PERMIAN BASIN ROYALTY TRUST ANNOUNCES DECEMBER CASH DISTRIBUTION, EXCESS COST POSITION ON WADDELL RANCH PROPERTIES AND RESULTS OF SPECIAL MEETING CALLED BY SOFTVEST

Rhea-AI Summary

{"summary":"","positive":[],"negative":[],"faq":[]}

News Market Reaction – PBT

-0.83%

1 alert

-0.83% News Effect

On the day this news was published, PBT declined 0.83%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

December distribution: $0.013198 per unit Total distribution: $615,176 Units outstanding: 46,608,796 units +5 more

8 metrics

December distribution $0.013198 per unit Cash distribution payable January 15, 2026

Total distribution $615,176 Distributed to unitholders for this month

Units outstanding 46,608,796 units Units of beneficial interest receiving distribution

Texas Royalties revenue $933,086 Revenues from Texas Royalty Properties underlying production

Texas Royalties net profit $793,696 After $139,390 taxes and expenses for November

Contribution to distribution $754,012 Texas Royalty Properties NPI contribution at 95%

General & administrative $138,836 G&A expenses deducted for the month, net of interest earned

Special meeting support 59.9% of units Outstanding units voting in favor of SoftVest proposal

Market Reality Check

Price: $19.32 Vol: Volume 46,784 is at 0.61x...

low vol

$19.32 Last Close

Volume Volume 46,784 is at 0.61x the 20-day average of 76,448, indicating muted trading activity pre-announcement. low

Technical Price $16.87 is above the 200-day MA $14.24 and 17.55% below the 52-week high, while still 110.61% above the 52-week low.

Peers on Argus

PBT is down 1.0% with several oil & shipping peers also lower: SBR -1.07%, TK -1...

PBT is down 1.0% with several oil & shipping peers also lower: SBR -1.07%, TK -1.71%, NAT -2.03%, NGL -0.41%, TEN -3.15%, suggesting a broader energy pullback alongside company-specific news.

Historical Context

5 past events · Latest: 2025-11-17 (Negative)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
2025-11-17	Monthly distribution	Negative	-7.1%	Lower distribution and ongoing Waddell excess-cost position weighed on sentiment.
2025-10-21	Monthly distribution	Negative	-3.4%	Distribution excluding Waddell proceeds and continued excess costs at Waddell Ranch.
2025-09-19	Distribution & settlement	Positive	-2.4%	Large distribution boosted by first <b>$4.5M</b> installment of <b>$9M</b> settlement.
2025-08-19	Litigation settlement	Positive	+3.1%	Announcement of <b>$9M</b> settlement and improved terms with Blackbeard.
2025-08-19	Monthly distribution	Negative	+4.3%	Distribution from Texas Royalties only amid Waddell excess-cost and ongoing litigation.

Pattern Detected

Recent monthly distribution announcements with ongoing Waddell Ranch excess-cost issues often saw negative or mixed price reactions, while litigation/settlement headlines drew more supportive or divergent trading.

Recent Company History

Over the last few months, the Trust has repeatedly reported cash distributions driven solely by Texas Royalty Properties while Waddell Ranch remained in an excess-cost position. Prior releases on 2025-10-21 and 2025-11-17 highlighted excluded Waddell proceeds and upcoming governance-focused meetings, with generally negative price reactions. Separate litigation and settlement updates in August and September 2025 introduced a $9 million recovery from Blackbeard, partially bolstering prior distributions. Today’s news continues the themes of lower distributions and Waddell excess costs, alongside the outcome of the SoftVest-led special meeting.

Market Pulse Summary

This announcement reports a lower cash distribution of $0.013198 per unit, funded solely by Texas Ro...

Analysis

This announcement reports a lower cash distribution of $0.013198 per unit, funded solely by Texas Royalty Properties, as Waddell Ranch remains in an excess-cost position with no proceeds to the Trust. Production and realized prices for both oil and gas declined versus the prior month, reducing net profit. The special meeting outcome shows strong support for SoftVest’s non-binding governance proposal. Investors may watch future distributions, Waddell deficit updates, and any judicial actions on the trust indenture.

Key Terms

net profits interest, Mcf, Form 10-Q, Form 10-K, +4 more

8 terms

net profits interest financial

"necessary to calculate the net profits interest ("NPI") proceeds for a given month"

A net profits interest (NPI) is a contractual right to receive a fixed percentage of a project’s or asset’s profits after allowable costs are paid, rather than a share of gross revenue or ownership. For investors, it matters because it gives upside tied to actual profitability while shielding the holder from direct operating expenses and capital calls, similar to getting a portion of the leftover profits from a business after the bills are settled.

Mcf technical

"Production for the underlying Texas Royalty Properties was 13,834 barrels of oil and 12,089 Mcf of gas."

Mcf stands for thousand cubic feet and is a standard unit used to measure natural gas volume. For investors, Mcf translates physical gas production or consumption into a metric that directly affects revenue and valuation—think of it as counting liters of fuel your car used, where higher Mcf usually means more product to sell or higher costs to buy, and changes can signal shifts in supply, demand, or profitability.

Form 10-Q regulatory

"information will be disclosing that information in the quarterly reports on Form 10-Q"

A Form 10-Q is a detailed report that publicly traded companies are required to file with regulators three times a year, providing an update on their financial health and business activities. It is important for investors because it offers timely insights into a company's performance, helping them make informed decisions about buying or selling stocks. Think of it as a regular check-up report that shows how well a company is doing.

Form 10-K regulatory

"and annual reports on Form 10-K for the foreseeable future"

A Form 10-K is a comprehensive report that publicly traded companies are required to file annually with regulators. It provides a detailed overview of a company's financial health, operations, and risks, similar to a detailed health report. Investors use this information to assess the company's performance and make informed decisions about buying or selling its stock.

trust indenture regulatory

"modification of the Trust's Indenture to allow for the approval of any amendment"

A trust indenture is a legal agreement between a company that borrows money and a special bank or trust company that makes sure the company follows its promises. It acts like a rulebook to protect lenders, ensuring the company pays back loans and follows safety rules. This helps investors feel more confident that their money is safe.

non-binding proposal regulatory

"voted in favor of SoftVest's non-binding proposal for SoftVest or another appropriate party"

A non-binding proposal is an offer or plan presented by one party that outlines terms they would like to pursue but does not create a legally enforceable obligation. Think of it like a detailed handshake or a draft invitation to negotiate: it signals intent and frames possible outcomes, but either side can walk away or change terms without legal penalty. Investors watch these because they can move a stock’s price by suggesting a possible deal, yet they carry higher uncertainty than formal agreements.

judicial reformation regulatory

"to effect the judicial reformation or modification of the Trust's Indenture"

Judicial reformation is a court-ordered correction or rewrite of a written agreement or legal document when it does not reflect the true intentions of the parties because of mistake, fraud, or oversight. For investors it matters because a judge’s change can alter a company’s rights, obligations, liabilities or ownership—like an editor fixing a misprinted contract—which can affect cash flow, risk exposure and the value of securities.

record date financial

"payable on January 15, 2026, to unit holders of record on December 31, 2025."

The record date is the specific day when a company determines which shareholders are eligible to receive a dividend or participate in an upcoming vote. It’s like a cutoff date; if you own the stock on that day, you get the benefits or voting rights. This date matters because it decides who qualifies for certain company benefits.

AI-generated analysis. Not financial advice.

DALLAS, Dec. 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 $0.013198 per unit, payable on January 15, 2026, to unit holders of record on December 31, 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 November, 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 decreased compared to the previous month due primarily to the Texas Royalty Properties having lower oil volumes, along with lower oil pricing, partially offset by higher natural gas volumes and pricing for the month reported.

WADDELL RANCH
Information from Blackbeard, the operator of the Waddell Ranch properties, necessary to calculate the net profits interest ("NPI") proceeds for a given month is received after the announcement date for the month's distribution. As a result, 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 following month's distribution.

As noted above, no proceeds were received by the Trustee in November 2025 to be included in the December 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 provides production, pricing and cost information quarterly instead of monthly, the Trustee will be disclosing 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 13,834 barrels of oil and 12,089 Mcf of gas. The production for the Trust's allocated portion of the Texas Royalty Properties was 11,957 barrels of oil and 10,456 Mcf of gas. The average price for oil was $60.17 per bbl and for gas was $8.32, which includes significant NGL pricing, per Mcf. This would mainly reflect production and pricing in September for oil and August 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 $933,086. Deducted from these revenues were taxes and expenses of $139,390 resulting in a Net Profit of $793,696 for November. With the Trust's NPI of 95% of the Underlying Properties, this would result in a net contribution by the Texas Royalty Properties of $754,012 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	13,834	12,089	11,957	10,456	$60.17	$8.32
Prior Month
Waddell Ranch	(3)	(3)	(3)	(3)	(3)	(3)
Texas Royalties	16,337	10,723	14,356	9,425	$63.38	$7.10

	(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 $138,836 resulting in a distribution of $615,176 to 46,608,796 units outstanding, or $0.013198 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.

SPECIAL MEETING
Today, the Trustee announced, that at the special meeting of the Trust's unitholders held December 16, 2025 called at the request of SoftVest Advisors, LLC ("SoftVest") and certain other unitholders holding in excess of 15% of the Trust's units, approximately 59.9% of the outstanding Trust units (approximately 98.5% of the units represented in person or by proxy at the special meeting) voted in favor of SoftVest's non-binding proposal for SoftVest or another appropriate party to take appropriate actions to effect the judicial reformation or modification of the Trust's Indenture to allow for the approval of any amendment to the Trust Indenture by a simple majority of votes cast by unitholders at a special meeting at which a quorum is present. While the proposal is non-binding on the Trust, SoftVest has informed the Trustee that it intends to seek judicial reformation or modification of the Trust Indenture as described in its proxy statement.

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: Nancy Willis, Director of Royalty Trust Services, Argent Trust Company, Trustee, Toll Free – 1.855.588.7839

View original content:https://www.prnewswire.com/news-releases/permian-basin-royalty-trust-announces-december-cash-distribution-excess-cost-position-on-waddell-ranch-properties-and-results-of-special-meeting-called-by-softvest-302646627.html

SOURCE Permian Basin Royalty Trust