UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): September 20, 2019

 

 

PERMIAN BASIN ROYALTY TRUST

(Exact name of Registrant as specified in its charter)

 

 

 

Texas

(State or other jurisdiction of

incorporation or organization)

 

1-8033

(Commission

File Number)

 

75-6280532

(I.R.S. Employer

Identification No.)

Royalty Trust Management

Simmons Bank

2911 Turtle Creek Boulevard

Suite 850

Dallas, Texas

(Address of principal executive offices)

   

75219

(Zip Code)

Registrant’s Telephone Number, including area code: (855) 588-7839

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

  

Trading Symbol(s)

  

Name of each exchange on which registered

Units of Beneficial Interest    PBT    New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company   ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ☐

 

 

 


Item 2.02.

Results of Operations and Financial Condition.

On September 20, 2019, the Registrant issued a press release announcing its monthly cash distribution to unitholders of record on September 30, 2019. The press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

This Report on Form 8-K is being furnished pursuant to Item 2.02, Results of Operations and Financial Condition. The information furnished is not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, is not subject to the liabilities of that section and is not deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

 

Item 9.01.

Financial Statements and Exhibits.

 

    

(d)      Exhibits

 

    

99.1    Press Release dated September 20, 2019.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

PERMIAN BASIN ROYALTY TRUST

 

By: SIMMONS BANK, TRUSTEE FOR
PERMIAN BASIN ROYALTY TRUST

By:   /s/ NANCY WILLIS
 

 

 

Nancy Willis

Vice President

 

Date:  September 23, 2019

EX-99.1

Exhibit 99.1

Permian Basin Royalty Trust

 

PERMIAN BASIN ROYALTY TRUST

ANNOUNCES SEPTEMBER CASH DISTRIBUTION

DALLAS, Texas, September 20, 2019 – 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 $0.040012 per unit, payable on October 15, 2019, to unit holders of record on September 30, 2019.

This month’s distribution decreased slightly from the previous month due primarily to an increase of oil production and a slight increase in gas production. This reflects the production month of July. Pricing for both oil and gas increased on the Waddell Ranch. Capital Expenditures declined to reflect less activity due to the completion of drilling of the additional wells on the Waddell Ranch Properties for the previous month’s accounting. Lease Operating Expenses (LOE) for the Waddell Ranch properties increased this month to reflect the resulting additional work being performed this month. The Texas Royalty Properties saw a decrease in the posting of production of oil and gas, primarily due to the timing of receipt of payment of certain revenue due to some changes in lease operators. This was offset by an increase in pricing for oil and gas for the Texas Royalty Properties.

WADDELL RANCH

Production for the underlying properties at the Waddell Ranch was 54,349 barrels of oil and 270,480 Mcf of gas. The production for the Trust’s allocated portion of the Waddell Ranch was 15,736 barrels of oil and 79,935 Mcf of gas. The average price for oil was $55.55 per bbl and for gas was $1.67 per Mcf. This would primarily reflect production and pricing for the month of July for oil and the month of June 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 $3,469,862. Deducted from these would be the Lease Operating Expense (LOE) of $1,860,004, taxes of $249,803 and Capital Expenditures (CAPEX) of $76,607 totaling $2,186,414 resulting in a Net Profit of $1,283,448 for the month of August. 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 $962,586 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.

 

        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

  54,349   270,480   15,736   79,935*   $55.55   $1.67**

Texas Royalties

  20,525       9,620   17,383     8,143*   $53.70   $5.10**
                 
Prior Month                              
Waddell Ranch   52,601   274,609   15,070   79,651*   $50.19   $1.49**

Texas Royalties

  25,145     48,832   21,845   42,407*   $52.41   $2.94**

 

  *

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 20,525 barrels of oil and 9,620 Mcf of gas. The production for the Trust’s allocated portion of the Texas Royalties was 17,383 barrels of oil and 8,143 of gas. The average price for oil was $53.70 per bbl and for gas was $5.10 per Mcf. This would primarily reflect production and pricing for the month of July for oil and the month of June 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 $1,151,237. Deducted from these were taxes of $165,583 resulting in a Net Profit of $985,654 for the month of August. 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 $936,372 to this month’s distribution.

General and Administrative Expenses deducted for the month were $36,690 resulting in a distribution of $1,864,923 to 46,608,796 units outstanding, or $0.040012 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, 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/.

*            *             *

Contact:    Ron Hooper, Senior Vice President, Simmons Bank, Trustee, Toll Free – 1.855.588.7839