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): December 20, 2019
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)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
Units of Beneficial Interest | PBT | New York Stock Exchange |
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 December 20, 2019, the Registrant issued a press release announcing its monthly cash distribution to unitholders of record on December 31, 2019. 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 December 20, 2019. |
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 E. HOOPER | |
Ron E. Hooper | ||
Senior Vice President |
Date: December 23, 2019
Exhibit 99.1
Permian Basin Royalty Trust
PERMIAN BASIN ROYALTY TRUST
ANNOUNCES DECEMBER CASH DISTRIBUTION
DALLAS, Texas, December 20, 2019 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 $0.038889 per unit, payable on January 15, 2020, to unit holders of record on December 31, 2019.
This months distribution decreased slightly from the previous month due primarily to an increase in gas production offset by a decrease in pricing for both oil and gas on the Waddell Ranch. This reflects the production month of October. Capital Expenditures increased to reflect end of year facility work. Lease Operating Expenses (LOE) for the Waddell Ranch properties decreased substantially this month to reflect an adjustment to the electricity rates incurred in previous months on the Waddell Ranch for the year. The Texas Royalty Properties saw a decrease in the posting of production of oil and gas, primarily due to the timing of receipts in the month of October. Pricing for oil declined slightly, offset by a slight increase in pricing for gas for the Texas Royalty Properties.
WADDELL RANCH
Production for the underlying properties at the Waddell Ranch was 51,466 barrels of oil and 293,012 Mcf of gas. The production for the Trusts allocated portion of the Waddell Ranch was 17,826 barrels of oil and 119,167 Mcf of gas. The average price for oil was $52.70 per bbl and for gas was $1.60 per Mcf. This would primarily reflect production and pricing for the month of October for oil and the month of September 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 $3,271,071. Deducted from these would be the Lease Operating Expense (LOE) of $1,356,679, taxes of $252,209 and Capital Expenditures (CAPEX) of $227,151 totaling $1,836,040 resulting in a Net Profit of $1,435,031 for the month of November. 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 $1,076,274 to this months distribution.
ConocoPhillips has advised the Trust of the 2019 budget for the Waddell Ranch reflecting 2 new drill wells into the Wolfcamp formation at an estimated $2.5 million, gross, ($1.2 million net to the Trust), including $1.7 million, gross, ($.8 million net to the trust), of 2018 carryover budget, anticipated to be completed in early 2019. Also, base well work of $1.6 million, gross, ($0.7 million net to the trust) and facilities work of $4.2 million, gross, ($1.8 million net to the Trust) bringing a total of $6.6 million, gross, ($2.97 million to the trust) of drilling and projects for 2019. There are no recompletions planned for the year of 2019.
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 |
51,466 | 293,012 | 17,826 | 119,167 | * | $ | 52.70 | $ | 1.60 | ** | ||||||||||||||
Texas Royalties |
19,367 | 13,815 | 16,283 | 11,625 | * | $ | 53.15 | $ | 4.06 | ** | ||||||||||||||
Prior Month |
||||||||||||||||||||||||
Waddell Ranch |
51,915 | 287,050 | 13,836 | 74,335 | * | $ | 54.75 | $ | 1.75 | ** | ||||||||||||||
Texas Royalties |
21,393 | 15,433 | 18,229 | 13,137 | * | $ | 53.84 | $ | 3.98 | ** |
* | 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 19,367 barrels of oil and 13,815 Mcf of gas. The production for the Trusts allocated portion of the Texas Royalties was 16,283 barrels of oil and 11,625 of gas. The average price for oil was $53.15 per bbl and for gas was $4.06 per Mcf. This would primarily reflect production and pricing for the month of October for oil and the month of September 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 $1,085,492. Deducted from these were taxes of $161,510 resulting in a Net Profit of $923,983 for the month of November. With the Trusts Net Profit Interest (NPI) of 95% of the Underlying Properties, this would result in net contribution by the Texas Royalties of $877,784 to this months distribution.
General and Administrative Expenses deducted for the month were $142,997 resulting in a distribution of $1,812,570 to 46,608,796 units outstanding, or $0.038889 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 2019 tax information packets are expected to begin mailing directly to unit holders in early March 2020. A copy of Permians 2019 tax information booklet is expected to be posted on Permians website by February 28, 2020. In addition to the tax booklet the Permian website also offers two simple calculators for computing the income and expense amounts and the cost depletion. To facilitate unit holder tax preparation, both the income and expense and the depletion calculators are expected to be updated on Permians website by late February 2020 for 2019 tax reporting.
Permians cash distribution history, current and prior year financial reports, including a summary of reserves as of 1/1/2019, tax information booklets, and a link to filings made with the Securities and Exchange Commission, all 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