Permian Basin Royalty Trust Announces October Cash Distribution

News provided by

Permian Basin Royalty Trust

Oct 20, 2015, 12:54 ET

DALLAS, Oct. 20, 2015 /PRNewswire/ -- Permian Basin Royalty Trust (NYSE: PBT) ("Permian") today declared a cash distribution to the holders of its units of beneficial interest of $0.019278 per unit, payable on November 16, 2015, to unit holders of record on October 30, 2015.

This month's distribution decreased from the previous month due to substantially lower pricing for both oil and gas for all properties.  Also, increased capital expenditures for the drilling program were incurred in August 2015.

WADDELL RANCH

Production for the underlying properties at the Waddell Ranch was 72,004 barrels of oil and 404,093 Mcf of gas.  The production for the Trust's allocated portion of the Waddell Ranch was (16,908) barrels of oil and (12,897) Mcf of gas.  The average price for oil was $41.66 per bbl and for gas was $2.43 per Mcf.  This would primarily reflect production and pricing for the month of August for oil and the month of July 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 $4,090,735.  Deducted from these would be the Lease Operating Expense (LOE) of $1,946,810, taxes of $289,003 and Capital Expenditures (CAPEX) of $2,801,226 totaling $5,037,039 resulting in a Net Profit of $(946,304) for the month of September.  With the Trust's Net Profit Interest (NPI) of 75% of the underlying properties, this would result in negative net by the Waddell Ranch Properties of $(709,728) to this month's distribution.  There is no distribution from the Waddell Ranch's NPI for this month.

During July and August 2015, the 2015 10 workover well program was completed and producing.  The drill well program of ten vertical and two horizontal wells for the 2015 program was started in June 2015. Five vertical wells were completed and producing, seven other wells were being drilled and progressing to completion during August 2015.

ConocoPhillips has advised the Trustee of the 2015 capital expenditure budget which will total $48 million for the entire Waddell Ranch Project and $22.5 million net to the Trust.  There will be ten vertical wells, two horizontal wells, ten recompletions, and various facilities projects.  The workover/recompletions have completed with the vertical/horizontal drilling beginning in June and the facilities work will occur throughout the year. 


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

72,004

404,093

(16,908)*

(12,897)*

$41.66

$2.43**

Texas Royalties

25,629

32,985

24,347

31,336

$43.62

$4.04**







Prior Month





Waddell Ranch

71,337

429,797

 2,225*

39,839*

$49.69

$2.55**

Texas Royalties

27,342

36,817

25,975*

34,976*

$51.70

$4.27**

*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 25,629 barrels of oil and 32,985 Mcf of gas.  The production for the Trust's allocated portion of the Texas Royalties was 24,347 barrels of oil and 31,336 Mcf of gas.  The average price for oil was $43.62 per bbl and for gas was $4.04 per Mcf.  This would primarily reflect production and pricing for the month of August for oil and the month of July 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 $1,251,190.  Deducted from these would be taxes of $205,165 resulting in a Net Profit of $1,046,025 for the month of September.  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 $993,724 to this month's distribution.

General and Administrative Expenses deducted for the month were $95,204 resulting in a distribution of $898,530 to 46,608,796 units outstanding, or $.019278 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's cash distribution history, current and prior year financial reports and tax information booklets, a link to filings made with the Securities and Exchange Commission and more can be found on its website at http://www.pbt-permian.com/.  The new toll free number customer service number for the trust is 1-855-588-7839.

SOURCE Permian Basin Royalty Trust

Related Links

http://www.pbt-permian.com