Company: PermRock Royalty Trust
Symbol: PRT
Description: They are a Delaware statutory trust formed in November 2017 by Boaz Energy, a portfolio company of NGP that is focused on the acquisition, development and operation of oil and natural gas properties in the Permian Basin.
Trade Date: 5/2
Shares: 6.25 million
Price Range: $19.00-$21.00
Underwriter(s): Wells Fargo Securities, Goldman Sachs & Co., UBS Investment Bank, Deutsche Bank, Jefferies, Stifel, Oppenheimer & Co.
Co-Manager(s): BB&T Capital, Janney Montgomery Scott
Terms Added: 4-23-18
Business: PermRock Royalty Trust will own a Net Profits Interest representing the right to receive 80% of the net profits from the sale of oil and natural gas production from the Underlying Properties, which are located in the Permian Basin in Texas and are held by Boaz Energy as of the date of the conveyance of the Net Profits Interest to the trust. The trust will make monthly cash distributions of all of its monthly cash receipts, after deduction of fees and expenses for the administration of the trust and any cash reserves, to holders of its trust units as of the applicable record date on or before the 10th business day after the record date. The first record date will be on or about May 15, 2018, and the first distribution is expected to be made on or about May 30, 2018. Thereafter, the record date will generally be the last business day of each calendar month. The Net Profits Interest will be entitled to a share of the profits from and after January 1, 2018 attributable to production occurring on or after such date. The trust is not subject to any pre-set termination provisions based on a maximum volume of oil or natural gas to be produced or the passage of time.
Financials: The revenues from the underlying properties was $14.2 million and $27.5 million and the excess of revenues over direct operating expenses was $9.4 million and $19.9 million in 2016 and 2017, respectively.
Distributions: They project paying monthly distributions to unit holders, with a total of $2.40 per unit projected to be paid for the year ending April 30, 2019. Initial distribution is expected to exceed the amount of subsequent distributions. The trust’s derivative contracts will be in effect only through December 31, 2019, and as a result there is likely to be greater fluctuation in cash distributions resulting from fluctuations in the realized oil and natural gas prices in periods subsequent to the expiration of those contracts. Actual cash distributions to the trust unitholders will fluctuate monthly based upon the quantity of oil and natural gas produced from the Underlying Properties, the prices received for oil and natural gas production and other factors.
Book-Building Status: The way the book comes together during the week of the roadshow is the most critical indicator to first-day and first-week performance. IPO Boutique uses its 45 years of experience and sources all over the street to gather daily subscription levels, specific price guidance and what type of investors are currently in the book or are anchoring orders in the book. In addition, recent underwriter performance on sector specific deals is a strong factor that IPO Boutique takes into account when determining if our clients should indicate for any offering.
IPO Boutique subscription clients receive daily updates on this critical information.
Conclusion: IPO Boutique provides ratings, daily commentary and a forecast for how this IPO will open vs. its offering price. We have kept a track record with our performance for last 12 years at our website. Additionally, here’s a 2017 recap of our performance to showcase the value of IPO Boutique’s service.
Indicate with confidence, SUBSCRIBE today.
English
Arabic
Chinese (Simplified)
Dutch
French
German
Italian
Portuguese
Russian
Spanish