- Permianville Royalty Trust (PVL, Financial) announces no distribution for May 2025 due to a reduced net profits shortfall of $0.6 million.
- Natural gas prices and cash receipts increased, while operating expenses decreased by $0.2 million.
- The Trust anticipates a return to positive net profits in 2025, with distributions resuming once the shortfall is eliminated.
The Permianville Royalty Trust (PVL) has reported that there will be no distribution for May 2025. This decision comes as a result of a cumulative net profits shortfall, which has decreased from $1.1 million to $0.6 million. Despite this improvement, distributions cannot resume until the shortfall is cleared and any borrowed funds are repaid.
PVL reported oil sales of 37,927 barrels at $72.92 per barrel and natural gas sales of 379,445 Mcf at $2.66 per Mcf. Oil cash receipts totaled $2.8 million, with natural gas receipts increasing by $0.1 million to $1.0 million. Operating expenses saw a reduction of $0.2 million, bringing them to $2.1 million, while capital expenditures stayed constant at $1.0 million, mainly due to the drilling of three Haynesville wells.
Management at PVL is optimistic about the Trust's future, expecting the underlying properties to return to generating positive net profits in 2025. This would enable a reinstatement of distributions, provided current commodity pricing holds and the shortfall is fully addressed.
