Wed, May 14, 2:26 PM (35 days ago)
**PermRock Royalty Trust (PRT) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** Total revenue for Q1 2025 was $1,723,303, up from $1,311,370 in Q1 2024, driven by higher net profits income and slightly higher gas prices. - **Profit Margins:** Distributable income was $1,466,195, or $0.120517 per unit, compared to $1,122,502, or $0.092268 per unit, in Q1 2024. - **Cash Flow:** The trust maintained cash reserves of $1,000,000, with no additional reserves retained during the quarter. - **Earnings Changes:** Net profits income increased by 32% year-over-year, primarily due to higher gas prices and lower operating expenses. **Quarterly Performance Discussion:** - **Revenue Growth:** The increase in revenue was driven by higher net profits income, which was positively impacted by slightly higher gas prices and lower operating expenses. - **Expense Management:** General and administrative expenditures increased by $68,240 year-over-year, primarily due to the timing of payments. - **Distributions:** The trust declared distributions of $0.120517 per unit for Q1 2025, up from $0.092268 per unit in Q1 2024. **Trends & Uncertainties:** - **Operational Changes:** T2S, the new operator of the Underlying Properties, has assumed all obligations and privileges of Boaz Energy. T2S's capital expenditure budget for 2025 is $4.0 million, with approximately $0.1 million expended as of March 31, 2025. - **Market Risks:** The trust's revenue and distributions are substantially dependent on oil and natural gas prices, which are subject to significant fluctuations. - **Legal Proceedings:** The trust was involved in litigation related to surface use damages and lease violations, but the case concluded in favor of the defendants in February 2025. **Future Operations Impact:** - **Capital Expenditures:** T2S plans to continue the capital projects initiated by Boaz Energy, including drilling wells and investing in workovers and waterflood pattern conformance. - **Operational Efficiency:** The trust will continue to monitor and manage administrative expenses and cash reserves to ensure sufficient liquidity for distributions and future liabilities. - **Market Volatility:** The trust will remain vigilant regarding market conditions and regulatory developments that may impact oil and natural gas prices and production volumes.