Permian Basin Royalty Trust : 2025 1st Quarter
PBT
Published on 05/29/2025 at 15:19
March 31, December 31,
2025 2024
Cash and short-term investments ............................................................
$ 1,948,624
$ 2,122,585
Net overriding royalty interests in producing oil and gas
properties (net of accumulated amortization of
$10,811,451 and $10,810,809 at March 31, 2025 and
December 31, 2024, respectively) ...................................................
163,765
164,407
TOTAL ASSETS.........................................................................................
$ 2,112,389
$ 2,286,992
Liabilities and Trust Corpus
Distribution payable to Unitholders...........................................................
$ 848,624
$ 1,022,585
Commitments and reserves for contingencies..........................................
1,100,000
1,100,000
Total liabilities..........................................................................................
1,948,624
2,122,585
Trust corpus - 46,608,796 Units of beneficial interest
authorized and outstanding .............................................................
163,765
164,407
TOTAL LIABILITIES AND TRUST CORPUS...................................................
$ 2,112,389
$ 2,286,992
Three Months Ended March 31,
2025
2024
Royalty income ........................................................................................
$ 3,054,697
$ 6,005,642
Interest income........................................................................................
16,523
39,048
3,071,220
6,044,690
General and administrative expenditures
(475,008)
(552,484)
Distributable income ................................................................................
$ 2,596,212
$ 5,492,206
Distributable income per Unit (46,608,796 Units) .....................................
$ 0.06
$ 0.12
Three Months Ended March 31, 2025 2024
Trust corpus, beginning of period ............................................................. $
164,407
$ 221,474
Amortization of net overriding royalty interests ........................................
(642)
(11,849)
Distributable income ................................................................................
2,596,212
5,492,206
Distributions declared ..............................................................................
(2,596,212)
(5,492,206)
Total Trust Corpus, end of period .............................................................. $
163,765
$ 209,625
Distributions per Unit ............................................................................... $
0.06
$ 0.12
Permian Basin Royalty Trust
Quarter Report
2025
1st
F
or the quarter ended March 31, 2025, royalty income received by the Trust amounted to
$3,054,697 compared to royalty income of
$6,005,642 during the first quarter of 2024. Due to Blackbeard refusing to provide the Trustee information necessary to calculate the net proceeds as of the NYSE notification date beginning May 2024, pricing information for the Waddell Ranch properties is for
December 2024, January and February 2025 (reflecting the period for which proceeds were distributed to Unitholders in the first quarter of 2025). For the Waddell Ranch properties, the average realized oil and gas prices were $68.83 per barrel (Bbl) and $1.66 per thousand cubic feet (Mcf), respectively for the three months ended February 28, 2025, compared to $73.08 and $2.01 for the three months ended March 31, 2024. For the Texas Royalty properties, the average realized oil and gas prices were $68.96 per Bbl and $8.61
per Mcf, respectively for the quarter ended March 31, 2025, compared to $75.17 per Bbl and $9.09 per Mcf, respectively for the quarter ended March 31, 2024.
The lower royalty income reported in the three months ended March 31, 2025, compared to the same time period in 2024 is attributable to a deficit position in the first quarter of 2025, resulting in no royalty income being received from the Waddell Ranch properties due to an excess in working interest costs during the first quarter of 2025. No deficit position existed during the first quarter of 2024, and royalty income was received from the Waddell Ranch properties during such period.
Blackbeard continues to refuse to provide information regarding monthly net proceeds in time for the monthly distribution announcement.
Interest income for the quarter ended March 31, 2025 was $16,523 compared to $39,048 during the first quarter of 2024. The decrease in interest income is primarily attributable to decreased amounts of funds available for investment. Total expenses during the first quarter of 2025 amounted to $475,008 compared to $552,484 during the first quarter of 2024. The decrease in total expenses can be primarily attributed to the timing of payment of expenses.
These transactions resulted in distributable income for the quarter ended March 31, 2025 of $2,596,212
or $0.06 per Unit outstanding of beneficial interest. Distributions of $0.020510, $0.017144 and $0.018047 per Unit were made to Unitholders of record as of January 31, 2025, February 28, 2025, and March 31, 2025, respectively. For the first quarter of 2024, distributable income was $5,492,206 or $0.12 per Unit outstanding of beneficial interest.
Notwithstanding requests from the Trustee to Blackbeard, the operator of the Waddell Ranch properties, Blackbeard has refused to provide the
Trustee information necessary to calculate the net proceeds as of the NYSE notification date beginning May 2024 such that royalty income for the Trust for the first quarter of the calendar year is associated with actual oil and gas production for October, November, and December 2024 for the Waddell Ranch properties from which "Royalties" were carved. Royalty income
for the Trust for the first quarter of the calendar year for the Texas Royalty properties is associated with actual oil and gas production from November 2024 through January 2025.
Beginning in May 2024, Blackbeard has also refused to provide production, product sales, capital expenditure, and development information for the Waddell Ranch properties from which the Trust's Royalties are carved for each distribution month, information Blackbeard has previously provided on a monthly basis since Argent Trust Company has become Trustee of the Trust. Blackbeard has opted to provide this information quarterly, approximately 30 days
after the end of each fiscal quarter. On April 30, 2025, Blackbeard provided the Trustee a quarterly statement showing the production volumes and computation of net proceeds to the Trust for each month of the quarter ended March 31, 2025. Oil and gas sales attributable to the Royalties and the properties from which the Royalties were carved are as follows:
FIRST QUARTER 2025 2024 2025 2024
Waddell Ranch Waddell Ranch Texas Royalty Texas Royalty
ROYALTIES:
Oil sales (Bbls)(1, 2) 627,801 561,977 43,340 44,978
Gas sales (Mcf) 3,406,586 3,204,233 26,449 21,818 PROPERTIES FROM WHICH THE ROYALTIES WERE CARVED: OIL:
Total oil sales (Bbls) 837,068
749,302
48,985
50,504
Average per day (Bbls) 9,301
8,234
544
549
Average price per Bbl $ 68.83
$ 73.08
$ 68.96
$ 75.17
GAS:
Total gas sales (Mcf) 4,542,114
4,272,312
29,913
24,453
Average per day (Mcf) 50,468
46,948
332
266
Average price per Mcf $ 1.66
$ 2.01
$ 8.61
$ 9.09
Production sales and the average pricing relate to the period December 2024 through February 2025 for Waddell Ranch.
Please refer to the "Results of Operations" discussion for more details.
For the Texas Royalty properties, the average realized price of oil decreased to $68.96 per Bbl in the first quarter of 2025, compared to $75.17 per Bbl in the first quarter of 2024 due to worldwide market variables.
The average realized price of gas (including natural gas liquids) for the Texas Royalty properties decreased from
$9.09 per Mcf in the first quarter of 2024 to $8.61 per Mcf in the first quarter of 2025 in part due to change in overall market variables.
Since the oil and gas sales attributable to the Royalties are based on an allocation formula that is dependent on such factors as price and cost (including capital expenditures), the production amounts in the Royalties section of the above table do not always provide a meaningful comparison. However, for the Texas Royalty properties, oil volumes slightly decreased and gas volumes increased from the underlying properties for the applicable period in 2025 compared to 2024, while for the Waddell Ranch properties, oil volumes and natural gas volumes (including plant products) increased for the applicable period in 2025 compared to 2024.
Blackbeard advised the Trustee that capital expenditures for drilling, remedial and maintenance activities on the Waddell Ranch properties during the first quarter of 2025 totaled $47.9 million (gross) as compared to $28.3 million (gross) for the first quarter of 2024. The three months ended March 31, 2025, for the Waddell Ranch properties includes October through December 2024 expenditures only. Blackbeard has not
provided updated 2025 capital expenditures budget information and has revoked its consent with respect to previously provided 2024 budget information.
Development information for the Waddell Ranch properties such as well completions, workovers, remedial activities, and plugging and abandonment, was not provided by Blackbeard. This information has previously been provided monthly since Argent Trust Company has become Trustee of the Trust until May 2024.
Blackbeard advised the Trustee that lease operating expenses and property taxes totaled $21.4 million (gross) for the first quarter of 2025, compared to $22.8 million (gross) for the same period in 2024 on the Waddell Ranch properties. The quarter ended March 31, 2025, for the Waddell Ranch properties includes October through December 2024 expenses only.
Disclaimer
Permian Basin Royalty Trust published this content on May 29, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 29, 2025 at 19:18 UTC.