PermRock Royalty Trust(PRT) - 2024 Q1 - Quarterly Report

Financial Performance - Distributable income for the three months ended March 31, 2024, was $1,122,502, down 49.1% from $2,203,286 in the same period of 2023[14] - Distributable income per unit decreased from $0.181106 in Q1 2023 to $0.092268 in Q1 2024, a decline of 49.1%[14] - Net profits income for Q1 2024 was $1,296,408, a decrease of 45.2% compared to $2,366,677 in Q1 2023[14] - Total revenue for Q1 2024 was $1,311,370, down 44.8% from $2,380,404 in Q1 2023[14] - Total gross profits for the three months ended March 31, 2024, were $5,738,919, down from $7,134,833 in the prior year[1] - Total costs decreased to $3,768,409 from $5,191,487 year-over-year[1] - Net profits for the three months ended March 31, 2024, were $1,970,510, slightly up from $1,943,346 in the same period last year[1] Asset and Cash Management - Total assets decreased from $77,244,781 on December 31, 2023, to $76,329,788 on March 31, 2024, a decline of approximately 1.18%[11] - Trust corpus at the end of Q1 2024 was $75,050,326, down from $75,876,170 at the end of Q4 2023, reflecting a decrease of 1.09%[17] - Cash and short-term investments decreased from $1,368,611 on December 31, 2023, to $1,279,462 on March 31, 2024, a decline of approximately 6.5%[11] - The Trust retained cash reserves of $1,000,000 as of March 31, 2024, unchanged from the previous period[12] - Total cash reserves were $1,000,000 as of March 31, 2024, unchanged from the previous year[61] Production and Sales - Oil sales volumes decreased by 11,407 Bbls (13.3%) for the three months ended March 31, 2024, compared to the same period in 2023[65] - Natural gas sales volumes decreased by 20,344 Mcf (19.5%) for the three months ended March 31, 2024, compared to the same period in 2023[66] - In February 2024, the Trust reported underlying sales volumes of 23,156 barrels of oil and 24,949 Mcf of gas, with average prices of $74.64 per barrel and $3.71 per Mcf[45] - Average realized oil price per Bbl decreased to $73.06 from $76.79 year-over-year[67] - Average realized natural gas price per Mcf decreased to $3.14 from $4.94 year-over-year[68] Distributions and Expenses - The Trust declared distributions of $1,122,502 for Q1 2024, which were fully distributed to unitholders[17] - The Trust declared a cash distribution of $0.030674 per Trust unit based on production during February 2024[44] - The Trustee's annual administrative fee for 2024 is $205,031, which will increase at a rate of 1% per year until the 20th anniversary of the Trust's formation[39] - The Trust is required to make monthly cash distributions of substantially all of its monthly cash receipts after deducting fees and expenses for administration[54] Capital Expenditures - Boaz Energy's estimated capital budget for 2024 for the Underlying Properties is $4.5 million, with approximately $0.9 million expended as of March 31, 2024[41] - As of March 31, 2024, Boaz Energy had reserved $930,157 net to the Trust for future capital expenses[74] Impairment and Evaluation - The Trust's investment in the Net Profits Interest is assessed periodically for impairment, with no impairment recognized as of the latest evaluation[28] - For the three months ended March 31, 2024, the net profits income received by the Trust was $1,296,408, a decrease of 45% compared to $2,366,677 for the same period in the prior year due to decreased oil and gas prices and sales volumes[59] - The Trust's distributable income for the same period was $1,122,502, or $0.092268 per Trust unit, after accounting for interest income of $14,962 and general and administrative expenditures of $188,868[60] Ownership and Units - As of May 13, 2024, Boaz Energy owned 4,884,861 Trust units out of the 12,165,732 Trust units issued and outstanding[40]