Permianville Royalty Trust Announces Monthly Cash Distribution
16 September 2022 - 10:15PM
Business Wire
Permianville Royalty Trust (NYSE: PVL, the “Trust”) today
announced a cash distribution to the holders of its units of
beneficial interest of $0.050500 per unit, payable on October 17,
2022 to unitholders of record on September 30, 2022. The net
profits interest calculation represents reported oil production for
the month of June 2022 and reported natural gas production during
May 2022. The calculation includes accrued costs incurred in July
2022.
The following table displays reported underlying oil and natural
gas sales volumes and average received wellhead prices attributable
to the current and prior month recorded 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
37,873
1,262
287,116
9,262
$
110.92
$
6.85
Prior Month
37,350
1,205
297,117
9,904
$
107.77
$
5.37
Recorded oil cash receipts from the oil and gas properties
underlying the Trust (the “Underlying Properties”) totaled $4.2
million for the current month on realized wellhead prices of
$110.92/Bbl, up $0.2 million from the prior month’s oil cash
receipts.
Recorded natural gas cash receipts from the Underlying
Properties totaled $2.0 million for the current month on realized
wellhead prices of $6.85/Mcf, up $0.4 million from the prior
month.
Total accrued operating expenses for the period were $2.6
million, a decrease of $0.1 million from the prior period. Capital
expenditures decreased $0.8 million from the prior period to $0.9
million.
Given the increase in rig count and operator activity on the
Underlying Properties, COERT Holdings 1 LLC (the “Sponsor”) has
notified the Trustee that it is withholding $0.3 million from the
current month’s net profits to be added to the Sponsor’s previously
established cash reserve for approved, future development expenses
this year. With this addition, the total reserve is currently
approximately $1.0 million. This reserve is intended to fund an
expected increase in development expenses; however, if those
expenses are ultimately delayed or are less than expected, or if
the outlook changes, amounts reserved but unspent will be released
as an incremental cash distribution in a future period.
Capex Drilling Activity Recap and Update
In light of the incurred, announced and/or expected capital
expenditures resulting from increased operator activity in 2022,
below is a summary of the current status of certain notable capital
projects recently undertaken on the Underlying Properties. The
following table is not intended to be a comprehensive list
reflecting all capital expenditures to date. As a reminder, there
can often be a several-month delay from the time of capital
expenditures to the time of production and cash flows attributable
to the Underlying Properties, especially given the non-operated
nature of the Underlying Properties.
Operator
Region
Number of Wells
Underlying Properties Working
Interest
Project
Status
Large Cap Major
Haynesville
2
2.5%
D&C New Drills
1 Drilled, Awaiting Completion; 1
Pre-Drill
Large Cap E&P 1
Midland
5
6.6%
D&C New Drills
Producing, Awaiting First
Revenues
Large Cap E&P 2
Conventional
Permian
N/A
(Field)
0.8%
New Drills / Workovers
In-process/
Continual Program
Large Private E&P
Haynesville
1
17.2%
Refrac
Producing, Awaiting First
Revenues
PE-Backed Private 1
Delaware
8
5.4%
D&C New Drills
4 Producing, Awaiting First
Revenues; 4 Pre-Drill
PE-Backed Private 2
Delaware
3
0.8%
D&C New Drills
Producing, Awaiting First
Revenues
PE-Backed Private 3
Delaware
3
0.8%
D&C New Drills
Drilling In-Process
Private
E&P 1
Conventional
Permian
3
24.0%
New Drills / Workovers
Producing, Awaiting First
Revenues
Private
E&P 2
Haynesville
3
3.6%
Refrac
In-Process
In addition, the Sponsor now expects that the 2022 capital
expenditure program will be between $10 million and $15 million
attributable to the Underlying Properties, or between $8 million
and $12 million net to the Trust’s 80% Net Profits Interest, an
increase from the previously disclosed expected capital expenditure
program of $6 million to $8 million, or $4.8 million to $6.4
million net to the Trust’s 80% Net Profits Interest.
About Permianville Royalty Trust
Permianville Royalty Trust is a Delaware statutory trust formed
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, predominantly non-operated, oil and gas properties in
the states of Texas, Louisiana and New Mexico. As described in the
Trust’s filings with the Securities and Exchange Commission (the
“SEC”), the amount of the periodic distributions is expected to
fluctuate, depending on the proceeds received by the Trust as a
result of actual production volumes, oil and gas prices, the amount
and timing of capital expenditures, and the Trust’s administrative
expenses, among other factors. Future distributions are expected to
be made on a monthly basis. For additional information on the
Trust, please visit www.permianvilleroyaltytrust.com.
Forward-Looking Statements and Cautionary Statements
This press release contains statements that are “forward-looking
statements” within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended. All statements contained in this
press release, other than statements of historical facts, are
“forward-looking statements” for purposes of these provisions.
These forward-looking statements include the amount and date of any
anticipated distribution to unitholders, expectations regarding the
cash reserve for future development expenses and expectations
regarding current and future capital expenditures and development
activities on the Underlying Properties. The anticipated
distribution is based, in large part, on the amount of cash
received or expected to be received by the Trust from the Sponsor
with respect to the relevant period. The amount of such cash
received or expected to be received by the Trust (and its ability
to pay distributions) has been and will continue to be directly
affected by the volatility in commodity prices, which have
experienced significant fluctuation since the beginning of 2020 as
a result of a variety of factors that are beyond the control of the
Trust and the Sponsor. Low oil and natural gas prices will reduce
profits to which the Trust is entitled, which will reduce the
amount of cash available for distribution to unitholders and in
certain periods could result in no distributions to unitholders.
Other important factors that could cause actual results to differ
materially include expenses of the Trust, reserves for anticipated
future expenses and the effect, impact, potential duration or other
implications of the COVID-19 pandemic. In addition, future monthly
capital expenditures may exceed the average levels experienced in
2021 and prior periods. Statements made in this press release are
qualified by the cautionary statements made in this press release.
Neither the Sponsor nor the Trustee intends, and neither assumes
any obligation, to update any of the statements included in this
press release. An investment in units issued by the Trust is
subject to the risks described in the Trust’s filings with the SEC,
including the risks described in the Trust’s Annual Report on Form
10-K for the year ended December 31, 2021, filed with the SEC on
March 25, 2022. The Trust’s quarterly and other filed reports are
or will be available over the Internet at the SEC’s website at
http://www.sec.gov.
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version on businesswire.com: https://www.businesswire.com/news/home/20220916005021/en/
Permianville Royalty Trust The Bank of New York Mellon Trust
Company, N.A., as Trustee Sarah Newell 1 (512) 236-6555
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