DALLAS, Feb. 16, 2021
/PRNewswire/ -- Simmons Bank, as Trustee of the Permian Basin
Royalty Trust (NYSE: PBT) ("Permian") today declared a cash
distribution to the holders of its units of beneficial interest of
$0.016492 per unit, payable on
March 12, 2021, to unit holders of
record on February 26, 2021.
This month's distribution increased slightly from the previous
month as the result of increased prices for both oil and
gas. General and administrative expenses were lower this month
compared to the previous month. The Trust was advised by Blackbeard
that the Waddell Ranch properties were in a deficit of $240,856 for the month of December, with the
deficit increasing to be recovered to $7.8
million in the months to come. The Texas Royalty Properties
reflected an increase in both oil and gas production offset by a
decrease in gas pricing but with an increase in oil
pricing. This reflects the production month of December.
WADDELL RANCH
In reporting December production of the
Underlying Properties for this month's press release, production
for oil volumes was 60,513 bbls and was priced at about
$44.12 per bbl. Production for
gas volumes (including gas liquids) was 198,389 mcf and was priced
at about $2.61 per mcf. Net
revenue for the underlying properties of the Waddell ranch was
$3,544,759 for December. Lease
Operating Expenses were $13,533 after
some prior period adjustments and Capital Expenditures were
$3,852,368 for December. This
would put the Trust's proceeds as a deficit of $240,856 for the month of December, leaving a
cost deficit cumulative of $7.8
million.
Blackbeard advised beginning in April
2020, twenty new drill wells were started and sixteen were
completed and are in production. Four drilled wells are a
work in progress as of December 2020.
TEXAS ROYALTY
PROPERTIES
Production for the underlying properties at the
Texas Royalties was 18,861 barrels of oil and 13,349 Mcf of
gas. The production for the Trust's allocated portion of the
Texas Royalties was 17,918 barrels of oil and 12,682 of gas.
The average price for oil was $43.60
per bbl and for gas was $3.65 per
Mcf. This would primarily reflect production and pricing for
the month of December for oil and the month of November for gas.
These allocated volumes were impacted by the pricing of both oil
and gas. This production and pricing for the underlying properties
resulted in revenues for the Texas Royalties of $871,128. Deducted from these were taxes of
$115,071 and adding in the
reimbursement of ad valorem taxes of $110,176 resulting in a Net Profit of
$866,233 for the month of
December. With the Trust's Net Profit Interest (NPI) of 95%
of the Underlying Properties, this would result in net contribution
by the Texas Royalties of $822,921 to
this month's distribution.
Blackbeard Operating has advised the Trust of the second half of
2020 capital budget for the Waddell Ranch reflecting 9.4 new drill
wells at an estimated $7.5 million,
net to the Trust. Also, workovers at an estimated
$700,000, Plug & Abandonment
(P&A) of 8.3 wells at an estimated cost of $200,000 net to the trust, and facilities work of
$1.3 million net to the Trust. There
are 4.5 recompletions planned for the year of 2020 at an estimated
cost of $800,000, net to the Trust.
This would bring the total capital expenditure budget to
$10.6 million net to the trust of
drilling and projects for 2020.
|
Underlying
Properties
|
Net to Trust
Sales
|
|
|
|
Volumes
|
Volumes
|
Average
|
Price
|
|
Oil
(bbls)
|
Gas
(Mcf)
|
Oil
(bbls)
|
Gas
(Mcf)
|
Oil
(per
bbl)
|
Gas
(per Mcf)
|
Current
Month
|
|
|
|
|
|
|
Waddell
Ranch
|
60,513
|
198,389
|
45,385
|
148,792*
|
$44.12
|
$2.61**
|
Texas
Royalties
|
18,861
|
13,349
|
17,918
|
12,682*
|
$43.60
|
$3.65**
|
|
|
|
|
|
|
|
Prior
Month
|
|
|
|
|
|
|
Waddell
Ranch
|
55,767
|
178,972
|
41,825
|
134,229*
|
$38.22
|
$0.90**
|
Texas
Royalties
|
18,638
|
13,094
|
15,734
|
11,055*
|
$37.41
|
$4.01**
|
*These volumes are the net to the trust, after allocation
of expenses to Trust's net profit interest, including any prior
period adjustments.
**This pricing includes sales of gas liquid products.
General and Administrative Expenses deducted for the month were
$54,695 resulting in a distribution
of $768,697 to 46,608,796 units
outstanding, or $0.016492 per
unit.
The worldwide market conditions continue to affect the pricing
for domestic production. It is difficult to predict what
effect these conditions will have on future distributions.
The 2020 tax information packets are expected to begin mailing
directly to unit holders in early March 2021. A copy of the
2020 tax information booklet has been posted on Permian's website.
In addition to the tax booklet the Permian website also offers two
simple calculators for computing the income and expense amounts and
the cost depletion. Both calculators have been updated for
2020 tax reporting.
The 2019 Annual Report with Form 10-K and the January 1, 2020 Reserve Summary is now available
on Permian's website. Permian's cash distribution history,
current and prior year financial reports, tax information booklets,
and a link to filings made with the Securities and Exchange
Commission, all can be found on Permian's website at
http://www.pbt-permian.com/. Additionally, printed
reports can be requested and are mailed free of charge.
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SOURCE Permian Basin Royalty Trust