DALLAS, July 21,
2023 /PRNewswire/ -- Argent Trust Company, 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 $0.021749 per
unit, payable on August 14, 2023, to
unit holders of record on July 31,
2023.
This month's distribution decreased from the previous month
primarily due to a decrease in the price of both oil and gas offset
by an increase in both oil and gas production on the Waddell Ranch
Properties during the month of May.
WADDELL RANCH
In
reporting May production of the Underlying Properties for this
month's press release, production for oil volumes was 235,077
(gross) and was priced at about $69.38 per bbl. Production for gas volumes
(including gas liquids) was 839,630 Mcf (gross) and was priced at
about $0.24 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 $15,742,030 (gross) for
May. Lease Operating Expenses were $6,119,811 (gross) and Capital Expenditures
(CAPEX) were $13,323,149 (gross) for
May, netting to a negative Net Profit Interest (NPI) of
$(3,700,930). This would put the
trust's proceeds of 75% as a negative $(2,775,697) (net) for the month of May. For the
month of May, there was an increase of CAPEX relating specifically
to the 2023 budgeted projects, although fracking costs remain
constant from last month to this month, other capital budget items
resulted in an increase to CAPEX. Given that if current oil and gas
pricing continues, Waddell Ranch may
or may not be able to continue to contribute to the distribution in
the foreseeable future, to cover the ongoing CAPEX budget.
The Waddell Ranch Properties NPI did not contribute to this month's
distribution.
First sales received for the month of May
2023 wells were as follows: (all net to the Trust), 3.0 new
drill wells, including 1.9 horizontal wells, 3.8 recompleted wells.
Waiting on completion, as of 5/31/2023, were 2.3 drill wells,
including 1.5 horizontal wells and 4.1 recompletion wells. Also,
3.4 wells, plugged and abandoned, were completed.
Blackbeard has provided the projected 2023 capital expenditure
budget for the Waddell Ranch Properties to be an estimated
$96.8 million (net to the Trust) with
a projection of about 30.75 new drill wells and 45 recompletions
along with about 37.5 plug and abandoned wells. At this point
in time, approximately 42% of that budget has been incurred.
TEXAS ROYALTY
PROPERTIES
Production for the underlying properties at the
Texas Royalties was 15,730 barrels of oil and 12,872 Mcf of gas.
The production for the Trust's allocated portion of the Texas
Royalties was 13,926 barrels of oil and 11,412 Mcf of gas. The
average price for oil was $73.01
per bbl and for gas was $5.79
which includes significant NGL pricing per Mcf. This would
primarily reflect production and pricing for the month of May for
oil and the month of April 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 $1,222,955.
Deducted from these were taxes of $137,947 resulting in a Net Profit of
$1,085,008 for the month of May.
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 $1,030,758 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
|
235,077
|
839,630
|
176,308
|
629,723*
|
$69.38
|
$0.24**
|
Texas
Royalties
|
15,730
|
12,872
|
13,926
|
11,412*
|
$73.01
|
$5.79
|
|
|
|
|
|
|
|
Prior
Month
|
|
|
|
|
|
|
Waddell
Ranch
|
221,817
|
722,843
|
166,363
|
542,132*
|
$77.35
|
$0.41**
|
Texas
Royalties
|
17,415
|
22,217
|
15,559
|
19,827*
|
$75.10
|
$4.07
|
*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
$25,445 resulting in a distribution
of $1,013,732 to 46,608,796 units
outstanding, or $0.021749 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 2022 Annual Report with Form 10-K and the January 1, 2023 Reserve Summary are posted 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,
Argent Trust Company, Trustee, Toll Free – 1.855.588.7839
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SOURCE Permian Basin Royalty Trust