DALLAS, April 18,
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 $0.026846 per
unit, payable on May 12, 2023, to
unit holders of record on April 28,
2023.
This month's distribution increased slightly from the previous
month as the result of primarily an increase in the production of
both oil and gas on the Texas Royalty Properties during the month
of February.
WADDELL RANCH
In reporting February production of the Underlying Properties
for this month's press release, production for oil volumes was
206,970 (gross) and was priced at about $73.13 per bbl. Production for gas volumes
(including gas liquids) was 685,484 Mcf (gross) and was priced at
about $1.81 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 $15,574,745 (gross) for
February. Lease Operating Expenses were $4,387,298 (gross) and Capital Expenditures
(CAPEX) were $13,347,152 (gross) for
February, netting to a negative Net Profit Interest (NPI) of
$(2,159,705). This would put the
trust's proceeds of 75% as a negative $(1,619,779) (net) for the month of February, to
contribute to this month's distribution leaving an excess cost
deficit cumulative of $2.0 million
(net). For the month of February, there was an increase of CAPEX
relating specifically to the startup of 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 February 2023 wells were as follows: (all net to
the Trust), 3.8 new drill wells, including 1.5 horizontal wells,
4.1 recompleted wells. Waiting on completion, as of 2/28/2023, were
2.3 drill wells, including 0.0 horizontal wells and 1.5
recompletion wells. Also, 2.3 wells, plugged and abandoned, were
completed.
Blackbeard has again revised 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 20,191 barrels of oil and 24,473 Mcf of gas. The production for
the Trust's allocated portion of the Texas Royalties was 18,167
barrels of oil and 22,009 Mcf of gas. The average price for oil was
$72.00 per bbl and for gas was
$5.03 which includes significant NGL
pricing 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
$1,576,820. Deducted from these were
taxes of $162,125 resulting in a Net
Profit of $1,414,695 for the month
of February. 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 $1,343,960
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
|
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**
|
|
|
|
|
|
|
|
Prior
Month
|
|
|
|
|
|
|
Waddell
Ranch
|
219,010
|
792,625
|
164,258
|
594,469*
|
$74.94
|
$2.12**
|
Texas
Royalties
|
19,062
|
20,617
|
17,134
|
18,518*
|
$75.67
|
$5.13**
|
*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
$126,333 resulting in a distribution
of $1,251,291 to 46,608,796 units
outstanding, or $0.026846 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 will be available
on Permian's website by April 21.
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