PermRock Royalty Trust (PRT), a Delaware statutory trust w ith a focus on oil and natural gas production in the Permian Basin of West Texas, has declared its monthly cash distribution. The Trust is pleased to announce that this distribution, based primarily on production during July 2023, will amount to $494,250.09 ($0.040626 per Trust Unit) and will be payable on October 16, 2023, to record holders of its trust units as of September 29, 2023. This announcement coincides with increased oil and gas cash receipts, driven by higher sales volumes and prices, resulting in a positive financial outcome for the Trust.
Oil and Gas Revenue on the Rise
Strong Oil Performance
Oil cash receipts for the properties underlying the Trust reached $1.87 million in the current month, marking a notable increase of $0.22 million compared to the prior month's distribution period. This significant boost can be attributed to both higher oil sales volumes and prices, as well as a more extended production month in July 2023.
Natural gas cash receipts for the Trust's properties also experienced a positive uptick, totaling $0.10 million in the current month. This represents an increase of $0.03 million from the prior month's distribution period. Similar to the oil sector, this growth was primarily driven by increased natural gas sales volumes and prices, coupled with the longer production month in July 2023.
Managing Expenses and Capital Investments
The Trust reported total direct operating expenses, which include marketing, lease operating expenses, and workover expenses, at $0.95 million. This marks an increase of $0.37 million compared to the prior month's distribution period. In addition, severance and ad valorem taxes amounted to $0.16 million.
Capital Expenses on the Rise
Capital expenses for the current month were $0.37 million, reflecting an increase of $0.18 million from the prior month's distribution period. Boaz Energy, the parent company, has indicated that this increase is primarily related to upgrades on specific wells in Cook County, Texas, and Terry County, Texas.
Insights from Boaz Energy
Boaz Energy, the entity responsible for managing the Trust's operations, informed stakeholders that this month's net profits calculation included the application of $288,000 net to the Trust. These funds had previously been reserved by Boaz Energy to cover future capital obligations and expenses.
PermRock Royalty Trust is a Delaware statutory trust established by Boaz Energy II, LLC, with the purpose of owning a net profits interest representing 80% of the net profits from the sale of oil and natural gas production from select properties owned by Boaz Energy in the Permian Basin of West Texas. For more detailed information about PermRock Royalty Trust, please visit the official website at [www.permrock.com](www.permrock.com). The Trust remains committed to delivering consistent value to its unit holders while strategically managing its assets for long-term success.