PERMIAN BASIN ROYALTY TRUST ANNOUNCES MAY CASH DISTRIBUTION, EXCESS COST POSITION ON WADDELL RANCH PROPERTIES, AND RESULTS OF HEARING

(Moderate)

(Neutral)

Rhea-AI Summary

Permian Basin Royalty Trust (NYSE:PBT) declared a May 2026 cash distribution of $0.020355 per unit, payable June 12, 2026, to holders of record on May 29, 2026.

No proceeds were received from the Waddell Ranch properties due to excess costs, while Texas Royalty Properties generated net profits of $1,050,825. After $49,516 of general and administrative expenses, total distributed cash was $948,767 across 46,608,796 units. A May 8, 2026 court ruling approved SoftVest’s requested amendments, lowering unitholder voting thresholds for Indenture changes.

Positive

Declared May 2026 cash distribution of $0.020355 per unit
Texas Royalty Properties net profit of $1,050,825 for April
Texas Royalty net contribution of $998,283 to May distribution
Higher oil volumes and improved oil and gas pricing at Texas Royalties

Negative

No Waddell Ranch proceeds due to continuing excess cost position
May distribution decreased versus April due to absence of $1,125,000 settlement payment
All Waddell Ranch excess costs and accrued interest must be recovered before future Trust proceeds

News Market Reaction – PBT

+2.34%

+2.34% Session close to close

In the May 18 session, PBT gained 2.34%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement details a May cash distribution of $0.020355 per unit funded solely by Texas Royal...

Analysis

This announcement details a May cash distribution of $0.020355 per unit funded solely by Texas Royalty Properties, with Waddell Ranch still in an excess cost position. Higher oil and gas prices and volumes supported revenues, but prior one-time settlement income was absent. The release also references court-approved changes to the Trust Indenture’s amendment provisions. Investors may watch future distributions, Texas Royalty production trends, and any updates on Waddell Ranch cost recovery and reporting cadence.

Key Figures

May distribution per unit: $0.020355 per unit Settlement payment: $1,125,000 Oil production (underlying): 15,079 barrels +5 more

8 metrics

May distribution per unit $0.020355 per unit Declared May 18, 2026; payable June 12, 2026

Settlement payment $1,125,000 Third settlement payment from Blackbeard included in April distribution

Oil production (underlying) 15,079 barrels Texas Royalty Properties underlying production for period referenced

Gas production (underlying) 8,081 Mcf Texas Royalty Properties underlying gas production for period referenced

Texas Royalties revenue $1,187,796 Revenues from Texas Royalty Properties underlying production for April

Net Profit Texas Royalties $1,050,825 After $136,971 taxes and expenses on Texas Royalty Properties

Trust NPI 95% Net profits interest in underlying Texas Royalty Properties

Distribution total $948,767 Distributed across 46,608,796 units for May 2026

Historical Context

5 past events · Latest: May 08 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 08	Indenture modification ruling	Neutral	+9.3%	Court approved SoftVest petition, lowering amendment voting thresholds for the Trust.
May 06	Hearing schedule update	Neutral	-3.6%	Trust disclosed time change for May 8 court hearing on SoftVest petition.
Apr 20	April cash distribution	Neutral	+2.7%	Announced April distribution funded by Texas Royalties and Blackbeard settlement.
Mar 20	March cash distribution	Neutral	-1.0%	Declared March distribution from Texas Royalties; Waddell remained in excess cost.
Feb 17	February cash distribution	Neutral	-1.4%	Announced February distribution; Waddell Ranch still in excess cost position.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent distribution and governance headlines have produced mixed one-day reactions, with both positive and negative moves and no clear directional pattern.

Recent Company History

Over the last few months, PBT news has focused on monthly cash distributions, excess cost issues at the Waddell Ranch properties, and SoftVest’s efforts to modify the Trust Indenture. Distributions in February, March, and April 2026 all excluded Waddell Ranch proceeds, relying on Texas Royalty Properties and settlement payments. Governance developments around the SoftVest petition culminated in a court-approved change to amendment voting thresholds on May 8, 2026. Today’s announcement continues these themes, combining a smaller May distribution with ongoing excess costs and reference to the completed hearing outcome.

Key Terms

net profits interest, excess cost position, form 10-q, form 10-k, +1 more

5 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.

excess cost position financial

"resulting in a continuing excess cost position for the Waddell Ranch properties"

An excess cost position is when an activity, product line, contract or project is incurring expenses that exceed the planned budget, reimbursement rate or internal cost target, creating an additional outlay the organization must cover. Investors care because it signals pressure on profit margins and cash flow—like regularly spending beyond your monthly allowance—so it can reduce earnings, force reserve use, prompt price or strategy changes, or require extra funding.

form 10-q regulatory

"information in the quarterly reports on Form 10-Q and annual reports on Form 10-K"

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

"information in the quarterly reports on Form 10-Q and annual reports on Form 10-K"

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.

mcf technical

"Production for the underlying Texas Royalty Properties was 15,079 barrels of oil and 8,081 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.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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05/18/2026 - 08:00 AM

DALLAS, May 18, 2026 /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 $0.020355 per unit, payable on June 12, 2026, to unit holders of record on May 29, 2026. 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 April, 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 third settlement payment in the amount of $1,125,000 being received from Blackbeard Operating LLC which was included in the April distribution. Texas Royalty Properties had higher oil volumes, along with higher oil and natural gas pricing, partially offset by lower natural gas volumes for the reporting period.

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 April 2026 to be included in the May 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 15,079 barrels of oil and 8,081 Mcf of gas. The production for the Trust's allocated portion of the Texas Royalty Properties was 13,399 barrels of oil and 7,181 Mcf of gas. The average price for oil was $73.83 per bbl and for gas was $9.23, which includes significant NGL pricing, per Mcf. This would mainly reflect production and pricing in February for oil and January 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 $1,187,796. Deducted from these revenues were taxes and expenses of $136,971 resulting in a Net Profit of $1,050,825 for April. With the Trust's NPI of 95% of the underlying properties, this would result in a net contribution by the Texas Royalty Properties of $998,283 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	15,079	8,081	13,399	7,181	$73.83	$9.23

Prior Month
Waddell Ranch	⁽³⁾	⁽³⁾	⁽³⁾	⁽³⁾	⁽³⁾	⁽³⁾
Texas Royalties	14,297	10,584	12,437	9,220	$59.33	$6.31

⁽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 $49,516 resulting in a distribution of $948,767 to 46,608,796 units outstanding, or $0.020355 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.

SOFTVEST HEARING
On May 8, 2026, a hearing (the "Hearing") was held before the 96th District Court of Tarrant County, Texas (the "Court") in connection with the Original Petition for Modification of Trust (the "Petition") filed by SoftVest, L.P. ("SoftVest"), a unitholder of the Trust, seeking judicial modification of the Trust's Indenture. At the Hearing, the Court approved SoftVest's requested modifications which (1) amended Section 8.03 of the Indenture to eliminate the requirement that certain amendments require approval by 75% of the outstanding units of the Trust, and (2) deleted Section 10.01 of the Indenture that sets forth certain prohibited amendments and replaced Article X of the Indenture with a provision permitting amendment of any provision of the Indenture by a vote of unitholders in accordance with Article VIII (which, as amended, will permit amendment by a majority in interest of unitholders constituting a quorum at a meeting of unitholders where a quorum is present).

The 2025 Annual Report with Form 10-K, 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.

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, 2025, 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-may-cash-distribution-excess-cost-position-on-waddell-ranch-properties-and-results-of-hearing-302772108.html

SOURCE Permian Basin Royalty Trust

FAQ

What is the May 2026 cash distribution for Permian Basin Royalty Trust (NYSE:PBT)?

Permian Basin Royalty Trust declared a May 2026 cash distribution of $0.020355 per unit. According to the Trust, the total cash distributed is $948,767 to 46,608,796 units, supported entirely by Texas Royalty Properties due to excess costs on Waddell Ranch properties.

When will Permian Basin Royalty Trust (PBT) pay the May 2026 distribution and who qualifies?

The May 2026 distribution will be paid on June 12, 2026, to unitholders of record on May 29, 2026. According to the Trust, holders of its units of beneficial interest on that record date are entitled to receive the $0.020355 per unit cash distribution.

Why did Permian Basin Royalty Trust’s (PBT) May 2026 distribution decline from April 2026?

The May 2026 distribution declined mainly because a prior settlement payment was absent. According to the Trust, April’s distribution included a $1,125,000 settlement payment from Blackbeard Operating, while May’s distribution reflects only Texas Royalty cash flow and no proceeds from Waddell Ranch properties.

What is the status of the Waddell Ranch excess cost position for Permian Basin Royalty Trust (PBT)?

Waddell Ranch remains in an excess cost position, providing no proceeds to the Trust for May. According to the Trust, all excess costs, including accrued interest, must be fully recovered from future Waddell Ranch proceeds before any net profits are again distributed to unitholders.

How did Texas Royalty Properties impact PBT’s May 2026 cash distribution?

Texas Royalty Properties generated all the net profits supporting PBT’s May 2026 distribution. According to the Trust, underlying revenues were $1,187,796, with $1,050,825 net profit, and $998,283 contributed to the Trust after applying the 95% net profits interest on these properties.

What did the May 8, 2026 SoftVest hearing change for Permian Basin Royalty Trust (PBT) unitholders?

The May 8, 2026 court hearing approved SoftVest’s requested Indenture amendments. According to the Trust, the Court removed the 75% approval requirement and now allows amendments by a majority in interest of unitholders present, in accordance with the revised Article VIII quorum provisions.

What recent production and pricing metrics did Permian Basin Royalty Trust (PBT) report for Texas Royalties?

Texas Royalty underlying production was 15,079 barrels of oil and 8,081 Mcf of gas. According to the Trust, allocated volumes to PBT were 13,399 oil barrels and 7,181 Mcf gas, with average realized prices of $73.83 per barrel of oil and $9.23 per Mcf of gas.