Permian Basin Royalty Trust(PBT) - 2023 Q2 - Quarterly Report

Financial Performance - Distributable income for the three months ended June 30, 2023, was $5,761,142, a decrease of 21.6% compared to $7,358,308 for the same period in 2022[18] - Distributable income per Unit for the three months ended June 30, 2023, was $0.12, down from $0.16 in the prior year, reflecting a decline of 25%[18] - For the six months ended June 30, 2023, total distributable income was $10,501,757, a decrease of 5.3% from $11,093,002 in the same period of 2022[20] - Distributable income for the quarter ended June 30, 2023, was $5,761,142, or $0.12 per Unit, compared to $7,358,308, or $0.16 per Unit, in the same quarter of 2022[52] - Distributable income for the six months ended June 30, 2023, was $10,501,757, or $0.23 per Unit, compared to $11,093,002, or $0.24 per Unit for the same period in 2022[62] Revenue and Income Sources - Royalty income for the three months ended June 30, 2023, was $6,074,170, down 20.4% from $7,630,221 in the same period of 2022[18] - For the six months ended June 30, 2023, royalty income was $11,280,772, down from $11,708,866 in the same period of 2022, due to decreased oil and gas pricing[59] - Royalty income for the three months ended June 30, 2023, was $2,421,767 from Waddell Ranch properties and $3,652,403 from Texas Royalty properties, compared to $2,886,454 and $4,743,767 respectively in 2022[70] Assets and Liabilities - As of June 30, 2023, total assets increased to $3,741,658 from $3,134,877 as of December 31, 2022, representing a growth of approximately 19.4%[16] - The cash and short-term investments increased to $3,542,225 as of June 30, 2023, compared to $2,855,444 at the end of 2022, marking an increase of approximately 24%[16] - The total Trust Corpus at the end of the period was $199,433, down from $279,433 at the end of 2022, reflecting a decrease of 28.6%[16] Expenses - General and administrative expenditures for the three months ended June 30, 2023, were $335,992, an increase of 22.8% compared to $273,698 in the prior year[18] - Total expenses for the quarter ended June 30, 2023, were $335,992, an increase from $273,698 in the same quarter of 2022, attributed to higher professional services and printing costs[51] - Lease operating expenses and property taxes for the second quarter of 2023 totaled $16.5 million, compared to $10.3 million in the same period of 2022, reflecting increased maintenance work[58] - Lease operating expenses and property taxes increased to $32.8 million for the six months ended June 30, 2023, from $19.8 million in 2022, primarily due to higher spending on facilities and maintenance[68] Capital Expenditures - Capital expenditures for drilling and maintenance activities on the Waddell Ranch properties totaled $29.7 million in the second quarter of 2023, compared to approximately $32 million in the same period of 2022[56] - Capital expenditures for drilling and maintenance activities on the Waddell Ranch properties totaled $64.9 million for the six months ended June 30, 2023, compared to $52.5 million in 2022[66] - The Trust's capital expenditures budget for the Waddell Ranch properties for 2023 is projected at $96.8 million[66] - A total of 22.2 workover wells and 13.2 new wells were completed on the Waddell Ranch properties during the six months ended June 30, 2023, compared to 22.9 workover wells and 21 new wells in 2022[67] Oil and Gas Prices - Average oil prices for the quarter ended June 30, 2023, were $73.73 per barrel, down from $101.24 per barrel in the same quarter of 2022, while average gas prices decreased from $5.33 per Mcf to $2.11 per Mcf[53] - Average price per barrel of oil decreased to $75.61 in 2023 from $89.15 in 2022, and average price per Mcf of gas dropped to $2.65 from $4.89[63] Other Financial Metrics - Interest income for the six months ended June 30, 2023, was $37,071, significantly higher than $3,018 in the same period of 2022, due to increased funds available for investment[61] - The Trust declared a distribution of $0.021749 per Unit on July 21, 2023, payable on August 14, 2023, to unitholders of record on July 31, 2023[44] - The amortization of net overriding royalty interests for the six months ended June 30, 2023, was $80,000, compared to $26,603 in the same period of 2022, indicating a significant increase in amortization expenses[24] Accounting and Regulatory - The Trust has not engaged in any new accounting pronouncements that are expected to significantly impact its financial statements[73]