Permian Basin Royalty Trust Declares November Cash Distribution and Addresses Excess Cost Position

Permian Basin Royalty Trust, listed on the New York Stock Exchange under the symbol PBT, recently revealed crucial financial updates in their 8-K filing with the U.S. Securities and Exchange Commission on November 18, 2024.

The Trust, through its Trustee Argent Trust Company, announced a monthly cash distribution of $0.021733 per unit to its holders of beneficial interest. This distribution is scheduled to be paid on December 13, 2024, to unit holders of record on November 29, 2024. However, the distribution does not incorporate revenues from the Waddell Ranch properties for the current month or for October due to excess production costs surpassing gross proceeds for October.

The dip in this month’s distribution was largely attributed to the absence of proceeds from Blackbeard Operating, LLC for the Waddell Ranch properties, resulting from an excess cost position. Moreover, lower oil and gas volumes for the Texas Royalty Properties in conjunction with reduced oil prices were slightly offset by increased gas prices, influencing the distribution.

Regarding the Waddell Ranch properties, despite repeated requests by the Trustee to Blackbeard, the operator chose not to share essential information required to compute net profits interest proceeds for November 2024. Consequently, if these proceeds are received before the record date, they will be encompassed in the December distribution.

On a separate note, the filing outlined ongoing litigation between the Trustee and Blackbeard, revealing a lawsuit initiated on May 8, 2024. The lawsuit, filed in Tarrant County, Texas, seeks to recover over $25 million in damages from Blackbeard concerning overhead costs and certain deductions from royalty payments to the Trust.

Market conditions have continued to have an impact on domestic production pricing, which may influence future distributions. The Trust’s financial reports, including the 2023 Annual Report and Form 10-K, are accessible through Permian’s website, along with historical distribution data, tax booklets, and SEC filings.

Additionally, the Trustee issued cautionary statements concerning forward-looking expectations, emphasizing potential variations between anticipated and actual results based on factors outlined in their regulatory filings.

For further details, investors and interested parties can refer to the Permian Basin Royalty Trust website or contact Jana Egeler, Vice President at Argent Trust Company.

*Please note that the information provided in the article is solely derived from the official 8-K filing and accompanying Exhibit 99.1 of Permian Basin Royalty Trust dated November 18, 2024. Any future updates pertaining to the Trust’s operations were not presented in this report.*

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Permian Basin Royalty Trust’s 8K filing here.

About Permian Basin Royalty Trust

Permian Basin Royalty Trust, an express trust, holds royalty interests in various oil and gas properties in the United States. The company holds a 75% net overriding royalty interest in the Waddell Ranch properties, including Dune, Sand Hills (Judkins), Sand Hills (McKnight), Sand Hills (Tubb), University-Waddell (Devonian) and Waddell fields in Crane County, Texas.