Permian Basin Royalty Trust Reveals June Cash Distribution and Waddell Ranch Updates

Overview of the June Cash Distribution

On June 18, 2026, Argent Trust Company, acting as Trustee for the Permian Basin Royalty Trust (NYSE: PBT), announced a cash distribution of $0.024673 per unit. This amount will be payable on July 15, 2026, to unit holders who are recorded by June 30, 2026. However, it's important to note that the latest distribution does not incorporate profits from the Waddell Ranch properties due to production costs that outstripped gross revenue in May. The updated information regarding the ranch is critical for understanding this month's distribution dynamics.

Production Insights from Texas Royalty Properties

The cash distribution this month represents an increase when compared to the previous month's figures. This rise is primarily attributed to higher oil volumes from Texas Royalty Properties as well as increased oil and natural gas pricing. Nevertheless, there was a slight offset due to reduced natural gas volumes recorded during the same period. Production at these Texas Royalty Properties generated 16,174 barrels of oil alongside 7,743 Mcf of gas this month. The Trust’s allocable share amounted to 14,577 barrels of oil and 6,972 Mcf of gas, resulting in notable revenues.

The average pricing for oil was reported at $88.42 per barrel, while gas averaged $9.50 per Mcf, influenced by robust natural gas liquids pricing. Consequently, these underlying properties created a revenue stream of $1,503,687, from which taxes and expenses of $150,074 were deducted, yielding a net profit of $1,353,613 for May. Given that the Trust claims a 95% net profit interest in these properties, the contribution towards this month’s distribution amounted to $1,285,932.

Updates on Waddell Ranch

Unfortunately, no proceeds from the Waddell Ranch properties have been recorded for May 2026 and hence cannot be incorporated into the current cash distribution. This lack of revenue continues the pattern of excess costs; all accrued expenses must be reconciled by future profits from these properties prior to any distribution to the Trust. Blackbeard Operating, LLC, the entity managing the Waddell Ranch properties, provides crucial information quarterly, creating a delay in financial updates regarding this area. As per Trust indentures, anticipated proceeds will be included in the following month's distribution if received before the record date.

Due to this situation, stakeholders should be aware that the Trustee will disclose comprehensive data including production and pricing in their upcoming quarterly and annual reports as long as the information is promptly received from Blackbeard.

The SoftVest Proposal: A Potential Business Combination

In a noteworthy development, the Trustee has received a Schedule 13D filed by SoftVest, L.P., indicating potential plans for a business combination involving the Trust and assets owned by Blackbeard Holdings. This proposal suggests the formation of a new corporate entity, referred to as New PubCo, which would partially be owned by both Trust unitholders and Blackbeard Holdings. Specifically, this entity will take over ownership of the Trust's assets and operations and include interests in US Land Guild, LLC, which manages a significant amount of resources, including a 15% royalty interest in vital properties.

While the Trust has not entered into negotiations concerning this term sheet, unitholders are encouraged to read through the Schedule 13D and examine any pertinent filings submitted to the Securities and Exchange Commission (SEC). The proposed business combination is subject to unitholder approval, necessitating a majority consensus under the Trust's updated indenture permissions.

The review period for this potential combination is crucial, as it impacts the future direction of the Trust along with its operational strategy, especially in light of current market challenges.

Conclusion and Looking Ahead

The Permian Basin Royalty Trust’s recent updates on cash distributions highlight significant production outcomes and challenges faced, particularly in underperforming properties such as Waddell Ranch. Additionally, the potential merging partnership with SoftVest introduces both opportunities and uncertainties. Hence, all involved stakeholders will need to keep a close eye on the developments in the upcoming months, which will undoubtedly shape the trajectory of the Trust and its financial performance moving forward.