I finally sold out of my long term position in BPT and sold some CHK convertible bonds on Monday to increase my position in PBT. I think BPT and the bonds had good yield but not so much upside potential.
5 workover wells completed in March and the last 2 horizontal wells were completed in April. Note, March oil production rose 2% over Febuary (when considering the 31 versus 28 days).
The full benefit of the 5 workover wells should be seen next month with the last 2 horizontal wells being seen in the August Distribution.
Distribution should be easily in the low teens (cents) by August at the latest with all the drilling and workovers completed in April.
Permian Basin Royalty Trust (NYSE: PBT) ("Permian") today declared a cash distribution to the holders of its units of beneficial interest of $0.088488 per unit, payable on June 14, 2013, to unit holders of record on May 31, 2013.
U.S. Gas Rigs Drop First Time in Three Weeks, Baker Hughes Says
By Lynn Doan - Apr 26, 2013 12:15 PM CT
The number of gas rigs in the U.S. fell for the first time in three weeks, declining by 13 to 366, according to Baker Hughes Inc. (BHI)
Oil rigs increased by 10 to 1,381, data posted on Baker Hughes’ website show. Total energy rigs slipped by four to 1,754, the Houston-based field-services company said.
The U.S. gas rig count has dropped to less than a fourth of its peak of 1,606 in 2008 as energy producers abandoned natural- gas plays to drill for more lucrative crude and natural-gas liquids. The boom in tight-oil production helped the U.S. meet 84 percent of its energy needs last year, the most since 1991, according to the U.S. Energy Information Administration, the Energy Department’s statistical unit.
ConocoPhillips (COP), the largest independent U.S. oil and natural gas producer, has no plans to start “redirecting any capital toward gas assets until it’s significantly north of current prices,” Matthew Fox, an executive vice president at the Houston-based company, said in a conference call with investors yesterday.
The company’s fuel production in Texas’ Eagle Ford shale formation is about 60 percent oil, 20 percent natural gas liquids and 20 percent dry gas, Jeff Sheets, Conoco’s chief financial officer, said during the call. Its wells in North Dakota’s Bakken formation produce most
Seeking Alpha article of today titled:
Natural Gas Deficit Rises Again, Prices Could Spike Violently Higher Later This Year
Apr 25 2013, 17:50 | 1 comment | includes: UNG
The gas-directed rig count rose this week by two to 379
after posting a 14-year low of 375 two weeks ago, data from
Houston-based Baker Hughes showed on Friday.
Producers have mostly been curbing dry-gas drilling in favor
of more profitable oil and liquids-rich plays such as Eagle Ford
in Texas and Marcellus in Appalachia.
But a 40 percent run-up in spot gas prices since
mid-February, to a 21-month high of $4.429 per million British
thermal units this week, has stirred expectations that gas
output, still flowing near record highs, could increase in
No mention of Permian activity.
I think this is for February's production, which has fewer days. The 2 work over wells will be completed this month so future dividends should increase, and capex should decrease. Also, it seems the 4 work over wells that are completed were completed in February, so the increased production should only be partially reflected in the distribution.
DALLAS, April 18, 2013 /PRNewswire/ -- Permian Basin Royalty Trust (PBT) ("Permian") today declared a cash distribution to the holders of its units of beneficial interest of $0.060880 per unit, payable on May 14, 2013, to unit holders of record on April 30, 2013.
It looks like the dividend will indeed be up if they are where we think they are on those two horizontals. 11 to 12 cent dividend will push the stock up. I don't have a clue how much, but it will be headed the right direction. We will soon know.
Sentiment: Strong Buy
I think the May dividend will be double of what it is today. We will find out more next week on whether PBT has completed the last 2 horizontal wells.
What do you think the stock price will be with a 11-12 cent dividend? I also might be more with the horizontal wells and all the recompletes coming online.
Sentiment: Strong Buy
This appears to be a "no brainer" if there ever was one. I put money where my mouth is and bought. The odds of crude/ng being higher than it is now is good in my opinion. Great dividend yield while you wait.
Since you are so bullish, would you like to buy my 10k shares at 14?
I never understand the people that "know" where the price of gas or oil is going in 1-2 years so they buy royal trust to "make a killing" ?? IF you know where nat gas prices are going to be in 1-2 years and want to put your money where your mouth is--just buy the futures--you get 10X for your money--load the truck PROGNOSTICATORS