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): May 20, 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) | |||
Registrant’s 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 May 20, 2016, the Registrant issued a press release announcing its monthly cash distribution to unitholders of record on May 31, 2016. 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 May 20, 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: May 20, 2016
EXHIBIT INDEX
| Exhibit |
Description | |
| 99.1 | Press Release dated May 20, 2016. | |
Exhibit 99.1
Permian Basin Royalty Trust
PERMIAN BASIN ROYALTY TRUST
ANNOUNCES MAY CASH DISTRIBUTION
DALLAS, Texas, May 20, 2016 – Permian Basin Royalty Trust (NYSE: PBT) (“Permian”) today declared a cash distribution to the holders of its units of beneficial interest of $0.034016 per unit, payable on June 14, 2016, to unit holders of record on May 31, 2016.
This month’s distribution increased from the previous month due to an increase in the pricing of oil and an increase in production due to a longer month of March for the Waddell Ranch. Also, with the increased pricing and some prior period adjustments, the Waddell Ranch Properties are no longer in a deficit balance for the month and contributed $1,303,771 to this month’s distribution.
WADDELL RANCH
Production for the underlying properties at the Waddell Ranch was 85,634 barrels of oil and 416,723 Mcf of gas. The production for the Trust’s allocated portion of the Waddell Ranch was 33,713 barrels of oil and 162,544 Mcf of gas. The average price for oil was $33.32 per bbl and for gas was $1.50 per Mcf. This would primarily reflect production and pricing for the month of March for oil and the month of February 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 $3,478,123. Deducted from these would be the Lease Operating Expense (LOE) of $1,493,383, taxes of $350,189 and Capital Expenditures (CAPEX) of ($604,476) totaling $1,239,096 resulting in a Net Profit of $2,239,027 for the month of April. With the Trust’s Net Profit Interest (NPI) of 75% of the underlying properties, this would result in a net contribution by the Waddell Ranch Properties of $1,679,270 to this month’s distribution. This amount along with the negative deficit carryover from prior periods this would result in net contribution by the Waddell Ranch Properties of $1,303,771 to this month’s distribution. There is no amount of negative NPI deficit to carryover from previous periods 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 |
85,634 | 416,723 | 33,713 | 162,544 | * | $ | 33.32 | $ | 1.50 | ** | ||||||||||||||
| Texas Royalty Prop |
25,101 | 28,556 | 18,826 | 21,417 | * | $ | 31.68 | $ | 3.02 | ** | ||||||||||||||
| Prior 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 | ** | |||||||||||||
| * | 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. |
TEXAS ROYALTY PROPERTIES
Production for the underlying properties at the Texas Royalties was 25,101 barrels of oil and 28,556 Mcf of gas. The production for the Trust’s allocated portion of the Texas Royalties was 18,826 barrels of oil and 21,417 Mcf of gas. The average price for oil was $31.68 per bbl and for gas was $3.02 per Mcf. This would primarily reflect production and pricing for the month of March for oil and the month of February 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 $881,399. Deducted from these would be taxes totaling $180,010 resulting in a Net Profit of $701,389 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 $666,320 to this month’s distribution.
General and Administrative Expenses deducted for the month were $384,694 resulting in a distribution of $1,585,474 to 46,608,796 units outstanding, or $.034016 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’s 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 |