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): March 19, 2018
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) |
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 March 19, 2018, the Registrant issued a press release announcing its monthly cash distribution to unitholders of record on March 29, 2018. 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 March 19, 2018.
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: | SIMMONS BANK, TRUSTEE FOR | |
PERMIAN BASIN ROYALTY TRUST | ||
By: | /s/ RON HOOPER | |
Ron Hooper | ||
Senior Vice President |
Date: March 19, 2018
Exhibit 99.1
Permian Basin Royalty Trust
|
PERMIAN BASIN ROYALTY TRUST
ANNOUNCES MARCH CASH DISTRIBUTION
DALLAS, Texas, March 19, 2018 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 $0.074516 per unit, payable on April 12, 2018, to unit holders of record on March 29, 2018.
This months distribution increased from the previous month due to an increase in oil and gas pricing with overall production being slightly higher for the month of January.
WADDELL RANCH
Production for the underlying properties at the Waddell Ranch was 56,581 barrels of oil and 319,039 Mcf of gas. The production for the Trusts allocated portion of the Waddell Ranch was 29,397 barrels of oil and 166,388 Mcf of gas. The average price for oil was $61.14 per bbl and for gas was $3.75 per Mcf. This would primarily reflect production and pricing for the month of January for oil and the month of December 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 $4,655,573. Deducted from these would be the Lease Operating Expense (LOE) of $1,237,642, taxes of $290,254 and Capital Expenditures (CAPEX) of $35,861 totaling $1,563,757 resulting in a Net Profit of $3,091,816 for the month of February. 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 $2,318,861 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 |
56,581 | 319,039 | 29,397 | 166,388 | * | $ | 61.14 | $ | 3.75 | ** | ||||||||||||||
Texas Royalties |
22,601 | 24,023 | 21,471 | 22,822 | * | $ | 60.02 | $ | 6.77 | ** | ||||||||||||||
Prior Month |
||||||||||||||||||||||||
Waddell Ranch |
56,424 | 328,064 | 22,459 | 131,964 | * | $ | 55.48 | $ | 3.31 | ** | ||||||||||||||
Texas Royalties |
22,504 | 24,590 | 21,379 | 23,360 | * | $ | 54.48 | $ | 5.76 | ** |
* | 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 22,601 barrels of oil and 24,023 Mcf of gas. The production for the Trusts allocated portion of the Texas Royalties was 21,471 barrels of oil and 22,822 Mcf of gas. The average price for oil was $60.02 per bbl and for gas was $6.77 per Mcf. This would primarily reflect production and pricing for the month of January for oil and the month of December 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 $1,519,259. Deducted from these were taxes of $181,356 resulting in a Net Profit of $1,337,901 for the month of February. With the Trusts Net Profit Interest (NPI) of 95% of the Underlying Properties, this would result in net contribution by the Texas Royalties of $1,271,006 to this months distribution.
General and Administrative Expenses deducted for the month were $118,487 resulting in a distribution of $3,473,106 to 46,608,796 units outstanding, or $0.074516 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 2017 tax information packets were mailed directly to unitholders on March 7, 2018. A copy of Permians 2017 tax information booklet is now available on Permians website. The Permian website also offers two simple calculators for computing the income and expense amounts and the cost depletion. To facilitate unitholder tax preparation, both the income and expense and the depletion calculators have been updated on Permians website for 2017 tax reporting.
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, can be found on Permians website at http://www.pbt-permian.com/.
* * *
Contact: Ron Hooper, Senior Vice President, Simmons Bank, Trustee, Toll Free 1.855.588.7839