PermRock Royalty Trust reported its financial results for the third quarter and the nine months ended September 30, 2024, reflecting a decline in both revenue and profitability compared to the same periods in 2023. The Trust's net profits income for Q3 2024 was $1.5 million, down from $1.7 million in Q3 2023. For the nine-month period, net profits income decreased to $4.5 million from $5.6 million in the prior year. Total revenue for Q3 2024 was $1.6 million, a decrease from $1.7 million in Q3 2023, while revenue for the nine months fell to $4.5 million from $5.7 million.
Distributable income also saw a decline, with Q3 2024 reporting $1.3 million compared to $1.5 million in Q3 2023. For the nine-month period, distributable income decreased to $3.8 million from $4.9 million. The Trust declared a cash distribution of $0.030219 per Trust unit on October 21, 2024, based on production from August 2024.
The decrease in net profits income and revenue was attributed to lower oil and natural gas production volumes, with oil sales down by 8.1% and natural gas sales down by 8.0% in Q3 2024 compared to the same quarter in 2023. The average realized oil price per barrel increased, benefiting from a rise in the WTI benchmark price, while the average realized natural gas price per Mcf decreased due to lower Henry Hub prices.
Total assets as of September 30, 2024, were reported at $74.5 million, a decline from $77.2 million at the end of 2023. Total liabilities and Trust corpus remained consistent at $74.5 million. Cash reserves held by the Trustee for administrative expenses were maintained at $1.0 million.
General and administrative expenditures for Q3 2024 were $223,556, a decrease from the previous year, while interest income increased slightly due to higher interest rates. Boaz Energy, the Trust's primary operator, has a capital budget of $4.5 million for 2024, with approximately $2.6 million spent as of September 30, 2024, focusing on returning wells to production and drilling activities.
The Trust's financial performance continues to be influenced by the volatility of oil and natural gas prices, as well as operational decisions made by Boaz Energy. The Trust operates under a modified cash basis of accounting, recognizing income from its net profits interest when distributions are received.
About PermRock Royalty Trust
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