Permian Basin Royalty Trust Declares September Distribution Amid Legal Settlements and Operational Challenges
In a recent announcement, Argent Trust Company, the trustee of the Permian Basin Royalty Trust (NYSE: PBT), declared a cash distribution of $0.115493 per unit for the month of September 2025. This distribution is set to be paid on October 15, 2025, to all unit holders who are on record as of September 30, 2025. However, the distribution does not include any proceeds from the Waddell Ranch properties due to higher production costs exceeding gross proceeds in August 2025, leading to an ongoing excess cost position for these properties.
The Permian Basin Royalty Trust is a notable entity in the energy sector, primarily focused on oil and gas production. The declared cash distribution marks an increase from the previous month, largely attributed to a $4.5 million first installment received from a settlement with Blackbeard Operating, LLC, a significant operator in the area. This settlement resolves ongoing litigation from 2024, where the Trust sought to recover damages amounting to over $9 million, alleged to result from miscalculations in royalty payments by Blackbeard.
The settlement agreement reached with Blackbeard establishes a payment plan whereby Blackbeard will pay a total of $9 million, with $4.5 million already disbursed to the Trust. The remaining amount will be paid in four quarterly installments throughout 2026. As a part of the settlement, Blackbeard will also have provisions for billing third-party charges against the Trust and facilitate site audits to ensure compliance moving forward.
Turning to production insights, the Texas Royalty Properties reported a total production of 15,856 barrels of oil and 12,275 Mcf of gas. For the Trust's allocated share, it amounted to 13,944 barrels of oil and 10,800 Mcf of gas, achieving an average price of $65.76 per barrel for oil and $6.65 per Mcf for gas in September. However, lower oil volumes combined with the fluctuating prices of gas have affected overall revenue positively and negatively in various measures.
The total revenue generated from the Texas Royalty Properties stood at approximately $1,124,318, from which taxes and expenses of about $140,993 were deducted, resulting in a net profit of $983,325 for September. Given that the Trust maintains a significant interest of 95% in these properties, it accounts for approximately $934,159 contributing to the September distribution.
As the global market conditions remain volatile, they continue to influence prices for domestic production, which poses challenges in forecasting future distributions. The complete implications of these pricing challenges will be closely observed moving forward.
The trustee further emphasizes the necessity of recovering excess costs from the Waddell Ranch properties before any proceeds can be allocated to the Trust, stemming from the quarterly reporting cycle employed by Blackbeard for providing production and cost information.
With ongoing legal battles and market pressure, the Trust continues to adapt and strategize in order to ensure that financial distributions remain steady for unit holders. Updates and historical reports concerning cash distribution alongside financial performance can be found on the Trust’s official website, providing transparency and up-to-date information to all stakeholders.
The Permian Basin Royalty Trust is a notable entity in the energy sector, primarily focused on oil and gas production. The declared cash distribution marks an increase from the previous month, largely attributed to a $4.5 million first installment received from a settlement with Blackbeard Operating, LLC, a significant operator in the area. This settlement resolves ongoing litigation from 2024, where the Trust sought to recover damages amounting to over $9 million, alleged to result from miscalculations in royalty payments by Blackbeard.
Financial Overview of the Settlement
The settlement agreement reached with Blackbeard establishes a payment plan whereby Blackbeard will pay a total of $9 million, with $4.5 million already disbursed to the Trust. The remaining amount will be paid in four quarterly installments throughout 2026. As a part of the settlement, Blackbeard will also have provisions for billing third-party charges against the Trust and facilitate site audits to ensure compliance moving forward.
Production Insights from the Texas Royalty Properties
Turning to production insights, the Texas Royalty Properties reported a total production of 15,856 barrels of oil and 12,275 Mcf of gas. For the Trust's allocated share, it amounted to 13,944 barrels of oil and 10,800 Mcf of gas, achieving an average price of $65.76 per barrel for oil and $6.65 per Mcf for gas in September. However, lower oil volumes combined with the fluctuating prices of gas have affected overall revenue positively and negatively in various measures.
The total revenue generated from the Texas Royalty Properties stood at approximately $1,124,318, from which taxes and expenses of about $140,993 were deducted, resulting in a net profit of $983,325 for September. Given that the Trust maintains a significant interest of 95% in these properties, it accounts for approximately $934,159 contributing to the September distribution.
Looking Towards the Future
As the global market conditions remain volatile, they continue to influence prices for domestic production, which poses challenges in forecasting future distributions. The complete implications of these pricing challenges will be closely observed moving forward.
The trustee further emphasizes the necessity of recovering excess costs from the Waddell Ranch properties before any proceeds can be allocated to the Trust, stemming from the quarterly reporting cycle employed by Blackbeard for providing production and cost information.
With ongoing legal battles and market pressure, the Trust continues to adapt and strategize in order to ensure that financial distributions remain steady for unit holders. Updates and historical reports concerning cash distribution alongside financial performance can be found on the Trust’s official website, providing transparency and up-to-date information to all stakeholders.
Topics Financial Services & Investing）
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