#United States #Dallas #Permian Basin #Waddell Ranch #Royalty Trust

Permian Basin Royalty Trust's Latest Announcements

On May 18, 2026, Argent Trust Company, acting as the trustee for the Permian Basin Royalty Trust (NYSE: PBT), declared a cash distribution for its unit holders. The distribution is set at $0.020355 per unit, and payment will be made on June 12, 2026, for those who hold units as of May 29, 2026. However, this month's distribution has seen a decline, primarily because the Waddell Ranch properties, crucial to the Trust’s income, reported that production costs surpassed the revenue generated for the month of April. Thus, these costs will affect future distributions.

Details of the Cash Distribution

The cash distribution this month decreased compared to the previous month. This decline is noteworthy due to the third settlement payment amounting to $1,125,000 from Blackbeard Operating LLC, which had been included in the April distribution. Increased oil volumes and heightened prices for oil and natural gas from the Texas Royalty Properties partially offset these losses. Nonetheless, a decrease in natural gas volumes during this reporting period has negatively impacted the overall figures.

In April, production figures for Texas Royalty Properties were reported as 15,079 barrels of oil and 8,081 Mcf of gas, with the Trust's allocated portion indicating 13,399 barrels of oil and 7,181 Mcf of gas. The average prices recorded were $73.83 for oil per barrel and $9.23 per Mcf for gas, including notable NGL pricing, reflecting production conditions from February and January.

After accounting for taxes and expenses of $136,971, a net profit of $1,050,825 was generated for April. Considering the Trust's net profit interest of 95%, the total contribution from Texas Royalty Properties to this month's distribution amounted to $998,283.

General and administrative expenses incurred during the month, also deducting earned interest, summed up to $49,516, leading to a net distribution of approximately $948,767 among 46,608,796 outstanding units, which equals the distribution of $0.020355 per unit.

Constraints from Waddell Ranch Properties

Information from Blackbeard regarding the Waddell Ranch properties required for calculating the net profits interest proceeds comes after the monthly distribution announcement. Therefore, any proceeds from these properties, if they are received before the record date, will be carried over to the following month's distribution. Because there were no received proceeds from the Waddell Ranch properties in April 2026, all excess costs will need to be offset by future proceeds from these assets.

Due to the alternate provision of production, pricing, and cost data provided by Blackbeard on a quarterly basis, the Trust's future disclosures will occur in their quarterly Form 10-Q reports and annual Form 10-K, contingent upon timely receipt of the necessary data.

The Hearing Outcomes

On May 8, 2026, a vital hearing took place at the 96th District Court of Tarrant County, Texas, concerning the petition filed by SoftVest, L.P., aimed at modifying the Trust's Indenture. The court has granted modifications that eliminate the previous requirement of 75% approval for specific amendments and amended a section allowing for easier future modifications.

This ruling is seen as a significant turning point for the Trust, potentially easing the process for future changes requested by the unit holders. The Trust also filed its 2025 Annual Report with the SEC, containing crucial financial information and reserve summaries. The Trust's cash distribution history, financial records, and tax information are available on their official website, along with an option to request printed reports free of charge.

Conclusion

The ongoing fluctuations in global market conditions imply that the pricing landscape for domestic production remains unpredictable. As such, it's essential for unit holders to stay informed about future distributions and operational updates from the Trust. This integrated approach of immediate disclosures and regular reporting ensures transparency and supports unit holders in understanding their investments better.

For any inquiries or further information about the Permian Basin Royalty Trust, unit holders and interested parties can reach out to Nancy Willis, the Director of Royalty Trust Services at Argent Trust Company, via their toll-free number.