Form 8-K PERMIAN BASIN ROYALTY For: Jun 17

 

 

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): June 17, 2021

 

 

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 or former address, 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 June 17, 2021, the Registrant issued a press release announcing its monthly cash distribution to unitholders of record on June 30, 2021. 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 June 17, 2021.

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.

 

Date: June 21, 2021

Exhibit 99.1

Permian Basin Royalty Trust

PERMIAN BASIN ROYALTY TRUST

ANNOUNCES JUNE CASH DISTRIBUTION

DALLAS, Texas, June 17, 2021 – 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 $0.017630 per unit, payable on July 15, 2021, to unit holders of record on June 30, 2021.

This month’s distribution decreased from the previous month as the result of decreased production of oil offset by an increase in gas production for the Texas Royalty Properties. Also, the pricing for both oil and gas for the Texas Royalty Properties increased for the month April. Currently, only the Texas Royalty Properties are contributing to the monthly distribution.

Since the Waddell Ranch is in current deficit for the foreseeable future, any increase or decrease of the distribution by revenues received, will only be reflective of the activity of the Texas Royalty Properties. The activity of the Waddell Ranch will be discussed with following narrative until it contributes back to the distribution. This reflects the production month of April.

WADDELL RANCH

In reporting April production of the Underlying Properties for this month’s press release, production for oil volumes was 80,362 bbls (gross) and was priced at about $59.93 per bbl. Production for gas volumes (including gas liquids) was 259,608 mcf (gross) and was priced at about $1.91 per mcf. Net revenue for the underlying properties of the Waddell ranch was $5,643,271 (gross) for April. Lease Operating Expenses were $1,997,744 (gross) and Capital Expenditures were $5,811,165 (gross) for April. This would put the Trust’s proceeds as a deficit of $(1,624,228) (net) for the month of April, leaving an excess cost deficit cumulative of $9.9 million (net). Resulting well count relating to activity on the Waddell Ranch properties for the first quarter reflects 27 recompletion wells with additional 12 recompletion wells for the month of April. New drill well count for the first quarter was 8 new drill wells with additional 6 new drill wells in the month of April. Both the recompletions and new drill wells are currently receiving revenue on new production, as reflected by the increasing volumes as stated.

Blackbeard Operating has advised the Trust of the 2021 capital budget of $86.6 million (gross), ($32.5 million net to the Trust) for the Waddell Ranch proposing 91 (gross) drill wells, with 24 (gross) recompletions.

TEXAS ROYALTY PROPERTIES

Production for the underlying properties at the Texas Royalties was 16,339 of oil and 12,869 Mcf of gas. The production for the Trust’s allocated portion of the Texas Royalties was 14,344 barrels of oil and 11,276 of gas. The average price for oil was $60.65 per bbl and for gas was $8.34 per Mcf. This would primarily reflect production and pricing for the month of April for oil and the month of March 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 $1,098,379. Deducted from these were taxes of $126,829 resulting in a Net Profit of $971,550 for the month of April. 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 $922,973 to this month’s distribution.

 

		Underlying Properties								Net to Trust Sales								Average				Price
		Volumes								Volumes
		Oil (bbls)				Gas (Mcf)				Oil (bbls)				Gas (Mcf)				Oil (per bbl)				Gas (per Mcf)
Current Month
Waddell Ranch			80,362				259,608				60,272				194,706	*		$	59.93			$	1.91	**
Texas Royalties			16,339				12,869				14,344				11,276	*		$	60.65			$	8.34	**
Prior Month
Waddell Ranch			74,075				157,614				55,556				118,211	*		$	61.36			$	3.38	**
Texas Royalties			17,920				12,115				15,902				10,598	*		$	58.09			$	6.86	**

 

*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.

General and Administrative Expenses deducted for the month were $101,659 resulting in a distribution of $821,755 to 46,608,796 units outstanding, or $0.017630 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 2020 Annual Report with Form 10-K and the January 1, 2021 Reserve Summary are 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