Permianville Royalty Trust (PVL) Q3 2024 earnings summary

Executive summary

• Q3 distributable income was $1.518 million, or $0.046 per unit, down 39% YoY; positive net profits eliminated the $3.9 million shortfall and repaid outstanding sponsor advances.

• Nine-month distributable income was $1.518 million, down 83% YoY, as higher development expenses and weaker realized natural gas prices more than offset increased production volumes.

Financial highlights

• Q3 net profits attributable to the underlying properties rose 121% YoY to $7.9 million; net profits allocable to the 80% interest were $6.3 million.

• Q3 oil and natural gas sales totaled $17.5 million, up 25% YoY; direct operating and development costs declined 10% to $9.6 million.

• Nine-month net profits attributable to the underlying properties fell 72% YoY to $3.2 million; total costs increased 56% to $44.3 million, including development costs up 169% to $17.8 million.

• Cash and cash equivalents were $1.8 million at September 30, 2024, versus $1.4 million at December 31, 2023; net profits interest carrying value was $43.6 million.

Outlook and guidance

• 2024 capital spending guidance is $18.0–$23.0 million gross, or $14.4–$18.4 million net to the 80% interest; spending is expected near the high end.

• Remaining 2024 capital spending is expected in the Permian and Haynesville; most Haynesville gas-directed spending is expected to remain subdued pending price recovery, though one operator began a drilling program targeting 2025 sales.

• Most listed projects are in progress, awaiting first revenues, or at pre-drill stages; most are expected to be completed and producing by early 2025.