Permianville Royalty Trust (NYSE: PVL, the “Trust”) announced the net profits interest calculation for January 2025. The net profits interest calculation represents reported oil production for the month of October 2024 and reported natural gas production during September 2024. The calculation includes accrued costs incurred in November 2024.
As a result of the elevated capital expenditures recorded this month as described below, for which timing is not always ratable month-to-month, direct operating and development expenses exceeded cash receipts, leading to a shortfall of approximately $1.3 million this month. As a result, no monthly distribution will be paid in February 2025 to the Trust’s unitholders of record on January 30, 2025. Distributions to the Trust will resume once the cumulative net profits shortfall, which now totals approximately $2.2 million, is eliminated.
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
Current Month
Oil
Bbls: 36,977
Bbls/D:1,193
Natural Gas
Mcf: 386,922
Mcf/D: 12,897
Average Price
Oil (per Bbl): $76.92
Natural Gas (per Mcf): $1.63
Prior Month
Underlying Sales Volumes
Oil
Bbls: 37,649
Bbls/D: 1,255
Natural Gas
Mcf: 412,711
Mcf/D: 13,313
Average Price
Oil (per Bbl): $70.14
Natural Gas (per Mcf): $1.60
Recorded oil cash receipts from the oil and gas properties underlying the Trust (the “Underlying Properties”) totaled $2.8 million for the current month on realized wellhead prices of $76.92/Bbl, up $0.2 million from the prior month’s oil cash receipts.
Recorded natural gas cash receipts from the Underlying Properties totaled $0.6 million for the current month on realized wellhead prices of $1.63/Mcf, down $0.1 million from the prior month.
Total accrued operating expenses decreased $0.2 million from the prior period to $2.2 million. Capital expenditures decreased $0.5 million from the prior period to $2.9 million. The continued high level of capital expenditures was driven by the non-operated spending for two Permian wells drilled by a public, super major oil company, three Haynesville wells drilled by a public, super major oil company, and six Haynesville wells drilled by a large private oil and gas exploration and production company.
The cumulative shortfall in net profits for the current month will be deducted from any net profits in next month’s net profits interest calculation. The Trust will not receive proceeds pursuant to its net profits interest until the cumulative net profits shortfall is eliminated. In addition, if the Trust’s cash on hand is not sufficient to pay ordinary course administrative expenses and the Trust borrows funds or draws on the letter of credit that has been provided to the Trust, or if COERT Holdings 1 LLC (the “Sponsor”) advances funds to the Trust to pay such expenses, no further distributions will be made to Trust unitholders until such amounts borrowed or drawn, or advanced to the Trust, are repaid. At this time based on current commodity prices, the Sponsor anticipates that the Underlying Properties will return to generating positive net profits in 2025.