Permianville Royalty Trust 8-K, filed Jan 19, 2024
Permianville Royalty Trust (PVL)
About this 8-K
Permianville Royalty Trust filed this 8-K on January 19, 2024, reporting on events of January 19, 2014.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 19, 2024
Permianville Royalty Trust
(Exact name of registrant as specified in its charter)
| Delaware | 001-35333 | 45-6259461 | ||
|
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) | ||
|
The Bank of New York Mellon Trust Company, N.A., Trustee 601 Travis Street Houston, Texas |
77002 | |||
| (Address of principal executive offices) | (Zip Code) | |||
Registrant’s telephone number, including area code: (512) 236-6555
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol | Name of each exchange on which registered |
| Units of Beneficial Interest | PVL | The New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
| Item 2.02 | Results of Operations and Financial Condition. |
On January 19, 2024, Permianville Royalty Trust (the “Trust”) issued a press release announcing the Trust’s monthly net profits interest calculation. A copy of the press release is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.
Pursuant to General Instruction B.2 of Form 8-K and Securities and Exchange Commission Release No. 33-8176, the press release attached as Exhibit 99.1 is not “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, is not subject to the liabilities of that section and is not deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, but is instead furnished for purposes of that instruction.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits.
| Exhibit Number | Description |
| 99.1 | Permianville Royalty Trust Press Release dated January 19, 2024. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Permianville Royalty Trust | |||
| By: | The Bank of New York Mellon Trust Company, N.A., as Trustee | ||
| Date: January 19, 2024 | By: | /s/ Sarah Newell | |
| Sarah Newell | |||
| Vice President | |||
Exhibit 99.1
Permianville Royalty Trust Announces Monthly Operational Update
HOUSTON, Texas — (BUSINESS WIRE) — January 19, 2024
Permianville Royalty Trust (NYSE: PVL, the “Trust”) today announced the net profits interest calculation for January 2024. The net profits interest calculation represents reported oil production for the month of October 2023 and reported natural gas production during September 2023. The calculation includes accrued costs incurred in November 2023.
As a result of the repayment in full of the remaining outstanding net profits shortfall of approximately $0.9 million, no cash remained available for distribution after the payment of Trust expenses and withholding of Trust reserves, and therefore no monthly distribution will be paid in February 2024 to the Trust’s unitholders of record on January 31, 2024. Excluding the net profits interest shortfall and the repayment of amounts previously advanced to the Trust for the payment of prior monthly expenses, income from the net profits interest in the current month would have been approximately $1.0 million.
The following table displays reported underlying oil and natural gas sales volumes and average received wellhead prices attributable to the current and prior month recorded net profits interest calculations.
| Underlying Sales Volumes | Average Price | ||||||||||||||||||||||||
| Oil | Natural Gas | Oil | Natural Gas | ||||||||||||||||||||||
| Bbls | Bbls/D | Mcf | Mcf/D | (per Bbl) | (per Mcf) | ||||||||||||||||||||
| Current Month | 48,594 | 1,568 | 221,020 | 7,367 | $ | 86.50 | $ | 2.51 | |||||||||||||||||
| Prior Month | 30,663 | 1,022 | 263,045 | 8,485 | $ | 86.53 | $ | 2.30 | |||||||||||||||||
Recorded oil cash receipts from the oil and gas properties underlying the Trust (the “Underlying Properties”) totaled $4.2 million for the current month on realized wellhead prices of $86.50/Bbl, up $1.5 million from the prior month’s oil cash receipts. The increase in oil production and oil cash receipts was driven in part by the receipt of revenues from eight new Permian wells turned to sales.
Recorded natural gas cash receipts from the Underlying Properties totaled $0.6 million for the current month on realized wellhead prices of $2.51/Mcf, consistent with the prior month.
Total accrued operating expenses for the period were $2.9 million, a $0.5 million increase month-over-month. Capital expenditures also remained consistent with the prior period at $0.5 million.
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As indicated above, the cumulative shortfall in net profits has now been repaid. In the future, if the Trust’s cash on hand is not sufficient to pay ordinary course administrative expenses and the Trust borrows funds or draws on the letter of credit that has been provided to the Trust, or if COERT Holdings 1, LLC (the “Sponsor”) advances funds to the Trust to pay such expenses, no further distributions will be made to Trust unitholders until such amounts borrowed or drawn, or advanced to the Trust, are repaid. At this time based on current commodity prices, the Sponsor anticipates that the Underlying Properties will return to generating positive net profits next month.
About Permianville Royalty Trust
Permianville Royalty Trust is a Delaware statutory trust formed to own a net profits interest representing 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 in the states of Texas, Louisiana and New Mexico. As described in the Trust’s filings with the Securities and Exchange Commission (the “SEC”), the amount of the periodic distributions is expected to fluctuate, depending on the proceeds received by the Trust as a result of actual production volumes, oil and gas prices, the amount and timing of capital expenditures, and the Trust’s administrative expenses, among other factors. Future distributions are expected to be made on a monthly basis. For additional information on the Trust, please visit www.permianvilleroyaltytrust.com.
Forward-Looking Statements and Cautionary Statements
This press release contains statements that are “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release, other than statements of historical facts, are “forward-looking statements” for purposes of these provisions. These forward-looking statements include the amount and date of any anticipated distribution to unitholders and expectations regarding the future generation of net profits from the Underlying Properties. The anticipated distribution is based, in large part, on the amount of cash received or expected to be received by the Trust from the Sponsor with respect to the relevant period. The amount of such cash received or expected to be received by the Trust (and its ability to pay distributions) has been and will continue to be directly affected by the volatility in commodity prices, which have experienced significant fluctuation since the beginning of 2020 as a result of a variety of factors that are beyond the control of the Trust and the Sponsor. Low oil and natural gas prices will reduce profits to which the Trust is entitled, which will reduce the amount of cash available for distribution to unitholders and in certain periods could result in no distributions to unitholders. Other important factors that could cause actual results to differ materially include expenses of the Trust, reserves for anticipated future expenses, and public health concerns, such as the COVID-19 pandemic. In addition, future monthly capital expenditures may exceed the average levels experienced in 2023 and prior periods. Statements made in this press release are qualified by the cautionary statements made in this press release. Neither the Sponsor nor the Trustee intends, and neither assumes any obligation, to update any of the statements included in this press release. An investment in units issued by the Trust is subject to the risks described in the Trust’s filings with the SEC, including the risks described in the Trust’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 23, 2023. The Trust’s quarterly and other filed reports are or will be available over the Internet at the SEC’s website at http://www.sec.gov.
Contact
Permianville Royalty Trust
The Bank of New York Mellon Trust Company, N.A., as Trustee
601 Travis Street, 16th Floor
Houston, Texas 77002
Sarah Newell 1 (512) 236-6555