Permian Basin Royalty Trust reported a significant decline in financial performance for the third quarter and the first nine months of 2025 compared to the same periods in 2024. For the three months ended September 30, 2025, the Trust generated total income of $7.27 million, down from $8.42 million in the prior year. Royalty income specifically fell to $7.26 million from $8.37 million, while interest income also decreased to $15,049 from $54,534. The distributable income for the quarter was $6.86 million, or $0.15 per unit, compared to $8.05 million, or $0.17 per unit, in the same quarter of 2024. For the nine months ended September 30, 2025, total income was $13.45 million, a decrease from $23.30 million in 2024, with distributable income dropping to $11.86 million, or $0.25 per unit, from $21.98 million, or $0.47 per unit.
The Trust's financial downturn is attributed to a deficit position in the Waddell Ranch properties, which resulted in no royalty income being received during the reporting periods due to excess working interest costs. This was somewhat offset by a $4.5 million partial settlement payment from Blackbeard Operating, LLC, related to a lawsuit over underpaid royalties. The average realized prices for oil and gas also decreased, with the average oil price for the Waddell Ranch properties falling to $62.32 per barrel in the third quarter of 2025 from $79.91 per barrel in the same quarter of 2024. Similarly, the average realized price for gas dropped to $1.35 per Mcf from $1.19 per Mcf.
Operationally, the Trust's total assets as of September 30, 2025, were reported at $6.66 million, a significant increase from $2.29 million at the end of 2024, primarily due to increased cash and short-term investments. The distribution payable to unitholders also rose to $5.39 million from $1.02 million in the previous year. The Trust's total liabilities increased correspondingly, reflecting the ongoing financial commitments and the impact of the settlement agreement with Blackbeard.
Looking ahead, the Trust's outlook remains cautious due to the volatility in oil and gas prices, which are influenced by geopolitical conditions and market dynamics. The Trustee noted that while the Trust is expected to continue receiving payments from Blackbeard as per the settlement agreement, the overall financial health will depend on the recovery of the Waddell Ranch properties and the stabilization of commodity prices. The Trust's passive nature limits its operational control, and it will continue to monitor market conditions closely to manage its distributions to unitholders effectively.
About PERMIAN BASIN ROYALTY TRUST
Permian Basin Royalty Trust is a Texas-based entity that owns net overriding royalty interests in oil and gas properties, primarily in the Permian Basin. It collects income from production on underlying properties, mainly in Waddell Ranch and Texas fields, and distributes proceeds to unit holders. The trust operates passively, with income dependent on commodity prices, production levels, and operator performance, offering investors exposure to energy royalties and depleting assets.
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