Rida Morwa is a former investment and commercial Banker, with over 35 years of experience. He has been advising individual and institutional clients on high-yield investment strategies since 1991. Rida Morwa leads the Investing Group High Dividend Opportunities where he teams up with some of Seeking Alpha's top income investing analysts. The service focuses on sustainable income through a variety of high yield investments with a targeted safe +9% yield. Features include: model portfolio with buy/sell alerts ...

Viper Energy (NASDAQ: VNOM ) is focused on owning and acquiring mineral and royalty interests in oil and natural gas properties, with the vast majority of its high-quality Permian assets (Midland plus Delaware). Despite a recent acquisition that should be veryAs of 2025, I've got over 10 years of researching companies. In total, throughout my investing life, I estimate that I researched (in depth) well over 1000 companies, from commodities like oil, natural gas, gold and copper to tech like Google or Nokia ...

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 Points - Permianville Royalty Trust announced a cash distribution of $0.023000 per unit, payable on October 15, 2025, to unitholders of record on September 30, 2025 [1] - The net profits interest calculation is based on reported oil production for June 2025 and natural gas production for May 2025 [1] - The calculation includes accrued costs incurred in July 2025 [1]

Company Overview - Kimbell Royalty Partners offers a 10.1% annualized cash distribution yield[6] - The company has interests in over 131,000 gross wells across over 17 million gross acres in the US[13] - Kimbell has completed over $2.0 billion in M&A transactions since its IPO in 2017[13] - Kimbell has grown run-rate average daily production by over 8x since IPO[13] - Kimbell has returned 71% of $18.00/unit IPO price via quarterly cash distributions[13] Financial Performance - Kimbell generated $74.7 million in Oil, Natural Gas and NGL Revenues in Q2 2025[16] - Consolidated Adjusted EBITDA was $63.8 million in Q2 2025[16] - Q2 2025 run-rate average daily production was 25,355 Boe/d (6:1)[16] - Net Debt / TTM Adjusted EBITDA was 1.6x as of 6/30/2025[15] Asset Base and Strategy - Kimbell estimates that approximately 100% of the distribution to be paid on August 25, 2025 is estimated to constitute non-taxable reductions to the tax basis of each distribution recipient's ownership interest in Kimbell[10] - The company has a shallow PDP decline rate of approximately 14%[15] - Kimbell has a net royalty acre position of approximately 158,350 acres[15] - Kimbell estimates that only 6.5 net wells are needed per year to maintain production[38] - Kimbell has 88 active rigs drilling on its acreage, representing approximately 17% market share of U S land rig count[18]

Core Insights - Kimbell Royalty Partners reported a strong operational performance with 88 active rigs, representing a 17% market share of the U.S. land rig count, despite a 7% decline in overall U.S. land rig activity [1][3][4] - The company announced a cash distribution of $0.38 per common unit for Q2 2025, reflecting a 10.3% annualized yield based on the closing price on August 6, 2025 [4][8] - Kimbell's financial results for Q2 2025 included total revenues of $86.5 million and net income of approximately $26.7 million, with a consolidated Adjusted EBITDA of $63.8 million [10][11][35] Operational Performance - The active rig count on Kimbell's acreage decreased by only 2% quarter over quarter, while the overall U.S. land rig count dropped by 7% [3] - The company experienced a 9% increase in net DUCs (drilled but uncompleted wells) quarter over quarter, primarily driven by the Permian Basin [3][8] - Kimbell's average daily production for Q2 2025 was 25,355 barrels of oil equivalent (Boe) per day, with approximately 47% from natural gas and 53% from liquids [16] Financial Highlights - Kimbell's Q2 2025 revenues from oil, natural gas, and NGLs totaled $74.7 million, with a net income attributable to common units of approximately $2.0 million [10][35] - The company reported cash G&A (general and administrative) expenses of $9.6 million, with cash G&A per BOE at $2.36, reflecting operational discipline [12][35] - As of June 30, 2025, Kimbell had approximately $462.1 million in debt, with a net debt to trailing twelve-month consolidated Adjusted EBITDA ratio of approximately 1.6x [13][36] Distribution and Debt Management - The Board of Directors approved a cash distribution payment of 75% of cash available for distribution for Q2 2025, amounting to $0.38 per common unit [6][33] - Kimbell plans to allocate the remaining 25% of cash available for distribution to pay down approximately $13.6 million of outstanding borrowings under its secured revolving credit facility [6][33] - The distribution is expected to be considered a return of capital, enhancing after-tax returns for unitholders [4][7]

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].

Core Viewpoint - PrairieSky Royalty Ltd. has announced its intention to commence a normal course issuer bid (NCIB) to repurchase up to 15,355,946 common shares, representing approximately 6.5% of the outstanding shares, starting June 4, 2025, and expiring no later than June 3, 2026 [1][2]. Group 1: NCIB Details - The NCIB allows PrairieSky to purchase up to 15,355,946 common shares, which is about 6.5% of the 235,536,040 common shares outstanding as of May 21, 2025 [2]. - The daily purchase limit under the NCIB is set at 99,954 common shares, which is 25% of the average daily trading volume calculated over the six-month period ending April 30, 2025 [3]. - PrairieSky has the option to make one block purchase per calendar week that exceeds the daily repurchase limit [3]. Group 2: Rationale for NCIB - The company believes that the market price of its common shares may not always reflect their underlying value, and repurchasing shares will benefit remaining shareholders by increasing their proportionate interest [4]. - The NCIB is expected to provide increased liquidity for shareholders wishing to sell their shares [4]. Group 3: Historical Context - PrairieSky has previously purchased 3,415,900 common shares under its current NCIB, which authorized the purchase of up to 5,000,000 shares from June 4, 2024, to June 3, 2025 [6]. - Since initiating the NCIB in 2016 until March 31, 2025, PrairieSky has repurchased and canceled a total of 20.1 million common shares at a weighted average price of $16.74 per share [6]. Group 4: Automatic Share Purchase Plan - PrairieSky has established an automatic share purchase plan with CIBC Capital Markets to facilitate the repurchase of its common shares, allowing purchases even during regulatory restrictions or blackout periods [5].

Company Overview - Kimbell Royalty Partners offers a unique annualized cash distribution yield of 15.2%[10] - Kimbell has interests in over 131,000 gross wells across over 17 million gross acres in the US[17] - Since its IPO in 2017, Kimbell has completed over $2 billion in M&A transactions and grown run-rate average daily production by over 8x[17] - Kimbell has returned 68% of the $18 per unit IPO price via quarterly cash distributions since 2017[17] Financial Highlights - Kimbell's Net Debt / TTM Adjusted EBITDA is 0.9x as of March 31, 2025[20] - Q1 2025 run-rate oil, natural gas and NGL revenues reached a record of $88.6 million[25, 29] - Q1 2025 consolidated Adjusted EBITDA was a record $75.5 million[23, 29] Asset Base and Drilling Inventory - Kimbell has a shallow PDP decline rate of approximately 14%[19] - The company possesses a net royalty acre position of approximately 158,350 acres[19] - Kimbell has identified 11,510 gross / 77.71 net total upside locations on major properties alone as of December 31, 2024[45] - Kimbell estimates that only 6.5 net wells are needed per year to maintain production, reflecting over 14 years of drilling inventory including major and minor locations[45] Tax Structure - Approximately 70% of the distribution to be paid on May 28, 2025, is estimated to constitute non-taxable reductions to the tax basis of each distribution recipient's ownership interest in Kimbell[13, 35, 67]

Sitio's Performance and Strategy - Sitio's 3Q24 annualized adjusted EBITDA was $542 million[7] - The company's total yield for 3Q24 was 8.0%, based on a return of capital per share of $0.47 and a share price of $23.46 on 11/15/24[7,8] - Sitio's average daily production in 3Q24 was 38.6 MBoe/d, with 50% being oil[7,14] - The company closed 5 transactions, adding 2,325 net royalty acres (NRAs) in the DJ Basin[13] - Sitio reduced long-term debt by $56.5 million, increasing liquidity to $455.5 million[14] Market Trends and Operator Activity - Operators are realizing efficiency improvements in the oilfield, with Permian Basin production growing despite decreasing rigs and frac fleets[15] - E&P M&A activity is improving Sitio's operator mix, with 62% of 3Q24 production coming from operators with market caps >$10B[18,19] - Net Line-of-Sight (LOS) wells in the Permian Basin increased by 11% quarter-over-quarter[32] Capital Allocation and Financials - Sitio returned 66% of its 3Q24 discretionary cash flow (DCF) to shareholders, amounting to $72.1 million or $0.47 per share[48] - The company is committed to returning at least 65% of DCF to shareholders through cash dividends and share repurchases[51] - As of 9/30/24, Sitio had ~$95 million remaining under its $200 million buyback authorization[51]