PermRock Royalty Trust Announces Boaz Energy's Pending Sale to T2S Permian Acquisition II LLC
Rhea-AI Summary
PermRock Royalty Trust (NYSE:PRT) announced that Boaz Energy II, and its affiliate Boaz Energy II Royalty, have entered into a Purchase and Sale Agreement with T2S Permian Acquisition II on January 10, 2025. The agreement involves the sale of Boaz Energy's interests in the Underlying Properties, which will remain subject to the Trust's Net Profits Interest, and Boaz Energy's 4,884,861 Trust units.
The transaction is expected to close in March 2025, subject to customary closing conditions. Following the closing, T2S Permian Acquisition II will become the owner and operator of the Underlying Properties while maintaining the existing Net Profits Interest arrangement. Boaz Energy will assist in the operational transition, and Argent Trust Company will continue its regular administration of the Trust.
Positive
- Transaction maintains existing Net Profits Interest structure for Trust shareholders
- Operational continuity assured with Boaz Energy facilitating transition
- Trust administration will continue unchanged under Argent Trust Company
Negative
- Change in ownership and operation of underlying assets creates transition risk
- Concentration of ownership with T2S acquiring both properties and 4.88M trust units
News Market Reaction – PRT
On the day this news was published, PRT gained 5.22%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Boaz Energy informed the Trust that, pursuant to the Purchase and Sale Agreement, the Grantors will sell and convey to the Buyer all of (a) Boaz Energy's right, title and interest in and to the Underlying Properties (which shall remain burdened by the Net Profits Interest and subject to the Conveyance); and (b) Boaz Energy's 4,884,861 Trust units representing beneficial interests in the Trust (the "Boaz Trust Units").
Boaz Energy reports that the Purchase and Sale Agreement contains customary conditions to the parties' obligations to consummate the closing of the transaction (the "Closing"). If customary closing conditions are satisfied, the Closing is anticipated to occur in March 2025. From and after the Closing, the Buyer will own the Underlying Properties (burdened by the Trust's Net Profits Interest and subject to the Conveyance) and the Boaz Trust Units, and the Buyer (or an affiliate thereof) will become the operator of the Underlying Properties.
Boaz Energy reports that it will help facilitate the transfer of operations of the Underlying Properties from Boaz Energy to the Buyer. Argent Trust Company, as trustee of the Trust (the "Trustee"), expects to continue administration of the Trust in the ordinary course of business.
About PermRock Royalty Trust
PermRock Royalty Trust is a
Cautionary Statement Concerning Forward-Looking Statements
Certain statements contained in this press release constitute "forward-looking statements." These forward-looking statements represent the Trust's and Boaz Energy's expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements include the consummation of the transaction, the timing of Closing, the transition of operations of the Underlying Properties and processes in support of the administration of the Trust, and statements regarding Boaz Energy's operations and the sale of the Boaz Trust Units and the Underlying Properties to the Buyer.
Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, the Trust does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for the Trust to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in the Trust's Annual Report on Form 10-K filed with the SEC on April 1, 2024, and other public filings filed with the SEC. The risk factors and other factors noted in the Trust's public filings with the SEC could cause its actual results to differ materially from those contained in any forward-looking statement. The Trust's filed reports are or will be available over the Internet at the SEC's website at http://www.sec.gov.
Contact: | PermRock Royalty Trust |
Argent Trust Company, Trustee | |
Jana Egeler, Vice President, Trust Administrator | |
Toll-free: (855) 588-7839 | |
Fax: (214) 559-7010 | |
Website: www.permrock.com | |
e-mail: trustee@permrock.com |
View original content:https://www.prnewswire.com/news-releases/permrock-royalty-trust-announces-boaz-energys-pending-sale-to-t2s-permian-acquisition-ii-llc-302348585.html
SOURCE PermRock Royalty Trust
FAQ
When will T2S Permian complete the acquisition of Boaz Energy's PRT assets?
How many PRT trust units will T2S Permian acquire from Boaz Energy?
Will PRT's Net Profits Interest structure change after the T2S Permian acquisition?
Who will operate PRT's Underlying Properties after the acquisition?
