PERMIAN BASIN ROYALTY TRUST ANNOUNCES AUGUST CASH DISTRIBUTION AND EXCESS COST POSITION ON WADDELL RANCH PROPERTIES

Rhea-AI Summary

Permian Basin Royalty Trust (NYSE: PBT) has declared an August cash distribution of $0.016418 per unit, payable on September 15, 2025. The distribution reflects only proceeds from Texas Royalty Properties, as Waddell Ranch properties continue to operate at an excess cost position. The Texas Royalty Properties produced 14,645 barrels of oil at $62.02 per bbl and 8,742 Mcf of gas at $7.53 per Mcf.

Notably, Blackbeard Operating has refused to provide monthly NPI information for Waddell Ranch properties. The Trust is currently engaged in litigation against Blackbeard, seeking to recover over $9 million in damages related to improper royalty calculations from April 2020 through December 2023. The trial is scheduled for November 17, 2025.

[ "Texas Royalty Properties showed increased oil volumes compared to previous month", "Net Profit of $971,212 generated from Texas Royalty Properties", "Legal action progressing with trial date set for recovery of $9+ million in alleged damages" ]

Positive

• None.

Negative

• Waddell Ranch properties remain in excess cost position with no distribution
• Blackbeard Operating refusing to provide monthly NPI information
• Lower oil and gas pricing compared to previous month
• Natural gas volumes decreased from previous month
• High General and Administrative Expenses of $157,403

Insights

Oil & Gas Royalty Trust Analyst

Permian's distribution increased despite Waddell Ranch's excess cost position, ongoing litigation against Blackbeard seeks $9M+ in damages.

Permian Basin Royalty Trust's August distribution of $0.016418 per unit represents a month-over-month increase despite continuing challenges. This improvement stems from higher oil volumes from the Texas Royalty Properties, though partially offset by lower natural gas volumes and weaker commodity pricing.

The distribution increase is notable considering the complete absence of revenue contribution from the Waddell Ranch properties, which remain in an excess cost position where production costs exceed gross proceeds. More concerning is Blackbeard Operating's continued refusal to provide monthly information necessary to calculate the net profits interest, forcing the Trust to rely on quarterly disclosures.

The Texas Royalty Properties delivered 14,645 barrels of oil at $62.02 per barrel and 8,742 Mcf of gas at $7.53 per Mcf, generating $922,651 in net contribution after deducting $137,840 in taxes and expenses. These figures reflect production from May (oil) and April (gas), showing a production increase for oil but declines in both oil and gas pricing compared to the prior month.

The Trust's ongoing litigation against Blackbeard represents a significant potential catalyst. The Trust alleges improper calculation and underpayment of royalties totaling over $9 million, specifically citing impermissible deductions for overhead, labor, and saltwater disposal fees. With the trial scheduled for November 2025 and discovery ongoing, this legal action could materially impact future distributions if successful.

After accounting for $157,403 in general and administrative expenses, the final distribution to unitholders is $765,248, maintaining a modest but positive cash flow despite the continuing operational challenges with the Waddell Ranch properties.

DALLAS, Aug. 19, 2025 /PRNewswire/ -- Argent Trust Company, as Trustee of the Permian Basin Royalty Trust (NYSE: PBT) ("Permian" or the "Trust") today declared a cash distribution to the holders of its units of beneficial interest of $0.016418 per unit, payable on September 15, 2025, to unit holders of record on August 29, 2025. The distribution does not include proceeds from the Waddell Ranch properties, as total production costs ("Production Costs") exceeded gross proceeds ("Gross Proceeds") for the month of July, resulting in a continuing excess cost position for the Waddell Ranch properties. More information regarding the Waddell Ranch properties is described below.

This month's distribution increased compared to the previous month due primarily to the Texas Royalty Properties having higher natural oil volumes, partially offset by lower natural gas volumes along with lower oil and gas pricing for the month reported.  

WADDELL RANCH
Notwithstanding requests from the Trustee to Blackbeard Operating, LLC ("Blackbeard"), the operator of the Waddell Ranch properties, and the fact that prior to May 2024, Blackbeard has provided this information on a monthly basis since Argent Trust Company has become Trustee of the Trust, Blackbeard has refused to provide the Trustee information necessary to calculate the net profits interest ("NPI") proceeds for August 2025 as of the announcement date for this month's distribution. As a result of Blackbeard's failure to provide this information by the NYSE notification date for the distribution, in accordance with the Trust indenture, if NPI proceeds are received from the Waddell Ranch properties on or prior to the record date, they will be included in the September distribution.

As noted above, no proceeds were received by the Trustee in July 2025 to be included in the August distribution.  All excess costs, including any accrued interest, will need to be recovered by future proceeds from the Waddell Ranch properties before any proceeds are distributed to the Trust. Due to the fact that Blackbeard is providing production, pricing and cost information quarterly instead of monthly, the Trustee will be providing that information in the quarterly reports on Form 10-Q and annual reports on Form 10-K for the foreseeable future (to the extent timely received from Blackbeard).

TEXAS ROYALTY PROPERTIES
Production for the underlying Texas Royalty Properties was 16,672 barrels of oil and 9,952 Mcf of gas. The production for the Trust's allocated portion of the Texas Royalty Properties was 14,645 barrels of oil and 8,742 Mcf of gas. The average price for oil was $62.02 per bbl and for gas was $7.53, which includes significant NGL pricing, per Mcf. This would mainly reflect production and pricing in May for oil and April for gas. These allocated volumes were impacted by the pricing of both oil and gas. This production and pricing for the underlying properties resulted in revenues for the Texas Royalty Properties of $1,109,052. Deducted from these revenues were taxes and expenses of $137,840 resulting in a Net Profit of $971,212 for August. With the Trust's NPI of 95% of the Underlying Properties, this would result in a net contribution by the Texas Royalty Properties of $922,651 to this month's distribution.

	Underlying Properties		Net to Trust Sales
	Volumes		Volumes		Average Price
	Oil (bbls)	Gas (Mcf)	Oil (bbls)	Gas       (Mcf) (1)	Oil (per bbl)	Gas       (per Mcf) (2)
Current Month
Waddell Ranch	(3)	(3)	(3)	(3)	(3)	(3)
Texas Royalties	16,672	9,952	14,645	8,742	$62.02	$7.53
Prior Month
Waddell Ranch	(3)	(3)	(3)	(3)	(3)	(3)
Texas Royalties	13,896	11,503	12,190	10,109	$68.37	$11.75

(1) These volumes are net to the Trust, after allocation of expenses to Trust's net profit interest, including any prior period adjustments.

(2) This pricing includes sales of gas liquid products.

(3) Information is not being made available monthly but may be provided within 30 days next following the close of each calendar quarter. To the extent the Trustee receives such information timely following the quarter, information will be included in the Trust's quarterly report on Form 10-Q for the applicable quarter (or the annual report on Form 10-K with respect to the fourth quarter).

General and Administrative Expenses deducted for the month, net of interest earned were $157,403 resulting in a distribution of $765,248 to 46,608,796 units outstanding, or $0.016418 per unit.

The worldwide market conditions continue to affect the pricing for domestic production. It is difficult to predict what effect these conditions will have on future distributions.

TRUST LITIGATION
On May 27, 2025, the Trustee announced that it had filed a Second Amended Petition in the District Court of Tarrant County, Texas in connection with its lawsuit against Blackbeard, the operator of properties in Waddell Ranch, in Crane County, Texas, in which the Trust holds a 75% net overriding royalty. On May 8, 2024, the Trustee announced that it had initiated the lawsuit by filing a petition in the District Court of Tarrant County, Texas, and on June 10, 2024, Blackbeard filed its original answer and counterclaim to the lawsuit. The trial date in the District Court of Tarrant County is scheduled for November 17, 2025, 8:30 a.m., Central Time. Discovery is ongoing.

Under the Second Amended Petition, the Trustee seeks to recover more than $9 million in damages to the Trust it alleges result from Blackbeard's failure to properly calculate and pay royalites due and owing to the Trust. Specifically, the Trustee alleges that Blackbeard impermissibly calculated and deducted overhead costs, labor expenses, and saltwater disposal fees. The Trustee also claims Blackbeard failed to pay on all volumes of oil, gas, and other minerals produced by Blackbeard from the relevant lands and failed to provide annual reports required by the Conveyance. The claims relate to the April 2020 through December 2023 production months. A joint venture audit of the 2024 production months is underway, and the Trustee reserved the right in the petition to bring any additional claims revealed by such audit. Certain additional claims raised in the Trustee's original and first amended petitions have been resolved through prior joint venture audits.

The 2024 Annual Report with Form 10-K, which includes the December 31, 2024, Reserve Summary, has been filed with the Securities Exchange Commission. Permian's cash distribution history, current and prior year financial reports, tax information booklets, and a link to filings made with the Securities and Exchange Commission, all can be found on Permian's website at http://www.pbt-permian.com/. Additionally, printed reports can be requested and are mailed free of charge.

FORWARD-LOOKING STATEMENTS
Any statements in this press release about future events or conditions, and other statements containing the words "estimates," "believes," "anticipates," "plans," "expects," "will," "may," "intends," and similar expressions, other than historical facts, constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Factors or risks that could cause the Trust's actual results to differ materially from the results the Trustee anticipates include, but are not limited to the factors described in Part I, Item 1A, "Risk Factors" of the Trust's Annual Report on Form 10-K for the year ended December 31, 2024, and Part II, Item 1A, "Risk Factors" of subsequently filed Quarterly Reports on Form 10-Q.

Actual results may differ materially from those indicated by such forward-looking statements. In addition, the forward-looking statements included in this press release represent the Trustee's views as of the date hereof. The Trustee anticipates that subsequent events and developments may cause its views to change. However, while the Trustee may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Trustee's views as of any date subsequent to the date hereof.

Contact: Jana Egeler, Vice President, Argent Trust Company, Trustee, Toll Free – 1.855.588.7839

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SOURCE Permian Basin Royalty Trust

FAQ

What is PBT's distribution amount for August 2025?

Permian Basin Royalty Trust declared a cash distribution of $0.016418 per unit, payable on September 15, 2025, to unitholders of record on August 29, 2025.

Why is there no distribution from PBT's Waddell Ranch properties in August 2025?

No distribution was made from Waddell Ranch properties because total production costs exceeded gross proceeds, resulting in a continuing excess cost position.

What are the current production volumes for PBT's Texas Royalty Properties?

The Trust's allocated portion of Texas Royalty Properties produced 14,645 barrels of oil and 8,742 Mcf of gas, with oil priced at $62.02 per bbl and gas at $7.53 per Mcf.

How much is PBT seeking in damages from Blackbeard Operating?

The Trust is seeking to recover more than $9 million in damages from Blackbeard Operating for improper royalty calculations and deductions during April 2020 through December 2023.

When is the trial date for PBT's lawsuit against Blackbeard Operating?

The trial is scheduled for November 17, 2025, at 8:30 a.m. Central Time in the District Court of Tarrant County, Texas.