Financial Performance - Distributable income for the three months ended September 30, 2024, was $8,053,284, 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, up 58% from $14,598,202 in the same period of 2023[11] - Distributable income for Q3 2024 was $8,053,284 or $0.17 per Unit, compared to $3,202,030 or $0.07 per Unit in Q3 2023[29] - Distributable income for the nine months ended September 30, 2024 was $21,982,178, or $0.47 per Unit, compared to $13,703,786, 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, 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, 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, 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, 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, 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, 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, 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, compared to $955,607 for the same period in 2023[11] - Total expenses in Q3 2024 were $367,625, 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, 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 $24.0 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 $67.9 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, 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 $79.91 per barrel in Q3 2024 from $70.78 per barrel in Q3 2023, while Texas Royalty properties saw an increase from $71.45 to $79.06 per barrel[29][32] - Average realized gas prices for Waddell Ranch properties decreased to $1.19 per thousand cubic feet (Mcf) in Q3 2024 from $2.03 per Mcf in Q3 2023, with Texas Royalty properties increasing from $4.18 to $10.54 per Mcf[29][32] - The average realized price of oil for Texas Royalty properties increased to $77.40 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 $4.77 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]
Permian Basin Royalty Trust(PBT) - 2024 Q3 - Quarterly Report