Exhibit 99.1
Permian Basin Royalty Trust
PERMIAN BASIN ROYALTY TRUST
ANNOUNCES OCTOBER CASH DISTRIBUTION
DALLAS, Texas, October 20, 2023 Argent Trust Company, as Trustee of the Permian Basin Royalty Trust (NYSE: PBT)
(Permian) today declared a cash distribution to the holders of its units of beneficial interest of $0.042862 per unit, payable on November 14, 2023, to unit holders of record on October 31, 2023.
This months distribution increased from the previous month due to an increase in both the production of oil and gas and in oil pricing
on the Texas Royalty Properties, in addition to a distribution from Blackbeard Operating on the Waddell Ranch Properties for the month of August.
WADDELL RANCH
In reporting August
production of the Underlying Properties for this months press release, production for oil volumes was 255,999 (gross) and was priced at approximately $80.03 per bbl. Production for gas volumes (including gas liquids) was 859,953 Mcf (gross)
and was priced at approximately $1.79 per Mcf, which now includes the value received from plant products and natural gas liquids. Net revenue for the underlying properties of the Waddell ranch was $21,230,258 (gross) for August. Lease Operating
Expenses were $4,207,707 (gross) and Capital Expenditures (CAPEX) were $15,782,729 (gross) for August, netting to a positive Net Profit Interest (NPI) of $1,239,822. This would put the trusts proceeds of 75% as a positive $929,867 (net). After
satisfying the remaining cumulative deficit of negative ($213,227), there remains $716,640 to contribute to this months distribution. For the month of August, there was an increase of CAPEX relating specifically to the 2023 budgeted projects,
including a lag in invoicing from vendors, along with other capital budget items. Given that if current oil and gas pricing continues, Waddell Ranch may or may not be able to continue to contribute to the distribution in the foreseeable future, to
cover the ongoing CAPEX budget. The Waddell Ranch Properties NPI contributed to this months distribution.
First sales received for
the month of August 2023 wells were as follows: (all net to the Trust), 3.4 new drill wells, including 1.125 horizontal wells, 5.3 recompleted wells. Waiting on completion, as of 8/31/2023, were 2.6 drill wells, including 0.0 horizontal wells and
6.4 recompletion wells. Also, 4.9 wells, plugged and abandoned, were completed.
Blackbeard has provided the projected 2023 capital
expenditure budget for the Waddell Ranch Properties to be an estimated $96.8 million (net to the Trust) with a projection of about 30.75 new drill wells and 45 recompletions along with about 37.5 plug and abandoned wells. At this point in time,
approximately 67% of that budget has been incurred.
TEXAS ROYALTY PROPERTIES
Production for the underlying properties at the Texas Royalties was 18,956 barrels of oil and 23,040 Mcf of gas. The production for the
Trusts allocated portion of the Texas Royalties was 17,052 barrels of oil and 20,733 Mcf of gas. The average price for oil was $77.79 per bbl and for gas was $4.16 which includes significant NGL pricing per Mcf. This would primarily reflect
production and pricing for the month of August for oil and the month of July for gas. These allocated volumes were impacted by the pricing of both oil and gas. This production and pricing for the underlying properties resulted in revenues for the
Texas Royalties of $1,570,338. Deducted from these were taxes of $156,556 resulting in a Net Profit of $1,413,781 for the month of August. With the Trusts Net Profit Interest (NPI) of 95% of the Underlying Properties, this would result in net
contribution by the Texas Royalties of $1,323,092 to this months distribution.
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Underlying Properties |
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Net to Trust Sales |
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Volumes |
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Volumes |
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Average |
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Price |
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Oil (bbls) |
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Gas (Mcf) |
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Oil (bbls) |
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Gas (Mcf) |
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Oil (per bbl) |
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Gas (per Mcf) |
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Current Month |
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Waddell Ranch |
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255,999 |
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859,953 |
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191,999 |
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644,965 |
* |
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$ |
80.03 |
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$ |
1.79 |
** |
Texas Royalties |
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18,956 |
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23,040 |
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17,052 |
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20,733 |
* |
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$ |
77.79 |
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$ |
4.16 |
** |
Prior Month |
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Waddell Ranch |
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255,430 |
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929,763 |
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191,573 |
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697,322 |
* |
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$ |
74.19 |
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$ |
1.96 |
** |
Texas Royalties |
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16,680 |
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18,376 |
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14,811 |
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16,325 |
* |
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$ |
72.23 |
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$ |
3.88 |
** |
* |
These volumes are the net to the trust, after allocation of expenses to Trusts net profit interest,
including any prior period adjustments. |
** |
This pricing includes sales of gas liquid products. |
General and Administrative Expenses deducted for the month were $69,266 resulting in a distribution of $1,997,757 to 46,608,796 units
outstanding, or $0.042862 per unit.
The worldwide market conditions continue to affect the pricing for domestic production. It is
difficult to predict what effect these conditions will have on future distributions.