#United States #Dallas #Permian Basin #Royalty Trust #SoftVest

Permian Basin Royalty Trust Declares October Cash Distribution

The Permian Basin Royalty Trust (PBT), managed by Argent Trust Company, has recently declared a cash distribution of $0.020021 per unit. This payment is poised to benefit unit holders by November 17, 2025, for those recorded by October 31, 2025. However, the distribution comes amidst a challenging financial landscape, particularly concerning the Waddell Ranch properties where production costs have surpassed gross proceeds for the month of August.

Recent Financial Developments

The cash distribution for October signifies a reduction from the previous month due to the absence of a significant settlement payment from Blackbeard Operating LLC, which had contributed positively to the prior month's figures. Nevertheless, the situation was somewhat mitigated by increased oil and natural gas production volumes and prices, especially from the Texas Royalty Properties.

During August, the Texas Royalty Properties reported production of 16,239 barrels of oil and 13,282 Mcf of gas. After accounting for taxes and expenses which totaled $140,125, the net profit for this segment stood at around $1,024,178 for September, with the Trust entitled to 95% of the net profits, translating to a contribution of approximately $972,969 towards the current distribution.

The Waddell Ranch Properties

Despite the promising figures from Texas, the Waddell Ranch properties remain in a negative cost position. Information from Blackbeard, the operator, regarding net profits interest (NPI) is received after the distribution date which limits the Trust’s ability to include those revenues in the current cash distribution. As such, any expenses must be compensated by future proceeds before any profit from Waddell Ranch can benefit the Trust.

Upcoming Special Meeting

In addition to the financial updates, the Permian Basin Royalty Trust will hold a special meeting on December 16, 2025, at the request of SoftVest Advisors, LLC and other stakeholders, collectively owning over 15% of the outstanding units. The meeting's primary goal is to bolster a proposal aimed at amending the Trust's Indenture, allowing a simple majority of votes for future modifications of the Indenture — a significant shift in governance intended to empower unit holders while navigating challenges ahead.

The Trustee will be distributing details related to this special meeting, which remains essential for unit holders eager to engage in the future direction of the Trust.

Looking Ahead

As the global market conditions continue to shift, influencing prices for domestic oil production, there remains uncertainty surrounding future distributions. Stakeholders are encouraged to stay informed through regular updates from the Trust, which will clarify any anticipated changes in expected distributions and guidance for unit holders.

For more information, investors can visit the official Trust website and review the latest reports available online. The upcoming proxy statements and the association of SoftVest is another topic of interest that unit holders should monitor closely.

In conclusion, while current market conditions pose challenges, there exist opportunities for the Trust and its unit holders to adapt and potentially prosper as the energy sector evolves. The coming months will be critical for assessing the impact of these movements and strategic decisions on the Trust's financial health.