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): July 21, 2020

 

 

PERMIAN BASIN ROYALTY TRUST

(Exact name of Registrant as specified in its charter)

 

 

 

Texas   1-8033   75-6280532
(State or other jurisdiction of
incorporation or organization)
  (Commission
File Number)
  (I.R.S. Employer
Identification No.)

Royalty Trust Management

Simmons Bank

2911 Turtle Creek Boulevard

Suite 850

Dallas, Texas

    75219
(Address of principal executive offices)     (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 July 21, 2020, the Registrant issued a press release announcing its monthly cash distribution to unitholders of record on July 31, 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.

 

           (d)    Exhibits
  99.1    Press Release dated July 21, 2020.


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/ RON E. HOOPER

  Ron E. Hooper
  Senior Vice President

Date: July 21, 2020

EX-99.1

Exhibit 99.1

Permian Basin Royalty Trust

PERMIAN BASIN ROYALTY TRUST

ANNOUNCES JULY CASH DISTRIBUTION

DALLAS, Texas, July 21, 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 $0.005702 per unit, payable on August 14, 2020, to unit holders of record on July 31, 2020.

Effective for the production month of April, Blackbeard Operating, the new operator of the Waddell Ranch properties, has assumed the reporting responsibilities to Permian Basin Royalty Trust (the “Trust”), starting this month. Blackbeard has agreed to provide monthly reports for the greater need of monthly reporting to the market. On a month by month basis, the “new normal” reporting shall be provided. The Texas Royalty Properties will continue to report on a monthly basis, assuming there are net profits to be had from those assets. The Trust will continue to make monthly announcements concerning what activity has been reported for that month.

This month’s distribution increased from the previous month despite a significant decline in pricing for oil and gas across the industry. General and administrative expenses were significantly lower this month compared to the previous month. The Trust was advised by Blackbeard that the Waddell Ranch properties were in deficit for both the months of April and May, providing details as to production levels and pricing received. The Texas Royalty Properties reflected a decrease in both oil and 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 May.

WADDELL RANCH

In reporting both April and May production of the Underlying Properties, for this month’s press release, was 47,672 bbls and 48,969 bbls, respectively. Pricing for oil production was $13.68 and $14.87 per bbl, respectively. Production for gas volumes ( including gas liquids) were 152,869 mcf and 119,813 mcf, priced at about $1.03 and $0.90 per mcf. Net revenue for the underlying properties of the Waddell ranch were $717,186 and $885,660 for April and May, respectively. Lease Operating Expenses were $1,803,841 and $1,897,712 for April and May, respectively. Capital Expenditures were $585,733 and $606,465 for April and May, respectively.

TEXAS ROYALTY PROPERTIES

Production for the underlying properties at the Texas Royalties was 18,378 barrels of oil and 15,196 Mcf of gas. The production for the Trust’s allocated portion of the Texas Royalties was 17,459 barrels of oil and 14,436 of gas. The average price for oil was $16.27 per bbl and for gas was $1.15 per Mcf. This would primarily reflect production and pricing for the month of May for oil and the month of April 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 $316,454. Deducted from these were taxes of $15,997 resulting in a Net Profit of $300,457 for the month of May. 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 $285,434 to this month’s distribution.

 

     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 -April

     47,672       152,869       35,754       114,651   $ 13.68     $ 1.03 ** 

Waddell Ranch – May

     48,969       119,813       36,727       89,860   $ 14.87     $ 0.90 ** 

Texas Royalties

     18,378       15,196       17,459       14,436   $ 16.27     $ 1.15 ** 
Prior Month                                     

Waddell Ranch (reported)

     0 ***      0 ***      0 ***      0 ***      0 ***      0 *** 

Texas Royalties

     23,468       14,729       19,571       12,288   $ 38.65     $ 2.42 ** 

 

*

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.

 

***

Blackbeard Operating reported that Waddell Ranch was in a deficit for the month of April and May.

General and Administrative Expenses deducted for the month were $33,579 resulting in a distribution of $265,768 to 46,608,796 units outstanding, or $0.005702 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.

The 2019 Annual Report with Form 10-K and the January 1, 2020 Reserve Summary is now available on Permian’s website. Permian’s 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 Permian’s 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