Permian Basin Royalty Trust (PBT) Q2 2024 earnings summary

Executive summary

• Royalty income for Q2 2024 was $8.8M, up from $6.1M in Q2 2023, with distributable income per unit rising to $0.18 from $0.12 year-over-year, driven by higher oil and gas prices and the absence of prior-year deficits at Waddell Ranch.

• For the first half of 2024, royalty income reached $14.8M versus $11.3M in the prior year, with distributable income per unit at $0.30 compared to $0.23.

• Distributable income for Q2 2024 was $8.4M ($0.18/unit), compared to $5.8M ($0.12/unit) in Q2 2023.

• Six-month distributable income reached $13.9M ($0.30/unit), up from $10.5M ($0.23/unit) year-over-year.

• Delays in information from Blackbeard, the Waddell Ranch operator, resulted in $2.2M of proceeds being held for future distribution.

Financial highlights

• Interest income for Q2 2024 was $29K, up from $23K in Q2 2023, due to higher funds available for investment.

• Total expenses for Q2 2024 were $396K, up from $336K in Q2 2023, mainly due to higher professional and printing costs.

• Cash and short-term investments as of June 30, 2024, were $6.7M, up from $6.1M at year-end 2023.

• Distributions per unit in Q2 2024: $0.088214, $0.020052, and $0.072743 for April, May, and June, respectively.

• Q2 2024 royalty income: $8.8M; six months ended June 30, 2024: $14.8M.

Outlook and guidance

• Oil and gas prices increased in early 2024 due to geopolitical tensions and OPEC production cuts; future prices remain uncertain.

• Blackbeard has not finalized the 2024 capital expenditure budget but provided a preliminary gross budget of $301.4M for Waddell Ranch.

• 2024 capital expenditures for Waddell Ranch not finalized; 2023 total was $135.3M (net).