PERMIAN BASIN ROYALTY TRUST ANNOUNCES JANUARY CASH DISTRIBUTION

Rhea-AI Summary

On January 20, 2023, Argent Trust Company, trustee of the Permian Basin Royalty Trust (NYSE: PBT), announced a cash distribution of $0.036797 per unit, payable on February 14, 2023, for unit holders of record as of January 31, 2023. This distribution represents a decrease from the previous month, primarily due to lower oil and gas prices at Waddell Ranch and reduced capital expenditures (CAPEX). November oil production was 198,021 barrels at an average price of $83.04 per barrel, while gas production was 729,987 Mcf priced at $2.83 per Mcf. The net revenue for November was $17,558,006. Future distributions may be affected by ongoing market conditions.

Positive

• Net revenue of $17,558,006 for November indicates strong production performance.
• Continued contributions from Waddell Ranch expected if pricing holds.
• Projected $135 million CAPEX for 2023 may enhance production capacity.

Negative

• Cash distribution decreased to $0.036797 per unit, reflecting market challenges.
• Lower oil and gas prices impacted revenue and distributions.
• Market conditions remain unpredictable, affecting future distributions.

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DALLAS, Jan. 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 $0.036797 per unit, payable on February 14, 2023, to unit holders of record on January 31, 2023.

This month's distribution decreased from the previous month as the result of primarily a decrease in pricing for both oil and gas for the Waddell Ranch and Texas Royalty Properties during the month of November. Also, a decrease in CAPEX for the Waddell Ranch as year-end activity to complete the 2022 budgeted projects increased the amount of NPI for the month of November.

WADDELL RANCH

In reporting November production of the Underlying Properties for this month's press release, production for oil volumes was 198,021 (gross) and was priced at about $83.04 per bbl. Production for gas volumes (including gas liquids) was 729,987 Mcf (gross) and was priced at about $2.83 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 $17,558,006 (gross) for November. Lease Operating Expenses were $4,690,425 (gross) and Capital Expenditures (CAPEX) were $12,410,586 (gross) for November, netting to the Net Profit Interest (NPI) of $456,996. This would put the trust's proceeds of 75% as a positive $342,747 (net) for the month of November, to contribute to this month's distribution. For the month of November, there was a significant increase of CAPEX relating specifically to completing a number of wells in the 2022 budget. With November's activity, this represent approximately 99% of the 2022 budget to be expended. Given that if current oil and gas pricing continues, Waddell Ranch should continue to contribute to the distribution in the foreseeable future.

First sales received for the month of November 2022 wells were as follows: (all net to the Trust), 4.5 new drill wells, including 0.8 horizontal wells, 1.9 recompleted wells. Waiting on completion, as of 11/30/2022, were 4.1 drill wells, including 0.8 horizontal wells and 1.9 recompletion wells. Also, 0.4 wells, plugged and abandoned, were completed.

Blackbeard has advised the Trustee of the projected 2023 capital expenditure budget for the Waddell Ranch Properties to be an estimated $135 million (net to the Trust) with a projection of about 55.5 new drill wells and 45 recompletions along with about 37.5 plug and abandoned wells.  A more detail discussion for the 2023 budget should be available for next month's press release. A fuller discussion of the 2021/22 budget and results will be provided in the annual 10-K filing in March.

TEXAS ROYALTY PROPERTIES

Production for the underlying properties at the Texas Royalties was 18,335 barrels of oil and 21,208 Mcf of gas. The production for the Trust's allocated portion of the Texas Royalties was 18,273 barrels of oil and 21,155 Mcf of gas. The average price for oil was $85.76      per bbl and for gas was $6.16 which includes significant NGL pricing per Mcf. This would primarily reflect production and pricing for the month of November for oil and the month of October 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 $1,697,516. Deducted from these were taxes of $154,203 resulting in a Net Profit of $1,543,313 for the month of November. 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 $1,466,147 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	198,021	729,987	148,516	547,490*	$83.04	$2.83**
Texas Royalties	18,335	21,208	18,273	21,155*	$85.76	$6.16**
Prior Month
Waddell Ranch	213,936	728,401	160,452	546,301*	$85.44	$3.90**
Texas Royalties	18,261	8,274	16,455	7,448*	$84.99	$8.79**

	*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 $99,745 resulting in a distribution of $1,715,089 to 46,608,796 units outstanding, or $0.036797 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 tax information packets are expected to begin mailing directly to unit holders in early March 2023. A copy of Permian's 2022 tax information booklet is expected to be posted on Permian's website by February 28, 2023. 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 2023 for 2022 tax reporting.

The 2021 Annual Report with Form 10-K and the January 1, 2022 Reserve Summary is now available 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

 

View original content:https://www.prnewswire.com/news-releases/permian-basin-royalty-trust-announces-january-cash-distribution-301726540.html

SOURCE Permian Basin Royalty Trust

FAQ

What is the cash distribution for Permian Basin Royalty Trust in January 2023?

The cash distribution for January 2023 is $0.036797 per unit, payable on February 14, 2023.

When is the record date for the January 2023 distribution of Permian Basin Royalty Trust?

The record date for the January 2023 distribution is January 31, 2023.

What drove the decrease in the January 2023 distribution for PBT?

The decrease was primarily due to lower oil and gas prices at Waddell Ranch and reduced capital expenditures.

What were the production volumes for Waddell Ranch in November 2022?

In November 2022, Waddell Ranch produced 198,021 barrels of oil and 729,987 Mcf of gas.

What is the expected capital expenditure for Waddell Ranch in 2023?

The projected capital expenditure for Waddell Ranch in 2023 is estimated at $135 million.