Financial Performance - Distributable income for the three months ended March 31, 2025, was $2,596,212, down 52.8% from $5,492,206 for the same period in 2024[19] - Distributable income per Unit was $0.06 for the three months ended March 31, 2025, down from $0.12 for the same period in 2024, indicating a 50% decrease[19] - Royalty income decreased to $3,054,697 for the three months ended March 31, 2025, compared to $6,005,642 for the same period in 2024, reflecting a decline of 49.2%[19] - Interest income for the three months ended March 31, 2025, was $16,523, down from $39,048 for the same period in 2024, a decline of approximately 57.7%[19] - The Trust's distribution payable to Unitholders decreased to $848,624 as of March 31, 2025, from $1,022,585 as of December 31, 2024, a decrease of about 16.9%[17] Assets and Liabilities - Total assets as of March 31, 2025, were $2,112,389, a decrease from $2,286,992 as of December 31, 2024, representing a decline of approximately 7.6%[17] - Total liabilities as of March 31, 2025, were $1,948,624, down from $2,122,585 as of December 31, 2024, a decrease of approximately 8.2%[17] - The Trust's cash and short-term investments were $1,948,624 as of March 31, 2025, compared to $2,122,585 as of December 31, 2024, a decline of about 8.2%[17] - The Trust's total trust corpus at the end of the period was $163,765, down from $209,625 at the end of the same period in 2024, a decrease of about 21.9%[21] Operational Costs - General and administrative expenditures for the three months ended March 31, 2025, were $475,008, a decrease from $552,484 in the same period of 2024, reflecting a reduction of approximately 14%[19] - Lease operating expenses and property taxes for the Waddell Ranch properties were $21.4 million in Q1 2025, a decrease from $22.8 million in Q1 2024[68] - Trustee fees for the period ending March 31, 2025, were $31,365, a slight decrease from $32,628 in the same period of 2024[49] Commodity Prices - Average realized oil prices for the Waddell Ranch properties decreased from $73.08 per barrel in Q1 2024 to $68.83 per barrel in Q1 2025, while gas prices fell from $2.01 per thousand cubic feet to $1.66[57] - The Texas Royalty properties also saw a decline in average realized oil prices from $75.17 per barrel in Q1 2024 to $68.96 per barrel in Q1 2025, and gas prices decreased from $9.09 per thousand cubic feet to $8.61[57] - The Trust's income and distributions are significantly influenced by commodity prices, which have shown volatility due to geopolitical conditions and market uncertainties[52] Legal Proceedings - The Trustee filed a complaint against Blackbeard Operating, LLC seeking to recover over $15 million in damages due to alleged improper deductions from royalty payments[78] - The lawsuit was voluntarily dismissed on March 5, 2024, but a new petition was filed on May 8, 2024, seeking damages exceeding $25 million related to additional claims[78] - Blackbeard's counterclaim includes requests for declaratory judgment regarding disputed overhead charges and limitations on information provided to the Trust[78] - The trial date for the ongoing legal proceedings is set for November 17, 2025[78] - There are no material pending legal proceedings other than the aforementioned lawsuit[79] Risk Factors - Risk factors related to the Trust are detailed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2024, with no material changes reported[80] - The Trust does not have any directors or officers, thus no trading arrangements were adopted or terminated[82]
Permian Basin Royalty Trust(PBT) - 2025 Q1 - Quarterly Report