On Aug. 21, 2026, Argent Trust Company, as trustee of the Permian Basin Royalty Trust (New York Stock Exchange: PBT) in Texas, United States, declared a cash distribution of $0.018701 per unit. The payment is set for Sept. 15, 2026, to unit holders of record on Aug. 31, 2026.
The distribution does not include proceeds from the Waddell Ranch properties. Total production costs exceeded gross proceeds for July, leaving the Waddell Ranch properties in a continuing excess cost position.
The August distribution fell from the prior month. The decline was driven mainly by a fourth settlement payment of $1,125,000 from Blackbeard Operating LLC that was included in the July distribution, combined with lower natural gas volumes and oil pricing at the Texas Royalty Properties. Higher oil volumes and natural gas pricing partially offset the decrease.
Waddell Ranch excess costs#
Blackbeard Operating LLC, the operator of the Waddell Ranch properties, supplies the information needed to calculate net profits interest (NPI) proceeds after the announcement date for a given month. Under the Trust indenture, NPI proceeds received on or before the record date are included in the following month’s distribution.
No proceeds were received by the trustee in July 2026 for inclusion in the August distribution. All excess costs, including accrued interest, must be recovered by future Waddell Ranch proceeds before any amounts are distributed to the Trust.
Because Blackbeard provides production, pricing and cost information quarterly rather than monthly, the trustee will disclose that data in quarterly reports on Form 10-Q and annual reports on Form 10-K for the foreseeable future, to the extent it is received on time.
Texas Royalty Properties production#
Production for the underlying Texas Royalty Properties was 15,959 barrels of oil and 6,193 Mcf (thousand cubic feet) of gas. The Trust’s allocated portion was 14,405 barrels of oil and 5,581 Mcf of gas.
- Average oil price: $93.10 per barrel
- Average gas price: $9.55 per Mcf, including significant natural gas liquids pricing
- Underlying property revenue: $1,544,865
- Taxes and expenses deducted: $149,649
- Net profit for July: $1,395,216
- Trust net contribution at 95% NPI: $1,325,455
The production and pricing mainly reflect May for oil and April for gas. Allocated volumes were affected by both oil and gas pricing.
Volumes are net to the Trust after allocation of expenses to the Trust’s net profit interest, including any prior period adjustments. Gas pricing includes sales of gas liquid products. Quarterly information may be provided within 30 days after the close of each calendar quarter and, if received timely, will appear in the applicable Form 10-Q or Form 10-K.
General and administrative expenses deducted for the month, net of interest earned, were $453,792. That figure included a $250,000 increase to the expense reserve for liabilities. The resulting distribution was $871,663.17 across 46,608,796 units outstanding, or $0.018701 per unit.
Worldwide market conditions continue to affect pricing for domestic production, and the effect on future distributions is difficult to predict.
Business combination update#
The trustee was notified by SoftVest, L.P., a Trust unitholder, that on July 28, 2026, SoftVest and certain affiliates entered into a definitive Combination Agreement with Blackbeard Holdings, LLC and certain affiliates. The proposal would combine the Trust’s assets with certain oil and natural gas mineral interest and land operations owned by Blackbeard Holdings to create a new publicly traded corporation, PBT Land and Minerals, Inc. (New PBT).
Completion of the Business Combination is subject to a vote of Trust unitholders. SoftVest and certain other unitholders representing more than 15% of the Trust units have requested that the trustee call a special meeting to consider Trust indenture amendments that would implement the Business Combination and related matters.
New PBT has filed a registration statement on Form S-4 that includes a prospectus and a proxy statement for soliciting proxies for the special meeting. New PBT has also filed a registration statement on Form S-1 for a rights offering to Trust unitholders for shares of New PBT.
Neither the Trust nor the trustee is a party to the Combination Agreement, and neither is soliciting proxies or participating in any securities offering. The trustee is not making any recommendation to Trust unitholders on how to vote on the Business Combination or other proposals at the special meeting.
