The Permian Basin Royalty Trust reported a significant decline in its financial performance for the fiscal year ending December 31, 2025, with total royalty income of $16.1 million, a decrease from $27.1 million in 2024. The Trust's distributable income also fell to $14.3 million, or $0.31 per unit, compared to $25.4 million, or $0.55 per unit, in the previous year. This downturn is primarily attributed to the Waddell Ranch properties, which did not contribute any royalty income during 2025 due to an excess cost position, while the Texas Royalty properties generated $11.6 million in royalty income.
In terms of operational metrics, the Trust's oil production from the Waddell Ranch properties increased to 3.4 million barrels in 2025, up from 2.2 million barrels in 2024, while gas production rose to 15.5 million Mcf from 12.2 million Mcf. However, the average price of oil decreased to $65.92 per barrel in 2025 from $76.00 in 2024, and the average price of gas increased slightly to $1.74 per Mcf from $1.40. The Trust's total capital expenditures for the year were approximately $228.7 million, significantly higher than the $109.4 million spent in 2024.
Strategically, the Trust has undergone changes in its trustee management, with Argent Trust Company taking over from Simmons Bank as of December 30, 2022. Additionally, a settlement agreement was reached with Blackbeard Operating, LLC, the operator of the Waddell Ranch properties, resulting in a $9 million payment to the Trust, of which $4.5 million was received in September 2025. This settlement is expected to improve future cash flows, although the Trust's reliance on Blackbeard for operational data has led to delays in reporting and distributions.
Looking ahead, the Trust faces challenges due to fluctuating commodity prices and increased production costs, which could impact future distributions. The Trust's financial health is closely tied to the performance of the underlying properties, and any operational disruptions or regulatory changes could further affect its income. As of March 16, 2026, oil prices have risen to approximately $93.39 per barrel, which may positively influence future revenue, while gas prices have decreased to $3.03 per MMBtu. The Trust's management remains focused on navigating these market conditions to optimize returns for unit holders.
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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