Workflow
Permian Basin Royalty Trust(PBT) - 2024 Q3 - Quarterly Report

Financial Performance - Distributable income for the three months ended September 30, 2024, was 8,053,284,comparedto8,053,284, compared to 3,202,030 for the same period in 2023, representing an increase of 151%[10] - Royalty income for the nine months ended September 30, 2024, reached 23,175,406,up5823,175,406, up 58% from 14,598,202 in the same period of 2023[11] - Distributable income for Q3 2024 was 8,053,284or8,053,284 or 0.17 per Unit, compared to 3,202,030or3,202,030 or 0.07 per Unit in Q3 2023[29] - Distributable income for the nine months ended September 30, 2024 was 21,982,178,or21,982,178, or 0.47 per Unit, compared to 13,703,786,or13,703,786, or 0.29 per Unit for the same period in 2023[33] - Total net profits for the three months ended September 30, 2024, were 6,160,815,comparedto6,160,815, compared to 3,492,033 for the same period in 2023, reflecting an increase of approximately 76.1%[39] Assets and Liabilities - Total assets as of September 30, 2024, were 3,917,020,adecreasefrom3,917,020, a decrease from 6,272,824 as of December 31, 2023[9] - Distribution payable to unit holders as of September 30, 2024, was 2,363,614,downfrom2,363,614, down from 4,951,350 at the end of 2023[9] - Cash and short-term investments as of September 30, 2024, totaled 3,731,395,downfrom3,731,395, down from 6,051,350 at the end of 2023[9] - Total trust corpus at the end of the period on September 30, 2024, was 185,625,downfrom185,625, down from 221,474 at the beginning of the period[12] Income Sources - Royalty income for the quarter ended September 30, 2024, was 8,366,375,asignificantincreasefrom8,366,375, a significant increase from 3,317,431 in the same quarter of 2023[29] - Interest income for the three months ended September 30, 2024, was 54,534,comparedto54,534, compared to 24,119 for the same period in 2023[10] - The Trust's royalty income for the quarter ended September 30, 2024, includes cash received for June, July, and August, with specific amounts not disclosed until after the NYSE notification deadline[16] Expenses - General and administrative expenditures for the nine months ended September 30, 2024, were 1,315,916,comparedto1,315,916, compared to 955,607 for the same period in 2023[11] - Total expenses in Q3 2024 were 367,625,upfrom367,625, up from 139,520 in Q3 2023, primarily due to increased professional services expenses[29] - Total expenses for the nine months ended September 30, 2024 amounted to 1,315,916,anincreasefrom1,315,916, an increase from 955,607 during the same period in 2023[33] Capital Expenditures - Capital expenditures for drilling, remedial, and maintenance activities on the Waddell Ranch properties totaled 24.0million(gross)inQ32024,downfrom24.0 million (gross) in Q3 2024, down from 31.8 million (gross) in Q3 2023[33] - Total capital expenditures for the nine months ended September 30, 2024 were 67.9million(gross),downfrom67.9 million (gross), down from 96.7 million (gross) for the same period in 2023[36] - The Trust's capital expenditures for the three months ended September 30, 2024, were 24,032,607,comparedto24,032,607, compared to 31,841,404 for the same period in 2023, showing a decrease of approximately 24.5%[39] Commodity Prices - Average realized oil prices for Waddell Ranch properties increased to 79.91perbarrelinQ32024from79.91 per barrel in Q3 2024 from 70.78 per barrel in Q3 2023, while Texas Royalty properties saw an increase from 71.45to71.45 to 79.06 per barrel[29][32] - Average realized gas prices for Waddell Ranch properties decreased to 1.19perthousandcubicfeet(Mcf)inQ32024from1.19 per thousand cubic feet (Mcf) in Q3 2024 from 2.03 per Mcf in Q3 2023, with Texas Royalty properties increasing from 4.18to4.18 to 10.54 per Mcf[29][32] - The average realized price of oil for Texas Royalty properties increased to 77.40perBblintheninemonthsendedSeptember30,2024,comparedto77.40 per Bbl in the nine months ended September 30, 2024, compared to 74.97 per Bbl in the same period of 2023[35] - The average realized price of gas for Texas Royalty properties increased from 4.77perMcfintheninemonthsendedSeptember30,2023to4.77 per Mcf in the nine months ended September 30, 2023 to 9.69 per Mcf in the same period of 2024[35] Operational Challenges - Blackbeard Operating, LLC has not provided necessary information for calculating net proceeds for monthly distributions since May 2024, affecting distribution timing[19] - The Trust has faced delays in distributions due to Blackbeard's refusal to provide necessary information, which has resulted in a month-long delay in net proceeds distribution[47] - The Trust is currently involved in legal proceedings against Blackbeard, seeking to recover over $25 million in damages related to alleged improper deductions from royalty payments[45] Accounting and Reporting - The Trust's financial statements differ from GAAP, as revenues are not accrued in the month of production and expenses are recorded when paid[16] - There have been no significant changes to the Trust's critical accounting policies during the nine months ended September 30, 2024[40] - The Trust's forward-looking statements are subject to risks and uncertainties, including oil and gas prices and recoverability of reserves[26]