8-K

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 20, 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)

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))

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 April 20, 2018, the Registrant issued a press release announcing its monthly cash distribution to unitholders of record on April 30, 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 April 20, 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: April 23, 2018

EX-99.1

Exhibit 99.1

Permian Basin Royalty Trust

PERMIAN BASIN ROYALTY TRUST

ANNOUNCES APRIL CASH DISTRIBUTION

DALLAS, Texas, April 20, 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 $0.052172 per unit, payable on May 14, 2018, to unit holders of record on April 30, 2018.

This month’s distribution decreased from the previous month due to an overall slight decrease in oil and gas pricing in addition to an overall decline in production, being for the month of February.

WADDELL RANCH

Production for the underlying properties at the Waddell Ranch was 51,211 barrels of oil and 290,070 Mcf of gas. The production for the Trust’s allocated portion of the Waddell Ranch was 18,064 barrels of oil and 104,117 Mcf of gas. The average price for oil was $60.28 per bbl and for gas was $3.17 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 $4,006,768. Deducted from these would be the Lease Operating Expense (LOE) of $1,889,367, taxes of $258,050 and Capital Expenditures (CAPEX) of $44,890 totaling $2,192,308 resulting in a Net Profit of $1,814,460 for the month of March. 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 $1,360,845 to this month’s distribution. Lease Operating Expenses were $600,000 higher due to initial expenses for the 2018 budget relating to overall maintenance being performed.

	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		51,211		290,070		18,064		104,117	*	$60.28		$3.17	**
Texas Royalties		21,392		23,348		18,589		20,261	*	$61.36		$6.47	**
Prior 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	**

* 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 21,392 barrels of oil and 23,348 Mcf of gas. The production for the Trust’s allocated portion of the Texas Royalties was 18,589 barrels of oil and 20,261 Mcf of gas. The average price for oil was $61.36 per bbl and for gas was $6.47 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 $1,463,573. Deducted from these were taxes of $178,938 resulting in a Net Profit of $1,284,635 for the month of March. 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 $1,220,403 to this month’s distribution.

General and Administrative Expenses deducted for the month were $151,947 resulting in a distribution of $2,431,676 to 46,608,796 units outstanding, or $0.052172 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 Commission’s 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, 2018, attributable to the Trust from the properties appraised are approximately 4.6 million barrels of oil and 10.5 billion cubic feet of gas with a future net value of approximately $245,571,100 with a discounted value of $129,909,800.

With the estimated quantities of this year’s reserve estimate of 4.6 million barrels of oil and 10.5 billion cubic feet of gas remaining, it could be estimated that the Trust still has a life span of 8 to 11 years. The report is an exhibit to the Trust’s Annual Report on Form 10-K that was filed on March 15, 2018 and is available to all unitholders at this time on the SEC website.

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/.

*                         *                        *

Contact:    Ron Hooper, Senior Vice President, Simmons Bank, Trustee, Toll Free – 1.855.588.7839