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 $0.019331 per unit, payable on April 14, 2022, to unit holders of record on March 31, 2022.
This month’s distribution decreased from the previous month as the result of a decrease in the production offset by pricing of oil and gas for the Texas Royalty Properties during the month of January. The timing of receipts from some of the larger remitters was delayed due to the end of the month of February. These receipts will be posted in the following month. 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 January.
WADDELL RANCH
In reporting January production of the Underlying Properties for this month’s press release, production for oil volumes was 146,556 (gross) and was priced at about $81.06 per bbl. Production for gas volumes (including gas liquids) was 486,150 Mcf (gross) and was priced at about $6.82 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 $14,428,514 (gross) for January. Lease Operating Expenses were $2,930,402 (gross) and Capital Expenditures were $6,322,184 (gross) for January. This would put the Trust’s proceeds as a positive $3,881,946 (net) for the month of January, leaving an excess cost deficit cumulative of $6.6 million (net).
A review and update on the ongoing 2021 budget are as follows. The 2021 budget (net to the Trust) has expended through December 2021, approximately $56.0 million, recompleting 47.4 existing wells along with drilling 29.7 new wells to completion, with 4.1 recompletions and 4.1 new drills remaining to be fully completed for the 2021 budget. This has resulted in production of approximately 655,000 barrels of oil and 1.5 Bcf of gas, generating $51.1 million in gross revenue through December 2021, all net to the Trust.
As of the end of January, approximately $55.4 million of net profit revenue has been generated by the 2020-2021 budgeted projects.
Blackbeard has advised the Trustee of the projected 2022 capital expenditure budget for the Waddell Ranch Properties to be an estimated $92 million (net to the Trust) with a projected about 47 new drill wells and 45 recompletions along with about 19 plug and abandoned wells. Of the new drill wells, about 13 will be horizontal drills and about 34 vertical drill wells. In the Form 10-K, to be filed in March, further discussion will be provided.
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 2021 tax information packets were mailed directly to unit holders in early March 2022. A copy of Permian’s 2021 tax information booklet is posted on Permian’s website. 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 have been updated on Permian’s website for 2021 tax reporting.
This article was shared with Prittle Prattle News as a Press Release.
