#United States #Dallas #Oil and Gas #PermRock Royalty Trust #T2S Permian Acquisition

PermRock Royalty Trust Confirms New Monthly Distribution

On April 17, 2025, the PermRock Royalty Trust (NYSE: PRT) made an official announcement regarding its upcoming monthly cash distribution. This significant action is aimed at rewarding unitholders of the Trust's units, which reflect ownership interest in the Trust's profitable endeavors within the oil and gas sectors.

The declared amount totals $289,632.56, which translates to $0.023807 per Trust Unit for those recorded as of April 30, 2025. The payout is scheduled for May 14, 2025.

Production Overview

This distribution is largely determined by production figures from February 2025. The Trust reported underlying sales volumes which include 21,413 barrels of oil and 25,759 million cubic feet of natural gas, demonstrating a robust operational capacity. The average prices received during this period were $70.27 per barrel for oil and $4.15 per Mcf for natural gas.

In comparison to the previous month, there was a slight decrease in oil receipts amounting to $1.50 million. This was attributed mainly to a fall in both the sales prices and the total volumes sold. However, intriguingly, the daily oil output rose to 765 Bbls/d, up from 715 Bbls/d recorded earlier, despite the overall production month being shorter for February.

On a positive note, natural gas receipts increased slightly to $0.11 million this month, a reflection of rising gas prices enhancing profitability in that sector.

Cost Analysis

Total operating expenses incurred during this distribution period reached $0.66 million, which is a marginal decrease from the prior month. Notably, severance and ad valorem taxes accounted for approximately $0.14 million of this total. Additionally, capital expenses were reported at $0.05 million, down by $0.01 million from the last distribution period, indicating effective cost management strategies.

It's important to highlight that T2S Permian Acquisition II LLC has recently taken over operations for the properties backing the Trust. In their report, T2S indicated that $48,000 would be reserved from the month’s net profits to cover future capital obligations, showcasing foresight in managing financial commitments.

Insights into PermRock Royalty Trust

PermRock Royalty Trust, based in Delaware, was structured specifically to allow stakeholders to share in the revenue generated from oil and gas production activities primarily based in the Permian Basin of West Texas. The Trust offers a tangible investment avenue wherein 80% of the net profits from oil and gas sales are distributed to unitholders. More information can be found on their official website: www.permrock.com.

As a forward-looking entity, PermRock urges investors to closely consider the inherent risks associated with oil and gas investments. Volatility in commodity prices can significantly impact returns. For potential unitholders, understanding these dynamics and the operating environment is crucial for making informed decisions.

Conclusion

The April announcement emphasizes the Trust's ongoing commitment to its unitholders while navigating fluctuating market conditions. As what is essentially an investment vehicle reliant on variable oil and gas prices, PermRock Royalty Trust's ability to maintain distributions is essential to its appeal within investment circles. Unitholders will be keen to monitor these developments as they unfold in future months, reflecting the broader trends within the energy sector.