PERMIAN BASIN ROYALTY TRUST ANNOUNCES SEPTEMBER CASH DISTRIBUTION AND EXCESS COST POSITION ON WADDELL RANCH PROPERTIES
PBT’s September distribution rises on Texas Royalty profits while Waddell Ranch remains in an excess cost position and contributes no cash.
Rhea-AI Summary
Permian Basin Royalty Trust (PBT) declared a September 2026 cash distribution of $0.019593 per unit, or $913,228.22 in total, payable on October 15, 2026 to unitholders of record on September 30, 2026.
The distribution excludes Waddell Ranch properties because August Production Costs exceeded Gross Proceeds, leaving those properties in an excess cost position, so no NPI proceeds were available. The September payout is funded by Texas Royalty Properties, where underlying production was 15,042 barrels of oil and 5,439 Mcf of gas, with the Trust’s allocated 13,460 barrels and 4,868 Mcf sold at average prices of $83.20/bbl and $13.49/Mcf, generating $1,324,846 in revenue and $1,189,481 in net profit. After applying the 95% NPI, Texas Royalty contributed $1,130,007, from which $216,779 of net general and administrative expenses were deducted.
The release also outlines a previously disclosed SoftVest/Blackbeard business combination proposal to form New PBT, which will be decided by unitholder vote, with related SEC filings available for review.
Positive
- September cash distribution of $0.019593 per unit, totaling $913,228.22, declared for payment on October 15, 2026
- Texas Royalty revenues of $1,324,846 generated underlying net profit of $1,189,481 for August
- Texas Royalty contribution of $1,130,007 to the distribution after applying the Trust’s 95% net profits interest
- Natural gas pricing increased to $13.49 per Mcf versus $9.55 in the prior month
Negative
- Waddell Ranch properties remained in an excess cost position, providing no proceeds for the September distribution
- Oil volumes and gas volumes on Texas Royalty Properties declined versus the prior month (oil 15,042 vs 15,959 bbls; gas 5,439 vs 6,193 Mcf)
- Average oil price for Texas Royalty Properties fell to $83.20 per bbl from $93.10 per bbl in the prior month
- General and administrative expenses of $216,779 reduced distributable cash for the month
Key Figures
- Cash distribution per unit
- $0.019593 per unit
- September 2026 distribution
- Total cash distribution
- $913,228.22
- September 2026 distribution
- Units outstanding
- 46,608,796 units
- Units receiving the distribution
- Texas Royalty revenue
- $1,324,846
- August Texas Royalty Properties
- Texas Royalty net profit
- $1,189,481
- August Texas Royalty Properties
- Net contribution to distribution
- $1,130,007
- 95% NPI contribution from Texas Royalty Properties
- General and administrative expenses
- $216,779
- August, net of interest earned
- Texas Royalty production
- 15,042 barrels of oil and 5,439 Mcf of gas
- Underlying Texas Royalty Properties production
Historical Context
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Distribution declined while Waddell Ranch remained in an excess cost position
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Definitive combination agreement disclosed, subject to unitholder approval
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Distribution increased after settlement proceeds and higher Texas Royalty oil prices
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Texas Royalty Properties supplied the distribution while Waddell Ranch contributed no proceeds
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
net profits interest financial
excess cost position financial
rights offering financial
form 10-q regulatory
form s-4 regulatory
form s-1 regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
This month's distribution increased compared to the previous month due primarily a decrease in Trust expenses, partially offset by Texas Royalty Properties having lower oil and natural gas volumes and oil pricing, with natural gas pricing increasing.
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 August 2026 to be included in the September 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).
Production for the underlying Texas Royalty Properties was 15,042 barrels of oil and 5,439 Mcf of gas. The production for the Trust's allocated portion of the Texas Royalty Properties was 13,460 barrels of oil and 4,868 Mcf of gas. The average price for oil was
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Underlying Properties |
Net to Trust Sales |
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Volumes |
Volumes |
Average Price |
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Oil (bbls) |
Gas |
Oil |
Gas |
Oil |
Gas (per Mcf) (2) |
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Current Month |
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Waddell Ranch |
(3) |
(3) |
(3) |
(3) |
(3) |
(3) |
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Texas Royalties |
15,042 |
5,439 |
13,460 |
4,868 |
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Prior Month |
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Waddell Ranch |
(3) |
(3) |
(3) |
(3) |
(3) |
(3) |
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Texas Royalties |
15,959 |
6,193 |
14,405 |
5,581 |
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(1) |
These volumes are net to the Trust, after allocation of expenses to Trust's net profit interest, including any prior period adjustments. |
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(2) |
This pricing includes sales of gas liquid products. |
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(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 previously disclosed, the Trustee was notified by SoftVest, L.P. ("SoftVest"), a Unitholder of the Trust, that on July 28, 2026, SoftVest and certain of its affiliates entered into a definitive Combination Agreement with Blackbeard Holdings, LLC and certain of its affiliates ("Blackbeard Holdings") pursuant to which they propose to combine the assets of the Trust and certain oil and natural gas mineral interest and land operations owned by Blackbeard Holdings to create a new publicly traded corporation, PBT Land and Minerals, Inc. ("New PBT") (the "Business Combination"). Completion of the Business Combination is subject to a vote of Trust Unitholders. SoftVest and certain other unitholders representing in excess of
Neither the Trust, nor the Trustee is a party to the Combination Agreement, nor is the Trust or the Trustee soliciting proxies or participating in any offering of securities. The Trustee is not making any recommendation to Trust Unitholders as to how to vote with respect to the Business Combination or other proposals at the special meeting. Unitholders will be notified of the record date and meeting date for the special meeting at a later date.
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 New PBT, SoftVest and/or other unitholders in connection with any special meeting. The Trust and the Trustee are not making any offering of securities. 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.
New PBT has filed (i) a registration statement on Form S-4, which includes a proxy statement relating to a meeting of Trust unitholders and a prospectus of New PBT, and (ii) a Form S-1 registering securities of New PBT with respect to the rights offering with the Securities and Exchange Commission. Unitholders and other investors are strongly encouraged to read the Form S-4, including the proxy statement/prospectus, the Form S-1, any amendments to the Form S-4 and/or Form S-1, 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, Form S-1, and any amendments and documents that New PBT or SoftVest 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 PBT, 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
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
Why are there no Waddell Ranch proceeds in the September 2026 distribution?
No proceeds from the Waddell Ranch properties were included because, for August 2026, total Production Costs exceeded Gross Proceeds, resulting in a continuing excess cost position. All excess costs, including any accrued interest, must be recovered from future Waddell Ranch proceeds before any distributions from those properties can be made to the Trust.
How and when will production and cost data for the Waddell Ranch properties be reported?
Blackbeard Operating provides production, pricing and cost information for Waddell Ranch on a quarterly, rather than monthly, basis. The Trustee plans to disclose this information in the Trust’s quarterly reports on Form 10-Q and annual reports on Form 10-K, to the extent the data is received on a timely basis.
What were the key production and pricing metrics for the Texas Royalty Properties underlying this distribution?
Underlying Texas Royalty production was 15,042 barrels of oil and 5,439 Mcf of gas. The Trust’s allocated portion was 13,460 barrels of oil and 4,868 Mcf of gas. Average prices realized were $83.20 per barrel for oil and $13.49 per Mcf for gas, including significant NGL pricing.
What is the proposed SoftVest and Blackbeard business combination involving the Trust?
SoftVest and certain affiliates entered into a Combination Agreement with Blackbeard Holdings and its affiliates proposing to combine the Trust’s assets with certain oil and natural gas mineral interests and land operations of Blackbeard Holdings into a new publicly traded corporation, PBT Land and Minerals, Inc. (New PBT). Completion of this business combination is subject to a vote of Trust unitholders and related amendments to the Trust Indenture at a special meeting.
Is the Trustee recommending how unitholders should vote on the proposed business combination?
The Trustee is not a party to the Combination Agreement and is not soliciting proxies or participating in any securities offering related to the proposal. The Trustee states that it is not making any recommendation to Trust unitholders on how to vote regarding the business combination or other proposals at the special meeting.
Where can unitholders find more information about the proposed New PBT transaction and rights offering?
New PBT has filed a registration statement on Form S-4, which includes a proxy statement/prospectus for a meeting of Trust unitholders, and a Form S-1 registering securities for a rights offering. Unitholders and investors are encouraged to read the Form S-4, Form S-1, any amendments, and other related documents when available, which can be obtained for free from the SEC’s website at www.sec.gov.
Where can investors access PBT’s financial reports and reserve information?
The 2025 Annual Report on Form 10-K/A, including the December 31, 2025 Reserve Summary, has been filed with the SEC. The Trust’s cash distribution history, current and prior year financial reports, tax information booklets, and links to SEC filings are available at http://www.pbt-permian.com/. Printed reports can also be requested and will be mailed free of charge.