출도 눈에 띄게 증가했습니다. 스폰서는 Trust가 2024년 말에 다시 긍정적인 순이익을 창출할 것으로 예상한다고 표시했습니다.
Permianville Royalty Trust (NYSE : PVL) a annoncé le calcul de l'intérêt net des bénéfices pour avril 2024, révélant un déficit d'environ 1,9 million de dollars dû à des dépenses en capital élevées. En conséquence, aucune distribution mensuelle ne sera effectuée en mai 2024. Le Trust reprendra les distributions une fois que le déficit cumulé d'environ 4,5 millions de dollars sera éliminé. Les volumes de ventes enregistrés et les recettes en espèces ont augmenté de manière significative d'un mois à l'autre, entraînés par de nouveaux puits dans le Permien. Les dépenses d'exploitation totales accumulées et les dépenses en capital ont également enregistré des augmentations notables. Le sponsor a indiqué que le Trust devrait retourner à la génération de bénéfices nets positifs plus tard en 2024.
Permianville Royalty Trust (NYSE: PVL) gab die Berechnung des Nettogewinnanteils für April 2024 bekannt und enthüllte ein Defizit von etwa 1,9 Millionen Dollar aufgrund hoher Kapitalausgaben. Folglich wird im Mai 2024 keine monatliche Ausschüttung erfolgen. Der Trust wird die Ausschüttungen wieder aufnehmen, sobald das kumulative Nettogewinndefizit von ungefähr 4,5 Millionen Dollar beseitigt ist. Die registrierten Verkaufsvolumina und Bareinnahmen stiegen deutlich von Monat zu Monat, angetrieben durch neue Permian-Bohrungen. Auch die gesamten aufgelaufenen Betriebsausgaben und Kapitalausgaben verzeichneten deutliche Zunahmen. Der Sponsor deutete an, dass erwartet wird, dass der Trust später im Jahr 2024 wieder positive Nettogewinne erzielen wird.
Positive
Recorded oil cash receipts totaled $7.8 million for the current month, up $5.5 million from the prior month.
Natural gas cash receipts amounted to $1.1 million for the current month, up $0.7 million from the prior month.
Total accrued operating expenses increased to $2.9 million, with a $0.4 million month-over-month increase.
Capital expenditures rose to $8.5 million, a $6.6 million increase from the prior period.
The Trust incurred a shortfall of approximately $1.9 million due to elevated capital expenditures, leading to no distribution in May 2024.
The cumulative net profits shortfall amounts to approximately $4.5 million, which needs to be eliminated for distributions to resume.
The Sponsor anticipates the Trust will return to generating positive net profits later in 2024.
Negative
Elevated capital expenditures led to a shortfall of approximately $1.9 million, impacting distributions to unitholders.
The Trust incurred a significant total accrued operating expenses increase of $2.9 million.
A notable increase in capital expenditures to $8.5 million was recorded.
The cumulative net profits shortfall of approximately $4.5 million poses a challenge for future distributions.
If the Trust's cash on hand is insufficient to cover expenses, no further distributions will be made to unitholders.
The Trust's net profits interest will only receive proceeds once the cumulative net profits shortfall is eliminated.
HOUSTON--(BUSINESS WIRE)--
Permianville Royalty Trust (NYSE: PVL, the “Trust”) today announced the net profits interest calculation for April 2024. The net profits interest calculation represents reported oil production for the month of January 2024 and reported natural gas production during December 2023. The calculation includes accrued costs incurred in February 2024.
As a result of the elevated capital expenditures recorded this month as described below, for which timing is not always ratable month-to-month, direct operating and development expenses exceeded cash receipts, leading to a shortfall of approximately $1.9 million this month. As a result, no monthly distribution will be paid in May 2024 to the Trust’s unitholders of record on April 30, 2024. Distributions to the Trust will resume once the cumulative net profits shortfall, which now totals approximately $4.5 million, is eliminated.
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
100,185
3,232
354,556
11,437
$
78.32
$
3.09
Prior Month
31,680
1,022
201,825
6,728
$
72.37
$
2.18
Recorded oil cash receipts from the oil and gas properties underlying the Trust (the “Underlying Properties”) totaled $7.8 million for the current month on realized wellhead prices of $78.32/Bbl, up $5.5 million from the prior month’s oil cash receipts. Oil production and oil cash receipts increased materially month-over-month partly because of the inclusion of 15 new Permian wells that have now either turned to sales or for which title work has been completed, thereby allowing production and revenues attributable to prior periods to be released by the operators of the Underlying Properties.
Recorded natural gas cash receipts from the Underlying Properties totaled $1.1 million for the current month on realized wellhead prices of $3.09/Mcf, up $0.7 million from the prior month. The increase in natural gas production and cash receipts month-over-month was due in part to the 15 new Permian wells discussed above that featured production and revenues attributable to prior periods.
Total accrued operating expenses for the period were $2.9 million, a $0.4 million increase month-over-month, due in part to the increase in reported production. Capital expenditures increased $6.6 million from the prior period to $8.5 million. COERT Holdings 1, LLC (the “Sponsor”) has indicated to the Trustee that this month’s capital expenditures were primarily from 18 new drilling projects, 15 of which were listed in the Capex Drilling Activity Update table presented in the Trust’s Annual Report on Form 10-K filed on March 22, 2024, with the remaining three representing new projects undertaken by an existing, large cap public operator of the Underlying Properties that were not previously scheduled.
In addition, during the current month the Sponsor leased an aggregate of approximately $0.1 million in non-producing, non-cash-flowing acreage to two different private oil companies for upfront cash payments in addition to future royalty revenues if the properties eventually turn to sales. These properties remain burdened by the Trust’s net profits interest.
The cumulative shortfall in net profits for the current month will be deducted from any net profits in next month’s net profits interest calculation. The Trust will not receive proceeds pursuant to its net profits interest until the cumulative net profits shortfall is eliminated. In addition, if the Trust’s cash on hand is not sufficient to pay ordinary course administrative expenses and the Trust borrows funds or draws on the letter of credit that has been provided to the Trust, or if the Sponsor advances funds to the Trust to pay such expenses, no further distributions will be made to Trust unitholders until such amounts borrowed or drawn, or advanced to the Trust, are repaid. At this time based on current commodity prices, the Sponsor anticipates that the Underlying Properties will return to generating positive net profits later in 2024.
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 the future generation of net profits from 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.
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 was the reason for the approximately $1.9 million shortfall in Permianville Royalty Trust's net profits for April 2024?
The shortfall was due to elevated capital expenditures, which exceeded direct operating and development expenses, leading to no distribution in May 2024.
How much were the recorded oil cash receipts for the current month and how did they compare to the prior month?
Recorded oil cash receipts totaled $7.8 million for the current month, up $5.5 million from the prior month.
What did the Sponsor indicate regarding the Trust's return to generating positive net profits later in 2024?
The Sponsor anticipates that the Underlying Properties will return to generating positive net profits later in 2024 based on current commodity prices.
