DALLAS, May 20, 2022
/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 $0.034445 per
unit, payable on June 14, 2022, to
unit holders of record on May 31,
2022.
This month's distribution increased from the previous month as
the result of primarily an increase in the pricing received for the
current month from both the Texas Royalty Properties and now the
Waddell Ranch properties during the month of March. This
month marks the first distribution from Blackbeard relating to the
Waddell Ranch properties. Previously, only the Texas Royalty
Properties were contributing to the monthly distribution.
WADDELL RANCH
In reporting March production of the
Underlying Properties for this month's press release, production
for oil volumes was 167,065 (gross) and was priced at about
$108.35 per bbl. Production for
gas volumes (including gas liquids) was 451,967 Mcf (gross) and was
priced at about $7.37 per Mcf, which
now includes the value received from plant products and natural gas
liquids. Net revenue for the underlying properties of the
Waddell ranch was $20,352,571 (gross)
for March. Lease Operating Expenses were $2,537,517 (gross) and Capital Expenditures were
$11,306,197 (gross) for March,
netting to the Net Profit Interest (NPI) of $6,508,857. This would put the Trust's proceeds
of 75% as a positive $4,881,643 (net)
for the month of March, therefore paying off the excess cost
deficit entirely with a remaining $34,000 to contribute to this month's
distribution. Given that if current oil and gas pricing
continues, Waddell Ranch could continue to contribute to the
distribution in the foreseeable future.
First sales received for the first three months on 2022 wells
are as follows: (all net to the Trust), 10.9 new drill wells,
including 1.9 horizontal well, 11.6 recompleted wells.
Waiting on completion, as of 3/31/2022, are 3.4 drill wells,
including 0.8 horizontal well and 4.1 recompletion wells.
Also 2 wells plugged and abandoned were completed.
Blackbeard has advised the Trustee of the projected 2022 capital
expenditure budget for the Waddell Ranch Properties to be an
estimated $92 million (net to the
Trust) with a projected about 47 new drill wells and 45
recompletions along with about 19 plug and abandoned wells.
Of the new drill wells, about 13 will be horizontal drills and
about 34 vertical drill wells.
TEXAS ROYALTY
PROPERTIES
Production for the underlying properties at the
Texas Royalties was 17,501 barrels of oil and 8,790 Mcf of
gas. The production for the Trust's allocated portion of the
Texas Royalties was 15,892 barrels of oil and 7,973 Mcf of
gas. The average price for oil was $101.38 per bbl and for gas was $12.98 per Mcf. This would primarily
reflect production and pricing for the month of March for oil and
the month of February 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 $1,888,268.
Deducted from these were taxes of $158,896 resulting in a Net Profit of
$1,729,373 for the month of
March. 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 $1,642,904 to
this month's distribution.
|
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
|
167,065
|
451,967
|
125,299
|
338,975*
|
$108.35
|
$7.37**
|
Texas
Royalties
|
17,501
|
8,790
|
15,892
|
7,973*
|
$101.38
|
$12.98**
|
|
|
|
|
|
|
|
Prior
Month
|
|
|
|
|
|
|
Waddell
Ranch
|
133,403
|
489,669
|
100,052
|
367,252*
|
$90.40
|
$5.89**
|
Texas
Royalties
|
20,023
|
13,864
|
18,165
|
12,564*
|
$86.32
|
$9.19**
|
|
|
*
|
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
$72,125 resulting in a distribution
of $1,605,445 to 46,608,796 units
outstanding, or $0.034445 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.
Permian Basin Royalty Trust, as it does after the end of each
year, had a year-end Reserve Report prepared in accordance with the
Securities and Exchange Commission's requirements. This
report provides an evaluation of the estimated asset value as of
December 31 of each year, which can
be used to estimate the remaining life of the Trust.
The estimated net proved reserves, as of January 1, 2022, attributable to the Trust from
the properties appraised are approximately 6.6 million barrels of
oil and 11.3 billion cubic feet of gas with a future net value of
approximately $465,149,000 with a
discounted value of $259,855,000.
With the estimated quantities of this year's reserve estimate of
6.6 million barrels of oil and 11.3 billion cubic feet of gas
remaining, it could be estimated that the Trust still has a life
span of 8 to 10 years. The report is an exhibit to the
Trust's Annual Report on Form 10-K that was filed on March 31, 2021 and is available to all
unitholders at this time on the SEC website.
The 2021 Annual Report with Form 10-K and the January 1, 2022 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.
Contact: Ron Hooper, Senior Vice
President, Simmons Bank, Trustee,
Toll Free – 1.855.588.7839
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SOURCE Permian Basin Royalty Trust