DALLAS, April 19,
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 $0.031783 per unit, payable on May 13, 2022, to unit holders of record on
April 29, 2022.
This month's distribution increased from the previous month as
the result of an increase in the production and pricing received
from the previous month's which were delayed due to the timing of
receipts for the Texas Royalty Properties during the month of
February. Currently, only the Texas Royalty Properties are
contributing to the monthly distribution.
Since the Waddell Ranch is in current deficit for the
foreseeable future, any increase or decrease of the distribution by
revenues received, will only be reflective of the activity of the
Texas Royalty Properties. The activity of the Waddell Ranch
will be discussed with the following narrative until it contributes
back to the distribution. This reflects the production month
of February.
WADDELL RANCH
In reporting February production of the Underlying Properties
for this month's press release, production for oil volumes was
133,403 (gross) and was priced at about $90.40 per bbl. Production for gas volumes
(including gas liquids) was 489,669 Mcf (gross) and was priced at
about $5.89 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 $14,141,963 (gross)
for February. Lease Operating Expenses were $2,241,510 (gross) and Capital Expenditures were
$9,546,147 (gross) for February,
netting to the Net Profit Interest (NPI) of $2,354,306. This would put the Trust's proceeds
of 75% as a positive $1,765,730 (net)
for the month of February, leaving an excess cost deficit
cumulative of $4.8 million (net).
Even with the shorter production month of February and the full
engagement of the 2022 capital expenditures for the first two
months of the year, strong pricing of both oil and gas has provided
a positive net profits for the month of $1.766 million(net) to reduce the remaining
excess costs deficit to $4.8
million(net). Given that current oil and gas pricing
continues, it could continue to reduce the deficit in the
foreseeable future.
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. In the Form 10-K, to be filed
in March, further discussion will be provided.
TEXAS ROYALTY PROPERTIES
Production for the underlying properties at the Texas Royalties
was 20,023 barrels of oil and 13,864 Mcf of gas. The
production for the Trust's allocated portion of the Texas Royalties
was 18,165 barrels of oil and 12,564 Mcf of gas. The average
price for oil was $86.32 per bbl and
for gas was $9.19 per Mcf. This
would primarily reflect production and pricing for the month of
February for oil and the month of January 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 $1,855,794. Deducted from these were taxes
of $163,080 resulting in a Net Profit
of $1,692,713 for the month of
February. 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 $1,608,078
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
|
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**
|
|
|
|
|
|
|
|
Prior
Month
|
|
|
|
|
|
|
Waddell
Ranch
|
146,556
|
486,150
|
109,917
|
364,613*
|
$81.06
|
$6.82**
|
Texas
Royalties
|
15,800
|
7,645
|
14,073
|
6,798*
|
$77.97
|
$13.26**
|
*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
$127,990 resulting in a distribution
of $1,481,388 to 46,608,796 units
outstanding, or $0.031783 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, 2021 Reserve Summary will be available
on Permian's website by May 1st. 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