Permian Basin Royalty Trust(PBT) - 2025 Q2 - Quarterly Results

Distribution Announcement and Key Updates Permian Basin Royalty Trust announces July cash distribution details, Waddell Ranch reporting changes, and Texas Royalty Properties performance July Cash Distribution Details 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][9] - Distribution payable on August 14, 2025, to unit holders of record on July 31, 2025[2] - 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] - 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] Waddell Ranch Properties Update 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 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] - As a result, NPI proceeds from Waddell Ranch were not included in the July distribution[4] - If NPI proceeds are received on or prior to the record date, they will be included in the August distribution[4] Financial Impact and Reporting Changes 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] - All excess costs, including accrued interest, must be recovered by future proceeds before any distributions to the Trust[5] - 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][8] Texas Royalty Properties Performance 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] - Net contribution by Texas Royalty Properties to this month's distribution: $901,654 (based on 95% NPI)[6] 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] - Taxes and expenses deducted from revenues: $136,087[6] Financial Summary of Distribution 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] - Total distribution amount: $713,634[9] - Units outstanding: 46,608,796[9] - Distribution per unit: $0.015311[9] - Worldwide market conditions continue to affect pricing for domestic production, making future distributions difficult to predict[9] Trust Litigation 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 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] - The lawsuit seeks to recover more than $9 million in damages[11] - 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] - The claims relate to production months from April 2020 through December 2023[11] - Trial date is scheduled for November 17, 2025[10] - Discovery is ongoing, and a joint venture audit of 2024 production months is underway[10][11] Additional Information This section provides investor resources, outlines forward-looking statement disclaimers, and lists contact information for the Trust Investor Resources 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] - Available resources on Permian's website (http://www.pbt-permian.com/) include cash distribution history, financial reports, tax information booklets, and SEC filings[12][13] - Printed reports can be requested and are mailed free of charge[13] Forward-Looking Statements 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] - 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] - The Trustee disclaims any obligation to update these forward-looking statements[15] Contact Information 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] - Toll Free Contact Number: 1.855.588.7839[16]