Pacific Coast Oil Trust Announces April Cash Distribution
March 28 2017 - 4:15PM
Business Wire
PACIFIC COAST OIL TRUST (NYSE:ROYT) (the “Trust”), a perpetual
royalty trust formed by Pacific Coast Energy Company LP (“PCEC”),
announced today a cash distribution to the holders of its units of
beneficial interest of $0.02617 per unit, payable on April 14, 2017
to unitholders of record on April 7, 2017. The Trust’s distribution
calculation relates to net profits and overriding royalties
generated during February 2017 as provided in the conveyance of net
profits and overriding royalty interest.
The current month’s calculation for the Developed Properties
resulted in $1.4 million of revenues less direct operating expenses
and development costs. The current month’s revenues were $3.4
million, lease operating expenses including property taxes were
$2.0 million and capital expenditures were $59,000 of income due to
a prior period adjustment for an Orcutt Diatomite project. Average
realized prices for the Developed Properties were $50.02 per Boe in
February, as compared to $48.28 per Boe in January. Net profits for
the month of February for the Developed Properties were $1.1
million.
The current month’s calculation included $47,000 for the 7.5%
overriding royalty on the Remaining Properties from Orcutt
Diatomite and Orcutt Field. Average realized prices for the
Remaining Properties were $47.22 per Boe in February, as compared
to $46.59 per Boe in January. The cumulative net profits deficit
for the Remaining Properties, including the 7.5% overriding royalty
payments, decreased $43,000 and remains at $2.0 million for
February.
The net cash flow available for distribution to the holders of
its units of beneficial interest is $1.0 million. The proceeds to
be received by the Trust in April of $1.2 million consist of $1.1
million in income from the Developed Properties and $47,000 in
income from the 7.5% overriding royalty on the Remaining
Properties. The proceeds to be received by the Trust will be
partially offset by $88,000 for the monthly operating and services
fee payable to PCEC and $85,000 in Trust general and administrative
expenses, resulting in the net cash flow available for distribution
of $1.0 million. The cumulative proceeds received by the Trust
attributable to the Conveyed Interests from production months
November 2016 through February 2017 (related to Trust fiscal months
January through April 2017) is $3.1 million. Therefore, the Trust
will exceed $2 million of proceeds received by the Trust
attributable to the Conveyed Interests in 2017 (see the discussion
of the “Revenue Termination Provision” in the December 22, 2016
press release and the discussion of the termination provisions in
the Trust’s SEC filings) and the Trust will no longer be at risk of
termination as a result of the Revenue Termination Provision at the
end of 2017.
Sales Volumes and Prices
The following table displays PCEC’s underlying sales volumes and
average prices for the month of February 2017:
Underlying Properties Sales Volumes
Average Price (Boe) (per Boe) Developed Properties (a) 67,814 $
50.02 Remaining Properties (b) 14,748 $ 47.22 (a) Crude oil
sales represented 98% of sales volumes (b) Crude oil sales
represented 100% of sales volumes
Overview of Trust Structure
Pacific Coast Oil Trust is a perpetual Delaware statutory trust
formed by PCEC to own interests in certain oil and gas properties
in the Santa Maria Basin and the Los Angeles Basin in California
(the “Underlying Properties”). The Underlying Properties and the
Trust’s net profits and royalty interests are described in the
Trust’s filings with the Securities and Exchange Commission (the
“SEC”). As described in the Trust’s filings with the SEC, the
amount of any periodic distributions is expected to fluctuate,
depending on the proceeds received by the Trust as a result of
actual production volumes, oil and gas prices, development
expenses, and the amount and timing of the Trust’s administrative
expenses, among other factors. For additional information on the
Trust, please visit www.pacificcoastoiltrust.com.
Cautionary Statement Regarding
Forward-Looking Information
This press release contains statements that are "forward-looking
statements" within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended. All statements contained in this
press release, other than statements of historical facts, are
"forward-looking statements" for purposes of these provisions.
These forward-looking statements include the amount and date of any
anticipated distribution to unitholders. The anticipated
distribution is based, in part, on the amount of cash received or
expected to be received by the Trust from PCEC with respect to the
relevant period. Any differences in actual cash receipts by the
Trust could affect this distributable amount. Other important
factors that could cause actual results to differ materially
include expenses of the Trust and reserves for anticipated future
expenses. Statements made in this press release are qualified by
the cautionary statements made in this press release. Neither PCEC
nor the Trustee intends, and neither assumes any obligation, to
update any of the statements included in this press release. An
investment in units issued by Pacific Coast Oil Trust is subject to
the risks described in the Trust's Annual Report on Form 10-K for
the year ended December 31, 2016 filed with the SEC on March 10,
2017, and if applicable, the Trust’s Quarterly Reports on Form
10-Q. The Trust's Annual Report on Form 10-K and the Quarterly
Reports on Form 10-Q reports are available over the Internet at the
SEC's website at http://www.sec.gov.
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version on businesswire.com: http://www.businesswire.com/news/home/20170328006218/en/
Pacific Coast Oil TrustThe Bank of New York Mellon Trust
Company, N.A., as TrusteeSarah Newell, 1-512-236-6555
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