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): October 20, 2020
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 October 20, 2020, the Registrant issued a press release announcing its monthly cash distribution to unitholders of record on October 30, 2020. 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 |
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: October 20, 2020
Exhibit 99.1
Permian Basin Royalty Trust
PERMIAN BASIN ROYALTY TRUST
ANNOUNCES OCTOBER CASH DISTRIBUTION
DALLAS, Texas, October 20, 2020 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 $0.012620 per unit, payable on November 16, 2020, to unit holders of record on October 30, 2020.
This months distribution increased from the previous month as the result of rebounding prices for oil but offset by lower prices for gas across the industry. General and administrative expenses were higher this month compared to the previous month. The Trust was advised by Blackbeard that the Waddell Ranch properties were in deficit for the month of August, providing details as to production levels and pricing received. The Texas Royalty Properties reflected an increase in both oil and gas pricing offset by a decline in both oil and gas production. This reflects the production month of August.
WADDELL RANCH
In reporting August production of the Underlying Properties for this months press release, production for oil volumes was 51,002 bbls and was priced at about $39.48 per bbl. Production for gas volumes ( including gas liquids) was 144,302 mcf and was priced at about $0.87 per mcf. Net revenue for the underlying properties of the Waddell ranch was $2,434,130 for August. Lease Operating Expenses were $2,015,965 and Capital Expenditures were $2,058,333 for August. This would put the Trusts proceeds as a deficit of $1.2 million with the total excess cost deficit cumulative of $2.1 million.
Blackbeard advised that through August 2020, approximately five new drills were initiated, with three completions resulting of such. Also, two recompletions were performed in August.
TEXAS ROYALTY PROPERTIES
Production for the underlying properties at the Texas Royalties was 18,786 barrels of oil and 12,593 Mcf of gas. The production for the Trusts allocated portion of the Texas Royalties was 15,995 barrels of oil and 10,606 of gas. The average price for oil was $40.13 per bbl and for gas was $3.90 per Mcf. This would primarily reflect production and pricing for the month of August for oil and the month of July 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 $803,151. Deducted from these were taxes of $116,188 resulting in a Net Profit of $686,963 for the month of August. With the Trusts Net Profit Interest (NPI) of 95% of the Underlying Properties, this would result in net contribution by the Texas Royalties of $652,615 to this months distribution.
Blackbeard Operating has advised the Trust of the second half of 2020 capital budget for the Waddell Ranch reflecting 9.4 new drill wells at an estimated $7.5 million, net to the Trust. Also, workovers at an estimated $700,000, Plug & Abandonment (P&A) of 8.3 wells at an estimated cost of $200,000 net to the trust, and facilities work of $1.3 million net to the Trust. There are 4.5 recompletions planned for the year of 2020 at an estimated cost of $800,000, net to the Trust. This would bring the total capital expenditure budget to $10.6 million net to the trust of drilling and projects for 2020.
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 |
51,002 | 144,302 | 38,252 | 108,227 | * | $ | 39.48 | $ | 0.87 | ** | ||||||||||||||
Texas Royalties |
18,786 | 12,593 | 15,995 | 10,606 | * | $ | 40.13 | $ | 3.90 | ** | ||||||||||||||
Prior Month | ||||||||||||||||||||||||
Waddell Ranch |
49,622 | 131,393 | 37,217 | 98,545 | * | $ | 37.38 | $ | 0.98 | ** | ||||||||||||||
Texas Royalties |
20,462 | 15,469 | 17,290 | 13,060 | * | $ | 34.37 | $ | 3.21 | ** |
* | 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. |
General and Administrative Expenses deducted for the month were $64,811 resulting in a distribution of $588,231 to 46,608,796 units outstanding, or $0.012620 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 Annual Report with Form 10-K and the January 1, 2020 Reserve Summary is now available on Permians website. Permians cash distribution history, current and prior year financial reports, 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/. Additionally, printed reports can be requested and are mailed free of charge.
* * *
Contact: Ron Hooper, Senior Vice President, Simmons Bank, Trustee, Toll Free 1.855.588.7839