Permian Basin Royalty Trust Declares Cash Distribution of $0.029986 per Unit

Strategic Insights -

The Permian Basin Royalty Trust has announced a cash distribution of $0.029986 per unit, payable on November 15, 2024, to unit holders of record on October 31, 2024. This distribution includes proceeds from September 2024, totaling $267,781, and reflects a decrease from the previous month due to lower oil volumes and prices for the Texas Royalty Properties. The Waddell Ranch properties' contribution to the distribution was significantly impacted by Blackbeard Operating, LLC's refusal to provide necessary information, resulting in the inclusion of the September proceeds in the October distribution.

Key Takeaways:

  • The Permian Basin Royalty Trust declared a cash distribution of $0.029986 per unit, payable on November 15, 2024, to unit holders of record on October 31, 2024.
  • The distribution includes proceeds from September 2024, totaling $267,781.
  • The Waddell Ranch properties' contribution to the distribution was significantly impacted by Blackbeard Operating, LLC's refusal to provide necessary information, resulting in the inclusion of the September proceeds in the October distribution.
  • The Texas Royalty Properties production for the current month was 17,969 barrels of oil and 7,932 Mcf of gas, with revenues of $1,466,585 and a net profit of $1,299,958 for October.
  • The Trust's Net Profit Interest (NPI) of 95% of the Underlying Properties resulted in a net contribution of $1,234,959 to this month's distribution.
  • The Trustee has initiated a lawsuit against Blackbeard Operating, LLC to recover more than $15 million in damages due to allegedly impermissible deductions from royalty payments to the Trust.
  • The parties are currently engaged in discovery, and the District Court of Tarrant County has set a preliminary trial date of April 21, 2025.

Statistics:

  • Distribution: $0.029986 per unit
  • Proceeds from September 2024: $267,781
  • Waddell Ranch properties' contribution to the distribution: includes September proceeds
  • Texas Royalty Properties production:

+ Oil: 17,969 barrels

+ Gas: 7,932 Mcf

+ Revenues: $1,466,585

+ Net profit for October: $1,299,958

  • Trust's Net Profit Interest (NPI): 95%
  • Trust's net contribution to this month's distribution: $1,234,959
  • Damages sought by the Trust in the lawsuit: over $15 million (original amount), over $25 million (amended amount)

Sources:

  • Permian Basin Royalty Trust, Press Release (no date provided)
  • Securities and Exchange Commission, Form 10-K (2023 Annual Report)