PermRock Royalty Trust Announces Closing of Boaz Energy's Sale to T2S Permian Acquisition II LLC
Rhea-AI Summary
PermRock Royalty Trust (NYSE:PRT) announced the completion of a significant transaction where Boaz Energy II, and its affiliate Boaz Energy II Royalty, (the Grantors) have sold their interests in the Trust's underlying oil and gas properties to T2S Permian Acquisition II .
The sale, which was initiated through a Purchase and Sale Agreement on January 10, 2025, includes two main components: (1) the transfer of all Grantors' rights and interests in the underlying properties, which remain subject to the net profits interest and original Conveyance agreement from May 4, 2018, and (2) the sale of Boaz Energy's 4,884,861 Trust units to Ustx , a wholly-owned subsidiary of T2S Permian.
Boaz Energy will assist in transitioning operations to the new owner, while Argent Trust Company, the Trust's trustee, will continue normal administration of the Trust.
Positive
- Continuity of Trust operations maintained with existing net profits interest arrangements
- Smooth transition planned with previous operator's assistance
- No disruption to Trust administration
Negative
- Significant ownership change creating potential operational uncertainty
News Market Reaction – PRT
In the trading session that priced this news, PRT declined 0.70%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
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Under the Purchase and Sale and Agreement, (a) the Grantors sold and conveyed to the Buyer all of the Grantors' right, title and interest in and to the Underlying Properties (which shall remain burdened by the net profits interest and subject to the Conveyance of Net Profits Interest, dated May 4, 2018, by and among the Grantors, Simmons Bank (as trustee of the Trust, succeeded by Argent Trust Company) and Wilmington Trust, National Association); and (b) Boaz Energy sold and conveyed to Ustx LLC, a
Boaz Energy reports that it intends to 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 transition of operations of the Underlying Properties and processes in support of the administration of the Trust, and statements regarding Boaz Energy's or Buyer's operations of the Underlying Properties.
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 March 28, 2025, 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 |
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SOURCE PermRock Royalty Trust