Permian Basin Royalty Trust (NYSE: PBT) declared a cash distribution to the holders of its units of beneficial interest, the company announced Oct. 21.
The distribution is $0.099509 per unit, payable on Nov. 15, to unit holders of record on Oct. 31.
This month's distribution decreased from the previous month due to increased capital expenditures and lease operating expenses on the Waddell Ranch Properties. Production and pricing both increased for oil and gas. Gas production to the trust continues to be affected by prior period adjustments being processed.
Production for the trust's allocated portion of the Waddell Ranch and the Texas Royalty Properties combined for oil and gas respectively was 42,893 barrels (bbl) and 92,793 thousand cubic feet (Mcf). The average price for oil was $105.02 per bbl and for gas was $6.12 per Mcf. This would primarily reflect production for the month of August for oil and the month of July for gas. 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.
About seven 2013 workover wells were completed in the month of August. Capital expenditures were some $2.6 million. The numbers provided reflect what was net to the trust. Due to the allocation method of paying for capital expenditures and lease operating expenses, the Trust's net volumes are reduced in order to pay these expenditures.
The results of 2012 capital expenditure program on the Waddell Ranch Properties, along with the proposed 2013 budget, is discussed more thoroughly in the trust's 10-K filing, filed on March 1, and in the annual report that is now available on the trust website.
The trustee continues to evaluate the claim of some $4.5 million overpayment that was recouped by ConocoPhillips (NYSE: COP) back in September and October 2011. The accounting adjustments and subsequent reimbursements of this claim are currently being processed through the monthly distribution. As of June, there has been minimal effect on the distributions.
Permian Basin Royalty Trust is an independent energy company that owns overriding royalty interests in various oil and gas properties in the U.S. The company is based in Dallas.