PermRock Royalty Trust Announces Significant Cash Distribution
PermRock Royalty Trust Declares Cash Distribution for January
PermRock Royalty Trust (NYSE: PRT) has recently made a noteworthy announcement regarding its cash distribution to Trust unit holders. As of this month, the Trust has declared a cash distribution amounting to $612,260.75, which translates to approximately $0.050326 per Trust Unit. This distribution is primarily rooted in the production outcomes observed during the previous month.
Analysis of Sales Volumes and Prices
The Trust's underlying properties reported solid performance, with oil cash receipts hitting $1.75 million for this month—an increase attributed to improved sales prices and heightened sales volumes.
Details of Oil and Natural Gas Receipts
The increase in receipts also included a boost in natural gas earnings, with cash receipts totaling $0.07 million, reflecting a slight rise of $0.02 million from the preceding month. The gains in both oil and natural gas sectors signify the Trust's robust market positioning.
Operating Expenses and Financial Overview
The total direct operating expenses incurred by the Trust were recorded at $0.59 million, which represented a decrease compared to the previous month. This reduction suggests effective cost management within the Trust.
Capital and Other Expenses
Additionally, capital expenses experienced a decline to $0.11 million, demonstrating a favorable cost review after the conclusion of prior recompletion projects. Boaz Energy, the operator, has indicated that these figures also reflect provisions set aside for future capital commitments.
About PermRock Royalty Trust
Founded as a Delaware statutory trust, PermRock Royalty Trust’s primary goal is to maintain an ongoing net profits interest in oil and natural gas production from properties owned by Boaz Energy II, LLC. The Trust aims to benefit from producing fields predominantly located in the Permian Basin of West Texas, ensuring reliable returns for its unitholders.
The Trust’s strategic focus is on maintaining a consistent distribution strategy while adapting to changes within the energy market, ensuring that it fulfills its obligations to Trust unit holders responsibly.
Frequently Asked Questions
What is the cash distribution declared by PermRock Royalty Trust?
The Trust declared a cash distribution of $612,260.75, equating to about $0.050326 per Trust Unit.
How did the operating expenses change this month?
Total direct operating expenses were $0.59 million, which is a decrease compared to the previous distribution period.
What were the sales receipts for oil this month?
Oil cash receipts totaled $1.75 million for the current month, thanks to increased sales prices and volumes.
Is there any provision for future capital obligations?
Yes, the monthly net profits calculation included $32,000 reserved to cover future capital obligations and expenses.
What is the primary focus of PermRock Royalty Trust?
The Trust is focused on owning net profits interests from oil and natural gas production in the Permian Basin, aiming to deliver sustainable returns for its unitholders.
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