DALLAS, Oct. 20,
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 $0.042862 per
unit, payable on November 14, 2023,
to unit holders of record on October 31,
2023.
This month's distribution increased from the previous month due
to an increase in both the production of oil and gas and in oil
pricing on the Texas Royalty Properties, in addition to a
distribution from Blackbeard Operating on the Waddell Ranch
Properties for the month of August.
WADDELL RANCH
In
reporting August production of the Underlying Properties for this
month's press release, production for oil volumes was 255,999
(gross) and was priced at approximately $80.03 per bbl. Production for gas volumes
(including gas liquids) was 859,953 Mcf (gross) and was priced at
approximately $1.79 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 $21,230,258 (gross) for
August. Lease Operating Expenses were $4,207,707 (gross) and Capital Expenditures
(CAPEX) were $15,782,729 (gross) for
August, netting to a positive Net Profit Interest (NPI) of
$1,239,822. This would put the
trust's proceeds of 75% as a positive $929,867 (net). After satisfying the
remaining cumulative deficit of negative ($213,227), there remains $716,640 to contribute to this month's
distribution. For the month of August, there was an increase of
CAPEX relating specifically to the 2023 budgeted projects,
including a lag in invoicing from vendors, along with other capital
budget items. 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 contributed to this month's distribution.
First sales received for the month of August 2023 wells were as follows: (all net to
the Trust), 3.4 new drill wells, including 1.125 horizontal wells,
5.3 recompleted wells. Waiting on completion, as of 8/31/2023, were
2.6 drill wells, including 0.0 horizontal wells and 6.4
recompletion wells. Also, 4.9 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 67% of that budget has been incurred.
TEXAS ROYALTY
PROPERTIES
Production for the underlying properties at the
Texas Royalties was 18,956 barrels of oil and 23,040 Mcf of gas.
The production for the Trust's allocated portion of the Texas
Royalties was 17,052 barrels of oil and 20,733 Mcf of gas. The
average price for oil was $77.79 per
bbl and for gas was $4.16 which
includes significant NGL pricing per Mcf. This would primarily
reflect production and pricing for the month of August for oil and
the month of July 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 $1,570,338. Deducted
from these were taxes of $156,556
resulting in a Net Profit of $1,413,781 for the month of August. 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 $1,323,092 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
|
255,999
|
859,953
|
191,999
|
644,965*
|
$80.03
|
$1.79**
|
Texas
Royalties
|
18,956
|
23,040
|
17,052
|
20,733*
|
$77.79
|
$4.16**
|
|
|
|
|
|
|
|
Prior
Month
|
|
|
|
|
|
|
Waddell
Ranch
|
255,430
|
929,763
|
191,573
|
697,322*
|
$74.19
|
$1.96**
|
Texas
Royalties
|
16,680
|
18,376
|
14,811
|
16,325*
|
$72.23
|
$3.88**
|
*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
$69,266 resulting in a distribution
of $1,997,757 to 46,608,796 units
outstanding, or $0.042862 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: Nancy Willis, Vice
President, Argent Trust Company, Trustee, Toll Free –
1.855.588.7839
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SOURCE Permian Basin Royalty Trust