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HOUSTON - Permianville Royalty Trust (NYSE: PVL), a Delaware statutory trust with a market capitalization of approximately $50 million, announced today that there will be no distribution payment for June 2025 to its unitholders. The decision comes after the Trust’s net profits interest calculation for May 2025, which accounts for oil production from February 2025 and natural gas production from January 2025, as well as costs accrued in March 2025. According to InvestingPro data, PVL has maintained dividend payments for 15 consecutive years, with a significant dividend yield of 8.7% before this pause.
Despite recouping a cumulative net profits shortfall of approximately $0.6 million, the Trust had to repay a $0.1 million cash advance that had been used to cover prior monthly expenses, leaving no cash available for distribution. If the shortfall and previous advances had not been recouped, the Trust would have generated approximately $0.7 million in income, or $0.021713 per unit. InvestingPro analysis suggests the stock is currently undervalued, with a strong financial health score and multiple positive indicators. Subscribers can access detailed valuation metrics and 5 additional ProTips at InvestingPro.
The Trust reported oil sales volumes of 33,948 barrels and natural gas sales volumes of 454,710 Mcf (thousand cubic feet) for the current month, 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, and capital expenditures decreased by $0.2 million to $0.8 million, primarily due to ongoing drilling and completion of three Haynesville wells operated by a major oil company.
The Trust will not receive any proceeds from its net profits interest until all shortfalls and advances for monthly expenses have been repaid. 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.
Permianville Royalty Trust was established to own a net profits interest, which entitles it to 80% of the net profits from the sale of oil and natural gas production from properties in Texas, Louisiana, and New Mexico. The Trust maintains impressive profitability metrics, with a 100% gross profit margin and a return on equity of 6%. The Trust’s distributions are expected to fluctuate based on production volumes, oil and gas prices, capital expenditures, and administrative expenses, among other factors. For comprehensive financial analysis and real-time updates, visit InvestingPro.
This report is based on a press release statement from Permianville Royalty Trust.
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