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 21, 2017
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)) |
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 21, 2017, the Registrant issued a press release announcing its monthly cash distribution to unitholders of record on August 31, 2017. 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 August 21, 2017. |
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: August 21, 2017
EXHIBIT INDEX
Exhibit Number |
Description | |
99.1 | Press Release dated August 21, 2017. |
Exhibit 99.1
Permian Basin Royalty Trust
PERMIAN BASIN ROYALTY TRUST
ANNOUNCES AUGUST CASH DISTRIBUTION
DALLAS, Texas, August 21, 2017 Permian Basin Royalty Trust (NYSE: PBT) (Permian) today declared a cash distribution to the holders of its units of beneficial interest of $0.045610 per unit, payable on September 15, 2017, to unit holders of record on August 31, 2017.
This months distribution increased from the previous month due to an increase in oil and gas production for the Waddell Ranch properties. This was offset by a decline in pricing for both oil and gas production of the underlying Waddell Ranch properties. The Texas Royalty Properties had a slight decline in oil and gas production as well as a decline in the pricing of oil production. This was offset by a slight increase in the pricing of gas and gas liquid products.
Capital expenditures on the Waddell Ranch are lower this month than previous months, with it being mostly facility projects for the remainder of the year. However, additional expense is being incurred bringing the Tubb McKnight Water Station back on line as of the end of July. It is not clear at this time as to what the total cost to Trust will be until it is incurred and charged to the Trust. It is anticipated that these expenses will continue to be forthcoming in the following months.
WADDELL RANCH
Production for the underlying properties at the Waddell Ranch was 54,164 barrels of oil and 327,850 Mcf of gas. The production for the Trusts allocated portion of the Waddell Ranch was 21,304 barrels of oil and 138,242 Mcf of gas. The average price for oil was $42.08 per bbl and for gas was $2.86 per Mcf. This would primarily reflect production and pricing for the month of June for oil and the month of May 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 $3,218,486. Deducted from these would be the Lease Operating Expense (LOE) of $1,172,685, taxes of $218,400, and Capital Expenditures (CAPEX) of $170,400 totaling $1,561,485 resulting in a Net Profit of $1,657,001 for the month of July. 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 $1,242,751 to this months distribution.
Underlying Properties | Net to Trust Sales | |||||||||||||||||||||||
Volumes | Volumes | Average | Price | |||||||||||||||||||||
Oil (bbls) |
Gas (Mcf) |
Oil (bbls) |
Gas (Mcf) |
Oil (per bbl) |
Gas (per Mcf) |
|||||||||||||||||||
Current Month |
||||||||||||||||||||||||
Waddell Ranch |
54,164 | 327,850 | 21,304 | 138,242 | * | $ | 42.08 | $ | 2.86 | ** | ||||||||||||||
Texas Royalties |
24,057 | 26,287 | 22,854 | 24,973 | * | $ | 43.43 | $ | 5.08 | ** | ||||||||||||||
Prior Month |
||||||||||||||||||||||||
Waddell Ranch |
53,903 | 323,454 | 13,498 | 99,929 | * | $ | 44.74 | $ | 3.09 | ** | ||||||||||||||
Texas Royalties |
24,880 | 28,880 | 23,636 | 27,436 | * | $ | 45.55 | $ | 4.68 | ** |
* | 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 24,057 barrels of oil and 26,287 Mcf of gas. The production for the Trusts allocated portion of the Texas Royalties was 22,854 barrels of oil and 24,973 Mcf of gas. The average price for oil was $43.43 per bbl and for gas was $5.08 per Mcf. This would primarily reflect production and pricing for the month of June for oil and the month of May 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 $1,178,439. Deducted from these would be taxes of $170,732 resulting in a Net Profit of $1,007,707 for the month of July. With the Trusts Net Profit Interest (NPI) of 95% of the Underlying Properties, this would result in net contribution by the Texas Royalties of $957,322 to this months distribution.
General and Administrative Expenses deducted for the month were $75,430 resulting in a distribution of $2,125,856 to 46,608,796 units outstanding, or $0.045610 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.
Permians cash distribution history, current and prior year financial reports, including a summary of reserves as of 1/1/2017, tax information booklets, and a link to filings made with the Securities and Exchange Commission, all can be found on its website at http://www.pbt-permian.com/.
* * *
Contact: Ron Hooper, Senior Vice President, Southwest Bank, Trustee, Toll Free 1.855.588.7839