DALLAS, April 18, 2019 /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 $0.017601 per unit, payable on May 14, 2019, to unit holders of record on April 30, 2019.
This month's distribution decreased from the previous month due primarily to a decrease of oil production and gas production. This reflects the production month of February, which would be shortened by three production days already. Both oil and gas pricing increased, offsetting some of the decrease. Capital Expenditures rose to reflect current activity of drilling additional wells on the Waddell Ranch Properties. These expenditures compared to the previous month, which in turn, through the allocation of the Trust's production from the underlying properties, resulted in a decrease in both oil and gas production allocated to the Trust's interest for the Waddell Ranch properties. The Texas Royalty Properties saw a decrease in the production of oil and gas, primarily because of three less days of production in February, offset by an increase in pricing for both oil and gas production.
Production for the underlying properties at the Waddell Ranch was 42,945 barrels of oil and 254,542 Mcf of gas. The production for the Trust's allocated portion of the Waddell Ranch was 1,464 barrels of oil and 11,260 Mcf of gas. The average price for oil was $48.71 per bbl and for gas was $3.15 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 significantly impacted by the pricing of both oil and gas.
This production and pricing for the Underlying Properties resulted in revenues for the Waddell Ranch Properties of $2,892,821. Deducted from these would be the Lease Operating Expense (LOE) of $1,580,283, taxes of $216,187 and Capital Expenditures (CAPEX) of $959,849 totaling $2,756,319 resulting in a Net Profit of $136,502 for the month of March. With the Trust's Net Profit Interest (NPI) of 75% of the underlying properties, this would result in a net contribution by the Waddell Ranch Properties of $102,376 to this month's distribution.
ConocoPhillips has advised the Trust of the 2019 budget for the Waddell Ranch reflecting 2 new drill wells into the Wolfcamp formation at an estimated $2.5 million, gross, ($1.2 million net to the Trust), including $1.7 million, gross, ($.8 million net to the trust), of 2018 carryover budget, anticipated to be completed in early 2019. Also, base well work of $1.6 million, gross, ($0.7 million net to the trust) and facilities work of $4.2 million, gross, ($1.8 million net to the Trust) bringing a total of $6.6 million, gross, ($2.97 million to the trust) of drilling and projects for 2019. There are no recompletions planned for the year of 2019.
Net to Trust Sales
*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.
TEXAS ROYALTY PROPERTIES
Production for the underlying properties at the Texas Royalties was 21,074 barrels of oil and 18,009 Mcf of gas. The production for the Trust's allocated portion of the Texas Royalties was 17,683 barrels of oil and 15,251 of gas. The average price for oil was $46.36 per bbl and for gas was $5.09 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 $1,068,575. Deducted from these were taxes of $154,096 resulting in a Net Profit of $914,479 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 $868,755 to this month's distribution.
General and Administrative Expenses deducted for the month were $152,561 resulting in a distribution of $820,372 to 46,608,796 units outstanding, or $0.017601 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, 2019, attributable to the Trust from the properties appraised are approximately 4.261 million barrels of oil and 7.904 billion cubic feet of gas with a future net value of approximately $270,462,000 with a discounted value of $139,226,000.
With the estimated quantities of this year's reserve estimate of 4.261 million barrels of oil and 7.904 billion cubic feet of gas remaining, it could be estimated that the Trust still has a life span of 9 to 11 years. The report is an exhibit to the Trust's Annual Report on Form 10-K that was filed on March 18, 2019 and is available to all unitholders at this time on the SEC website.
Permian's cash distribution history, current and prior year financial reports, including a summary of reserves as of 1/1/2019, tax information booklets, and a link to filings made with the Securities and Exchange Commission, all can be found on its website at http://www.pbt-permian.com/.
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SOURCE Permian Basin Royalty Trust