University Lands FY21 Annual Report

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FY21 Highlights

fy21 highlights

Revenue Gross revenues totaled $1.043 billion with PUF revenue coming in at $979 million and AUF revenue at $64 million. Oil and gas royalty income increased by 27% over FY2020. Expenses Annual expenses were 14% below budget at $20.7 million and represented 1.98% of gross revenue or $0.89 per barrel of equivalent production unit cost. Production Production rates averaged around 284,000 gross barrels of oil equivalent (BOE) per day. UL’s mineral royalty averaged 22.3% for both oil & gas, equaling a cumulative net royalty volume of 23 million BOE. Asset Value The FY2021 total value of proved reserves was up 47% year-over-year primarily due to higher commodity prices, resulting in more active development activities. On a price neutral basis, the value- per-acre of proved reserves is up 21% year-over-year.

Industry Restructuring Performed due diligence on three new operators and consented the assignment of three development agreements in connection with A&D transactions. Reclaimed more than 100,000 undeveloped acres as part of agreement modifications connected to these transactions. Navigated M&A activity that impacted more than 50% of our production—Diamondback acquired QEP, Pioneer acquired Parsley, and WPX merged with Devon. These transactions created a larger, stronger set of public companies leading the development of University Lands. Environment UL performed 324 optical gas imaging (OGI) camera inspections (82 facility fugitive emission inspections and 242 flare inspections) and 1,100 oil & gas lease inspections. Approximately 119 unproductive oil & gas wells were plugged with the surrounding areas remediated and returned to pastureland. Renewable Energy Expanded renewable energy portfolio with 3 new solar and wind projects across 46,000 acres, putting our current portfolio at a total of 9 clean energy projects across 66,000 acres of PUF Lands.

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