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 $0.019552 per unit, payable on September 15, 2021, to unit holders of record on August 31, 2021.
This month’s distribution decreased from the previous month as the result of decreased production of oil and gas due to the timing of receipts offset by an increase in the pricing for oil and gas for the Texas Royalty Properties during the month of June. 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 June.
In reporting June production of the Underlying Properties for this month’s press release, production for oil volumes was 90,258 bbls (gross) and was priced at about $70.22 per bbl. Production for gas volumes (including gas liquids) was 220,120 mcf (gross) and was priced at about $4.21 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 $6,956,201 (gross) for June. Lease Operating Expenses were $1,600,296 (gross) and Capital Expenditures were $9,324,242 (gross) for June. This would put the Trust’s proceeds as a deficit of $ 2,976,253 (net) for the month of June, leaving an excess cost deficit cumulative of $15.5 million (net).
Resulting producing well count relating to activity on the Waddell Ranch properties for the month of June reflects 12 additional recompletion wells along with the previously stated well count of 49 recompletions giving a total for the year of 61 wells (gross) recompleted and producing. New producing drill well count for the month of June were 8 new drill wells along with the previously stated new drill well count of 22 new drill wells giving the total of new drill wells for the year of 30 (gross) drilled and producing. Both the recompletions and new drill wells are currently receiving revenue on new production, as reflected by the increasing volumes as stated above.
Blackbeard Operating has advised the Trust of the 2021 capital budget of $86.6 million (gross), ($32.5 million net to the Trust) for the Waddell Ranch proposing 91 (gross) drill wells, with 24 (gross) recompletions.
TEXAS ROYALTY PROPERTIES
Production for the underlying properties at the Texas Royalties was 17,820 of oil and 9,894 Mcf of gas. The production for the Trust’s allocated portion of the Texas Royalties was 15,854 barrels of oil and 8,797 of gas. The average price for oil was $69.06 per bbl and for gas was $7.89 per Mcf. This would primarily reflect production and pricing for the month of June for oil and the month of May 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 $1,308,703. Deducted from these were taxes of $129,626 resulting in a Net Profit of $1,179,076 for the month of June. 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 $1,120,123 to this month’s distribution.