#United States #Dallas #cash distribution #Permian Basin #Waddell Ranch

Permian Basin Royalty Trust's July Cash Distribution Update

On July 21, 2025, the Permian Basin Royalty Trust (NYSE: PBT) announced a cash distribution of $0.015311 per unit for its unit holders, scheduled for payment on August 14, 2025. This news comes despite the Trust facing ongoing challenges related to its Waddell Ranch properties, where production costs have surpassed gross proceeds.

Key Details of the Distribution

The Trust's declared distribution this month reflects an increase from the previous month, attributed to an uptick in natural gas volumes and favorable oil and natural gas pricing from its Texas Royalty Properties. Specifically, it recorded 13,896 barrels of oil and 11,503 Mcf of gas from these properties, generating revenues of $1,085,196. After accounting for taxes and operational expenses of $136,087, the net profit stood at $949,109 for July, contributing $901,654 to the distribution.

However, the Waddell Ranch properties have posed significant challenges, leading to a continuing excess cost position. The Trust did not receive any proceeds from these properties since production costs exceeded revenues, and therefore, they were not included in the current distribution.

Waddell Ranch Challenges

Despite repeated requests for information from Blackbeard Operating, LLC, the operator of the Waddell Ranch properties, the Trustee has faced delays in receiving crucial data. Blackbeard has historically provided necessary financial information regularly, but as of now, has switched to quarterly reporting instead of monthly updates, which impairs the Trustee's ability to deliver timely distributions.
This lack of information also means that any potential net profits interest (NPI) proceeds will be evaluated for future distributions only if received before the record date of July 31, 2025.

The ongoing issues with Waddell Ranch properties have led the Trustee to pursue legal action against Blackbeard, alleging improper deductions of costs and failure to pay royalties owed. This legal struggle emphasizes the challenges the Trust continues to face due to operational inefficiencies at Waddell Ranch.

Looking Ahead

Moving forward, the Trust will provide updates through quarterly reports, detailing production, prices, and allowances for any accrued costs applicable to the Waddell Ranch properties. The Trustee is determined to recover all excess costs through future profits before there can be positive distributions again.

With global market conditions fluctuating, future distributions remain uncertain. The Trust continues to navigate this complex landscape to ensure transparency and efficiency in its operations, reaffirming its commitment to unit holders.

For more comprehensive insights and information updates, stakeholders can access the Trust's filings on their official website or request printed reports at no additional charge. The 2024 Annual Report, including full financial summaries, is already on file with the SEC and accessible online.

In summary, while this month's distribution reflects some positive developments in Texas Royalty properties, the situation with Waddell Ranch paints a challenging picture that the Trust must address as it moves forward.