#USA #Dallas #Permian Basin Royalty Trust #Waddell Ranch #Argent Trust

Permian Basin Royalty Trust Declares May Cash Distribution

In a recent announcement, Argent Trust Company, the trustee for the Permian Basin Royalty Trust (NYSE: PBT), revealed a cash distribution rate of $0.018841 per unit to unit holders. This payout is scheduled to be made on June 13, 2025, for those who are on record as of May 30, 2025. However, it's important to note that this distribution does not include revenue from the Waddell Ranch properties, primarily due to operational costs exceeding income for April.

Distribution Details

The cash distribution for May represents a decrease compared to the prior month. The reduction is attributed to decreased oil volumes and the fluctuations in global oil and natural gas prices. Although there was a slight increase in natural gas volumes reported, it could not sufficiently offset the decline in oil output. Consequently, the total revenue for the Texas Royalty Properties amounted to $1,161,479, which after expenses and taxes, led to a net profit of $1,027,573.

Texas Royalty Properties Performance

For the underlying Texas Royalty Properties, production figures showed 15,442 barrels of oil and 11,198 Mcf of gas. When examining the Trust's allocated share, it was 13,619 barrels of oil and 9,894 Mcf of gas. The average selling price stood at $68.39 per barrel and $9.42 per Mcf. These fluctuations in production and pricing illustrate the ongoing volatility faced in the energy sector.

Waddell Ranch Properties Issues

The situation at the Waddell Ranch properties remains complicated. In an unusual turn, the operator, Blackbeard Operating, LLC, has provided insufficient information to determine the monthly net profits interest for May 2025—a deviation from previously established communication patterns. Consequently, unit holders may receive further information regarding these properties only through quarterly reports, affecting the transparency and regularity of updates.

The absence of cash proceeds from these properties remains a concern, particularly since prior disputes regarding cost management and potential recoveries from accrued expenses have yet to be resolved. All excess costs, including accrued interests, will need future proceeds for recovery before any additional distributions can be made to the Trust.

Legal Proceedings and Forward Outlook

The Trust finds itself in legal proceedings against Blackbeard, initiated due to alleged improper deductions from royalty payments. The lawsuit, seeking over $25 million in damages, reflects ongoing concerns related to cost management and information disclosure within the operational relationship. Trial proceedings in this case are set for November 17, 2025.

Having to navigate these financial and legal complexities, it's challenging to predict how market conditions might influence future distributions for unit holders.

In conclusion, while the Trust maintains a history of making consistent cash distributions, the selected challenges seen this month with the Waddell Ranch and overall market volatility stress the need for vigilant oversight and transparent communication with stakeholders. For ongoing updates and information, the Permian Basin Royalty Trust urges unit holders to visit its website for detailed reports and filings.