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): May 18, 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
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 May 18, 2020, the Registrant issued a press release announcing its monthly cash distribution to unitholders of record on May 29, 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 May 18, 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: May 18, 2020
Permian Basin Royalty Trust
PERMIAN BASIN ROYALTY TRUST
ANNOUNCES MAY CASH DISTRIBUTION
DALLAS, Texas, May 18, 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 $0.016499 per unit, payable on June 12, 2020, to unit holders of record on May 29, 2020.
This months distribution decreased from the previous month due primarily to a significant decline in pricing for oil and gas for the Waddell Ranch, offset by an increase in production in both oil and gas for the Waddell Ranch, primarily due to the additional days of March. The Texas Royalty Properties reflected an increase in oil production offset by a slight decrease 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 March.
Production for the underlying properties at the Waddell Ranch was 48,557 barrels of oil and 270,746 Mcf of gas. Production for the Trusts allocated portion of the Waddell Ranch was 6,669 barrels of oil and 38,547 Mcf of gas. The average price for oil was $28.55 per bbl and for gas was $.34 per Mcf. This would primarily reflect production and pricing for the month of March for oil and the month of February 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 $1,477,074. As ConocoPhillips was winding down its active controlling ownership of the Waddell Ranch, the resulting deductions of the Lease Operating Expense (LOE) of $1,050,249, taxes of $153,943 and Capital Expenditures (CAPEX) of $14,181 totaling $1,218,373, which was a significant decrease from prior month, resulting in a Net Profit of $258,701 for the month of April. 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 $194,026 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.
|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 23,468 barrels of oil and 14,729 Mcf of gas. The production for the Trusts allocated portion of the Texas Royalties was 19,571 barrels of oil and 12,288 of gas. The average price for oil was $38.65 per bbl and for gas was $2.42 per Mcf. This would primarily reflect production and pricing for the month of March for oil and the month of February 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 $942,740. Deducted from these were taxes of $152,220 resulting in a Net Profit of $790,521 for the month of April. With the Trusts Net Profit Interest (NPI) of 95% of the Underlying Properties, this would result in net contribution by the Texas Royalties of $750,995 to this months distribution.
General and Administrative Expenses deducted for the month were $176,624 resulting in a distribution of $769,001 to 46,608,796 units outstanding, or $0.016499 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/. Additionally, printed reports can be requested and are mailed free of charge.
* * *
Contact: Ron Hooper, Senior Vice President, Simmons Bank, Trustee, Toll Free 1.855.588.7839