Permianville Royalty Trust Announces Monthly Cash Distribution
March 16 2023 - 3:15PM
Business Wire
Permianville Royalty Trust (NYSE: PVL, the “Trust”) today
announced a cash distribution to the holders of its units of
beneficial interest of $0.019350 per unit, payable on April 14,
2023 to unitholders of record on March 31, 2023. The net profits
interest calculation represents reported oil production for the
month of December 2022 and reported natural gas production during
November 2022. The calculation includes accrued costs incurred in
January 2023.
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
34,720
1,120
204,419
6,814
$
78.48
$
4.23
Prior Month
38,056
1,269
217,262
7,008
$
80.01
$
5.19
Recorded oil cash receipts from the oil and gas properties
underlying the Trust (the “Underlying Properties”) totaled $2.7
million for the current month on realized wellhead prices of
$78.48/Bbl, down $0.3 million from the prior month’s oil cash
receipts. Reported oil production and sales were partially impacted
in the current month due to an adjustment attributable to an
operator of the Underlying Properties with respect to a period
prior to 2022.
Recorded natural gas cash receipts from the Underlying
Properties totaled $0.9 million for the current month on realized
wellhead prices of $4.23/Mcf, down $0.2 million from the prior
month.
Total accrued operating expenses for the period were $2.2
million, a decrease of $0.2 million from the prior period. Capital
expenditures decreased $1.4 million from the prior period to $0.5
million.
Given the monthly capital expenditures on the Underlying
Properties in the current month that remain higher compared to
prior months, COERT Holdings 1 LLC (the “Sponsor”) is releasing the
remaining $0.1 million from the previously announced net profits
interest capital expenditure reserve to partially fund the current
month’s capital expenditures. The Sponsor expects capital
expenditures to remain elevated compared to prior years, and the
Sponsor may reestablish a capital expenditure reserve as the year
progresses and as operators’ activity on the Underlying Properties
adjusts to the current, volatile commodity price environment.
As noted in last month’s press release, the Sponsor intends to
provide in the Trust’s upcoming Annual Report on Form 10-K to be
filed in March 2023 a more detailed update regarding the progress
to date under the Sponsor’s capital expenditure program and the
2023 outlook for the Underlying Properties and anticipated operator
activity, consistent with the drilling activity update provided in
the Trust’s third quarter 2022 Quarterly Report on Form 10-Q.
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, expectations regarding the
cash reserve for future development expenses and expectations
regarding current and future capital expenditures and development
activities on 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 have
experienced significant fluctuation since the beginning of 2020 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 the effect, impact, potential duration or other
implications of the COVID-19 pandemic. In addition, future monthly
capital expenditures may exceed the average levels experienced in
2022 and prior periods. 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, 2021, filed with the SEC on
March 25, 2022. 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20230316005676/en/
Permianville Royalty Trust The Bank of New York Mellon Trust
Company, N.A., as Trustee Sarah Newell 1 (512) 236-6555
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