Form 8-K PermRock Royalty Trust For: Aug 19

 

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): August 19, 2022

______________

 

PermRock Royalty Trust

(Exact name of registrant as specified in the

Amended and Restated PermRock Royalty Trust Agreement)

______________

 

Delaware	001-38472	82-6725102
(State or other jurisdiction	(Commission	(I.R.S. Employer
of incorporation or organization)	File Number)	Identification Number)

 

Simmons Bank, Trustee
P.O. Box 470727
Fort Worth, Texas 76147

(Address of principal executive offices) (Zip Code)

 

(855) 588-7839

(Registrant’s telephone number, including area code)

 

N/A

(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:

 

☐ 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	PRT	New York Stock Exchange

 

Securities registered pursuant to Section 12(g) of the Act:

None

 

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 August 19, 2022 PermRock Royalty Trust (the “Trust”) issued a press release, a copy of which is attached hereto as Exhibit 99.1, announcing, among other things, a cash distribution to record holders of its trust units representing beneficial interests in the Trust (“Trust Units”) as of August 31, 2022 and payable on September 15, 2022 in the amount of $1,119,292.92 ($0.092003 per Trust Unit), based principally upon production during the month of June 2022.

 

In accordance with general instruction B.2 to Form 8-K, the information in this Form 8-K shall be deemed “furnished” and not “filed” with the Securities and Exchange Commission for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.

 

Item 9.01

Financial Statements and Exhibits.

 

(d)       Exhibits.

 

Exhibit No.		Description
99.1		Press Release dated August 19, 2022.

 

 

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 hereunto duly authorized.

 

	PERMROCK ROYALTY TRUST By: Simmons Bank, as Trustee
	By:	/s/ Ron E. Hooper
		Ron E. Hooper
		SVP Royalty Trust Management

Date:  August 19, 2022

 

(The Trust has no directors or executive officers.)

 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibit 99.1

 

 

PermRock Royalty Trust

 

News Release

 

PermRock Royalty Trust

Declares Monthly Cash Distribution

 

FORT WORTH, Texas, August 19, 2022 – PermRock Royalty Trust (NYSE: PRT) (the “Trust”) today declared a monthly cash distribution to record holders of its trust units representing beneficial interests in the Trust (“Trust Units”) as of August 31, 2022 and payable on September 15, 2022 in the amount of $1,119,292.92 ($0.092003 per Trust Unit), based principally upon production during the month of June 2022.

 

The following table displays underlying oil and natural gas sales volumes and average received wellhead prices attributable to the current and prior month net profits interest calculations:

 

			Underlying Sales Volumes																Average Price
			Oil								Natural Gas								Oil				Natural Gas
			Bbls				Bbls/D				Mcf				Mcf/D				(per Bbl)				(per Mcf)
Current Month				28,114				937				34,980				1,166			$	114.14			$	9.30
Prior Month				31,118				1,004				33,285				1,074			$	106.85			$	8.42

 

Oil cash receipts for the properties underlying the Trust totaled $3.21 million for the current month, a decrease of $0.11 million from the prior month’s distribution period. This decrease was due to a decrease in sales volumes that was only partially offset by an increase in oil prices.

 

Natural gas cash receipts for the properties underlying the Trust totaled $0.33 million for the current month, an increase of $0.05 million from the prior month’s distribution period. This increase was due to an increase in sales volumes and natural gas prices.

 

Total direct operating expenses, including marketing, lease operating expenses and workover expenses, were $0.70 million reflecting a $0.09 million decrease from the prior month. Severance and ad valorem taxes were $0.22 million.

 

Capital expenses this month were $(0.09) million, a decrease of $0.60 million from the prior month’s distribution due to a refund of capital expenses in August. A title opinion was obtained in connection with a recompletion of a well in Crane County, Texas and revealed that the well was only partially owned by the Trust.  In August, Boaz Energy refunded capital expenditures originally charged to the Trust to reflect the Trust’s actual ownership interest in the well based on current leases in place.

 

Boaz Energy informed the Trust that this month’s net profits calculation included $880,000 net to the Trust of funds reserved by Boaz Energy to cover future capital obligations and expenses.

 

About PermRock Royalty Trust

 

PermRock Royalty Trust is a Delaware statutory trust formed by Boaz Energy II, LLC (“Boaz Energy”) to own a net profits interest representing the right to receive 80% of the net profits from the sale of oil and natural gas production from certain properties owned by Boaz Energy in the Permian Basin of West Texas. For more information on PermRock Royalty Trust, please visit our website at www.permrock.com.

 

 

 

Cautionary Statement Concerning Forward-Looking Statements

 

Certain statements contained in this press release constitute “forward-looking statements.” These forward-looking statements represent the Trust’s and Boaz Energy’s expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements include the amount and date of any anticipated distribution to unitholders, future cash retentions, advancements or recoupments from distributions, and statements regarding Boaz Energy’s operations and the resulting impact on the computation of the Trust’s net profits. The amount of cash received or expected to be received by the Trust (and its ability to pay distributions) has been and will continue to be directly affected by volatility in commodity prices, oversupply and the economic effects of the COVID-19 pandemic. Other important factors that could cause actual results to differ materially from those projected in the forward-looking statements include expenses of the Trust and reserves for anticipated future expenses, uncertainties in estimating the cost of drilling activities and risks associated with drilling and operating oil and natural gas wells.

 

Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, the Trust does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for the Trust to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in the Trust’s Annual Report on Form 10-K filed with the SEC on March 31, 2022 and other public filings filed with the SEC. The risk factors and other factors noted in the Trust's public filings with the SEC could cause its actual results to differ materially from those contained in any forward-looking statement. The Trust’s filed reports are or will be available over the Internet at the SEC’s website at http://www.sec.gov.

 

 

Contact:	PermRock Royalty Trust
	Simmons Bank, Trustee
	Ron E. Hooper, SVP Royalty Trust Management
	Toll-free: (855) 588-7839
	Fax: (817) 298-5579
	Website:  www.permrock.com
	e-mail:  [email protected]

 

 

 

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