SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 20, 2020
PERMIAN BASIN ROYALTY TRUST
(Exact name of Registrant as specified in its charter)
(State or other jurisdiction of
incorporation or organization)
Royalty Trust Management
2911 Turtle Creek Boulevard
|(Address of principal executive offices)||(Zip Code|
Registrants Telephone Number, including area code: (855) 588-7839
(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
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 April 20, 2020, the Registrant issued a press release announcing its monthly cash distribution to unitholders of record on April 30, 2020. 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.
|99.1||Press Release dated April 20, 2020.|
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|
SIMMONS BANK, TRUSTEE FOR
PERMIAN BASIN ROYALTY TRUST
|By:||/s/ RON E. HOOPER|
|Ron E. Hooper|
|Senior Vice President|
Date: April 20, 2020
Permian Basin Royalty Trust
PERMIAN BASIN ROYALTY TRUST
ANNOUNCES APRIL CASH DISTRIBUTION AND 2020 RESERVE QUANTITIES
DALLAS, Texas, April 20, 2020 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 $0.023048 per unit, payable on May 14, 2020, to unit holders of record on April 30, 2020.
This months distribution decreased from the previous month due primarily to a significant decline in pricing for oil, but was offset by slightly higher gas pricing for the Waddell Ranch, along with a decline in production in both oil and gas for the Waddell Ranch. The Texas Royalty Properties reflected a decrease in oil production offset by a slight increase in gas production. Also, pricing for both oil and gas for the Texas Royalty Properties both experienced a significant decrease. This reflects the production month of February.
Production for the underlying properties at the Waddell Ranch was 44,232 barrels of oil and 233,069 Mcf of gas. production for the Trusts allocated portion of the Waddell Ranch was 4,673 barrels of oil and 25,494 Mcf of gas. The average price for oil was $48.46 per bbl and for gas was $1.28 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 $2,441,913. Deducted from these would be the Lease Operating Expense (LOE) of $1,807,933, taxes of $197,381 and Capital Expenditures (CAPEX) of $106,809 totaling $2,112,123 resulting in a Net Profit of $329,790 for the month of March. With the Trusts Net Profit Interest (NPI) of 75% of the underlying properties, this would result in a net contribution by the Waddell Ranch Properties of $247,342 to this months distribution.
ConocoPhillips has advised the Trust of the 2020 budget for the Waddell Ranch reflecting no new drill wells on the Waddell Ranch. Also, base well work of $700,000, gross, ($300,000 net to the trust) and facilities work of $700,000, gross, ($300,000 net to the Trust) bringing a total of $1.4 million, gross, ($600,000 to the Trust) of projects for 2020. There are no recompletions planned for the year of 2020.
|Underlying Properties||Net to Trust Sales|
These volumes are the net to the trust, after allocation of expenses to Trusts 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 20,229 barrels of oil and 17,402 Mcf of gas. The production for the Trusts allocated portion of the Texas Royalties was 17,271 barrels of oil and 14,853 of gas. The average price for oil was $53.19 per bbl and for gas was $3.36 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 $1,134,441. Deducted from these were taxes of $158,883 resulting in a Net Profit of $975,558 for the month of March. With the Trusts Net Profit Interest (NPI) of 95% of the Underlying Properties, this would result in net contribution by the Texas Royalties of $926,780 to this months distribution.
General and Administrative Expenses deducted for the month were $101,247 resulting in a distribution of $1,074,281 to 46,608,796 units outstanding, or $0.023048 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 Commissions 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, 2020, attributable to the Trust from the properties appraised are approximately 4.0 million barrels of oil and 5.4 billion cubic feet of gas with a future net value of approximately $211,563,000 with a discounted value of $102,755,000.
With the estimated quantities of this years reserve estimate of 4.0 million barrels of oil and 5.4 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 Trusts Annual Report on Form 10-K that was filed on March 16, 2020 and is available to all unitholders at this time on the SEC website.
The 2019 Annual Report with Form 10-K and the January 1, 2020 Reserve Summary is now available on Permians website. Permians 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 Permians website at http://www.pbt-permian.com/.
* * *
Contact: Ron Hooper, Senior Vice President, Simmons Bank, Trustee, Toll Free 1.855.588.7839