REVENUE Gross revenues totaled $849 million with PUF revenue coming in at $771 million and AUF revenue at $78 million. EXPENSES Annual expenses were 14% below budget at $22.3 million and represented 2.6% of gross revenue or $0.96 per barrel of equivalent production unit cost. PRODUCTION Production rates averaged around 290,000 gross barrels of oil equivalent (BOE) per day, down about 1% year over year. UL’s mineral royalty averaged 22.5% for both oil & gas, equaling a cumulative net royalty volume of 23 million BOE. ASSET VALUE Proved reserves were down 5% year-over-year primarily due to economic conditions, which have resulted in development delays and adjustments to commodity price projections. On a price neutral basis, the value-per-acre of proved reserves is up 11% year-over-year. VALUE CREATION Minerals: Five oil & gas development agreements were negotiated adding approximately 1 million lateral feet in increased potential drilling commitments. UL worked with several companies as the industry continued its period of consolidation and restructuring to protect and enhance our agreements. Surface: Surface activities included the execution of over 926 contracts which added over $78 million in revenue to the AUF. PUF surface activities include many ongoing environmentally-focused and conservation-minded projects such as water management, emissions and flare monitoring, invasive brush control, livestock and wildlife management and oilfield lease restoration. ENVIRONMENT UL performed 52 infrared camera inspections and 1,575 oil & gas inspections. UL’s Lease Evaluation team reviewed and terminated leases that returned 3,800 acres to inventory, and 155 unproductive oil & gas wells were plugged with the surrounding areas remediated and returned to pastureland. WATER Water revenue was up 41% year-over-year partially due to the introduction of a groundwater import/export fee which was established as part of the continued focus of water management and movement on PUF lands. Operators report 635 water well meter readings to UL monthly.
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