Permianville Royalty Trust, previously known as Enduro Royalty Trust, reported a significant decline in its financial performance for the fiscal year ending December 31, 2024. The Trust's income from net profits interest was $4.26 million, a decrease from $10.35 million in 2023. This decline was attributed to a combination of lower natural gas prices and increased operational costs, including a 202% rise in development expenses due to heightened drilling activity. The average NYMEX oil price fell slightly to $75.79 per barrel, while natural gas prices dropped by 10% to an average of $2.41 per MMBtu.
The Trust's total assets decreased to $44.09 million from $51.63 million in the previous year, primarily due to a reduction in the net profits interest in oil and natural gas properties, which fell from $50.23 million to $41.89 million. The Trust's cash reserves also increased, totaling $2.19 million at year-end, compared to $1.39 million in 2023. The Trust's distributions to unitholders were significantly lower, with a total of $2.82 million distributed in 2024, compared to $14.11 million in 2023.
In terms of operational developments, the Trust's underlying properties, which include interests in the Permian Basin and East Texas/North Louisiana, reported proved reserves of 10.8 million barrels of oil equivalent (MMBoe) as of December 31, 2024. This represents a slight increase from the previous year, with 92% of the reserves classified as proved developed. The Trust's average working interests in these properties were approximately 19% in the Permian Basin and 15% in East Texas/North Louisiana.
Strategically, the Trust completed the sale of certain acreage and associated production in the Permian Basin for approximately $6.7 million in August 2023, which was approved by unitholders. This divestiture allowed the Trust to distribute a special cash distribution to unitholders, reflecting 50% of the net proceeds from the sale. The remaining proceeds were retained to cover potential post-closing adjustments. The Trust's outlook for 2025 remains cautious, with anticipated capital expenditures ranging from $7 million to $13 million, reflecting a decrease from 2024 levels due to lower projected oil prices.
Looking ahead, the Trust faces challenges from fluctuating commodity prices, increased operational costs, and the potential impact of regulatory changes on its operations. The Trust's ability to maintain distributions to unitholders will depend on the performance of its underlying properties and the broader market conditions affecting oil and natural gas prices.
About Permianville Royalty Trust
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