PERMIAN BASIN ROYALTY TRUST ANNOUNCES MARCH CASH DISTRIBUTION, EXCESS COST POSITION ON WADDELL RANCH PROPERTIES AND UNITHOLDER MAILING BY SOFTVEST
MWN-AI** Summary
Permian Basin Royalty Trust (NYSE: PBT), managed by Argent Trust Company, recently announced a cash distribution of $0.010662 per unit for March 2026, payable on April 14, 2026, to unitholders recorded by March 31, 2026. This distribution reflects a decrease compared to the previous month due to lower oil and natural gas volumes from Texas Royalty Properties and reduced oil prices, although it was partially offset by increased natural gas pricing.
Importantly, this month's distribution does not include any proceeds from the Waddell Ranch properties, which reported that production costs exceeded gross proceeds for February, perpetuating a negative excess cost position. The management noted that information regarding the Waddell Ranch’s net profits interest is typically provided by its operator, Blackbeard, after the distribution announcement. Consequently, these profits will be incorporated into future distributions once the excess costs are recouped.
Texas Royalty Properties produced approximately 15,009 barrels of oil and 9,793 Mcf of gas, resulting in a net contribution of $744,660 from these properties to the latest distribution. The average prices for oil and gas were $56.56 per barrel and $6.02 per Mcf respectively.
Additionally, on February 10, 2026, SoftVest, a unitholder, circulated materials concerning a court petition seeking modifications to the Trust's indenture, aiming to alter approval requirements for amendments. A hearing is scheduled for May 8, 2026.
The Trust maintains an ongoing assessment of market conditions that could impact future distributions, and stakeholders are encouraged to stay informed through the Trust's website and SEC filings for updates and financial reports.
MWN-AI** Analysis
The recent announcement by Permian Basin Royalty Trust (NYSE: PBT) concerning its March cash distribution reveals crucial insights into its current operational standing and market dynamics. The Trust declared a cash distribution of $0.010662 per unit, reflecting a decrease attributed to lower oil and natural gas volumes alongside declining oil prices, despite a moderate uplift in natural gas prices. This highlights the volatility in energy markets, driven in part by global price fluctuations and regional production challenges.
Notably, the absence of proceeds from the Waddell Ranch properties contributes to a concerning excess cost position, indicating that production costs have surpassed gross proceeds. This situation necessitates careful monitoring for unitholders, as future distributions will hinge on subsequent positive cash flows from these properties, particularly with Blackbeard providing operational data on a quarterly basis rather than monthly. Investors should stay informed about the developments from Waddell Ranch, as any recovery in production will be integral to the Trust's financial health.
Moreover, the ongoing legal maneuvers by SoftVest seeking to modify the Trust's Indenture could dramatically change governance dynamics, potentially increasing the flexibility for decision-making among unitholders. Should these modifications be approved, it could enhance operational adaptability amid fluctuating market conditions.
For current and prospective investors, careful consideration is necessary. While the Trust's current yield may seem attractive, the uncertainty surrounding future distributions and operational profitability should foster a cautious approach. Long-term investors might want to keep a close watch on the outcomes of both production recovery at Waddell Ranch and the implications of SoftVest's petition, as these factors will likely shape the Trust's trajectory in the near to mid-term.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
PR Newswire
DALLAS, March 20, 2026 /PRNewswire/ -- 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 $0.010662 per unit, payable on April 14, 2026, to unit holders of record on March 31, 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 February, 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 Texas Royalty Properties having lower oil and natural gas volumes, along with lower oil pricing, partially offset by higher natural gas pricing.
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 February 2026 to be included in the March 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 15,009 barrels of oil and 9,793 Mcf of gas. The production for the Trust's allocated portion of the Texas Royalty Properties was 13,047 barrels of oil and 8,518 Mcf of gas. The average price for oil was $56.56 per bbl and for gas was $6.02, which includes significant NGL pricing, per Mcf. This would mainly reflect production and pricing in December for oil and November 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 $907,884. Deducted from these revenues were taxes and expenses of $124,031 resulting in a Net Profit of $783,853 for February. With the Trust's NPI of 95% of the underlying properties, this would result in a net contribution by the Texas Royalty Properties of $744,660 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 | 15,009 | 9,793 | 13,047 | 8,518 | $56.56 | $6.02 |
Prior Month | ||||||
Waddell Ranch | (3) | (3) | (3) | (3) | (3) | (3) |
Texas Royalties | 15,292 | 9,841 | 13,325 | 8,573 | $56.78 | $5.85 |
(1) These volumes are net to the Trust, after allocation of expenses to Trust's net profit interest, including any prior period adjustments. |
General and Administrative Expenses deducted for the month, net of interest earned were $247,710 resulting in a distribution of $496,950 to 46,608,796 units outstanding, or $0.010662 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.
UNITHOLDER MAILING FILED BY SOFTVEST
On or about February 10, 2026, SoftVest, L.P. ("SoftVest"), a unit holder of the Trust, mailed documents to holders of units of beneficial interest ("Unitholders") which included a cover letter, a Citation in the District Court of Tarrant County, Texas ("Citation"), the Original Petition for Modification of Trust (the "Petition") in the District Court of Tarrant County, Texas (Cause No. 96-373245-25) seeking judicial modification of the Trust's Indenture, and the Petitioner SoftVest, L.P.'s Notice of Bench Trial on Petitioner's Original Petition for Modification of Trust ("Notice of Bench Trial"), also collectively known as the "Unitholder Mailing". The Unitholder Mailing advises Unitholders of a hearing to be scheduled Friday, May 8, 2026, at 10:30 a.m. before the 96th District Court of Tarrant County, Tom Vandergriff Civil Courts Building, 4th Floor, 100 North Calhoun Street, Fort Worth, Texas 76196, on the merits of SoftVest's Petition pursuant to which it seeks to (1) amend 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) delete Section 10.01 of the Indenture that sets forth certain prohibited amendments and replace 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, would permit amendment by a majority in interest of unitholders constituting a quorum at a meeting of unitholders where a quorum is present).
The 2024 Annual Report with Form 10-K, which includes the December 31, 2024, 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, 2024, 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
SOURCE Permian Basin Royalty Trust
FAQ**
What factors contributed to the decrease in cash distribution for March from the Permian Basin Royalty Trust PBT, and how might these factors affect future distributions?
Can you elaborate on the implications of the excess cost position on the Waddell Ranch properties for the Permian Basin Royalty Trust PBT and its unitholders?
How might the proposed changes by SoftVest in the unitholder mailing impact the governance structure of the Permian Basin Royalty Trust PBT?
What steps is the Permian Basin Royalty Trust PBT taking to address the lower production volumes and pricing for oil and gas, as mentioned in the press release?
**MWN-AI FAQ is based on asking OpenAI questions about Permian Basin Royalty Trust (NYSE: PBT).
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