Permianville Royalty Trust (PVL)

[gnillish_00]

There has been decent conversation over on StockTwits for PVL -- couple of the regulars do a good job breaking down the numbers and projections.

This next report should help clarify some open questions about pricing and how much of their production is already under contract at fixed prices. To me it appears that a good portion of their production is already under contract and that is why their income is lagging oil price more than would be expected. At some point that should improve as contracts expire, and hopefully we see higher prices linger after oil starts back down.

Early on I was hoping for dividends to return in April, but after the last couple reports I'm cautiously optimistic for June for a small payout, then fairly robust dividends after that. That should help drive the price up as well to maintain the dividend in the 10% range.

.02 dividend should push the share price to around $2.40. .03 could put us in the $3.60 neighborhood. Reality is likely to fall somewhere near that range judging by production numbers and what oil is doing, so I'm optimistic.