PERMIAN BASIN ROYALTY TRUST ANNOUNCES SETTLEMENT OF BLACKBEARD LITIGATION

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].