Permian Basin distribution slips to $0.063


Permian Basin Royalty Trust (PBT -1.8%) declares a monthly distribution of $0.063305 per unit payable Dec. 13 to holders of record on Nov. 29, with lower production of both oil and gas combined with increased capex responsible for the cut from last month's $0.099509.

Oil production of 26,747 barrels compares to 42,893 last month, and gas prodcution of 40,319 Mcf compares to 92,793.

Comments (3)
  • Qniform
    , contributor
    Comments (4478) | Send Message
     
    This synopsis is not a good representation of PBT's interests & payout. Month-to-month distribution level is affected by the timing of spending (reported when bills are paid) and volume (which is recorded when revenue is received). So you can see an apparently larger volume drop but a smaller % decrease in the distribution.

     

    Not only that, PBT reports top line volumes annually and those revenues quarterly (the trust's share on some properties is on gross revenue). But price is reported monthly for the total of top and bottom line along with volumes for the trust's total. So the press release is not very helpful, except to someone who may want to take advantage of market confusion and/or mispricing.
    19 Nov 2013, 02:37 AM Reply Like
  • Daan Everts
    , contributor
    Comments (276) | Send Message
     
    1 penny from the COP settlement and around 2 pennies from increase capex are the real culprits here. The higher capex will persist several months longer, but production should ultimately rise. I'm stumped with what's happening on the gas side, lower production but much higher pricing (NGL). Depending on oil prices, I see distribution around 8 cents until we drop capex and we move to double digits again. Valuation is still modest versus other perpetuals.
    19 Nov 2013, 03:59 PM Reply Like
  • Qniform
    , contributor
    Comments (4478) | Send Message
     
    http://bit.ly/1jljbuX
    20 Nov 2013, 12:05 AM Reply Like
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