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): April 19, 2016
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 Southwest Bank 2911 Turtle Creek Boulevard Suite 850 Dallas, Texas |
75219 | |||
(Address of principal executive offices) | (Zip Code) |
Registrants Telephone Number, including area code: (855) 588-7839
Not Applicable
(Former name, former address and former fiscal year, 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)) |
Item 2.02. | Results of Operations and Financial Condition. |
On April 19, 2016, the Registrant issued a press release announcing its monthly cash distribution to unitholders of record on April 29, 2016 and its 2016 reserve quantities. 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 April 19, 2016. |
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.
PERMIAN BASIN ROYALTY TRUST | ||
By: | SOUTHWEST BANK, TRUSTEE FOR | |
PERMIAN BASIN ROYALTY TRUST | ||
By: | /s/ RON HOOPER | |
Ron Hooper | ||
Senior Vice President |
Date: April 19, 2016
EXHIBIT INDEX
Exhibit |
Description | |
99.1 | Press Release dated April 19, 2016. |
Exhibit 99.1
Permian Basin Royalty Trust
PERMIAN BASIN ROYALTY TRUST
ANNOUNCES APRIL CASH DISTRIBUTION AND 2016 RESERVE QUANTITIES
DALLAS, Texas, April 19, 2016 Permian Basin Royalty Trust (NYSE: PBT) (Permian) today declared a cash distribution to the holders of its units of beneficial interest of $0.010037 per unit, payable on May 13, 2016, to unit holders of record on April 29, 2016.
This months distribution decreased slightly from the previous month due to a decrease in the pricing of both oil and gas and a short month of production for the Texas Royalty Properties, whereas the Waddell Ranch Properties were in deficit this month and contributed nothing to this months distribution.
WADDELL RANCH
Production for the underlying properties at the Waddell Ranch was 64,936 barrels of oil and 410,069 Mcf of gas. The production for the Trusts allocated portion of the Waddell Ranch was (9,925) barrels of oil and (66,951) Mcf of gas. The average price for oil was $27.85 per bbl and for gas was $1.76 per Mcf. This would primarily reflect production and pricing for the month of February for oil and the month of January for gas. These allocated volumes were significantly impacted by the pricing of both oil and gas.
This production and pricing for the Underlying Properties resulted in revenues for the Waddell Ranch Properties of $2,530,345. Deducted from these would be the Lease Operating Expense (LOE) of $1,922,088, taxes of $308,998 and Capital Expenditures (CAPEX) of $136,511 totaling $2,367,597 resulting in a Net Profit of $162,748 for the month of March. With the Trusts Net Profit Interest (NPI) of 75% of the underlying properties, this would result in a net contribution by the Waddell Ranch Properties of $122,061 to this months distribution. This amount along with the negative deficit carryover from prior periods brings deficit to be recouped to ($375,499). There is no distribution from the Waddell Ranchs NPI for this month.
ConocoPhillips has revised the 2016 capital expenditure budget which will total $2.45 million for the entire Waddell Ranch Project and $1.08 million net to the Trust. There will be no new drilled wells, no recompletions, and only some facilities projects.
Underlying Properties | Net to Trust Sales | |||||||||||||||||||||||
Volumes | Volumes | Average | Price | |||||||||||||||||||||
Oil(bbls) | Gas(Mcf) | Oil(bbls) | Gas(Mcf) | Oil(per bbl) | Gas(perMcf) | |||||||||||||||||||
Current Month |
||||||||||||||||||||||||
Waddell Ranch |
64,936 | 410,069 | (9,925 | )* | (66,951 | )* | $ | 27.85 | $ | 1.76 | ** | |||||||||||||
Texas Royalty Prop |
25,279 | 31,239 | 24,015 | * | 29,677 | * | $ | 28.17 | $ | 3.01 | ** | |||||||||||||
Prior Month |
||||||||||||||||||||||||
Waddell Ranch |
82,124 | 444,877 | (13,157 | )* | (75,794 | )* | $ | 28.52 | $ | 1.94 | ** | |||||||||||||
Texas Royalty Prop |
27,141 | 33,880 | 25,784 | * | 32,186 | * | $ | 33.20 | $ | 3.72 | ** |
* | These volumes are the net to the trust, after allocation of expenses to Trusts net profit interest, including any prior period adjustments. |
** | This pricing includes sales of gas liquid products. |
TEXAS ROYALTY PROPERTIES
Production for the underlying properties at the Texas Royalties was 25,279 barrels of oil and 31,239 Mcf of gas. The production for the Trusts allocated portion of the Texas Royalties was 24,015 barrels of oil and 29,677 Mcf of gas. The average price for oil was $28.17 per bbl and for gas was $3.01 per Mcf. This would primarily reflect production and pricing for the month of February for oil and the month of January 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 $806,400. Deducted from these would be taxes totaling $182,175 resulting in a Net Profit of $624,224 for the month of March. With the Trusts Net Profit Interest (NPI) of 95% of the Underlying Properties, this would result in net contribution by the Texas Royalties of $593,013 to this months distribution.
General and Administrative Expenses deducted for the month were $125,279 resulting in a distribution of $467,835 to 46,608,796 units outstanding, or $.010037 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.
Permian Basin Royalty Trust, as it does after the end of each year, had a year-end Reserve Report prepared in accordance with the Securities and Exchange Commissions requirements. This report provides an evaluation of the estimated asset value as of December 31 of each year, which can be used to estimate the remaining life of the Trust.
The estimated net proved reserves, as of January 1, 2016, attributable to the Trust from the properties appraised are approximately 4.6 million barrels of oil and 9.046 billion cubic feet of gas with a future net value of approximately $237,703,000 with a discounted value of $126,105,000.
With the estimated quantities of this years reserve estimate of 4.6 million barrels of oil and 9.046 billion cubic feet of gas remaining, it could be estimated that the Trust still has a life span of 9 to 11 years. The report is an exhibit to the Trusts Annual Report on Form 10-K that was filed on March 15, 2016 and is available to all unitholders at this time on the SEC website.
Permians cash distribution history, current and prior year financial reports and tax information booklets, a link to filings made with the Securities and Exchange Commission and more can be found on its website at http://www.pbt-permian.com/. The new toll free number customer service number for the trust is 1-855-588-7839.
* * *
Contact: | Ron Hooper | |
Senior Vice President | ||
Southwest Bank, Trustee | ||
Toll Free 1.855.588.7839 |