PERMIAN BASIN ROYALTY TRUST ANNOUNCES MAY CASH DISTRIBUTION; WITH THE OMISSION OF WADDELL RANCH PROPERTIES PROCEEDS

Core Viewpoint - Argent Trust Company declared a cash distribution of $0.020052 per unit for the Permian Basin Royalty Trust, which is a decrease from the previous month primarily due to the omission of proceeds from the Waddell Ranch properties and lower production volumes from Texas Royalty Properties [1][2]. Distribution Details - The cash distribution is payable on June 14, 2024, to unit holders of record on May 31, 2024 [1]. - The distribution amount reflects a decrease from the prior month, attributed to the lack of proceeds from Waddell Ranch and reduced production volumes for oil and gas, although higher prices for both commodities partially offset these declines [2]. Waddell Ranch Properties - Blackbeard Operating, LLC, the operator of the Waddell Ranch properties, has not provided necessary information for calculating net profits interest (NPI) proceeds, leading to their exclusion from the current distribution [3]. - If NPI proceeds are received by the record date, they will be included in the June distribution instead of May [3]. Texas Royalty Properties - Production from Texas Royalty Properties was reported at 16,335 barrels of oil and 7,699 Mcf of gas, with the Trust's allocated portion being 14,569 barrels of oil and 6,865 Mcf of gas [4]. - The average prices for oil and gas were $78.00 per barrel and $11.16 per Mcf, respectively, leading to revenues of $1,360,024 after deducting taxes of $142,874, resulting in a net profit of $1,217,150 for May [4][5]. Financial Summary - General and administrative expenses for the month totaled $221,657, resulting in a total distribution of $934,635 to 46,608,796 units outstanding [7]. - The current market conditions continue to impact pricing for domestic production, making future distribution predictions challenging [7]. Legal Actions - The Trustee has initiated a lawsuit against Blackbeard Operating, seeking to recover over $15 million in damages due to alleged improper deductions from royalty payments [8][9]. - The lawsuit stems from audits revealing exceptions to expenses deducted from royalty payments, including incorrect overhead charges and duplicate charges [9].