PermRock Royalty Trust has declared a monthly distribution of $384,018.36 ($0.031565 per unit) based on August production, payable to unitholders of record as of October 31. The payment will be made on November 17, in line with the trust’s monthly distribution policy.
Production offsets declining prices
The trust reported sales volumes of 22,490 barrels of oil and 25,914 thousand cubic feet (Mcf) of natural gas for the reference period. These figures represent an increase from the previous month, which recorded 20,993 barrels and 15,784 Mcf respectively.
However, average realised prices declined to $58.06 per barrel from $65.79, and to $2.31 per Mcf from $3.94. Despite the volume increase, oil revenues reached $1.31mn, down $70,000. Natural gas income held steady at $60,000, as higher volumes offset the price drop.
Operating expenses see significant rise
Direct costs, including lease operating expenses, marketing and well intervention work, totalled $610,000, up $180,000 from the previous period. This increase stemmed from completed workover projects and the launch of a chemical treatment programme on certain sites.
Production taxes and ad valorem taxes included in this month’s net profit calculation reached $140,000. Capital expenditures for August totalled $40,000, allocated to equipment additions on a well operated by a third-party, according to T2S Permian Acquisition II LLC, operator of the assets underlying the trust.
Reserve funds used to offset cost increases
T2S also reported applying $100,000 from previously reserved funds to cover certain capital and operating obligations. This measure helped partially contain the impact of rising expenses on the amount distributed to the trust.
The stability of the monthly payout comes amid energy price volatility, prompting the trust to adjust cash flow management and activate internal mechanisms to maintain consistent distributions.
