PERMIAN BASIN ROYALTY TRUST ANNOUNCES RESULTS OF SOFTVEST HEARING REQUESTING MODIFICATION OF TRUST INDENTURE

Permian Basin Royalty Trust (NYSE: PBT) announced a May 8, 2026 court ruling approving SoftVest's petition to modify the Trust indenture.

Rhea-AI Summary

Permian Basin Royalty Trust (NYSE: PBT) announced a May 8, 2026 court ruling approving SoftVest's petition to modify the Trust indenture.

The 96th District Court of Tarrant County approved amendments that remove the 75% approval requirement in Section 8.03 and delete Section 10.01, replacing Article X with a provision permitting amendments by a majority-in-interest vote at a properly constituted unitholder meeting.

Positive

• Eliminates the 75% supermajority approval requirement
• Permits amendment by a majority-in-interest at a quorum

Negative

• Reduces minority unitholder blocking power on indenture changes
• Broadens amendment scope by deleting Article X prohibitions

Argus May 11 session

+9.26% close to close Open Argus

Details

News Market Reaction – PBT

On May 11, the first trading day after this news, PBT closed 9.26% above the previous close.

Data tracked by StockTitan Argus for the May 11 session.

Market Context

On May 11, the first trading day after this news, the stock closed 9.3% above the previous close. A ...

Analysis

On May 11, the first trading day after this news, the stock closed 9.3% above the previous close. A strong positive reaction aligns with the significance of the court’s decision to approve SoftVest’s requested Indenture changes. The ruling removed the prior 75% approval requirement for certain amendments and allows changes by a majority in interest at a quorumed meeting, marking a clear governance shift. Investors reviewing past disclosures around the petition and distributions may focus on how this new voting structure interacts with existing cash‑flow dynamics and prior court‑related communications.

Key Figures

Court date: May 8, 2026 Approval threshold: 75% of outstanding units

Court date

May 8, 2026

Bench hearing date in 96th District Court for SoftVest petition

Approval threshold

75% of outstanding units

Previous requirement for certain Indenture amendments under Section 8.03

Historical Context

5 past events · Latest: May 06

5 events

1. May 06

   Hearing time change

   24h Move

   -3.6%

   Rescheduled May 8 bench hearing related to SoftVest’s petition to modify Indenture.

2. Apr 20

   Distribution update

   24h Move

   +2.7%

   April cash distribution disclosure plus Waddell excess cost status and SoftVest mailing.

3. Mar 20

   Distribution update

   24h Move

   -1.0%

   March distribution funded solely by Texas Royalty due to Waddell excess cost position.

4. Feb 17

   Distribution update

   24h Move

   -1.4%

   February distribution and notice of SoftVest petition and May 8 hearing schedule.

5. Jan 20

   Distribution and petition

   24h Move

   +0.8%

   January distribution plus disclosure that SoftVest filed petition to modify Indenture.

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

Key Terms

indenture, original petition for modification of trust, majority in interest, quorum

4 terms

indenture financial

"seeking judicial modification of the Trust's Indenture."

An indenture is a legal agreement between a company that borrows money by issuing bonds and the people who buy those bonds. It explains the rules the company must follow, like paying back the money and keeping certain financial promises. This document helps both sides understand their rights and responsibilities.

original petition for modification of trust regulatory

"in connection with the Original Petition for Modification of Trust (the "Petition")"

A petition filed with a court asking to change the written instructions of a trust—how assets are managed, who benefits, or when and how distributions are made. Think of it as asking a judge to rewrite a will’s operating rules; it matters to investors because such changes can alter who controls or receives company shares held in the trust, shift expected cash flows or tax outcomes, and introduce legal uncertainty or costs that can affect a company’s ownership and value.

majority in interest regulatory

"permit amendment by a majority in interest of unitholders constituting a quorum"

Majority in interest means holding more than half of the economic stake or voting power in an entity, such as a company, partnership, or fund. Investors with a majority interest can effectively decide major actions—like approving deals, changing leadership, or setting strategy—because they control the outcome when votes or profit distributions are based on ownership. Think of it like owning most slices of a pizza at a group dinner: whoever holds the most slices decides how the pizza is divided and eaten.

quorum regulatory

"a majority in interest of unitholders constituting a quorum at a meeting of unitholders"

A quorum is the minimum number of members needed to officially hold a meeting or make decisions. It ensures that decisions are made with enough participation to represent the group’s interests, much like a majority must be present for a vote to be valid. For investors, understanding quorum is important because it affects when and how important company or organization decisions can be legally made.

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DALLAS, May 8, 2026 /PRNewswire/ -- Argent Trust Company, as Trustee of the Permian Basin Royalty Trust (NYSE: PBT) ("Permian" or the "Trust"), today announced that a hearing was held on May 8, 2026, before the 96th District Court of Tarrant County, Texas 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).

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-results-of-softvest-hearing-requesting-modification-of-trust-indenture-302767302.html

SOURCE Permian Basin Royalty Trust

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did PBT announce about the May 8, 2026 SoftVest hearing?

The court approved SoftVest's requested indenture modifications on May 8, 2026. According to Argent Trust Company, the ruling amended voting thresholds and replaced Article X with a majority-in-interest amendment mechanism.

How does the PBT indenture voting threshold change affect unitholders?

The amendment removes the 75% approval requirement and allows majority-in-interest votes. According to Argent Trust Company, amendments can now pass by a majority-in-interest at a meeting where a quorum is present.

Which specific indenture provisions did the court modify for PBT (NYSE: PBT)?

The court amended Section 8.03 and deleted Section 10.01, replacing Article X. According to Argent Trust Company, these changes permit broader amendment authority by unitholder vote.

When and where was the PBT SoftVest modification hearing held?

The hearing occurred on May 8, 2026 before the 96th District Court of Tarrant County, Texas. According to Argent Trust Company, the court issued approval at that proceeding.

What immediate governance impact should PBT unitholders expect from the ruling?

Unitholders will face a lower threshold for indenture amendments going forward. According to Argent Trust Company, future changes may be approved by a majority-in-interest vote at a properly convened meeting.