Permian Basin Royalty Trust Declares September Unit Distribution

Permian Basin Royalty Trust Announces September Cash Distribution

Argent Trust Company, acting as the Trustee of the Permian Basin Royalty Trust (NYSE: PBT), has announced a significant cash distribution to the owners of its beneficial interest units. The amount declared for this month stands at $0.050711 per unit, with a scheduled payment date on October 15. This action reflects the Trust's commitment to its unit holders, ensuring they benefit from ongoing revenue streams.

Distribution Insights for September

This month, the distribution demonstrates a decrease in comparison to the previous month. The dip primarily results from lower proceeds from the Waddell Ranch properties for August, even though increased oil production and prices from Texas Royalty Properties provided some offset. While this alteration does highlight the variable nature of production and pricing in the oil and gas sectors, unit holders can expect the usual transparency regarding these metrics.

Impact of Waddell Ranch Properties

For the month of September, the distribution does not encompass proceeds from the Waddell Ranch properties, mainly due to challenges in obtaining timely information from the operator, Blackbeard Operating, LLC. The Trustee has persistently requested necessary data to calculate the net profits interest (NPI). However, due to a lack of compliance from Blackbeard, any NPI proceeds received after the designated record date will be included in the following October distribution, emphasizing the complexities faced by trusts reliant on multiple operational partners.

Texas Royalty Properties Production

Turning to production figures, Texas Royalty properties recorded notable results with a total of 20,846 barrels of oil and 7,012 Mcf of gas produced. In contrast, the Trust’s share amounted to 18,843 barrels of oil alongside 6,337 Mcf of gas. Average pricing was robust, averaging $79.03 per barrel for oil and $10.00 per Mcf for gas, inclusive of significant natural gas liquids pricing. This robust production figure significantly contributed to total revenues, which totaled $1,717,563 for the Texas Royalty Properties after deducting applicable taxes and expenses.

Challenges in Revenue Operations

The entire revenue cycle remains susceptible to fluctuations in both production levels and global market prices. During this reporting period, the general and administrative expenses were noted at $54,550. After consolidating all expenses, the distribution for the month totalled $2,363,614, allocated across 46,608,796 outstanding units, thus confirming the distribution per unit as $0.050711.

Upcoming Legal Proceedings

Adding to the complexity of the Trust’s operations, the Trustee has launched litigation against Blackbeard, seeking to recover over $15 million in alleged damages resulting from incorrect deductions from royalty payments. This includes claims for overhead costs that the Trustee argues were improperly deducted. The ongoing legal matters underscore the importance of compliance and transparency within operational guidelines between the Trust and its operational partners.

Financial Reporting and Transparency

For those interested in a deeper dive into the Trust's operational data, the 2023 Annual Report including the Reserve Summary as of December 31 is accessible on the Permian's website. This resource compiles cash distribution histories, financial reports, and comprehensive tax information booklets, ensuring that unit holders can maintain informed oversight over their investment in the Trust.

Contact Information

For further questions or detailed inquiries, unit holders can reach out to Jana Egeler, Vice President at Argent Trust Company, by calling the toll-free number 1.855.588.7839. This contact avenue reinforces the commitment of the Trust to maintaining open channels of communication with its stakeholders.

Frequently Asked Questions

1. What is the cash distribution amount for September?

The cash distribution for September is set at $0.050711 per unit.

2. When will the cash distribution be paid?

The distribution payment is scheduled for October 15, 2024.

3. Why did the distribution amount decrease this month?

The decrease is mainly due to lower proceeds from Waddell Ranch properties, despite increased production and pricing from Texas Royalty Properties.

4. What legal actions are currently affecting the Trust?

The Trustee has initiated legal proceedings against Blackbeard concerning alleged improper deductions from royalty payments.

5. How can stakeholders access financial reports?

Stakeholders can access the 2023 Annual Report and other financial documents on the Permian's official website.

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