Permianville Royalty Trust Announces Final Special Cash Distribution from Permian Basin Sale
Permianville Royalty Trust (NYSE: PVL) has announced its net profits interest calculation for March 2025, which is based on reported oil production for December 2024 and natural gas production for November 2024. The calculation also includes accrued costs from January 2025. Due to a continuing cumulative net profits shortfall, the Trust will not make a distribution to unitholders for April 2025, as it did not generate sufficient profits to cover the shortfall.
The cumulative outstanding net profits shortfall decreased from approximately $1.4 million in the previous month to around $1.1 million this month. As such, no distribution will be made in April 2025 to the Trust’s unitholders of record as of March 31, 2025. The Trust cannot resume distributions until this shortfall is eliminated. Without this shortfall, income from the net profits interest would have been approximately $0.3 million this month, translating to $0.009510 per unit.
The table below summarizes the key details of reported oil and natural gas sales volumes and the average received wellhead prices for both the current and prior month’s net profits interest calculations:
| Oil (Bbl) | Oil (Bbl/D) | Natural Gas (Mcf) | Natural Gas (Mcf/D) | Oil Price (per Bbl) | Gas Price (per Mcf) | |
|---|---|---|---|---|---|---|
| Current Month | 37,097 | 1,197 | 474,050 | 15,802 | $75.52 | $1.90 |
| Prior Month | 39,754 | 1,325 | 380,827 | 12,285 | $76.61 | $1.97 |
For the current month, oil cash receipts from the Trust’s underlying properties totaled $2.8 million at realized wellhead prices of $75.52 per barrel. This marks a decrease of $0.2 million compared to the previous month’s oil cash receipts. On the other hand, natural gas cash receipts amounted to $0.9 million with a realized price of $1.90 per Mcf, reflecting an increase of $0.2 million from the prior month.
Total accrued operating expenses increased by $0.3 million from the prior period, reaching $2.3 million. Capital expenditures also saw an increase of $0.1 million, totaling $1.0 million. These capital expenditures remained higher than historical averages due to ongoing drilling activities related to three Haynesville wells, operated by a major public oil company.
The cumulative net profits shortfall of the current month will be carried over and deducted from the next month’s net profits interest calculation. The Trust will not receive proceeds until the shortfall is fully eliminated.
Furthermore, if the Trust’s available cash is insufficient to cover its routine administrative expenses, and it borrows funds or draws from the letter of credit provided to the Trust, or if COERT Holdings 1 LLC (the “Sponsor”) advances funds, no further distributions will be made to unitholders until these borrowed or advanced amounts are repaid.
The Sponsor anticipates that, based on current commodity prices, the underlying properties will begin generating positive net profits in 2025, thus paving the way for future distributions.
In addition to the regular monthly net profits interest calculation, the Sponsor is releasing $250,000, which had been withheld from the net proceeds of the August 2023 sale of certain oil and gas properties in the Permian Basin. This amount, intended to cover potential indemnification obligations, has now been fully resolved, including interest. The total sum of $282,072, or $0.008548 per unit, will be paid out as a special cash distribution. This distribution is set for April 14, 2025, for unitholders of record as of March 31, 2025.
About Permianville Royalty Trust
Permianville Royalty Trust is a Delaware statutory trust that owns a net profits interest. This interest grants the Trust the right to receive 80% of the net profits from the sale of oil and natural gas production from certain, predominantly non-operated, oil and gas properties located in Texas, Louisiana, and New Mexico. As outlined in the Trust’s filings with the Securities and Exchange Commission (SEC), the amount of periodic distributions can fluctuate. These fluctuations are influenced by factors such as actual production volumes, oil and gas prices, capital expenditures, and administrative expenses, among others. The Trust expects to make future distributions on a monthly basis, depending on its financial performance.
