Permian Basin Royalty Trust(PBT) - 2023 Q1 - Quarterly Report

Financial Performance - Distributable income for the three months ended March 31, 2023, was $4,740,615, an increase of 27% compared to $3,734,694 for the same period in 2022[19] - Royalty income for the three months ended March 31, 2023, was $5,206,602, up 27.7% from $4,078,645 in the prior year[19] - Distributable income per Unit increased to $0.10 for the three months ended March 31, 2023, compared to $0.08 for the same period in 2022, reflecting a 25% increase[19] - For the quarter ended March 31, 2023, royalty income was $5,206,602, an increase from $4,078,645 in the same quarter of 2022, primarily due to higher oil and natural gas production and pricing[44] - Distributable income for Q1 2023 was $4,740,615, or $0.10 per Unit, compared to $3,734,694, or $0.08 per Unit in Q1 2022[46] Asset and Liability Overview - As of March 31, 2023, total assets of the Permian Basin Royalty Trust were $2,438,565, a decrease from $3,134,877 as of December 31, 2022, representing a decline of approximately 22.2%[17] - Cash and short-term investments decreased to $2,199,132 as of March 31, 2023, down from $2,855,444 at the end of 2022, a reduction of approximately 23%[17] - Distribution payable to Unit holders was $1,099,132 as of March 31, 2023, down from $1,755,444 at December 31, 2022, indicating a decrease of about 37.4%[17] - The Trust's total liabilities and trust corpus remained unchanged at $2,438,565 as of March 31, 2023, consistent with the total as of December 31, 2022[17] - The Trust's total trust corpus at the end of the period was $239,433, down from $336,545 in the prior year, representing a decrease of about 29%[21] Operational Metrics - Average oil price for the quarter was $77.63 per barrel, up from $75.95 per barrel in Q1 2022, while average gas price decreased to $3.19 per Mcf from $4.52 per Mcf[44][47] - Oil sales volume increased to 519,492 barrels in Q1 2023 from 377,243 barrels in Q1 2022, while gas sales volume increased to 2,829,662 Mcf from 2,180,498 Mcf[47] - Capital expenditures for drilling and maintenance activities on Waddell Ranch properties totaled $35.2 million in Q1 2023, compared to $20.5 million in Q1 2022[49] Expenses and Expenditures - General and administrative expenditures for the three months ended March 31, 2023, were $480,094, compared to $345,184 in the same period of 2022, reflecting a 39% increase[19] - Total expenses for Q1 2023 were $480,094, up from $345,184 in Q1 2022, mainly due to increased professional services expenses[45] Tax and Regulatory Matters - The Trust expects to continue being exempt from Texas franchise tax as a passive entity, benefiting Unit holders[37] - The Trust's disclosure controls and procedures are effective in ensuring timely reporting of required information under the Securities Exchange Act of 1934[57] - No material changes to the Trust's risk factors have occurred during the three months ended March 31, 2023[60] - The evaluation of the Trust's internal control over financial reporting has not revealed any material changes that could affect its effectiveness[57] Other Financial Considerations - The cumulative net profit interest (NPI) deficit for Waddell Ranch properties was $411,735 as of March 31, 2023, which must be recovered before any proceeds are paid to the Trust[52] - The Trust's income and distributions are significantly influenced by commodity prices, which are subject to volatility due to various market factors[42]