#United States #Dallas #cash distribution #Permian Basin #Argent Trust

December Distribution Announced by Permian Basin Royalty Trust

The Permian Basin Royalty Trust, managed by Argent Trust Company, has officially declared a cash distribution of $0.013198 per unit, scheduled for payout on January 15, 2026, to unit holders verified on December 31, 2025. This announcement comes amidst challenges regarding the Waddell Ranch properties, where total production costs during November exceeded gross revenues resulting in a continued excess cost position. This article delves into the details behind the distribution, operational updates from Waddell Ranch, and significant governance shifts from the Trust's recent special meeting.

Overview of Distribution

This month’s distribution has noted a decrease when compared to the previous month, influenced principally by diminished oil volumes and a downturn in oil prices from the Trust’s Texas Royalty Properties. Fortunately, this was partially balanced by an upsurge in natural gas volumes and pricing for the reported month. The figures generated from the Texas Royalty Properties show 13,834 barrels of oil and 12,089 Mcf of gas for the full operation.

Waddell Ranch Properties Update

Blackbeard, the operating entity for the Waddell Ranch properties, provides the data essential to calculate the net profits interest proceeds for given months post the distribution announcement date. Due to ongoing conditions, no proceeds were recorded for November to be considered in December’s distribution. Any accrued excess costs from the Waddell Ranch properties must be reconciled with future revenues in line with Trust provisions.

Texas Royalty Properties Performance

The production data shows that for the allocated portion of the Texas Royalty Properties, 11,957 barrels of oil and 10,456 Mcf of gas were extracted. The average pricing was $60.17 per barrel for oil and $8.32 for gas, reflecting a slight decline from the prior month’s production and pricing metrics. The total revenue amassed from the Texas Royalty Properties reached $933,086, with tax and expenses totaling $139,390, yielding a net profit of $793,696 for November. With a net profit interest of 95%, the contribution to this month’s distribution stands at $754,012.

Special Shareholder Meeting Results

In tandem with the distribution announcement, the Trust hosted a special meeting on December 16, 2025, initiated at the behest of SoftVest Advisors LLC, alongside other unitholders governing over 15% of the Trust’s units. A significant 59.9% of those present or represented at the meeting voted in favor of SoftVest’s proposal which covers judicial modifications of the Trust's Indenture. This proposal aims to facilitate any future amendments to the Trust Indenture via a simple majority vote at special meetings, marking a pivotal point in governance.

This outcome, although non-binding, illustrates SoftVest's commitment to engaging in judicial modifications, thereby fortifying the governance structure of the Trust moving forward.

Conclusion

The Permian Basin Royalty Trust continues to navigate market fluctuations and operational challenges while ensuring communication and transparency with its investors. As detailed in the Trust's filings, unit holders are encouraged to stay informed via official reports available on the Trust’s website. The landscape remains dynamic, and the Trustee anticipates adjustments that may subsequently influence future distributions. For further inquiries, unit holders can reach out to the Director of Royalty Trust Services at Argent Trust Company.

With these updates, the Trust enforces its commitment to its unitholders while adapting to evolving economic conditions, ensuring robust management of assets in the Permian Basin.