Permian Basin Royalty Trust (NYSE: PBT) details May payout, Waddell Ranch excess costs and SoftVest court-approved amendments

Rhea-AI Filing Summary

Permian Basin Royalty Trust declared a May cash distribution of $05 per unit, payable on June 12, 2026 to unitholders of record on May 29, 2026. The payout comes solely from Texas Royalty Properties because Waddell Ranch remained in an excess cost position in April, with production costs exceeding gross proceeds so no net profits interest proceeds were available for this distribution.

Texas Royalty Properties generated revenues of $1,187,796 from 15,079 barrels of oil and 8,081 Mcf of gas at average prices of $73.83 per barrel and $9.23 per Mcf, resulting in net profit of $1,050,825 and a net contribution of $998,283. After $49,516 of general and administrative expenses, the Trust will distribute $948,767 across 46,608,796 units. The filing also notes a court-approved SoftVest petition that lowers the unitholder approval threshold for amending the Trust Indenture from 75% of outstanding units to a majority in interest at a quorum meeting.

Positive

• None.

Negative

• Waddell Ranch remains in an excess cost position, with production costs exceeding gross proceeds in April, so it contributed no net profits interest proceeds to the May distribution and must first recover all excess costs and accrued interest before resuming payments.
• Trust Indenture amendments now require only a majority-in-interest vote at a quorum meeting, after the court-approved SoftVest petition eliminated the prior 75% outstanding-unit approval threshold and removed certain prohibited-amendment protections.

Insights

Royalty trust and income securities analyst

Distribution supported by Texas royalties, while Waddell Ranch stays in excess cost and governance becomes easier to amend.

Permian Basin Royalty Trust declared a May distribution of $05 per unit, funded by Texas Royalty Properties. Those properties produced 13,399 barrels of oil and 7,181 Mcf of gas net to the Trust, at average prices of $73.83 per barrel and $9.23 per Mcf, generating $1,187,796 in revenue.

After $136,971 of taxes and expenses, Texas Royalty Properties provided $1,050,825 of net profit and a $998,283 net contribution to the distribution. General and administrative expenses of $49,516 reduced the final cash distribution to $948,767 across 46,608,796 units. Waddell Ranch did not contribute because production costs exceeded gross proceeds, and all excess costs plus accrued interest must be recovered before future Waddell Ranch proceeds flow.

The SoftVest hearing outcome is structurally significant. The court approved amendments eliminating the 75% outstanding unit approval requirement for certain changes and replacing it with a standard that allows amendment of any Indenture provision by a majority in interest of unitholders, provided a quorum is present. Over time, this makes Indenture changes more feasible, and the Trust indicates Waddell Ranch production, pricing and cost data will continue to be disclosed only in quarterly and annual reports when timely received from the operator.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

May 2026 distribution per unit: $05 per unit Total May 2026 distribution: $948,767 Texas Royalty Properties revenues: $1,187,796 +5 more

8 metrics

May 2026 distribution per unit $05 per unit Declared payable June 12, 2026 to unitholders of record May 29, 2026

Total May 2026 distribution $948,767 Distributed to 46,608,796 units outstanding

Texas Royalty Properties revenues $1,187,796 From underlying production of 15,079 barrels of oil and 8,081 Mcf of gas

Texas Royalty Properties net profit $1,050,825 After $136,971 of taxes and expenses for April

Net contribution to distribution $998,283 Trust’s 95% net profits interest in Texas Royalty Properties

General and administrative expenses $49,516 Deducted for the month, net of interest earned

Prior settlement payment $1,125,000 Third settlement payment from Blackbeard Operating LLC included in April distribution

Average realized prices $73.83 per bbl oil; $9.23 per Mcf gas Texas Royalty Properties, reflecting mainly February oil and January gas production and pricing

Key Terms

excess cost position, net profits interest, units of beneficial interest, Original Petition for Modification of Trust, +1 more

5 terms

excess cost position financial

"The distribution does not include proceeds from the Waddell Ranch properties, as total production costs exceeded gross proceeds, resulting in a continuing excess cost position."

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.

net profits interest financial

"Information from Blackbeard ... necessary to calculate the net profits interest proceeds for a given month is received after the announcement date."

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.

units of beneficial interest financial

"declared a cash distribution to the holders of its units of beneficial interest of $05 per unit, payable on June 12, 2026"

Units of beneficial interest are pieces of ownership in a trust, fund, or pooled investment that give the holder a right to a share of the assets and income without holding the underlying property directly. Think of them as slices of a pie that entitle you to future slices of profit or distributions; investors care because these units determine how returns, risks, voting rights, and tax treatment are allocated and how easily you can buy or sell your stake.

Original Petition for Modification of Trust regulatory

"in connection with the Original Petition for Modification of Trust filed by SoftVest, L.P., a unitholder of the Trust"

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.

forward-looking statements regulatory

"Any statements in this press release about future events or conditions ... constitute forward-looking statements within the meaning of the safe harbor provisions."

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

Understanding 8-K Material Events →

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report: May 18, 2026

PERMIAN BASIN ROYALTY TRUST

(Exact name of Registrant as Specified in Its Charter)

Texas			1-8033	75-6280532
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
Argent Trust Company 3838 Oak Lawn Ave. Suite 1720
Dallas, Texas				75219
(Address of Principal Executive Offices)				(Zip Code)

Registrant’s Telephone Number, Including Area Code: 855 588-7839

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Units of Beneficial Interest		PBT		New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On May 18, 2026, the Registrant issued a press release announcing its monthly cash distribution to unitholders of record on May 29, 2026. The press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

This Report on Form 8-K is being furnished pursuant to Item 2.02, Results of Operations and Financial Condition. The information furnished is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, is not subject to the liabilities of that section and is not deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

Item 9.01 Financial Statements and Exhibits.

Exhibit No.		Description
99.1		Press Release dated May 18, 2026

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			PERMIAN BASIN ROYALTY TRUST
		By:	ARGENT TRUST COMPANY, TRUSTEE
		By:	/s/ Nancy Willis
Date: May 18, 2026			Nancy Willis Director of Royalty Trust Services

Exhibit 99.1

Permian Basin Royalty Trust

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

DALLAS, Texas, May 18, 2026 – 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

FAQ

What May 2026 cash distribution did Permian Basin Royalty Trust (PBT) declare?

Permian Basin Royalty Trust declared a May 2026 cash distribution of $05 per unit. It will be paid on June 12, 2026 to unitholders of record on May 29, 2026, and totals $948,767 across 46,608,796 units outstanding.

Did Waddell Ranch properties contribute to PBT’s May 2026 distribution?

Waddell Ranch properties did not contribute to the May 2026 distribution. For April, total production costs exceeded gross proceeds, creating a continuing excess cost position that must be fully recovered, including accrued interest, before any Waddell Ranch proceeds are distributed.

How did Texas Royalty Properties support PBT’s latest distribution?

Texas Royalty Properties generated $1,187,796 in revenues from 15,079 barrels of oil and 8,081 Mcf of gas. After $136,971 of taxes and expenses, they produced $1,050,825 of net profit, leading to a $998,283 net contribution to the Trust’s current distribution.

What governance changes did the SoftVest hearing approve for Permian Basin Royalty Trust?

The SoftVest hearing approved modifications to the Trust Indenture that removed the 75% outstanding-unit approval requirement for certain amendments. Any provision can now be amended by a majority in interest of unitholders at a properly constituted quorum meeting under the revised Article VIII framework.

How much was the prior Blackbeard settlement that affected PBT’s previous month distribution?

The prior month’s distribution included a third settlement payment of $1,125,000 from Blackbeard Operating LLC. That one-time amount boosted the earlier payout, so the current month’s distribution decreased primarily because that settlement payment was not repeated.

Where will investors find detailed Waddell Ranch production and cost data for PBT?

Detailed Waddell Ranch production, pricing and cost information will be disclosed in the Trust’s Form 10-Q quarterly reports and Form 10-K annual reports, for periods when the Trustee timely receives the operator’s quarterly data.

Filing Exhibits & Attachments

1 document

Press Releases

• EX-99.1 EX-99.1 62.0 KB