Financial Performance - The Trust's gross profits for Q1 2025 were $10,572,381, a decrease of 7% compared to $11,393,715 in Q1 2024[82] - The Trust reported a net loss of $3,023,619 for Q1 2025, compared to a profit of $211,715 in Q1 2024, marking a 1,528% decrease[82] - The net loss attributable to the Underlying Properties for the three months ended March 31, 2025 was $(3.0) million, a decrease of $3.2 million from a profit of $0.2 million in the same period in 2024[84] Revenue Breakdown - Oil sales decreased by 12% to $8,530,705, while natural gas sales increased by 21% to $2,041,676[82] - Oil sales decreased by $1.2 million due to a $0.1 million decrease in produced volumes and a $1.1 million decrease in realized prices, with the average oil price received dropping by 11%[84] - Natural gas sales increased by $0.4 million, driven by a $1.1 million increase in produced volumes, although realized prices fell by 27%[84] Operating Expenses - Direct operating expenses increased by 22% to $13,596,000, driven by a 133% rise in development expenses to $7,157,000[82] - Lease operating expenses decreased by $1.9 million compared to the same period in 2024, while development expenses increased by $4.1 million due to higher drilling and completion costs[84] - Compression, gathering, and transportation costs increased by $0.4 million due to new wells coming online during the three months ended March 31, 2025[84] Production Volumes - For the three months ended March 31, 2025, oil production volumes decreased by 1% to 114,380 Bbls compared to 115,343 Bbls in 2024, while natural gas production volumes increased by 66% to 1,180,460 Mcf from 711,124 Mcf[84] Cash and Reserves - The Trust experienced a shortfall of approximately $1.4 million as of March 31, 2025, due to direct operating and development expenses exceeding cash receipts[82] - As of March 31, 2025, the Trust had cash of $2,216,799 available for future expenses, compared to $2,193,787 as of December 31, 2024[88] - The Trustee has withheld $1,241,386 toward a cash reserve for future liabilities as of March 31, 2025, with no amounts withheld during the three months ended March 31, 2025 due to a Net Profits Interest shortfall[87] - The Trust has a $1.2 million letter of credit available for administrative expenses if cash on hand is insufficient[88] Future Outlook - The Sponsor expects capital expenditures for 2025 to be revised to a range of $10.0 million to $15.0 million, up from the previous range of $7.0 million to $13.0 million[74] - The Sponsor continues to maintain cash reserves for future development expenses despite the current macroeconomic uncertainties[72] Market Conditions - Oil prices fluctuated between $57 and $80 per barrel from December 2024 to May 2025, impacting budget planning for several companies[73] - Natural gas prices ranged from $2.93 to $4.49 per MMBtu during the same period, reflecting volatility in the market[73] Development Activity - Development activity on the Underlying Properties increased over 130% in Q1 2025 compared to the same period in 2024[72] - The Trust has not borrowed any funds since its formation and has no current plans to authorize borrowing[88]
Permianville Royalty Trust(PVL) - 2025 Q1 - Quarterly Report