DALLAS, May 19, 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 $0.044388 per unit,
payable on June 14, 2023, to unit
holders of record on May 31,
2023.
This month's distribution increased from the previous month
primarily due to an increase in the production of both oil and gas
on the Waddell Ranch Properties during the month of March.
WADDELL RANCH
In reporting March production of the
Underlying Properties for this month's press release, production
for oil volumes was 242,702 (gross) and was priced at about
$71.07 per bbl. Production for gas
volumes (including gas liquids) was 807,905 Mcf (gross) and was
priced at about $1.35 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 $17,466,492 (gross) for
March. Lease Operating Expenses were $3,992,481 (gross) and Capital Expenditures
(CAPEX) were $9,407,067 (gross) for
March, netting to a positive Net Profit Interest (NPI) of
$3,050,208. This would put the
trust's proceeds of 75% as a positive $1,018,694 (net) for the month of March, after
satisfying the cost deficit cumulative of $2.0 million (net). For the month of March, there
was a decrease of CAPEX relating specifically to the 2023 budgeted
projects. 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.
First sales received for the month of March 2023 wells were as follows: (all net to the
Trust), 1.5 new drill wells, including 0.0 horizontal wells, 4.5
recompleted wells. Waiting on completion, as of 3/31/2023, were 3.4
drill wells, including 1.1 horizontal wells and 4.1 recompletion
wells. Also, 0.4 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. This revision of
the previously announced budget is the result reviewing the current
and future activity of the industrial environment of the Waddell
Ranch.
TEXAS ROYALTY
PROPERTIES
Production for the underlying properties at the
Texas Royalties was 16,939 barrels of oil and 21,165 Mcf of gas.
The production for the Trust's allocated portion of the Texas
Royalties was 15,079 barrels of oil and 18,807 Mcf of gas. The
average price for oil was $72.21 per
bbl and for gas was $4.42 which
includes significant NGL pricing 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 $1,316,865.
Deducted from these were taxes of $138,021 resulting in a Net Profit of
$1,178,844 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 $1,119,902 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
|
242,702
|
807,905
|
182,027
|
605,929*
|
$71.07
|
$1.35
|
Texas
Royalties
|
16,939
|
21,165
|
15,079
|
18,807*
|
$72.21
|
$4.42
|
|
|
|
|
|
|
|
Prior
Month
|
|
|
|
|
|
|
Waddell
Ranch
|
206,970
|
685,484
|
155,228
|
514,113*
|
$73.13
|
1.81**
|
Texas
Royalties
|
20,191
|
24,473
|
18,167
|
22,009*
|
$72.00
|
$5.03**
|
*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
$76,412 resulting in a distribution
of $2,068,902 to 46,608,796 units
outstanding, or $0.044388 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, 2023, attributable to the Trust from
the properties appraised are approximately 11.6 million barrels of
oil and 25.7 billion cubic feet of gas with a future net value of
approximately $1,205,228,000 with a
discounted value of $686,468,000.
With the estimated quantities of this year's reserve estimate of
11.6 million barrels of oil and 25.7 billion cubic feet of gas
remaining, it could be estimated that the Trust still has a life
span of 15 years. The report is an exhibit to the Trust's Annual
Report on Form 10-K that was filed on March
1, 2023 and is available to all unitholders at this time on
the SEC website.
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