PermRock Royalty Trust (PRT) Q4 2024 earnings summary

Executive summary

• 2024 distributable income was $5.16 million, down from $6.26 million in 2023, as lower oil and gas sales volumes and realized prices reduced net profits income.

• The passive 80% net profits interest covers Permian Basin properties; year-end proved reserves were 4.2 MMBoe for the underlying properties, with 87% of volumes proved developed.

• A sale of the properties and 4,884,861 units to T2S was pending customary closing conditions, with closing anticipated at the end of March 2025; T2S or an affiliate was expected to become operator.

Financial highlights

• 2024 net profits income was $5.96 million and total revenue $6.02 million, versus $7.13 million and $7.19 million, respectively, in 2023.

• Distributable income was $5.16 million, or $0.424259 per unit, versus $6.26 million, or $0.514745 per unit, in 2023; 2022 was $12.30 million, or $1.011357 per unit.

• 2024 net profits income reflected $22.86 million in gross profits and $15.57 million in costs; 2023 gross profits were $25.78 million and costs $17.94 million.

• Oil sales volume was 289.9 MBbls and natural gas sales volume 387.6 MMcf in 2024; realized prices were $75.33/Bbl and $2.54/Mcf, versus $76.24/Bbl and $3.74/Mcf in 2023.

• General and administrative expenditures decreased to $856,766 from $923,935, primarily due to lower legal costs and expense-payment timing; interest income was $58,782.

Outlook and guidance

• The 2025 capital budget was estimated at $4 million, with approximately $0.1 million spent by March 14; plans included two Crane County wells, one producer and one injector, plus workovers and waterflood work.

• Planned 2025 work also included non-operated drilling and waterflood projects in Crane and Glasscock Counties; the budget and activity plans could change with prices, regulatory approvals, project mix, and the successor operator’s plans.

• Monthly distributions were $0.040276 per unit for January 2025 and $0.040219 for February; a $0.040022 distribution for March was declared, payable on or about April 14.