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Permian Basin Royalty Trust Announces July Cash Distribution of $0.070169 per Unit

Strategic Insights

— 2 min read

Permian Basin Royalty Trust has declared a cash distribution to the holders of its units of beneficial interest of $0.070169 per unit, payable on August 14, 2024, to unit holders of record on July 31, 2024. The distribution includes proceeds from June in the amount of $2,177,289, but does not include proceeds from the Waddell Ranch properties for the current month due to Blackbeard Operating, LLC's refusal to provide necessary information.

Key Takeaways:

  • The distribution of $0.070169 per unit represents a slight decrease from the previous month, mainly due to lower oil and gas prices and production for the Trust's allocated portion of the Texas Royalty Properties.
  • The Trust has received $2,177,289 from the Waddell Ranch properties in June, which will be included in the July distribution.
  • Blackbeard Operating, LLC has refused to provide the Trustee with necessary information to calculate the net profits interest ("NPI") proceeds for July 2024, resulting in the non-inclusion of Waddell Ranch proceeds in the July distribution.
  • The Texas Royalty Properties has produced 15,751 barrels of oil and 6,626 Mcf of gas, resulting in revenues of $1,338,989, with a net profit of $1,193,726.
  • The Trust has a 95% net profit interest in the Texas Royalty Properties, resulting in a net contribution of $1,134,040 to the July distribution.
  • General and administrative expenses deducted for the month, net of interest earned, were $40,792, resulting in a distribution of $3,270,538 to 46,608,796 units outstanding.
  • The Trust has initiated a lawsuit against Blackbeard Operating, LLC to recover more than $15 million in damages, resulting from overhead costs and other expenses impermissibly deducted from royalty payments to the Trust.
  • The lawsuit has set a preliminary trial date of April 21, 2025, and the Trustee is seeking declaratory judgment by the court to limit information provided to the Trust and to deduct certain disputed overhead charges from Trust royalty payments.

Statistics:

  • The distribution of $0.070169 per unit represents a slight decrease from the previous month.
  • $2,177,289 received by the Trustee in June 2024 after the announcement date for the June distribution will be included in the July distribution.
  • Production for the Texas Royalty Properties was 15,751 barrels of oil and 6,626 Mcf of gas, resulting in revenues of $1,338,989.
  • The net profit for the Texas Royalty Properties was $1,193,726, with a 95% net profit interest, resulting in a net contribution of $1,134,040 to the July distribution.
  • General and administrative expenses deducted for the month, net of interest earned, were $40,792, resulting in a distribution of $3,270,538 to 46,608,796 units outstanding.

Sources:

  • (EDGAR Online via COMTEX) -- Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
  • Permian Basin Royalty Trust website, including the 2023 Annual Report with Form 10-K and the December 31, 2023 Reserve Summary
  • Permian Basin Royalty Trust, Press Release dated July 19, 2024
  • Argent Trust Company, as Trustee of the Permian Basin Royalty Trust, Report on Form 8-K filed with the Securities and Exchange Commission on July 19, 2024.

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