Royalty Income and Expenditures - Total royalty income for the Trust in 2024 was $26,963,365, a decrease of 7.2% from $29,010,704 in 2023 and a significant drop of 50.5% from $54,417,857 in 2022[167] - Oil royalty income accounted for 90% of total royalty income in 2024, amounting to $24,267,029, while gas royalty income was $2,696,336, representing 10%[167] - Royalty Income for 2024 was $26,963,365, a decrease of 7.2% from $29,010,704 in 2023 and a significant drop from $54,417,857 in 2022[212] - Total Income for 2024 was $27,114,144, down 6.8% from $29,096,583 in 2023[212] - Distributable income for 2024 was $25,415,368, or $0.55 per Unit, down from $27,978,487, or $0.60 per Unit in 2023[178][179] - Distribution payable to unit holders fell to $1,022,585 in 2024 from $4,951,350 in 2023, a decrease of about 79%[210] - The royalty distributable income for the second quarter of 2024 was $8,436,688, representing a 46.2% increase from $5,761,142 in the second quarter of 2023[264] - The total royalty distributable income for the third quarter of 2024 was $8,053,284, a decrease of 0.6% from $3,202,030 in the third quarter of 2023[264] - The distribution per unit for the fourth quarter of 2024 was $0.073658, down from $0.306265 in the fourth quarter of 2023[264] - The Trust declared a distribution of $0.020510 per unit for January 2025, and $0.017144 per unit for February 2025[270] Production and Sales - Average daily oil sales for the underlying properties in 2024 were 7,981 Bbls, a slight decrease from 8,090 Bbls in 2023[167] - Average daily gas sales for the underlying properties in 2024 were 44,523 Mcf, an increase from 44,340 Mcf in 2023[167] - Total oil sales for Texas Royalty properties in Q4 2024 were 52,411 Bbls, while total gas sales were 21,526 Mcf[182] - Oil production for Texas Royalty properties increased in Q4 2024 compared to the same period in 2023, although specific production figures were not disclosed[183] Financial Performance - Cash and short-term investments decreased to $2,122,585 in 2024 from $6,051,350 in 2023, a reduction of approximately 65%[210] - General and Administrative Expenditures increased to $1,698,776 in 2024 from $1,118,096 in 2023, representing a rise of 52%[212] - The Trust's total expenditures for 2024 were $1,698,776, consistent with the General and Administrative Expenditures[212] - Professional fees increased significantly to $895,520 in 2024, up from $456,657 in 2023, indicating higher operational costs[269] Asset Valuation and Reserves - The Trust's total proved oil reserves increased from 11,553 thousand barrels on December 31, 2022, to 11,662 thousand barrels on December 31, 2023, representing a growth of 0.9%[260] - The Trust's total proved gas reserves rose from 25,737 thousand Mcf on December 31, 2022, to 28,763 thousand Mcf on December 31, 2023, indicating an increase of 11.8%[260] - The standardized measure of discounted future net cash inflows decreased from $508,549 thousand in 2023 to $371,366 thousand in 2024, a decline of 27.0%[262] - The future net cash inflows for 2024 are estimated at $643,652 thousand, down from $897,415 thousand in 2023, reflecting a decrease of 28.3%[262] - The Trust's total proved reserves as of December 31, 2024, are projected to be 12,237 BOE, reflecting a decrease from 16,456 BOE in 2023[260] Market Conditions - Average price of oil decreased to $75.88 per barrel in 2024 from $76.72 in 2023, and the average price of gas fell to $1.45 per Mcf from $2.40[167] - For Texas Royalty properties, the average price per barrel of oil decreased to $74.57 in Q4 2024 from $83.22 in Q4 2023, a decline of approximately 10%[183] - The average price of gas for Texas Royalty properties increased significantly to $10.79 per Mcf in Q4 2024 from $4.13 in Q4 2023, an increase of about 161%[183] Trust Operations - The Trust did not receive any royalty income from the Waddell Ranch properties for October and November of 2024 due to an NPI deficit[235] - For the year ended December 31, 2024, excess costs for the Waddell Ranch properties amounted to $13,500,104, with $10,125,078 net to the Trust[240] - Accrued interest related to excess costs at the end of 2024 was $123,252, with $92,439 net to the Trust[240] - The Trust's accumulated amortization as of December 31, 2024, was $10,810,809, compared to $10,753,742 in 2023[237] - There was no impairment of the assets as of December 31, 2024, indicating stable asset valuation despite market fluctuations[186] Tax Environment - The Trust expects to continue being exempt from Texas franchise tax as a passive entity, benefiting unit holders[266] - The Trust's revenue is sourced from Texas, which does not impose an individual income tax, providing a favorable tax environment for unit holders[266]
Permian Basin Royalty Trust(PBT) - 2024 Q4 - Annual Report