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HOUSTON - Permianville Royalty Trust (NYSE:PVL), a $64.6 million market cap energy trust that has seen its stock surge 42% year-to-date, announced Wednesday that it will not make a distribution to unitholders in July 2025, according to a press release statement. According to InvestingPro data, the trust has maintained dividend payments for 15 consecutive years prior to this announcement.
The Trust reported that no cash remained available for distribution after repaying approximately $0.1 million in cash advances used for prior monthly expenses. Without this repayment, income from the net profits interest would have been approximately $0.1 million, or $0.001683 per unit. Despite the current distribution pause, InvestingPro analysis shows PVL maintains a "GOOD" overall financial health score, with particularly strong marks in profit metrics.
The calculation represents oil production for March 2025 and natural gas production for February 2025, with costs accrued in April 2025.
Recorded oil cash receipts from the underlying properties totaled $2.3 million for the current month at realized wellhead prices of $68.01 per barrel, down $0.1 million from the prior month. Natural gas cash receipts totaled $1.1 million at $2.62 per thousand cubic feet (Mcf), a decrease of $0.2 million from the previous month.
Total accrued operating expenses increased by $0.3 million to $2.4 million, while capital expenditures rose by $0.2 million to $1.0 million. The Trust noted that capital expenditures remained elevated compared to historical averages primarily due to continued drilling and completion of three Haynesville wells operated by a public super major oil company.
The Trust will not receive proceeds from its net profits interest until any shortfall and prior expense advancements have been eliminated. Based on current commodity prices, the Sponsor anticipates that the underlying properties will return to generating positive net profits in 2025. Trading near its 52-week high of $1.98, PVL’s stock performance remains robust despite operational challenges. Unlock more insights and 10+ additional ProTips with InvestingPro.
In other recent news, Permianville Royalty Trust announced that there will be no distribution payment for June 2025 to its unitholders. This decision follows the Trust’s net profits interest calculation for May 2025, which included oil production from February 2025 and natural gas production from January 2025. Despite recouping a cumulative net profits shortfall of approximately $0.6 million, the Trust had to repay a $0.1 million cash advance, leaving no cash available for distribution. The Trust reported oil sales volumes of 33,948 barrels and natural gas sales volumes of 454,710 Mcf, with average received wellhead prices of $71.03 per barrel for oil and $2.92 per Mcf for natural gas. Compared to the previous month, oil cash receipts decreased by $0.4 million, while natural gas cash receipts increased by $0.3 million. Operating expenses remained steady at $2.1 million, while capital expenditures decreased by $0.2 million to $0.8 million due to ongoing drilling and completion of three Haynesville wells. The Sponsor, COERT Holdings 1 LLC, anticipates that the underlying properties will return to generating positive net profits in 2025 based on current commodity prices. These developments highlight the Trust’s financial challenges and expectations for future profitability.
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