Permian Basin Royalty Trust Announces June Cash Distribution
The Permian Basin Royalty Trust, managed by Argent Trust Company, has declared a cash distribution of
$0.012976 per unit to its unit holders. This distribution will be payable on
July 15, 2025, for those who are on the record as of
June 30, 2025. However, this month's distribution is noted to be lower than the previous month, primarily due to decreased natural gas volumes and lower oil prices observed in the Texas Royalty Properties. The ongoing challenges regarding production costs at the Waddell Ranch properties have further complicated the financial landscape.
Key Challenges with Waddell Ranch Properties
The report reveals that no proceeds from the Waddell Ranch properties were included in the latest distribution. This is attributed to total production costs exceeding gross proceeds for April. Notably,
Blackbeard Operating, LLC, the operator of these properties, has not provided necessary information for calculating net profits, as per the Trustee's requirements. Despite previous monthly updates from Blackbeard, the refusal to disclose recent data has placed the Trust in a difficult situation regarding its assessments.
Should the Trustee receive any NPI proceeds from Waddell Ranch on or before the record date, these will be factored into the July distribution. Until then, the Trust must address the accrued excess costs from the properties before it can disburse any new proceeds.
In connection with production metrics, the Texas Royalty Properties have shown a yield of
16,367 barrels of oil and
9,392 Mcf of gas during the period, yielding a net profit of
$1,021,112 after expenses and taxes. Given the Trust's stake in these properties, approximately
95% of the profits contributed
$970,056 to this month’s distribution.
Legal Complications Ahead
In addition to the financial intricacies, the Trust has also engaged in legal proceedings against Blackbeard due to discrepancies in royalty payments and calculations of costs. A lawsuit initiated in May 2024 is ongoing, with allegations that Blackbeard improperly calculated expenses and failed to remit all royalty payments due to the Trust. The next significant milestone in this legal process is a trial set for
November 17, 2025. The Trust is seeking
over $9 million in damages as a result of these alleged failures.
Monitoring Market Influences
The trustee also highlights that
global market conditions are continuously influencing domestic pricing and distribution capabilities. Given the volatility in both oil and gas prices, it remains difficult for the Trust to project future distributions accurately. The Trustee emphasizes the importance of ongoing operations and diligence in monitoring market trends.
In summary, while the Permian Basin Royalty Trust has issued a distribution for June, external pressures and internal challenges—especially regarding the Waddell Ranch properties and legal matters with Blackbeard—are expected to shape the Trust's future outlook and financial health. Stakeholders are urged to keep an eye on both production updates and market conditions in the coming months to make informed assessments of their investments.
For further details about the Trust's operations and future distributions, stakeholders can visit the Trust's official website at
pbt-permian.com.