PermRock Royalty Trust reported its financial results for the first quarter of 2025, revealing a total revenue of $1.72 million, a 31.4% increase from $1.31 million in the same period of 2024. The Trust's net profits income also rose significantly, reaching $1.71 million compared to $1.30 million a year earlier. This increase in revenue was attributed to slightly higher natural gas prices and lower operating expenses. Distributable income for the quarter was $1.47 million, translating to a distribution of $0.1205 per Trust unit, up from $0.0923 per unit in the prior year.
The Trust's total assets decreased to $72.77 million as of March 31, 2025, down from $73.99 million at the end of 2024. The decline in total assets was primarily due to amortization of the Net Profits Interest, which decreased from $72.38 million to $71.29 million. The distribution payable to unitholders also fell to $486,905 from $612,261, reflecting the Trust's ongoing adjustments in response to market conditions.
In terms of operational developments, the Trust's underlying properties, which are located in the Permian Basin, reported a decrease in oil and natural gas sales volumes. Oil sales volumes fell by 6.5% to 69,630 barrels, while natural gas sales volumes decreased by 5.7% to 79,162 Mcf. The average realized price for oil dropped to $69.36 per barrel, while the average price for natural gas increased slightly to $3.19 per Mcf. The Trust's operational metrics indicate a natural decline in production and a decrease in demand as contributing factors to these changes.
Strategically, the Trust underwent a significant transition with the acquisition of its underlying properties by T2S Permian Acquisition II LLC, which closed on March 31, 2025. T2S assumed operations of the properties and is expected to continue the capital expenditure plan initiated by Boaz Energy, which includes a budget of $4 million for 2025. This plan involves drilling new wells and investing in workovers and other operational improvements. The Trust's outlook remains cautious, as it continues to monitor market conditions and the performance of its underlying assets, with a focus on maintaining liquidity and managing expenses effectively.
About PermRock Royalty Trust
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