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PermRock Royalty Trust Declares Monthly Cash Distribution

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FORT WORTH, Texas, May 20, 2019 /PRNewswire/ -- PermRock Royalty Trust (NYSE:PRT) (the "Trust") today declared a monthly cash distribution to record holders of its trust units representing beneficial interests in the Trust ("Trust Units") as of May 31, 2019, and payable on June 14, 2019 in the amount of $0.090091 per Trust Unit, based principally upon production during the month of March 2019.

PermRock Royalty Trust logo (PRNewsfoto/PermRock Royalty Trust)

The following table displays underlying oil and natural gas sales volumes and average received wellhead prices attributable to the current and prior month net profits interest calculations:


Underlying Sales Volumes


Average Price


Oil

Natural Gas


Oil


Natural Gas


Bbls


Bbls/D


Mcf


Mcf/D


(per Bbl)


(per Mcf)

Current Month

47,308


1,526


49,586


1,600


$ 54.93


$ 3.23

Prior Month

43,605


1,557


50,328


1,797


$ 47.82


$ 5.26



Oil cash receipts for the properties underlying the Trust totaled $2.60 million for the current month, an increase of $0.51 million from the prior month distribution period as a result of increased sales volumes and a longer production month in March 2019, as well as from the Permian Basin oil differential returning to more historic norms in the production month of March 2019.   

Natural gas cash receipts for the properties underlying the Trust totaled $0.16 million for the current month, a decrease of $0.10 million from the prior month distribution period as a result of decreased sales prices 

Total direct operating expenses, including lease operating expenses and workover expenses, were $0.45 million, a decrease of $0.25 million from the prior month. Severance and ad valorem taxes were offset by a one-time severance tax refund of $0.29 million on Boaz Energy's Terry County Clearfork waterflood. Going forward, the Terry County Clearfork field qualifies for a 50% reduction in severance tax as the result of the secondary recovery efforts. This offset resulted in a net positive cashflow to the Trust of $0.05 million, after reducing the total refund amount by the amount of oil and gas severance taxes and ad valorem taxes for the current month.  

Capital expenditures were $0.23 million in the current month, a decrease of $0.03 million from the prior month. Boaz Energy indicated that the capital was primarily spent for drilling and completion operations in the Permian Platform area. Assuming it obtains the required permits, Boaz Energy expects to drill a new operated well in the Permian Clearfork area at an estimated cost of $1.20 million. The majority of the development expenses of that well would be applied to the computation of the Trust's net profits over a period of four to six months. Boaz Energy has advised the Trustee that $325,000 in capital accrual was included in the May net profits calculation.

The Trustee has retained $65,000 from the distributions the Trust received in May 2019. Pursuant to the amended and restated Trust Agreement, dated as of May 4, 2018, by and among Boaz Energy, the Trustee and Wilmington Trust, National Association (the "Trust Agreement"), following the monthly period ended April 30, 2019, the Trustee is authorized to retain cash up to $1.0 million from the distributions the Trust receives to be used by the Trust in the event that its cash on hand (including available cash reserves) is not sufficient to pay ordinary course administrative expenses as they become due. Accordingly, the Trustee will retain cash from distributions in amounts as the Trustee determines, but not less than $25,000 per month or more than $100,000 per month until such time as the Trust's cash reserve equals or exceeds $1.0 million. 

About PermRock Royalty Trust

PermRock Royalty Trust is a Delaware statutory trust formed by Boaz Energy II, LLC ("Boaz Energy") to own a net profits interest representing the right to receive 80% of the net profits from the sale of oil and natural gas production from certain properties owned by Boaz Energy in the Permian Basin of West Texas. For more information on PermRock Royalty Trust, please visit our website at www.permrock.com.

Cautionary Statement Concerning Forward-Looking Statements

Certain statements contained in this press release constitute "forward-looking statements." These forward-looking statements represent the Trust's expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements include the amount and date of any anticipated distribution to unitholders. The anticipated distribution is based, in part, on the amount of cash received or expected to be received by the Trust from Boaz Energy with respect to the relevant period. Any differences in actual cash receipts by the Trust could affect this distributable amount. Other important factors that could cause actual results to differ materially include expenses of the Trust and reserves for anticipated future expenses. Statements made in this press release are qualified by the cautionary statements made in this press release.

Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, the Trust does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for the Trust to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in the prospectus filed with the SEC in connection with the Trust's initial public offering, and in the Trust's Quarterly Reports on Form 10-Q and other public filings filed with the SEC. The risk factors and other factors noted in the Trust's public filings with the SEC could cause its actual results to differ materially from those contained in any forward-looking statement. The Trust's filed reports are or will be available over the Internet at the SEC's website at http://www.sec.gov.

Contact: 

PermRock Royalty Trust


Simmons Bank, Trustee


Lee Ann Anderson, Senior Vice President


Toll-free: (855) 588-7839


Fax: (817) 298-5579


Website:  www.permrock.com


e-mail:  trustee@permrock.com

 

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SOURCE PermRock Royalty Trust

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