PermRock Royalty Trust Reports Q2 2025 Financial Results with Revenue Decline

PermRock Royalty Trust reported its financial results for the second quarter of 2025, revealing a total revenue of $1.56 million, a decrease from $1.67 million in the same period of 2024. The Trust's net profits income for the quarter was $1.55 million, down from $1.66 million year-over-year, primarily attributed to lower oil prices and production volumes. For the first half of 2025, the Trust's net profits income increased to $3.26 million from $2.95 million in the prior year, driven by higher natural gas prices and reduced production costs. Distributable income for the second quarter was $1.20 million, or $0.0987 per Trust unit, compared to $1.35 million, or $0.1110 per unit, in the same quarter of 2024.

The Trust's total assets as of June 30, 2025, were reported at $71.76 million, a decline from $73.99 million at the end of 2024. The Trust corpus also decreased to $70.22 million from $72.38 million during the same period. The distribution payable to unitholders was $539,693, down from $612,261 at the end of the previous fiscal year. The Trust maintained cash reserves of $1 million, consistent with prior periods, to cover administrative expenses and future liabilities.

In terms of operational developments, the Trust's underlying properties, which encompass 31,354 gross acres in the Permian Basin, experienced a decrease in oil sales volumes by 10.6% for the quarter and 8.5% for the first half of 2025 compared to the previous year. This decline was attributed to natural production declines and reduced workover activities during the transition from Boaz Energy to T2S Permian Acquisition II LLC, which took over operations on March 31, 2025. Natural gas sales volumes, however, increased by 5.3% for the quarter, reflecting stronger demand driven by colder weather earlier in the year.

Looking ahead, T2S has outlined a capital and workover budget of $4 million for 2025, with approximately $0.2 million already expended as of June 30. The plan includes drilling new wells and returning shut-in wells to production, although the budget is subject to change based on market conditions and regulatory approvals. The Trust's management remains focused on maintaining cash distributions to unitholders while navigating the challenges posed by fluctuating commodity prices and operational transitions.