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Permian Basin Royalty Trust Reports Operating Results (10-Q)

May 06, 2010 | About:
Michael Bosso

10qk

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Permian Basin Royalty Trust (PBT) filed Quarterly Report for the period ended 2010-03-31.

Permian Basin Royalty Trust has a market cap of $850.6 million; its shares were traded at around $18.25 with a P/E ratio of 18.3 and P/S ratio of 21.9. The dividend yield of Permian Basin Royalty Trust stocks is 8%. Permian Basin Royalty Trust had an annual average earning growth of 9.9% over the past 10 years. GuruFocus rated Permian Basin Royalty Trust the business predictability rank of 2-star.PBT is in the portfolios of Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

For the quarter ended March 31, 2010, royalty income received by the Trust amounted to $16,508,736 compared to royalty income of $7,713,387 during the first quarter of 2009. The increase in royalty income is primarily attributable to increases in both oil and gas prices and related production.

Interest income for the quarter ended March 31, 2010, was $137 compared to $2,235 during the first quarter of 2009. The decrease in interest income is primarily attributable to significantly lowered interest rates. General and administrative expenses during the first quarter of 2010 amounted to $403,797 compared to $442,416 during the first quarter of 2009. The decrease in general and administrative expenses can be primarily attributed to decreased professional expenses.

These transactions resulted in distributable income for the quarter ended March 31, 2010 of $16,105,076 or $.35 per Unit of beneficial interest. Distributions of $0.110049, $0.110007 and $0.125480 per Unit were made to Unit holders of record as of January 29, 2010, February 26, 2010 and March 31, 2010, respectively. For the first quarter of 2009, distributable income was $7,273,206, or $.16 per Unit of beneficial interest.

The average received price of oil increased to an average price per barrel of $72.16 per Bbl in the first quarter of 2010, compared to $41.10 per Bbl in the first quarter of 2009 due to worldwide market variables. The Trustee has been advised by ConocoPhillips that for the period of August 1, 1993, through March 31, 2010, the oil from the Waddell Ranch properties was being sold under a competitive bid to a third party. The average price of gas increased from $4.87 per Mcf in the first quarter of 2009 to $7.31

Capital expenditures for drilling, remedial and maintenance activities on the Waddell Ranch properties during the first quarter of 2010 totaled $1.1 million as compared to $2.7 million for the first quarter of 2009. ConocoPhillips has informed the Trustee that the 2010 capital expenditures budget has been revised to $43.0 million for the Waddell Ranch properties. The total amount of capital expenditures for 2009 was $43.1 million. Through the first quarter of 2010, capital expenditures of $1.1 million have been expended.

Lease operating expense and property taxes totaled $4.4 million for the first quarter of 2010, compared to $3.84 million in the first quarter of 2009 on the Waddell Ranch properties. This increase is primarily attributable to increased maintenance work.

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