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): July 19, 2016
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 Southwest Bank 2911 Turtle Creek Boulevard Suite 850 Dallas, Texas |
75219 | |||
| (Address of principal executive offices) | (Zip Code) | |||
Registrant’s 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))
| Item 2.02. | Results of Operations and Financial Condition. |
On July 19, 2016, the Registrant issued a press release announcing its monthly cash distribution to unitholders of record on July 29, 2016. 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 | Press Release dated July 19, 2016. |
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: | SOUTHWEST BANK, TRUSTEE FOR PERMIAN BASIN ROYALTY TRUST | |
| By: | /s/ RON HOOPER | |
| Ron Hooper Senior Vice President | ||
Date: July 19, 2016
EXHIBIT INDEX
| Exhibit |
Description | |
| 99.1 | Press Release dated July 19, 2016. | |
Exhibit 99.1
Permian Basin Royalty Trust
PERMIAN BASIN ROYALTY TRUST
ANNOUNCES JULY CASH DISTRIBUTION
DALLAS, Texas, July 19, 2016 – Permian Basin Royalty Trust (NYSE: PBT) (“Permian”) today declared a cash distribution to the holders of its units of beneficial interest of $0.040122 per unit, payable on August 12, 2016, to unit holders of record on July 29, 2016.
This month’s distribution increased from the previous month due to an increase in the pricing of oil and gas and an increase in production for the month of May for the Waddell Ranch. With the increased pricing of production, the Waddell Ranch Properties contributed $1,087,250 to this month’s distribution.
WADDELL RANCH
Production for the underlying properties at the Waddell Ranch was 74,882 barrels of oil and 415,409 Mcf of gas. The production for the Trust’s allocated portion of the Waddell Ranch was 21,215 barrels of oil and 115,315 Mcf of gas. The average price for oil was $42.56 per bbl and for gas was $2.06 per Mcf. This would primarily reflect production and pricing for the month of May for oil and the month of April for gas. These allocated volumes were significantly impacted by the pricing of both oil and gas.
This production and pricing for the Underlying Properties resulted in revenues for the Waddell Ranch Properties of $4,042,505. Deducted from these would be the Lease Operating Expense (LOE) of $1,834,214, taxes of $377,400 and Capital Expenditures (CAPEX) of $381,226 totaling $2,592,839 resulting in a Net Profit of $1,449,666 for the month of June. With the Trust’s Net Profit Interest (NPI) of 75% of the underlying properties, this would result in a net contribution by the Waddell Ranch Properties of $1,087,250 to this month’s distribution.
ConocoPhillips has revised the 2016 capital expenditure budget which will total $2.45 million for the entire Waddell Ranch Project and $1.08 million net to the Trust. There will be no new drilled wells, no recompletions, and only some facilities projects.
| 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 |
74,882 | 415,409 | 21,215 | 115,315 | * | $ | 42.56 | $ | 2.06 | ** | ||||||||||||||
| Texas Royalties |
25,342 | 29,612 | 24,075 | 28,131 | * | $ | 39.75 | $ | 3.39 | ** | ||||||||||||||
| Prior Month |
||||||||||||||||||||||||
| Waddell Ranch |
74,177 | 403,249 | 22,498 | 120,459 | * | $ | 37.06 | $ | 1.89 | ** | ||||||||||||||
| Texas Royalties |
26,300 | 34,250 | 24,985 | 32,538 | * | $ | 35.80 | $ | 2.94 | ** | ||||||||||||||
| * | These volumes are the net to the trust, after allocation of expenses to Trust’s net profit interest, including any prior period adjustments. |
| ** | This pricing includes sales of gas liquid products. |
TEXAS ROYALTY PROPERTIES
Production for the underlying properties at the Texas Royalties was 25,342 barrels of oil and 29,612 Mcf of gas. The production for the Trust’s allocated portion of the Texas Royalties was 24,075 barrels of oil and 28,131 Mcf of gas. The average price for oil was $39.75 per bbl and for gas was $3.39 per Mcf. This would primarily reflect production and pricing for the month of May for oil and the month of April 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 $1,107,810. Deducted from these would be taxes totaling $187,077 resulting in a Net Profit of $920,733 for the month of June. With the Trust’s Net Profit Interest (NPI) of 95% of the Underlying Properties, this would result in net contribution by the Texas Royalties of $874,696 to this month’s distribution.
General and Administrative Expenses deducted for the month were $92,025 resulting in a distribution of $1,870,072 to 46,608,796 units outstanding, or $.040122 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.
Permian’s cash distribution history, current and prior year financial reports and tax information booklets, a link to filings made with the Securities and Exchange Commission and more can be found on its website at http://www.pbt-permian.com/. The new toll free number customer service number for the trust is 1-855-588-7839.
* * *
| Contact: | Ron Hooper Senior Vice President Southwest Bank, Trustee Toll Free – 1.855.588.7839 |