PERMIAN BASIN ROYALTY TRUST ANNOUNCES JULY CASH DISTRIBUTION AND EXCESS COST POSITION ON WADDELL RANCH PROPERTIES
Rhea-AI Summary
Permian Basin Royalty Trust (NYSE: PBT), through Argent Trust Company as Trustee, declared a July 2026 cash distribution of $0.043566 per unit, totaling $2,030,599.85, payable on August 14, 2026 to unitholders of record on July 31, 2026. The distribution excludes Waddell Ranch properties because June Production Costs exceeded Gross Proceeds, creating a continuing excess cost position; future Waddell proceeds must first recover these excess costs and accrued interest.
The distribution increased from the prior month primarily due to a $1,125,000 settlement payment from Blackbeard Operating and higher oil prices from Texas Royalty Properties. For Texas Royalties underlying properties, oil production was 15,307 bbl and gas 6,545 Mcf (13,842 bbl and 5,923 Mcf net to the Trust) at average prices of $99.90/bbl for oil and $8.61/Mcf for gas, generating Net Profit of $1,448,285 and a net contribution of $1,375,871 to this month's distribution.
General and administrative expenses, net of interest, were $470,271, including a $400,000 addition to the expense reserve. The Trustee also highlighted a non-binding SoftVest/Blackbeard Holdings term sheet for a potential business combination involving a new corporation (New PubCo), which would likely require approval by a majority in interest of unitholders under the recently modified Trust Indenture.
Positive
- July 2026 cash distribution $0.043566 per unit, $2.03M total
- $1,125,000 settlement payment from Blackbeard Operating boosted distributable cash
- Texas Royalty oil price averaged $99.90 per bbl in the period
- Texas Royalty Properties contributed $1,375,871 net to this month's distribution
Negative
- Waddell Ranch remained in excess cost status; no June proceeds to the Trust
- Texas Royalties oil volume fell to 13,842 bbl net from 14,577 bbl prior month
- Texas Royalties gas volume declined to 5,923 Mcf net from 6,972 Mcf prior month
- General and administrative expenses of $470,271, including a $400,000 reserve increase, reduced distributable cash
News Explained
The proposal could place Trust assets and operations in a new company jointly owned by current unitholders and Blackbeard affiliates, subject to approval.
The proposed business combination remains a preliminary, non-binding term sheet rather than a completed transaction; if pursued, New PubCo would acquire the Trust’s assets and operations and certain Blackbeard Holdings assets, changing the ownership structure for existing unitholders.
Under the proposed structure, New PubCo would be owned partly by Trust unitholders and partly by Blackbeard Holdings and its affiliates, which would also contribute US Land Guild assets and receive certain Trust working interests.
The term sheet further contemplates converting the Trust’s net profits interests into a cost-free 15% royalty interest associated with the West Ranch and East Ranch properties, with related working interests going to Blackbeard Holdings or its affiliates.
The next concrete resolution point would be any Form S-4 and proxy materials followed by a unitholder meeting; the Trustee says approval would likely require a majority in interest of unitholders constituting a quorum.
News Market Reaction – PBT
In the Jul 21 session, PBT gained 0.24%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jun 18 | Cash distribution | Negative | -1.7% | Distribution excluded Waddell Ranch proceeds because production costs exceeded gross proceeds. |
| May 19 | Business combination | Neutral | +1.5% | SoftVest disclosed a preliminary non-binding proposal involving Blackbeard assets and New PubCo. |
| May 18 | Cash distribution | Negative | +2.3% | Waddell Ranch generated no proceeds while Texas Royalty Properties funded the distribution. |
| May 8 | Indenture modification | Positive | +9.3% | Court ruling approved changes replacing the 75% approval requirement with majority voting. |
| May 06 | Hearing schedule | Neutral | -3.6% | Court hearing time was rescheduled to 9:30 a.m. Central Time. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent distribution announcements produced mixed 24-hour reactions, while the May 8 court ruling generated the strongest positive reaction in the selected history.
Key Terms
net profits interest financial
schedule 13d regulatory
form 10-q regulatory
form s-4 regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
This month's distribution increased compared to the previous month due primarily to the fourth settlement payment in the amount of
WADDELL RANCH
Information from Blackbeard Operating, LLC ("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 June 2026 to be included in the July 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 15,307 barrels of oil and 6,545 Mcf of gas. The production for the Trust's allocated portion of the Texas Royalty Properties was 13,842 barrels of oil and 5,923 Mcf of gas. The average price for oil was
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 | 15,307 | 6,545 | 13,842 | 5,923 | ||
Prior Month | ||||||
Waddell Ranch | (3) | (3) | (3) | (3) | (3) | (3) |
Texas Royalties | 16,174 | 7,743 | 14,577 | 6,972 | ||
(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
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.
SOFTVEST PROPOSAL
As previous disclosed, the Trustee has received a Schedule 13D ("Schedule 13D") filed with the Securities and Exchange Commission on May 18, 2026 by SoftVest, L.P. ("SoftVest"), a unitholder of the Trust, and certain other parties disclosing that SoftVest and Blackbeard Holdings, LLC ("Blackbeard Holdings") have agreed to a preliminary non-binding term sheet that sets forth the proposed high-level material terms and conditions governing a potential business combination of the Trust and certain Blackbeard Holdings assets. The Schedule 13D further states that the term sheet contemplates the formation of a new corporation ("New PubCo") that would be owned in part by Trust unitholders, and in part by Blackbeard Holdings and its affiliates that would acquire and own (i) all of the assets and operations of the Trust, and (ii) US Land Guild, LLC ("USLG"), a wholly owned subsidiary of Blackbeard Holdings that will own approximately 66,500 acres of surface estate and a
Neither the Trust, nor the Trustee participated or was involved in the negotiation of the term sheet relating to the proposed business combination described in the Schedule 13D, and is providing the information in this press release solely for informational purposes for Trust unitholders. Unitholders are encouraged to read the Schedule 13D in its entirety and other materials filed with the Securities and Exchange Commission by SoftVest (and when formed, the New PubCo) for additional information. The Trustee anticipates that the proposed business combination would require approval of Trust unitholders. Based on the recent modifications to the Trust's Indenture approved by a court on May 8, 2026, at SoftVest's request, such approval would likely require the approval of a majority in interest of Trust unitholders constituting a quorum at a meeting of unitholders where a quorum is present.
The 2025 Annual Report on Form 10-K/A, which includes the December 31, 2025, 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.
IMPORTANT ADDITIONAL INFORMATION AND WHERE TO FIND IT
This press release is not a proxy solicitation. None of the Trust, the Trustee, or the Trustee's officers or directors, are soliciting proxies in connection with any special meeting of Trust unitholders and are not participants in any solicitation of proxies by SoftVest and/or other unitholders in connection with any special meeting. The Trustee and the Trust are making this communication for informational purposes only and do not intend to file a proxy statement or registration statement with respect to the proposed business combination.
The Trustee anticipates that if the business combination is pursued, New PubCo, SoftVest, and/or other unitholders may file a registration statement on Form S-4, which will include a proxy statement relating to a meeting of Trust unitholders and a prospectus of New PubCo with the Securities and Exchange Commission. Unitholders and other investors are strongly encouraged to read the Form S-4, including the proxy statement/prospectus and any other documents filed with the Securities and Exchange Commission when they become available because they will contain important information. Unitholders may obtain a free copy of any Form S-4, proxy statement/prospectus, and any amendments and documents that New PubCo, SoftVest and/or any other unitholders or the Trust files with the SEC from the SEC's website at www.sec.gov.
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/A for the year ended December 31, 2025, and Part II, Item 1A, "Risk Factors" of subsequently filed Quarterly Reports on Form 10-Q as well as factors related to actions by SoftVest or other unitholders, New PubCo, Blackbeard Holdings, or other third parties, including courts, that are not within the control of the Trust or the Trustee.
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
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SOURCE Permian Basin Royalty Trust