PermRock Royalty Trust reported a significant decline in its financial performance for the fiscal year ending December 31, 2025, with total revenue of $5.6 million, down from $6.0 million in 2024. The Trust's net profits income also decreased to $5.6 million from $5.96 million in the previous year, primarily due to reduced oil and natural gas sales volumes and lower oil prices. The average realized price for oil fell to $64.83 per barrel, compared to $75.33 in 2024, while natural gas prices saw a slight increase to $2.63 per Mcf from $2.54. The Trust's distributable income for 2025 was $4.7 million, translating to a distribution of $0.387371 per unit, a decrease from $0.424259 in 2024.
The Trust's operational metrics reflected a challenging year, with total production volumes of 304.9 MBoe, down from 346.7 MBoe in 2024. The decrease in production was attributed to a combination of decreased demand and the natural decline in production from existing wells. The Trust's capital expenditure budget was revised down to approximately $1.0 million from an initial $4.5 million due to market pressures, including commodity price volatility and increased service costs. This revision included postponing the drilling of two wells in Crane County, Texas, originally planned for 2025.
In terms of strategic developments, the Trust underwent a significant transition when Boaz Energy sold its interests in the Underlying Properties to T2S Permian Acquisition II LLC on March 31, 2025. This acquisition included the transfer of 4,884,861 Trust units to Ustx, LLC, an affiliate of T2S. The Trust's assets consist of 31,354 gross acres in the Permian Basin, with proved reserves estimated at 1.1 million Boe as of December 31, 2025. The Trust's operations are passive, relying on T2S for management and operational decisions, which limits the Trust's control over production and development activities.
Looking ahead, T2S has not budgeted any capital for 2026, reflecting ongoing evaluations of project economics and market conditions. However, a workover budget of $0.75 million has been established for the year. The Trust's outlook remains cautious, with the potential for further adjustments based on commodity price stability and operational performance. The Trust's financial health is closely tied to the performance of the Underlying Properties and the prevailing market conditions for oil and natural gas, which are subject to significant volatility.
About PermRock Royalty Trust
PermRock Royalty Trust owns a passive interest in oil and natural gas properties in the Permian Basin, Texas. It receives 80% of net profits from production sales, derived from underlying operated and non-operated assets. The trust distributes cash to unitholders, with no management responsibilities. Its core business involves holding and distributing income from oil and gas royalties, relying on third-party operators and market-driven sales.
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