[Permian Basin Royalty Trust Announces October Cash Distribution, Excess Cost Position on Waddell Ranch Properties and Notice of Special Meeting Called by SoftVest](index=1&type=section&id=Permian%20Basin%20Royalty%20Trust%20Announces%20October%20Cash%20Distribution%2C%20Excess%20Cost%20Position%20on%20Waddell%20Ranch%20Properties%20and%20Notice%20of%20Special%20Meeting%20Called%20by%20SoftVest) Permian Basin Royalty Trust announces October cash distribution, Waddell Ranch excess cost, and a special meeting called by SoftVest [October Cash Distribution and Property Performance](index=1&type=section&id=October%20Cash%20Distribution%20and%20Property%20Performance) The Trust announced an October cash distribution, which decreased due to a missing settlement payment, partially offset by improved Texas Royalty Properties performance, while Waddell Ranch remained in an excess cost position [Distribution Details](index=1&type=section&id=Distribution%20Details) Details of the October cash distribution per unit, payable date, and record date are provided October Cash Distribution Details | Metric | Value | | :----- | :---- | | Cash Distribution per Unit | $0.020021 | | Payable Date | November 17, 2025 | | Record Date | October 31, 2025 | [Factors Affecting Distribution](index=1&type=section&id=Factors%20Affecting%20Distribution) The distribution decreased due to the absence of a Blackbeard settlement payment, partially offset by improved Texas Royalty Properties volumes and natural gas prices - The distribution **decreased** compared to the previous month primarily due to the absence of the first settlement payment from Blackbeard Operating LLC. This decrease was partially offset by **higher oil and natural gas volumes and natural gas prices** from the Texas Royalty Properties, though oil prices were lower for the month reported[3](index=3&type=chunk) [Waddell Ranch Properties Update](index=1&type=section&id=Waddell%20Ranch%20Properties%20Update) Waddell Ranch properties continued in an excess cost position, yielding no proceeds for the October distribution, with operational data now reported quarterly - No proceeds were received by the Trustee in September 2025 for the October distribution from Waddell Ranch properties, as total production costs exceeded gross proceeds for August, resulting in a continuing **excess cost position**. All excess costs, including accrued interest, must be recovered before future proceeds are distributed to the Trust[2](index=2&type=chunk)[5](index=5&type=chunk) - Blackbeard Operating LLC provides production, pricing, and cost information for Waddell Ranch **quarterly instead of monthly**. Consequently, the Trustee will disclose this information in quarterly reports on Form 10-Q and annual reports on Form 10-K for the foreseeable future[5](index=5&type=chunk)[8](index=8&type=chunk) [Texas Royalty Properties Performance & General and Administrative Expenses](index=1&type=section&id=Texas%20Royalty%20Properties%20Performance%20%26%20General%20and%20Administrative%20Expenses) Texas Royalty Properties contributed positively with specific production and pricing, while general and administrative expenses were accounted for in the total distribution Texas Royalty Properties Production and Pricing (Current Month) | Metric | Underlying Properties | Net to Trust Sales | Average Price | | :----- | :-------------------- | :----------------- | :------------ | | **Oil** | | | | | Volumes (bbls) | 16,239 | 14,323 | $65.08 per bbl | | **Gas** | | | | | Volumes (Mcf) | 13,282 | 11,709 | $8.10 per Mcf | Texas Royalty Properties Financial Contribution (September) | Metric | Amount | | :----- | :----- | | Revenues | $1,164,303 | | Taxes and Expenses | $140,125 | | Net Profit | $1,024,178 | | Trust's NPI (95%) | $972,969 | General and Administrative Expenses & Total Distribution | Metric | Amount | | :----- | :----- | | G&A Expenses (net of interest) | $39,774 | | Total Distribution Amount | $933,195 | | Units Outstanding | 46,608,796 | | Distribution per Unit | $0.020021 | [Special Meeting Details](index=1&type=section&id=SPECIAL%20MEETING) A special meeting, requested by SoftVest Advisors, LLC, is scheduled for December 16, 2025, to vote on amending the Trust's Indenture regarding voting thresholds for amendments [Purpose and Logistics](index=1&type=section&id=Purpose%20and%20Logistics) SoftVest Advisors, LLC requested a special meeting on December 16, 2025, to vote on a proposal to judicially reform the Trust's Indenture regarding amendment voting thresholds - SoftVest Advisors, LLC, along with other unit holders collectively owning **over 15% of outstanding Units**, requested a special meeting to be held on **December 16, 2025**, with a record date of November 11, 2025[10](index=10&type=chunk) - The purpose of the Special Meeting is to present for a vote a proposal to effect the judicial reformation of the Trust's Indenture, aiming to provide that an affirmative vote of a **majority of Units cast** at a special meeting (with a quorum present) is sufficient to approve any amendment to the Trust Indenture[10](index=10&type=chunk) [Proxy Information](index=2&type=section&id=Proxy%20Information) This press release is not a proxy solicitation, and Unit holders are advised to review proxy statements filed by SoftVest with the SEC for important information - This press release is **not a proxy solicitation**. Neither the Trust, the Trustee, nor its officers or directors are soliciting proxies or participating in any proxy solicitation by SoftVest and/or other Unit holders in connection with the Special Meeting[11](index=11&type=chunk) - Unit holders are strongly encouraged to read the preliminary and definitive proxy statements filed by SoftVest and/or other Unit holders with the SEC, which will contain important information. These documents can be obtained free from the SEC's website at www.sec.gov[12](index=12&type=chunk) [Corporate Information and Disclosures](index=3&type=section&id=Corporate%20Information%20and%20Disclosures) The Trust's 2024 Annual Report is filed, investor resources are available online, and a forward-looking statements disclaimer is included, along with contact information [Investor Resources](index=3&type=section&id=Investor%20Resources) The 2024 Annual Report on Form 10-K has been filed, and additional investor resources are available on Permian's website - The **2024 Annual Report with Form 10-K**, including the December 31, 2024, Reserve Summary, has been filed with the Securities Exchange Commission. Permian's website (http://www.pbt-permian.com/) offers cash distribution history, current and prior year financial reports, tax information booklets, and links to SEC filings[13](index=13&type=chunk) [Forward-Looking Statements Disclaimer](index=3&type=section&id=FORWARD-LOOKING%20STATEMENTS) Statements about future events are forward-looking and subject to risks, with the Trustee disclaiming any obligation to update them - Statements about future events or conditions, identified by words like 'estimates,' 'believes,' 'anticipates,' 'plans,' 'expects,' 'will,' 'may,' and 'intends,' constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to factors described in the Trust's Form 10-K and 10-Q risk factors[14](index=14&type=chunk) - The Trustee's views on forward-looking statements are as of the date of the press release, and while subsequent events may cause views to change, the Trustee specifically **disclaims any obligation to update these statements** in the future. These statements should not be relied upon as representing the Trustee's views as of any date subsequent to the date of the release[15](index=15&type=chunk) [Contact Information](index=3&type=section&id=Contact%20Information) Contact details for Nancy Willis, Director of Royalty Trust Services at Argent Trust Company, are provided for inquiries - Contact: Nancy Willis, Director of Royalty Trust Services, Argent Trust Company, Trustee, Toll Free – **1.855.588.7839**[16](index=16&type=chunk)

Accessibility StatementSkip Navigation DALLAS, Oct. 21, 2025 /PRNewswire/ -- Å Argent Trust Company, as Trustee of the Permian Basin Royalty Trust (NYSE: PBT).("Permian" or the "Trust") todav declared a cash distribution to the holders of its units of beneficial interest of $0.020021 per unit, payable on November 17, 2025, to unit holders of record on October 31, 2025. The distribution does not include proceeds from the Waddell Ranch properties, as total production costs ("Production Costs") exceeded gross ...

Permian Basin Royalty Trust (NYSE:PBT) is among the most profitable oil stocks to buy now. During the second quarter, Avondale Wealth Management reduced its position in Permian Basin Royalty Trust (NYSE:PBT) by 74.1% following the sale of 21,500 shares. According to the latest disclosure with the SEC, the wealth management firm now owns 7,500 shares of the company’s stock, valued at $93,000. The company’s financials are a testament to its strong market position. While the market delivered year-to-date and ...

Core Viewpoint - Argent Trust Company, as Trustee of the Permian Basin Royalty Trust, declared a cash distribution of $0.115493 per unit, payable on October 15, 2025, which includes a settlement payment from Blackbeard Operating, LLC, but excludes proceeds from the Waddell Ranch properties due to excess production costs [1][2][10]. Distribution Details - The cash distribution increased from the previous month primarily due to the first settlement payment from Blackbeard Operating LLC, alongside higher natural gas volumes and oil prices from Texas Royalty Properties, despite lower oil volumes and natural gas pricing [2][8]. - The total distribution amount is $5,383,005, distributed among 46,608,796 units outstanding [8]. Waddell Ranch Properties - No proceeds were received from the Waddell Ranch properties for August 2025, leading to a continuing excess cost position that must be recovered before any future distributions can occur [4][10]. - Blackbeard provides production, pricing, and cost information quarterly, which will be disclosed in the Trust's quarterly and annual reports [4][7]. Texas Royalty Properties - Production for Texas Royalty Properties was 15,856 barrels of oil and 12,275 Mcf of gas, with the Trust's allocated portion being 13,944 barrels of oil and 10,800 Mcf of gas [5][6]. - The average price for oil was $65.76 per barrel and for gas was $6.65 per Mcf, resulting in revenues of $1,124,318 after deducting taxes and expenses [5][6]. Settlement with Blackbeard - The settlement agreement with Blackbeard includes a total payment of $9 million, with $4.5 million already paid and the remainder to be paid in quarterly installments of $1,125,000 during 2026 [11][12]. - The agreement also establishes overhead rates and allows Blackbeard to pass through certain charges, while the Trust retains the option for annual site audits [12]. Market Conditions - Worldwide market conditions continue to impact pricing for domestic production, making it challenging to predict future distributions [9].

Core Viewpoint - Argent Trust Company, as Trustee of the Permian Basin Royalty Trust, has reached a settlement with Blackbeard Operating, LLC regarding a lawsuit over royalty payments, resulting in a total payment of $9 million to the Trust [1][2]. Group 1: Settlement Details - Blackbeard will pay the Trust $9 million, with $4.5 million due within 30 days and the remaining $4.5 million paid in four quarterly installments of $1.125 million throughout 2026 [2]. - The settlement establishes an overhead rate for charges to the Trust and allows Blackbeard to pass through certain third-party charges, including salt water disposal and technical labor costs [3]. Group 2: Future Implications - The agreement prevents the Trust from making future claims for lost volumes due to ordinary line loss and allows for annual site audits at the Trust's expense [3]. - Blackbeard is required to provide agreed reporting to the Trustee moving forward, which aims to enhance predictability in future royalty payments [4].

Core Viewpoint - Argent Trust Company declared a cash distribution of $0.016418 per unit for the Permian Basin Royalty Trust, with the distribution date set for September 15, 2025, and record date on August 29, 2025. The distribution does not include proceeds from the Waddell Ranch properties due to production costs exceeding gross proceeds for July 2025 [1][4]. Distribution Summary - The current month's distribution increased compared to the previous month, primarily due to higher natural oil volumes from Texas Royalty Properties, although this was partially offset by lower natural gas volumes and decreased oil and gas pricing [2]. - The total production for Texas Royalty Properties was 16,672 barrels of oil and 9,952 Mcf of gas, with the Trust's allocated portion being 14,645 barrels of oil and 8,742 Mcf of gas. The average prices were $62.02 per barrel for oil and $7.53 per Mcf for gas, leading to revenues of $1,109,052 after deducting taxes and expenses [5][6]. Waddell Ranch Properties - Blackbeard Operating, LLC has not provided necessary information for calculating net profits interest (NPI) proceeds for August 2025, which affects the distribution. If NPI proceeds are received by the record date, they will be included in the September distribution [3][4]. - All excess costs from the Waddell Ranch properties must be recovered through future proceeds before any distributions can be made to the Trust. Blackbeard is now providing production, pricing, and cost information quarterly instead of monthly [4][8]. Legal Matters - The Trustee has filed a lawsuit against Blackbeard for over $9 million in damages, alleging improper calculations and deductions related to royalties owed to the Trust. The trial is scheduled for November 17, 2025 [10][11].

[FORM 10-Q General Information](index=1&type=section&id=FORM%2010-Q%20General%20Information) This section details the Permian Basin Royalty Trust's Form 10-Q filing for Q2 2025, covering its NYSE symbol (PBT) and filer status - Permian Basin Royalty Trust filed Form 10-Q for the quarterly period ended June 30, 2025[2](index=2&type=chunk) Units of Beneficial Interest Trading Information | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |---|---|---| | Units of Beneficial Interest | PBT | New York Stock Exchange | - The registrant is classified as a **non-accelerated filer** and a **smaller reporting company**[3](index=3&type=chunk) - Number of units of beneficial interest outstanding at August 13, 2025: **46,608,796**[3](index=3&type=chunk) [PART I - FINANCIAL INFORMATION](index=2&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This part contains the unaudited condensed interim financial statements, Trustee's Discussion and Analysis, and disclosures on market risk and controls - The condensed interim financial statements are unaudited and prepared on a **modified cash basis of accounting**, not in conformity with GAAP[5](index=5&type=chunk)[32](index=32&type=chunk) - Weaver and Tidwell, L.L.P. reviewed the financial statements and are not aware of any material modifications needed for conformity with the modified cash basis of accounting[6](index=6&type=chunk)[11](index=11&type=chunk) [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed interim financial statements for Q2 2025 and 2024, prepared on a modified cash basis, with the auditor's report [Report of Independent Registered Public Accounting Firm](index=3&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Weaver and Tidwell, L.L.P. reviewed the condensed interim financial statements for Q2 2025 and 2024, finding no material modifications required for conformity with the modified cash basis of accounting - Weaver and Tidwell, L.L.P. reviewed the condensed interim financial statements and found no material modifications needed for conformity with the modified cash basis of accounting[11](index=11&type=chunk) - The firm previously issued an unqualified opinion on the Trust's financial statements for the year ended December 31, 2024[13](index=13&type=chunk) [Condensed Interim Statements of Assets, Liabilities and Trust Corpus](index=4&type=section&id=Condensed%20Interim%20Statements%20of%20Assets,%20Liabilities%20and%20Trust%20Corpus) The statement shows the Trust's financial position as of June 30, 2025, and December 31, 2024, with total assets decreasing primarily due to reduced cash and short-term investments Condensed Interim Statements of Assets, Liabilities and Trust Corpus | ASSETS | June 30, 2025 (Unaudited) | December 31, 2024 | |---|---|---| | Cash and short-term investments | $1,704,817 | $2,122,585 | | Net overriding royalty interests | $163,122 | $164,407 | | **TOTAL ASSETS** | **$1,867,939** | **$2,286,992** | | LIABILITIES AND TRUST CORPUS | | | | Distribution payable to Unitholders | $604,817 | $1,022,585 | | Commitments and reserves for contingencies | $1,100,000 | $1,100,000 | | **Total Liabilities** | **$1,704,817** | **$2,122,585** | | Trust corpus | $163,122 | $164,407 | | **TOTAL LIABILITIES AND TRUST CORPUS** | **$1,867,939** | **$2,286,992** | - Total assets decreased by approximately **$419,053** from December 31, 2024, to June 30, 2025, mainly driven by a reduction in cash and short-term investments[17](index=17&type=chunk) [Condensed Interim Statements of Distributable Income (Unaudited)](index=5&type=section&id=Condensed%20Interim%20Statements%20of%20Distributable%20Income%20(Unaudited)) Distributable income significantly decreased for both the three and six months ended June 30, 2025, primarily due to a substantial drop in royalty income and increased general and administrative expenditures Distributable Income (Unaudited) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |---|---|---|---|---| | Royalty income | $3,089,889 | $8,803,389 | $6,144,586 | $14,809,031 | | Interest income | $15,751 | $29,106 | $32,274 | $68,153 | | Total Income | $3,105,640 | $8,832,495 | $6,176,860 | $14,877,184 | | General and administrative expenditures | $(708,385) | $(395,807) | $(1,183,393) | $(948,290) | | Distributable income | $2,397,255 | $8,436,688 | $4,993,467 | $13,928,894 | | Distributable income per Unit | $0.05 | $0.18 | $0.11 | $0.30 | - Royalty income for the three months ended June 30, 2025, decreased by **64.9% YoY to $3,089,889**, and for the six months, it decreased by **58.5% YoY to $6,144,586**[19](index=19&type=chunk)[20](index=20&type=chunk) - General and administrative expenditures increased by **79%** for the three months and **24.8%** for the six months ended June 30, 2025, primarily due to legal proceedings with Blackbeard[19](index=19&type=chunk)[20](index=20&type=chunk)[60](index=60&type=chunk)[73](index=73&type=chunk) [Condensed Interim Statements of Changes in Trust Corpus (Unaudited)](index=6&type=section&id=Condensed%20Interim%20Statements%20of%20Changes%20in%20Trust%20Corpus%20(Unaudited)) The Trust Corpus remained relatively stable, with distributable income being fully offset by distributions declared, and amortization of net overriding royalty interests also reducing the corpus Condensed Interim Statements of Changes in Trust Corpus (Unaudited) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |---|---|---|---|---| | Trust corpus, beginning of period | $163,765 | $209,625 | $164,407 | $221,474 | | Amortization of net overriding royalty interests | $(643) | $(12,000) | $(1,285) | $(23,849) | | Distributable income | $2,397,255 | $8,436,688 | $4,993,467 | $13,928,894 | | Distributions declared | $(2,397,255) | $(8,436,688) | $(4,993,467) | $(13,928,894) | | **Total Trust Corpus, end of period** | **$163,122** | **$197,625** | **$163,122** | **$197,625** | | Distributions per Unit | $0.05 | $0.18 | $0.11 | $0.30 | - Distributions declared for both periods exactly matched distributable income, indicating a **full payout policy**[22](index=22&type=chunk)[23](index=23&type=chunk) - Amortization of net overriding royalty interests significantly decreased from **$12,000 to $643** for the three months, and from **$23,849 to $1,285** for the six months, year-over-year[22](index=22&type=chunk)[23](index=23&type=chunk) [NOTES TO CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)](index=7&type=section&id=NOTES%20TO%20CONDENSED%20INTERIM%20FINANCIAL%20STATEMENTS%20(UNAUDITED)) These notes provide essential context for the financial statements, covering the Trust's structure, accounting methods, royalty income, excess costs, tax implications, commitments, trustee fees, and subsequent events [Note 1. TRUST ORGANIZATION AND PROVISIONS](index=7&type=section&id=Note%201.%20TRUST%20ORGANIZATION%20AND%20PROVISIONS) The Trust, established in 1980, holds significant net overriding royalty interests in Waddell Ranch and Texas Royalty properties, with Argent Trust Company serving as the passive Trustee - The Trust holds a **75% net overriding royalty** in Waddell Ranch properties and a **95% net overriding royalty** in Texas Royalty properties[25](index=25&type=chunk) - Argent Trust Company became the Trustee on December 30, 2022[29](index=29&type=chunk) - The Trust is **passive**, prohibited from engaging in business or commercial activity, and cannot acquire assets other than those initially conveyed[30](index=30&type=chunk) [Note 2. ACCOUNTING POLICIES](index=8&type=section&id=Note%202.%20ACCOUNTING%20POLICIES) The Trust's financial statements are prepared on a modified cash basis, differing from GAAP by not accruing revenues in the month of production, recording expenses when paid, and establishing cash reserves for contingencies - The Trust's financial statements are prepared on a **modified cash basis of accounting**, not GAAP, where revenues are not accrued in the month of production and expenses are recorded when paid[32](index=32&type=chunk) - Amortization of net overriding royalty interests is charged directly to trust corpus[32](index=32&type=chunk) - Royalty income for the Waddell Ranch properties was **not received** for the three and six months ended June 30, 2025, due to excess costs[37](index=37&type=chunk)[42](index=42&type=chunk) [Note 3. NET OVERRIDING ROYALTY INTERESTS AND DISTRIBUTION TO UNITHOLDERS](index=9&type=section&id=Note%203.%20NET%20OVERRIDING%20ROYALTY%20INTERESTS%20AND%20DISTRIBUTION%20TO%20UNITHOLDERS) Monthly distributions are determined by cash received from royalties minus liabilities and reserve increases, but Blackbeard's refusal to provide information has led to no royalty income from Waddell Ranch due to excess costs - Monthly Distribution Amounts are calculated based on cash received from royalties, reduced by liabilities paid and increases in cash reserves[39](index=39&type=chunk) - Blackbeard, operator of Waddell Ranch properties, has refused to provide information for net proceeds calculation since May 2024, impacting monthly distributions[41](index=41&type=chunk) - No royalty income was received from Blackbeard for the Waddell Ranch properties for the three and six months ended June 30, 2025, due to excess costs[42](index=42&type=chunk) [Note 4. EXCESS COSTS](index=9&type=section&id=Note%204.%20EXCESS%20COSTS) Excess costs from Waddell Ranch or Texas Royalty properties are recovered from future net proceeds of that specific conveyance, with Waddell Ranch properties remaining in a deficit position since October 2024 - Excess costs for Waddell Ranch properties or Texas Royalty properties are carried forward with accrued interest and recovered from future net proceeds of the respective conveyance[43](index=43&type=chunk) - Waddell Ranch properties have been in a **deficit position since October 2024**, not contributing to royalty income[43](index=43&type=chunk) Cumulative Excess Costs and Accrued Interest (Net to the Trust) | Metric | Amount (Net to the Trust) | |---|---| | Cumulative excess costs remaining at 12/31/2024 | $10,217,517 | | Net excess costs (recovery) for Q1 2025 | $10,438,707 | | Net excess costs (recovery) for Q2 2025 | $6,253,355 | | **Cumulative excess costs remaining at 6/30/2025** | **$26,909,579** | | Accrued interest at 6/30/25 | $883,907 | | **Total remaining to be recovered at 6/30/25** | **$27,793,486** | [Note 5. FEDERAL INCOME TAXES](index=9&type=section&id=Note%205.%20FEDERAL%20INCOME%20TAXES) The Trust is a grantor trust, not subject to federal income tax at the trust level, with Unitholders taxed directly on income, and the recently signed OBBBA includes significant federal income tax provisions - The Trust is taxed as a **grantor trust**, meaning Unitholders are considered to own the Trust's income and principal and are taxed directly[46](index=46&type=chunk) - The **One Big Beautiful Bill Act (OBBBA)**, signed July 4, 2025, includes significant federal income tax provisions, such as permanent extension of income tax rates and restoration of favorable business tax treatment, with multiple effective dates[47](index=47&type=chunk)[48](index=48&type=chunk) [Note 6. STATE TAX CONSIDERATIONS](index=10&type=section&id=Note%206.%20STATE%20TAX%20CONSIDERATIONS) All Trust revenues originate from Texas, which does not impose individual income tax, and the Trust is exempt from Texas franchise tax as a passive entity - All Trust revenues originate from Texas, which does not have an individual income tax[49](index=49&type=chunk) - The Trust is exempt from Texas franchise tax as a '**passive entity**' due to receiving over **90%** of its income from passive sources like mineral royalties[49](index=49&type=chunk) - Taxable Unitholders are required to include their share of Trust revenues in their own Texas franchise tax calculations[49](index=49&type=chunk) [Note 7. COMMITMENTS AND CONTINGENCIES](index=10&type=section&id=Note%207.%20COMMITMENTS%20AND%20CONTINGENCIES) Unfavorably resolved contingencies related to the Underlying Properties would reduce future royalty income and cash distributions, with the Trustee maintaining an expense reserve to cover obligations - Unfavorably resolved contingencies on Underlying Properties would reduce future royalty income and Unitholder distributions[51](index=51&type=chunk) - The Trustee maintains an expense reserve of **$1,100,000** to cover Trust obligations in case of insufficient royalty income[51](index=51&type=chunk) [Note 8. TRUSTEE FEES](index=10&type=section&id=Note%208.%20TRUSTEE%20FEES) Trustee fees decreased for both the three and six months ended June 30, 2025, compared to the same periods in 2024 Trustee Fees | Period | 2025 | 2024 | |---|---|---| | Three Months Ended June 30 | $29,136 | $35,922 | | Six Months Ended June 30 | $60,501 | $68,549 | - Trustee fees decreased by **18.89%** for the three months and **11.67%** for the six months ended June 30, 2025, compared to 2024[52](index=52&type=chunk) [Note 9. SUBSEQUENT EVENTS](index=10&type=section&id=Note%209.%20SUBSEQUENT%20EVENTS) Subsequent to June 30, 2025, the Trust declared a distribution of $0.015311 per Unit, payable on August 14, 2025 - On July 21, 2025, the Trust declared a distribution of **$0.015311 per Unit**, payable August 14, 2025[53](index=53&type=chunk) [Item 2. Trustee's Discussion and Analysis](index=11&type=section&id=Item%202.%20Trustee's%20Discussion%20and%20Analysis) This section provides management's discussion and analysis of the Trust's financial condition and results of operations, covering forward-looking statements, commodity prices, liquidity, and a detailed comparison of results [Forward Looking Information](index=11&type=section&id=Forward%20Looking%20Information) The report contains forward-looking statements regarding capital expenditures, drilling, production, hydrocarbon prices, litigation, and regulatory matters, which are subject to numerous risks and uncertainties beyond the Trustee's control - Forward-looking statements in the report cover capital expenditures, drilling, production, hydrocarbon prices, litigation, and regulatory matters[54](index=54&type=chunk) - Expectations are subject to numerous risks and uncertainties, including oil and gas prices, recoverability of reserves, economic conditions, and geopolitical factors[54](index=54&type=chunk) [Commodity Prices](index=11&type=section&id=Commodity%20Prices) The Trust's income and distributions are highly sensitive to volatile commodity prices, influenced by supply/demand, market uncertainty, and geopolitical events, with declining prices reducing distributable income and operator activity - Trust income and distributions are heavily influenced by **volatile commodity prices**, which fluctuate due to supply/demand, market uncertainty, and geopolitical conditions[55](index=55&type=chunk) - Oil prices hit a high of **$79.28 per barrel** on January 17, 2025, and decreased to **$67.81 per barrel** by July 28, 2025[55](index=55&type=chunk) - Declining crude oil and natural gas prices reduce distributable income and may lead to decreased exploration and development activity by operators[56](index=56&type=chunk) [Liquidity and Capital Resources](index=11&type=section&id=Liquidity%20and%20Capital%20Resources) The Trust is a passive entity with no control over property operations, and its liquidity is limited to royalties and the ability to periodically borrow funds to cover expenses - The Trust is a **passive entity** with no control over the operation of its underlying properties[57](index=57&type=chunk) - The Trust's only sources of liquidity are royalties and the ability to periodically borrow money to pay expenses, liabilities, and obligations[58](index=58&type=chunk) [Results of Operations - Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024](index=12&type=section&id=Results%20of%20Operations%20-%20Three%20Months%20Ended%20June%2030,%202025%20Compared%20to%20Three%20Months%20Ended%20June%2030,%202024) Royalty income for Q2 2025 significantly decreased due to Waddell Ranch properties contributing no royalty income and Blackbeard's refusal to provide timely information, while general and administrative expenses increased, leading to a substantial drop in distributable income per unit Key Financials (Three Months Ended June 30) | Metric | 2025 | 2024 | Change (%) | |---|---|---|---| | Royalty income | $3,089,889 | $8,803,389 | -64.9% | | Interest income | $15,751 | $29,106 | -45.9% | | Total expenses | $708,385 | $395,807 | +79.0% | | Distributable income | $2,397,255 | $8,436,688 | -71.6% | | Distributable income per Unit | $0.05 | $0.18 | -72.2% | - The decrease in royalty income is primarily due to a **deficit position in Waddell Ranch properties**, resulting in no royalty income from them in Q2 2025, unlike Q2 2024[59](index=59&type=chunk) - Blackbeard's refusal to provide timely information for Waddell Ranch properties has impacted the calculation and distribution of royalty income[59](index=59&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk) [Results of Operations - Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024](index=14&type=section&id=Results%20of%20Operations%20-%20Six%20Months%20Ended%20June%2030,%202025%20Compared%20to%20Six%20Months%20Ended%20June%2030,%202024) For the six months ended June 30, 2025, royalty income significantly decreased due to Waddell Ranch properties being in a deficit position and Blackbeard's failure to provide timely information, leading to a substantial drop in distributable income per unit Key Financials (Six Months Ended June 30) | Metric | 2025 | 2024 | Change (%) | |---|---|---|---| | Royalty income | $6,144,586 | $14,809,031 | -58.5% | | Interest income | $32,274 | $68,153 | -52.7% | | Total expenses | $1,183,393 | $948,290 | +24.8% | | Distributable income | $4,993,467 | $13,928,894 | -64.2% | | Distributable income per Unit | $0.11 | $0.30 | -63.3% | - The decrease in royalty income is primarily due to the Waddell Ranch properties being in a **deficit position** for the first six months of 2025, unlike the prior year[72](index=72&type=chunk) - Increased total expenses are primarily attributed to professional services associated with legal proceedings against Blackbeard[73](index=73&type=chunk) [Pricing and Production Discussion](index=13&type=section&id=Pricing%20and%20Production%20Discussion) Average realized oil prices decreased for both Waddell Ranch and Texas Royalty properties, while gas prices generally increased, and Blackbeard's refusal to provide timely production and capital expenditure data for Waddell Ranch continues to hinder reporting Average Realized Prices (Waddell Ranch Properties) | Commodity | Period | 2025 (Avg Price) | 2024 (Avg Price) | Change | |---|---|---|---|---| | Oil (per Bbl) | Q2 Production (Jan-Mar) | $70.27 | $73.40 (Feb-Mar) | -4.27% | | Gas (per Mcf) | Q2 Production (Jan-Mar) | $2.41 | $1.83 (Feb-Mar) | +31.69% | Average Realized Prices (Texas Royalty Properties) | Commodity | Period | 2025 (Avg Price) | 2024 (Avg Price) | Change | |---|---|---|---|---| | Oil (per Bbl) | Q2 | $68.61 | $78.00 | -12.04% | | Gas (per Mcf) | Q2 | $10.15 | $10.04 | +1.10% | - Blackbeard has refused to provide monthly production, product sales, capital expenditure, and development information for the Waddell Ranch properties since May 2024, now providing it quarterly[63](index=63&type=chunk)[76](index=76&type=chunk) [Blackbeard Capital Expense Discussion](index=13&type=section&id=Blackbeard%20Capital%20Expense%20Discussion) Capital expenditures for Waddell Ranch properties significantly increased in Q2 2025 and for the six months ended June 30, 2025, while Blackbeard has not provided an updated 2025 capital expenditures budget or development information Waddell Ranch Properties Capital Expenditures (Gross) | Period | 2025 | 2024 | Change (%) | |---|---|---|---| | Three Months Ended June 30 | $61.3 million | $15.6 million | +292.9% | | Six Months Ended June 30 | $109.2 million | $43.9 million | +148.7% | - Blackbeard has not provided an updated 2025 capital expenditures budget or development information for the Waddell Ranch properties[68](index=68&type=chunk)[69](index=69&type=chunk)[82](index=82&type=chunk) - Lease operating expenses and property taxes for Waddell Ranch properties increased to **$19.8 million (gross)** in Q2 2025 from **$14.7 million (gross)** in Q2 2024, and to **$41.2 million (gross)** for the six months ended June 30, 2025, from **$37.5 million (gross)** in 2024[71](index=71&type=chunk)[83](index=83&type=chunk) [Calculation of Royalty Income](index=15&type=section&id=Calculation%20of%20Royalty%20Income) Royalty income is calculated as a percentage of net profit from property operations, with Waddell Ranch properties showing a net loss in Q2 2025, resulting in no contribution to distributable income, while Texas Royalty properties contributed positively - Royalty income is computed as **75% of net profit** for Waddell Ranch properties and **95%** for Texas Royalty properties[84](index=84&type=chunk)[85](index=85&type=chunk) Royalty Income Calculation (Three Months Ended June 30, 2025) | Metric | Waddell Ranch Properties | Texas Royalty Properties | |---|---|---| | Gross proceeds of sales | $83,693,355 | $3,673,127 | | Less: Severance tax, Gathering & Transportation, Lease operating expense & property tax, Capital expenditures | $92,644,852 | $420,612 | | Net profits | $(8,951,497) | $3,252,515 | | Net overriding royalty interests | 75% | 95% | | Royalty income | $(6,713,623) | $3,089,889 | | *Note: Waddell Ranch properties did not contribute to royalty income due to an NPI deficit.* | | | [Critical Accounting Policies and Estimates](index=16&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) There have been no significant changes to the Trust's critical accounting policies or estimates during the six months ended June 30, 2025 - No significant changes to critical accounting policies and estimates occurred during the six months ended June 30, 2025[86](index=86&type=chunk) [Distributable Income Per Unit](index=16&type=section&id=Distributable%20Income%20Per%20Unit) Basic distributable income per Unit is calculated by dividing distributable income by the weighted average of Units outstanding, with basic and diluted figures being identical due to no equivalent Units outstanding - Basic distributable income per Unit is calculated by dividing distributable income by the weighted average of Units outstanding[87](index=87&type=chunk) - Basic and diluted distributable income per Unit are identical as there were no equivalent Units outstanding[87](index=87&type=chunk) [New Accounting Pronouncements](index=16&type=section&id=New%20Accounting%20Pronouncements) There are no new accounting pronouncements expected to have a significant impact on the Trust's financial statements - No new accounting pronouncements are expected to significantly impact the Trust's financial statements[88](index=88&type=chunk) [Item 3. Qualitative and Quantitative Disclosures About Market Risk](index=16&type=section&id=Item%203.%20Qualitative%20and%20Quantitative%20Disclosures%20About%20Market%20Risk) As a passive entity, the Trust's market risk exposure is minimal, with no material interest rate risk, foreign currency transactions, derivative financial instruments, or long-term debt - The Trust is a **passive entity** with minimal market risk exposure[89](index=89&type=chunk) - The Trust is not subject to material interest rate risk due to the short-term nature of its borrowings and investments[89](index=89&type=chunk) - The Trust does not engage in foreign currency transactions, derivative financial instruments, or have foreign operations or long-term debt[89](index=89&type=chunk) [Item 4. Controls and Procedures](index=16&type=section&id=Item%204.%20Controls%20and%20Procedures) The Trustee concluded that the Trust's disclosure controls and procedures are effective as of June 30, 2025, with no material changes to internal control over financial reporting during the period - The Trustee concluded that the Trust's disclosure controls and procedures are **effective** as of June 30, 2025, based on the 2013 COSO Framework[90](index=90&type=chunk)[91](index=91&type=chunk) - The evaluation relied on information provided by Blackbeard and Riverhill Energy Corporation[91](index=91&type=chunk) - No material changes to the Trust's internal control over financial reporting occurred during the reporting period[92](index=92&type=chunk) [PART II - OTHER INFORMATION](index=18&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This section details other relevant information not covered in the financial statements, including ongoing legal proceedings, risk factors, and a list of exhibits [Item 1. Legal Proceedings](index=18&type=section&id=Item%201.%20Legal%20Proceedings) The Trustee filed a Second Amended Petition in a lawsuit against Blackbeard, operator of Waddell Ranch properties, seeking over $9 million in damages for alleged improper royalty calculations and failure to pay - The Trustee filed a Second Amended Petition in a lawsuit against Blackbeard, operator of Waddell Ranch properties, seeking over **$9 million in damages**[94](index=94&type=chunk)[95](index=95&type=chunk) - Allegations include improper calculation and deduction of overhead, labor, and saltwater disposal fees, and failure to pay on all produced volumes from April 2020 to December 2023[95](index=95&type=chunk) - The trial date is scheduled for **November 17, 2025**, in the District Court of Tarrant County, Texas[94](index=94&type=chunk) [Item 1A. Risk Factors](index=18&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the Trust's risk factors have occurred during the six months ended June 30, 2025, beyond those already disclosed in the annual report - No material changes to the Trust's risk factors have occurred during the six months ended June 30, 2025[97](index=97&type=chunk) [Item 5. Other Information](index=18&type=section&id=Item%205.%20Other%20Information) The Trust does not have directors or officers, and therefore, no Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted or terminated by such persons - The Trust has no directors or officers, thus no Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted or terminated[99](index=99&type=chunk) [Item 6. Exhibits](index=19&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the Amended and Restated Royalty Trust Indenture, its amendment, Net Overriding Royalty Conveyances, and certifications under the Sarbanes-Oxley Act - Exhibits include the Permian Basin Amended and Restated Royalty Trust Indenture and its amendment, Net Overriding Royalty Conveyances, and certifications under Sections 302 and 906 of the Sarbanes-Oxley Act[102](index=102&type=chunk) [SIGNATURES](index=20&type=section&id=SIGNATURES) The report is signed on behalf of Permian Basin Royalty Trust by Jana Egeler, Vice President of Argent Trust Company, as Trustee, on August 13, 2025 - The report was signed by Jana Egeler, Vice President of Argent Trust Company, as Trustee for Permian Basin Royalty Trust, on August 13, 2025[104](index=104&type=chunk) - The Trust has no directors or executive officers[104](index=104&type=chunk)

[Distribution Announcement and Key Updates](index=1&type=section&id=Distribution%20Announcement%20and%20Key%20Updates) Permian Basin Royalty Trust announces July cash distribution details, Waddell Ranch reporting changes, and Texas Royalty Properties performance [July Cash Distribution Details](index=1&type=section&id=July%20Cash%20Distribution%20Details) The Trust declared a **$0.015311 per unit** cash distribution for July, payable August 14, 2025, primarily due to Texas Royalty Properties' natural gas performance - Cash distribution declared: **$0.015311 per unit**[2](index=2&type=chunk)[9](index=9&type=chunk) - Distribution payable on August 14, 2025, to unit holders of record on July 31, 2025[2](index=2&type=chunk) - Distribution increased compared to the previous month due to higher natural gas volumes and pricing from Texas Royalty Properties, partially offset by lower oil volumes[3](index=3&type=chunk) - Waddell Ranch properties did not contribute to the distribution due to total production costs exceeding gross proceeds, resulting in a continuing excess cost position[2](index=2&type=chunk) [Waddell Ranch Properties Update](index=1&type=section&id=Waddell%20Ranch%20Properties%20Update) Blackbeard Operating's refusal to provide NPI data resulted in no Waddell Ranch proceeds for July, prompting the Trustee to shift to quarterly reporting [Information Disclosure Issues](index=1&type=section&id=Information%20Disclosure%20Issues) Blackbeard Operating, LLC refused to provide the Trustee with necessary NPI proceeds information for July 2025, leading to its exclusion from the distribution - Blackbeard Operating, LLC refused to provide NPI proceeds information for July 2025[4](index=4&type=chunk) - As a result, NPI proceeds from Waddell Ranch were not included in the July distribution[4](index=4&type=chunk) - If NPI proceeds are received on or prior to the record date, they will be included in the August distribution[4](index=4&type=chunk) [Financial Impact and Reporting Changes](index=1&type=section&id=Financial%20Impact%20and%20Reporting%20Changes) No proceeds were received from Waddell Ranch for the July distribution due to an excess cost position, leading to a change in the Trustee's reporting frequency - No proceeds were received from Waddell Ranch for the July distribution due to an excess cost position[5](index=5&type=chunk) - All excess costs, including accrued interest, must be recovered by future proceeds before any distributions to the Trust[5](index=5&type=chunk) - The Trustee will provide Waddell Ranch production, pricing, and cost information quarterly in Form 10-Q and 10-K reports, instead of monthly, due to Blackbeard's reporting frequency change[5](index=5&type=chunk)[8](index=8&type=chunk) [Texas Royalty Properties Performance](index=1&type=section&id=Texas%20Royalty%20Properties%20Performance) Texas Royalty Properties generated **$949,109** in Net Profit for July, contributing **$901,654** to the distribution after taxes and expenses - Net Profit for Texas Royalty Properties in July: **$949,109**[6](index=6&type=chunk) - Net contribution by Texas Royalty Properties to this month's distribution: **$901,654** (based on 95% NPI)[6](index=6&type=chunk) Texas Royalty Properties Production and Pricing (Net to Trust) | Metric | Current Month (April/March) | Prior Month | | :---------------- | :-------------------------- | :---------- | | Oil Volumes (bbls) | 12,190 | 14,430 | | Gas Volumes (Mcf) | 10,109 | 8,278 | | Oil Average Price (per bbl) | $68.37 | $65.46 | | Gas Average Price (per Mcf) | $11.75 | $9.48 | - Revenues for Texas Royalty Properties: **$1,085,196**[6](index=6&type=chunk) - Taxes and expenses deducted from revenues: **$136,087**[6](index=6&type=chunk) [Financial Summary of Distribution](index=1&type=section&id=Financial%20Summary%20of%20Distribution) After deducting General and Administrative Expenses, the total distribution amounted to **$713,634**, resulting in **$0.015311 per unit** for 46,608,796 units outstanding - General and Administrative Expenses (net of interest earned): **$188,020**[9](index=9&type=chunk) - Total distribution amount: **$713,634**[9](index=9&type=chunk) - Units outstanding: **46,608,796**[9](index=9&type=chunk) - Distribution per unit: **$0.015311**[9](index=9&type=chunk) - Worldwide market conditions continue to affect pricing for domestic production, making future distributions difficult to predict[9](index=9&type=chunk) [Trust Litigation](index=1&type=section&id=Trust%20Litigation) The Trustee has filed a Second Amended Petition in its lawsuit against Blackbeard Operating, LLC, seeking over **$9 million** in damages [Lawsuit Against Blackbeard Operating, LLC](index=1&type=section&id=Lawsuit%20Against%20Blackbeard%20Operating%2C%20LLC) The Trustee has filed a Second Amended Petition against Blackbeard Operating, LLC, seeking over **$9 million** in damages for alleged royalty and reporting failures, with a trial scheduled for November 17, 2025 - Trustee filed a Second Amended Petition in a lawsuit against Blackbeard Operating, LLC[10](index=10&type=chunk) - The lawsuit seeks to recover more than **$9 million** in damages[11](index=11&type=chunk) - Allegations include Blackbeard's failure to properly calculate and pay royalties, impermissible deduction of overhead, labor, and saltwater disposal fees, failure to pay on all produced volumes, and failure to provide annual reports[11](index=11&type=chunk) - The claims relate to production months from April 2020 through December 2023[11](index=11&type=chunk) - Trial date is scheduled for November 17, 2025[10](index=10&type=chunk) - Discovery is ongoing, and a joint venture audit of 2024 production months is underway[10](index=10&type=chunk)[11](index=11&type=chunk) [Additional Information](index=2&type=section&id=Additional%20Information) This section provides investor resources, outlines forward-looking statement disclaimers, and lists contact information for the Trust [Investor Resources](index=2&type=section&id=Investor%20Resources) The 2024 Annual Report on Form 10-K, including the December 31, 2024 Reserve Summary, has been filed with the SEC and is available to investors - The 2024 Annual Report with Form 10-K, including the December 31, 2024 Reserve Summary, has been filed with the SEC[12](index=12&type=chunk) - Available resources on Permian's website (http://www.pbt-permian.com/) include cash distribution history, financial reports, tax information booklets, and SEC filings[12](index=12&type=chunk)[13](index=13&type=chunk) - Printed reports can be requested and are mailed free of charge[13](index=13&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements subject to risks described in the Trust's SEC reports, with no obligation for the Trustee to update them - Statements about future events or conditions are considered forward-looking statements under the Private Securities Litigation Reform Act of 1995[14](index=14&type=chunk) - Factors or risks that could cause actual results to differ materially are described in the Trust's Form 10-K and Form 10-Q reports[14](index=14&type=chunk) - The Trustee disclaims any obligation to update these forward-looking statements[15](index=15&type=chunk) [Contact Information](index=3&type=section&id=Contact%20Information) For inquiries, investors can contact Jana Egeler, Vice President at Argent Trust Company, who serves as the Trustee - Contact Person: Jana Egeler, Vice President, Argent Trust Company, Trustee[16](index=16&type=chunk) - Toll Free Contact Number: **1.855.588.7839**[16](index=16&type=chunk)

DALLAS, July 21, 2025 /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 $0.015311 per unit, payable on August 14, 2025, to unit holders of record on July 31, 2025. 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 M ...

Core Viewpoint - Argent Trust Company declared a cash distribution of $0.012976 per unit for the Permian Basin Royalty Trust, with the distribution affected by production costs exceeding gross proceeds from the Waddell Ranch properties [1][2]. Distribution Summary - The cash distribution decreased compared to the previous month due to lower natural gas volumes and oil pricing, although higher oil volumes and natural gas pricing partially offset these declines [2]. - The total distribution amount is $604,826, distributed among 46,608,796 units outstanding, resulting in a per-unit distribution of $0.012976 [9]. Waddell Ranch Properties - The Trustee has not received necessary information from Blackbeard Operating, LLC to calculate net profits interest (NPI) proceeds for June 2025, which affects the distribution [3][4]. - No proceeds were received from the Waddell Ranch properties in May 2025, and all excess costs must be recovered from future proceeds before any distribution can occur [4]. - Blackbeard is now providing production, pricing, and cost information quarterly instead of monthly, impacting the reporting schedule for the Trust [4][8]. Texas Royalty Properties - Production from Texas Royalty Properties was 16,367 barrels of oil and 9,392 Mcf of gas, with the Trust's allocated portion being 14,430 barrels of oil and 8,278 Mcf of gas [5]. - The average price for oil was $65.46 per barrel and for gas was $9.48 per Mcf, leading to revenues of $1,160,353 after deducting taxes and expenses [5][6]. Legal Matters - The Trustee filed a Second Amended Petition against Blackbeard in connection with a lawsuit regarding alleged improper calculations and payments of royalties, seeking over $9 million in damages [10][11]. - The trial date is set for November 17, 2025, with ongoing discovery related to the case [10].