Permian Basin Royalty Trust Reports Increased Income and Distribution for Q2 and First Half of 2026

The Permian Basin Royalty Trust reported significant financial performance for the second quarter and first half of 2026, with total income reaching $4.175 million for the three months ending June 30, 2026, compared to $3.106 million for the same period in 2025. This increase was primarily driven by a rise in royalty income, which amounted to $4.159 million in Q2 2026, up from $3.090 million in Q2 2025. For the first half of 2026, total income was $7.743 million, compared to $6.177 million in the first half of 2025. The Trust's distributable income also saw an increase, totaling $3.871 million, or $0.08 per unit, for the second quarter, and $6.897 million, or $0.15 per unit, for the first half of 2026, compared to $2.397 million and $4.993 million, respectively, in the prior year.

The Trust's financial results reflect a notable change in operational dynamics, particularly due to a $1.125 million partial settlement payment received from Blackbeard Operating, LLC, which contributed to the higher royalty income. However, the Trust's royalty income from the Waddell Ranch properties was impacted by excess costs, resulting in no royalty income from these properties for the reporting period. The average realized prices for oil and gas from the Waddell Ranch properties decreased to $68.79 per barrel and $1.19 per Mcf, respectively, compared to $70.27 per barrel and $2.41 per Mcf in the same quarter of 2025. Conversely, the Texas Royalty properties experienced an increase in average realized oil prices to $74.46 per barrel, while gas prices decreased to $8.14 per Mcf.

Operationally, the Trust's total assets increased to $2.412 million as of June 30, 2026, up from $1.878 million at the end of 2025. The distribution payable to unitholders also rose significantly, reaching $1.150 million compared to $615,167 at the end of the previous fiscal year. The Trust's total liabilities were reported at $2.250 million, reflecting a similar increase. The number of units of beneficial interest outstanding remained constant at 46,608,796.

Looking ahead, the Trust's outlook is influenced by ongoing market conditions and the recent settlement agreement with Blackbeard, which is expected to provide additional cash flow. The Trust is also navigating a proposed business combination with Blackbeard Holdings, which aims to create a new publicly traded corporation, PBT Land and Minerals, Inc. This combination is subject to approval by the Trust's unitholders. The Trustee has indicated that while the Trust remains passive in nature, it will continue to monitor market conditions and operational performance closely, particularly in light of fluctuating commodity prices and the impact of excess costs on future distributions.