Permian Basin Royalty Trust (PBT) Q3 2024 earnings summary

Executive summary

• Royalty income for Q3 2024 was $8.4M, up from $3.3M in Q3 2023, mainly due to the absence of a deficit position and delayed proceeds from prior periods.

• Distributable income for Q3 2024 was $8.1M ($0.17 per Unit), compared to $3.2M ($0.07 per Unit) in Q3 2023.

• For the nine months ended September 30, 2024, royalty income was $23.2M, up from $14.6M in the same period of 2023.

Financial highlights

• Average realized oil price for Waddell Ranch properties in Q3 2024 was $79.91/Bbl, up from $70.78/Bbl in Q3 2023; gas price was $1.19/Mcf, down from $2.03/Mcf.

• Texas Royalty properties saw oil at $79.06/Bbl (up from $71.45) and gas at $10.54/Mcf (up from $4.18) in Q3 2024.

• Interest income for Q3 2024 was $54.5K, up from $24.1K in Q3 2023.

• Total expenses in Q3 2024 were $367.6K, up from $139.5K in Q3 2023, mainly due to higher professional services costs.

Outlook and guidance

• Commodity prices remain volatile due to geopolitical tensions, OPEC production cuts, and fluctuating demand.

• Oil prices increased in early 2024 but declined in Q3 2024 due to lower demand.