Permianville Royalty Trust announced the net profits interest calculation for March 2021. The net profits interest calculation represents reported oil production for the month of December 2020 and reported natural gas production during November 2020. The calculation includes accrued costs incurred in January 2021.
This month, excluding prior net profits interest shortfalls, income from the distributable net profits interest would have been approximately $0.2 million. As a result of the cumulative outstanding net profits shortfall of approximately $1.3 million, however, no distribution will be paid to the Trust’s unitholders of record on March 31, 2021 in April 2021. Distributions to the Trust will resume once the cumulative net profits shortfall, which continues to decrease and now totals approximately $1.0 million, is eliminated.
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.
Recorded oil cash receipts from the oil and gas properties underlying the Trust (the “Underlying Properties”) totaled $2.3 million for the current month on realized wellhead prices of $40.85/Bbl, up $0.6 million from the prior month distribution period.
Recorded natural gas cash receipts from the Underlying Properties totaled $0.6 million for the current month, up $0.2 million from the prior month’s distribution period.
Total accrued operating expenses for the period were $2.2 million, a $0.4 million increase month-over-month from the prior period. Capital expenditures increased $0.3 million from the prior period, as a portion of the non-operating capital expenditures for new wells drilled in the Haynesville and New Mexico Delaware shales were paid in the current month. The operators of these wells expect to begin production in the first half of 2021.
The remaining cumulative shortfall in net profits for the prior months will be deducted from any net profits in next month’s net profits interest calculation. At this time based on current commodity prices, COERT Holdings 1 LLC (the “Sponsor”) anticipates that the Underlying Properties will continue to generate positive net profits to reduce the cumulative shortfall before returning to monthly distributions again.