DALLAS, Jan. 19,
2024 /PRNewswire/ -- Argent Trust Company, as Trustee
of the Permian Basin Royalty Trust (NYSE: PBT) ("Permian" or the
"Trust") today declared a cash distribution to the holders of its
units of beneficial interest of $0.031031 per unit, payable on February 14, 2024, to unit holders of record on
January 31, 2024.
This month's distribution decreased
from the previous month due to a
slight decrease in production and decreases in pricing of oil
and pricing of gas for the Waddell Ranch Properties as well as
increased capital costs on the Waddell Ranch Properties. There was
a significant decrease in gas volumes produced on the Texas Royalty
Properties. This is due to timing of receipt of revenue checks
relative to the holidays and the month of December ending on a long
weekend.
WADDELL RANCH
In reporting November production of the Underlying Properties for
this month's press release, production for oil volumes was 243,384
(gross) with average pricing of approximately $76.54 per bbl. Production for gas volumes
(including gas liquids) was 855,733 Mcf (gross) with average
pricing of approximately $0.11 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 $17,899,375
(gross) for November. Lease Operating Expenses were $5,601,315
(gross) and Capital Expenditures (CAPEX) were
$11,886,206 (gross) for
November, netting a positive Net Profit Interest
(NPI) of $411,277. This would put the
Trust's proceeds of 75% as a positive $308,458 (net) to contribute to this month's
distribution. For the month of November, revenue decreased compared
to the prior month. Overall, all products saw a decrease in pricing
and volumes were down as the result of one less day of production.
There was a spike in CAPEX that is related to the timing of
horizontal frac costs. If current oil and gas pricing continues or
declines, the Waddell Ranch Properties may or may not be able to
continue to contribute to the distribution in the foreseeable
future, after covering the ongoing CAPEX budget. The Waddell Ranch
Properties NPI contributed to this month's distribution.
First sales received for the month of November 2023 wells were as follows: (all net to
the Trust), 1.5 new drill wells,
including 0.0 horizontal wells, 3.0 recompleted
wells. Waiting on completion, as of November
30, 2023, were 2.3 drill wells, including 1.1 horizontal
wells and 3.8 recompletion wells. Also, 3.8 wells, plugged and
abandoned, were completed.
Blackbeard has estimated the projected 2023 capital expenditure budget for the Waddell
Ranch Properties to be $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. Approximately 84% of that budget has been
incurred and is related to January through November activity.
TEXAS ROYALTY
PROPERTIES
Production for the underlying Texas Royalty Properties was 16,739
barrels of oil and 9,503 Mcf of gas. The production for the Trust's
allocated portion of the Texas Royalty Properties was 14,965
barrels of oil and 8,510 Mcf of gas. The average price for oil was
$80.33 per bbl and for gas was
$7.67 which includes significant NGL
pricing per Mcf. This would primarily reflect production and
pricing for the month of October for oil and the month of September
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 Royalty Properties of
$1,417,599. Deducted from these
revenues were taxes of $150,130,
resulting in a Net Profit of $1,267,469 for the month of November. With the
Trust's Net Profit Interest (NPI) of 95% of the Underlying
Properties, this would result in a net contribution by the Texas
Royalty Properties of $1,204,095 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
|
243,384
|
855,733
|
182,538
|
641,800
|
$76.54
|
$0.11**
|
Texas
Royalties
|
16,739
|
9,503
|
14,965
|
8,510*
|
$80.33
|
$7.67**
|
|
|
|
|
|
|
|
Prior
Month
|
|
|
|
|
|
|
Waddell Ranch
|
268,044
|
886,479
|
201,033
|
664,859*
|
$84.60
|
$1.41**
|
Texas
Royalties
|
16,522
|
20,507
|
14,833
|
18,418*
|
$86.51
|
$4.25**
|
*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
$85,667 resulting in a distribution
of $1,446,325 to 46,608,796 units
outstanding, or $0.031031 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.
Trust Litigation. On December 18,
2023, Argent Trust Company, as Trustee (the "Trustee") of
the Trust, filed its Original Complaint against defendant
Blackbeard Operating, LLC ("Blackbeard"). The Trustee seeks to
recover more than $15 million in
damages resulting from Blackbeard's alleged failure to
properly calculate and pay royalties due and owing to the Trust.
The Trustee will provide material updates as they become
available.
The 2023 tax information packets are expected to begin mailing
directly to unit holders in early March
2024. A copy of Permian's 2023 tax information booklet is
expected to be posted on Permian's website by February 29, 2024. In addition to the tax
booklet, the Permian website also offers two simple calculators for
computing the income and expense amounts and the cost depletion. To
facilitate unit holder tax preparation, both the income and expense
and the depletion calculators are expected to be updated on
Permian's website by late February
2024 for 2023 tax reporting.
The 2022 Annual Report with Form 10-K and the December 31, 2022 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: Jana Egeler, Vice President, Argent Trust Company,
Trustee, Toll Free –1.855.588.7839
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SOURCE Permian Basin Royalty Trust