PERMIAN BASIN ROYALTY TRUST

ANNOUNCES FEBRUARY CASH DISTRIBUTION

DALLAS, Texas, February 17, 2022 – Simmons Bank, as trustee of the Permian Basin Royalty Trust (NYSE: PBT) (“Permian”) today declared a cash distribution to holders of its beneficial interest units of $0.029164 per unit, payable on March 14, 2022, to the single record holders on February 28, 2022.

This month’s distribution was down from the previous month due to lower oil and gas production and prices for Texas Royalty Properties during the month of December. Currently, only Texas Royalty Properties contribute to the monthly distribution.

Since the Waddell Ranch is in current deficit for the foreseeable future, any increase or decrease in the distribution of income received will only reflect the activity of Texas Royalty Properties. The Waddell Ranch activity will be discussed with the following story until it contributes to the cast. This reflects the production month of December.

WADDELL HIKE

Reporting December production from the underlying properties for this month’s press release, production for oil volumes was 145,009 (crude) and was priced at approximately $70.13 per barrel. Production for gas volumes (including gas liquids) was 538,676 Mcf (gross) and was valued at approximately $6.84 per Mcf, which now includes the value received from plant products and liquids from natural gas. Net income for the underlying Waddell Ranch properties was $13,126,362 (gross) for December. Operating expenses related to leases were $3,157,322 (gross) and capital expenditures were $7,707,229 (gross) for December. This would bring Trust proceeds to a positive $1,696,358 (net) for the month of December, leaving a cumulative excess cost deficit of $10.4 million (net).

A review and update of the ongoing 2021 budget is presented below. Budget 2021 (net to the Trust) spent through December 2021, approximately $56.0 million, completing 47.4 existing wells and drilling 29.7 new wells to completion, with 4.1 re-completions and 4.1 new wells remaining to be completed for Budget 2021. This resulted in production of approximately 655,000 barrels of oil and 1.5 billion cubic feet of gas, generating $51.1 million in gross revenue through December 2021, all net to the Trust.

At the end of December, approximately $51.5 million in net revenue was generated from the 2020-2021 budgeted projects.

Blackbeard advised the trustee that the projected 2022 capital expenditure budget for the Waddell Ranch properties is estimated at $92 million (net to the trust) with approximately 47 new wells drilled and 45 re-completions as well as approximately 19 wells plugged and abandoned. Of the new wellbores, approximately 13 will be horizontal drilling and approximately 34 will be vertical drilling. In Form 10-K, which will be filed in March, further discussion will be provided.

TEXAS ROYALTY PROPERTIES

Production from the properties underlying the Texas royalty was 19,178 of oil and 13,138 Mcf of gas. Production from the portion allocated to the Texas Royalty Trust was 19,250 barrels of oil and 13,194 barrels of gas. The average oil price was $71.62 per barrel and gas was $6.94 per Mcf. This would primarily reflect production and prices for December for oil and November for gas. These allocated volumes were impacted by oil and gas prices. This production and the pricing of the underlying properties generated revenue for Texas royalties of $1,464,699. From this were deducted taxes of $138,405 and adding an ad valorem tax refund of $159,619 resulting in a net profit of $1,485,913 for the month of December. Together with the net income interest (NPI) of the 95% trust of the underlying properties, this would result in a net Texas royalty contribution of $1,411,617 to this month’s distribution.

Underlying properties

Net to Trust Sales

volumes

volumes

Average

Price

Oil
(bbl)

Gas
(Mcf)

Oil
(bbl)

Gas
(Mcf)

Oil
(per barrel)

Gas
(by Mcf)

Current month

Waddell Ranch

145,009

538,676

108,757

404,007

*

$

70.13

$

6.84

**

Texas royalties

19,178

13,138

19,250

13,194

*

$

71.62

$

6.94

**

Last month

Waddell Ranch

140,043

538,872

105,032

404 154

*

$

77.33

$

7.32

**

Texas royalties

22,336

14,750

20,214

13,180

*

$

73.80

$

7.51

**

*

These volumes represent the net amount to the trust, after allocating expenses to the net profit interest of the trust, including any adjustments for prior periods.

**

This pricing includes sales of liquid gas products.

General and administrative expenses deducted for the month amounted to $59,892, resulting in a distribution of $1,359,339 at 46,608,796 units outstanding, or $0.029164 per unit.

World market conditions continue to affect domestic production prices. It is difficult to predict what effect these conditions will have on future distributions.

2021 Tax Information Packages are expected to begin mailing directly to Unitholders in early March 2022. A copy of Permian’s 2021 Tax Information Package is expected to be posted on Permian’s website by February 28, 2022 In addition to the tax booklet, the Permian website also offers two simple calculators for calculating income and expense amounts and cost burnout. To facilitate the preparation of unitholder tax returns, income and expense and depletion calculators have been updated on the Permian website for the 2021 tax return.

The 2020 Annual Report with Form 10-K and Summary of Reserves as of January 1, 2021 are now available on the Permian website. Permian’s cash distribution history, current and prior year financial reports, tax information brochures, and a link to documents filed with the Securities and Exchange Commission, are all available on the Permian website at http://www.pbt-permian.com/. In addition, printed reports can be requested and are mailed free of charge.

* * *

Contact: Ron Hooper, Senior Vice President, Simmons Bank, Trustee, Toll Free – 1.855.588.7839

Warning

Permian Basin Royalty Trust published this content on February 18, 2022 and is solely responsible for the information contained therein. Distributed by publicunedited and unmodified, on February 18, 2022 4:51:01 PM UTC.

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Sales 2020 12.0 million

Net result 2020 11.0 million

Net cash 2020 1.73 million

2020 PER ratio 14.1x
2020 performance 7.10%
Capitalization 539M
539M
EV / Sales 2019 8.63x
EV / Sales 2020 12.7x
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Floating 90.0%

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