PERMIAN BASIN ROYALTY TRUST
For the period ended Dec 31, 2025. Filed Mar 27, 2026.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Mar 27, 2026
PBT$28.93+1.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2024-12-31; filed 2025-03-14.
0000950170-25-039308
Item 7. Management’s Discussion and Anal ysis of Financial Condition and Results of OperationCurrent report: 10-K
Period ended 2025-12-31; filed 2026-03-27.
0001193125-26-128561
Item 7. Management’s Discussion and Anal ysis of Financial Condition and Results of OperationThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 49 previous paragraphs and 58 current paragraphs.
26 unchanged; 22 reworded; 10 added; 1 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 5 previous and 5 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
Recent Developments
Current report
SoftVest Special Meeting and Petition
Current report
On December 16, 2025, the Trust held a special meeting of its Unit holders (the “Special Meeting”). The Special Meeting was called by the Trustee as required by Section 8.02 of the Trust Indenture at the request of SoftVest Advisors, LLC (“SoftVest Advisors”) and other Unit holders of the Trust collectively owning not less than 15% of the outstanding Trust Units. At the Special Meeting, Unit holders approved a non-binding proposal for SoftVest Advisors or another appropriate party to take appropriate actions as beneficiaries of the Trust to effect the judicial reformation or modification of the Trust Indenture, to allow for the approval of any amendment to the Trust Indenture by a simple majority of votes cast by Unit holders at a special meeting at which a quorum is present.
Current report
On or about February 10, 2026, SoftVest, L.P. (“SoftVest”), a Unit holder of the Trust, mailed documents to the other Unit holders, which included a cover letter, a Citation in the District Court of Tarrant County, Texas (“Citation”), the Original Petition for Modification of Trust (the “Petition”) in the District Court of Tarrant County, Texas (Cause No. 96-373245-25) seeking judicial modification of the Trust’s Indenture, and the Petitioner SoftVest, L.P.’s Notice of Bench Trial on Petitioner's Original Petition for Modification of Trust (“Notice of Bench Trial”), also collectively known as the “Unit holder Mailing”. The Unit holder Mailing advises Unit holders of a hearing to be scheduled Friday, May 8, 2026, at 10:30 a.m. before the 96th District Court of Tarrant County, Tom Vandergriff Civil Courts Building, 4th Floor, 100 North Calhoun Street, Fort Worth, Texas 76196, on the merits of SoftVest’s Petition pursuant to which it seeks to (1) amend Section 8.03 of the Indenture to eliminate the requirement that certain amendments require approval by 75% of the outstanding Units of the Trust, and (2) delete Section 10.01 of the Indenture that sets forth certain prohibited amendments and replace Article X of the Indenture with a provision permitting amendment of any provision of the Indenture by a vote of Unit holders in accordance with Article VIII (which, as amended, would permit amendment by a majority in interest of Unit holders constituting a quorum at a meeting of Unit holders where a quorum is present).
Current report
Blackbeard Settlement
Current report
On August 19, 2025, the Trustee entered into a settlement agreement and release (the “Settlement Agreement”) in connection with its lawsuit against Blackbeard, as operator of the properties in the Waddell Ranch, in Crane County, Texas, in which the Trust holds a 75% net overriding royalty. Pursuant to the lawsuit, the Trustee had sought to recover more than $9 million in damages it alleged resulted from Blackbeard’s failure to properly calculate and pay royalties due and owing to the Trust.
Current report
Pursuant to the Settlement Agreement, Blackbeard agreed to pay the Trust $9,000,000, of which $4,500,000 was paid to the Trust on September 18, 2025, and the remainder of which will be paid in four equal installments of $1,125,000 quarterly during the 2026 calendar year.
Current report
Additionally, the Settlement Agreement established the overhead rate that may be charged to the Trust and permits Blackbeard to pass through third-party charges for salt water disposal, gathering and transportation, and charge technical labor on reservoir engineers using an agreed allocation methodology against the net overriding royalty. The parties also agreed that the Trust would not make future claims for lost volumes in the case of ordinary line loss (as defined by third party purchase agreements with purchasers). The Trust will have the option to conduct annual site audits, at its expense. The Settlement Agreement also set forth agreed reporting that Blackbeard will provide the Trustee going forward.
Current report
(1) Total Royalty Income for 2025 does not include the $4.5 million partial payment of the lawsuit settlement paid to the Trust in September 2025 by Blackbeard.
Current report
Distributable income for 2025 was $14,300,162 or $0.31 per Unit. Distributable income includes a $4.5 million partial settlement received from Blackbeard declared in the September 2025 distribution that was paid on October 15, 2025. The $4.5 million partial payment is included in the financial statements under “Statements of Distributable Income” and “Statement of Changes in Trust Corpus” as of December 31, 2025, as well as in “Quarterly Schedule of Distributable Income (Unaudited) for the year ended December 31, 2025” (See Notes 3 and 7).
Removed paragraphs (1)
Previous report
Distributable income for 2022 was $53,543,824 or $1.15 per Unit.
Reworded paragraphs (22)
Previous wording
Royalty income received by the Trust for the three-year period ended December 31, 2024, is reported in the following table:
Current wording
Royalty income received by the Trust for the three-year period ended December 31, 2025, which for 2025 is only from the Texas Royalty Properties, due to the excess cost position of the Waddell Ranch properties, is reported in the following table:
Previous wording
Notwithstanding requests from the Trustee to Blackbeard, the operator of the Waddell Ranch properties, Blackbeard has refused to provide the Trustee information necessary to calculate the net proceeds as of the NYSE notification date beginning May 2024 such that Royalty income of the Trust for the calendar year is associated with actual oil and gas production for the period from November of the prior year through September of the current year for the Waddell Ranch properties. Royalty income for the Trust for the calendar year for the Texas Royalty properties is associated with actual oil and gas production from November through October 2024. Oil and gas production for 2024, 2023 and 2022 generated by the Royalties and the Underlying Properties, excluding portions attributable to the adjustments discussed hereafter, are presented in the following table:
Current wording
As of May 2024, Blackbeard, the operator of the Waddell Ranch properties, provides the Trustee information necessary to calculate the net proceeds after the NYSE notification date such that royalty income of the Trust for the current calendar year is associated with actual oil and gas production for the period from October 2024 through September 2025 for the Waddell Ranch properties. Royalty income for the Trust for the calendar year for the Texas Royalty properties is associated with actual oil and gas production from November 2024 through October 2025. Oil and gas production for 2025, 2024 and 2023 generated by the Royalties and the Underlying Properties, excluding portions attributable to the adjustments discussed hereafter, are presented in the following table:
Previous wording
The average price of oil decreased to $75.88 per barrel in 2024, down from $76.72 per barrel in 2023. The average price of oil in 2022 was $94.11 per barrel. In addition, the average price of gas decreased from $2.40 per Mcf in 2023 to $1.45 per Mcf in 2024. The average price of gas in 2022 was $5.54 per Mcf. Oil prices have decreased primarily because of world market conditions. Oil prices are expected to remain volatile. Gas liquids values have declined along with gas pricing due to high production levels, consistently mild weather patterns, and decreased heating demand. Blackbeard, after assuming the role of operator of the Waddell Ranch properties, immediately instituted a workover of specific wells, which caused the Trust not to receive any royalty income from the Waddell Ranch properties in 2022 and portions of 2023. Royalty income was also not received for the Waddell Ranch properties for the months of October and November 2024.
Current wording
The average price of oil decreased to $65.95 per barrel in 2025, down from $75.88 per barrel in 2024. The average price of oil in 2023 was $76.72 per barrel. In addition, the average price of gas increased from $1.45 per Mcf in 2024 to $1.78 per Mcf in 2025. The average price of gas in 2023 was $2.40 per Mcf. Oil prices have decreased primarily because of world market conditions. Oil prices are expected to remain volatile. Gas liquids values have declined due to high production levels, consistently mild weather patterns, and decreased heating demand. Blackbeard, after assuming the role of operator of the Waddell Ranch properties, immediately instituted a workover of specific wells, which caused the Trust not to receive any royalty income from the Waddell Ranch properties in portions of 2023 and 2024, and all of 2025. Royalty income was not received for the Waddell Ranch properties for the year 2025 due to large capital expenditures.
Previous wording
Subsequent to December 31, 2024, the price of both oil and gas continued to fluctuate, giving rise to a correlating adjustment of the respective standardized measure of discounted future net cash flows. As of February 24, 2025, NYMEX posted oil prices were approximately $71.06 per barrel, which compared to the posted price of $75.48 per barrel, used to calculate the worth of future net revenue of the Trust’s proved developed reserves, would result in a smaller standardized measure of discounted future net cash flows for oil. As of February 24, 2024, NYMEX posted gas prices were $3.86 per million British thermal units. The use of such price, as compared to the posted price of $2.15 per million British thermal units, used to calculate the future net revenue of the Trust’s proved developed reserves would result in a larger standardized measure of discounted future net cash flows for gas.
Current wording
Subsequent to December 31, 2025, the price of both oil and gas continued to fluctuate, giving rise to a correlating adjustment of the respective standardized measure of discounted future net cash flows. As of March 16, 2026, NYMEX posted oil prices were approximately $93.39 per barrel, which compared to the posted price of $65.34 per barrel, used to calculate the worth of future net revenue of the Trust’s proved developed reserves, would result in a larger standardized measure of discounted future net cash flows for oil. As of March 16, 2026, NYMEX posted gas prices were $3.03 per MMBtu. The use of such price, as compared to the posted price of $3.387 per MMBtu, used to calculate the future net revenue of the Trust’s proved developed reserves would result in a smaller standardized measure of discounted future net cash flows for gas.
Previous wording
Notwithstanding requests from the Trustee to Blackbeard, the operator of the Waddell Ranch properties, and the fact that Blackbeard has provided this information on a monthly basis since Argent Trust Company has become Trustee of the Trust, Blackbeard has refused to provide the Trustee information necessary to calculate the net proceeds as of the announcement date for monthly distributions starting in May 2024. As a result of Blackbeard's failure to provide this information by the NYSE notification date for the monthly distribution, in accordance with the Trust indenture, if Royalty income is received from the Waddell Ranch properties on or prior to the record date, it will be included in the following month's distribution, rather than the current month's distribution. In the second and third quarter reports, the Royalty income received from Blackbeard after the NYSE notification deadline was included as a liability on the Condensed Statement of Assets, Liabilities, and Trust Corpus titled, "Funds received for future distributions." There was no Royalty income received for October and November of 2024, therefore, there are no funds received for future distributions as of December 31, 2024.
Current wording
As of May 2024, Blackbeard has provided the Trustee information necessary to calculate the net proceeds after the announcement date for monthly distributions. In accordance with the Trust indenture, if royalty income is received from the Waddell Ranch properties on or prior to the record date, it will be included in the following month’s distribution, rather than the current month’s distribution. There was no royalty income received for the year ending December 31, 2025.
Previous wording
Since the oil and gas sales attributable to the Royalties are based on an allocation formula that is dependent on such factors as price and cost (including capital expenditures), production amounts do not necessarily provide a meaningful comparison. For the underlying properties oil and gas production decreased approximately 3% and increased less than 1% respectively, from 2023 to 2024 primarily due to lower oil and gas prices.
Current wording
Since the oil and gas sales attributable to the Royalties are based on an allocation formula that is dependent on such factors as price and cost (including capital expenditures), production amounts do not necessarily provide a meaningful comparison. For the Underlying Properties oil and gas production increased approximately 56% and 46% respectively, from 2024 to 2025 which the Trustee believes were likely primarily due to new development based on the increased levels of capital expenditures.
Previous wording
Total capital expenditures for the eleven months of production reported in 2024 and used in the net overriding royalty calculation were approximately $109.4 million (gross). Total capital expenditures were $120.5 million (gross) in 2023 and $124.3 million (gross) in 2022.
Current wording
Total capital expenditures for the twelve months of production reported in 2025 and used in the net overriding royalty calculation were approximately $228.7 million (gross). Total capital expenditures were $109.4 million (gross) in 2024 and $120.4 million (gross) in 2023.
Previous wording
Development information for the Waddell Ranch properties, such as well activity, completions, workovers, remedial activities, and plugging and abandonment, was not provided by Blackbeard. This information has previously been provided on a monthly basis since Argent Trust Company has become Trustee of the Trust until May 2024.
Current wording
Development information for the Waddell Ranch properties, such as well activity, completions, workovers, remedial activities, and plugging and abandonment, is not provided by Blackbeard.
Previous wording
Blackbeard has advised the Trustee that it will not be providing a proposed capital expenditure budget for 2025, information that has previously been provided on an annual basis.
Current wording
Blackbeard does not provide a proposed capital expenditure budget.
Previous wording
In 2024, lease operating expense and property taxes on the Waddell Ranch properties amounted to approximately $82.2 million, compared to approximately $79.6 million in 2023, and approximately $43.7 million in 2022.
Current wording
In 2025, lease operating expense and property taxes on the Waddell Ranch properties amounted to approximately $98.0 million, compared to approximately $82.2 million in 2024, and approximately $79.6 million in 2023.
Previous wording
The Trustee was previously advised by the operator that as of December 31, 2023, the majority of Waddell Ranch oil production is now pipeline connected and sold under long term crude purchase agreements. Blackbeard would not confirm if this information remains accurate for 2024.
Current wording
The Trustee was previously advised by the operator that as of December 31, 2023, the majority of Waddell Ranch oil production is now pipeline connected and sold under long term crude purchase agreements. Blackbeard would not confirm if this information remained accurate for 2024 or 2025.
Previous wording
During 2024, the monthly royalty receipts were invested by the Trustee in cash and cash equivalents until the monthly distribution date, and earned interest totaled $150,779. Interest income for 2023 and 2022 was $85,879 and $48,371, respectively.
Current wording
During 2025, the monthly royalty receipts were invested by the Trustee in cash and cash equivalents until the monthly distribution date, and earned interest totaled $72,761. Interest income for 2024 and 2023 was $150,779 and $85,879, respectively.
Previous wording
General and administrative expenses in 2024 were $1,698,776 compared to $1,118,096 in 2023 and $922,404 in 2022, primarily due to audit of properties and other professional services. The reserve balance for administrative expenses for any potentially extraordinary events and/or expenses was $1,100,000 as of December 31, 2024, 2023 and 2022. There were no additions to the reserves for expenses during the years ended December 31, 2024, 2023 and 2022.
Current wording
General and administrative expenses in 2025 were $1,827,899 compared to $1,698,776 in 2024 and $1,118,096 in 2023, primarily due to audit of properties and other professional services. The reserve balance for administrative expenses for any potentially extraordinary events and/or expenses was $1,100,000 as of December 31, 2025, 2024 and 2023. There were no additions to the reserves for expenses during the years ended December 31, 2025, 2024 and 2023.
Previous wording
Distributable income for 2023 was $27,978,487 or $0.60 per Unit. .
Current wording
Distributable income for 2023 was $27,978,487 or $0.060 per Unit.
Previous wording
Royalty income received by the Trust for the fourth quarter of 2024 amounted to $3,784,959 or $0.08 per Unit, a decrease from the fourth quarter of 2023, when the Trust received royalty income of $14,412,501 or $0.31 per Unit. The decrease in the fourth quarter of 2024 was due to no Royalty income being received from the Waddell Ranch properties in October and November of 2024. Interest income for the fourth quarter of 2024 amounted to $28,091 compared to $24,688 for the fourth quarter of 2023. The increase in interest income is primarily attributable to increased amounts of funds available for investment and the length of time of such investment due mainly to the fact that funds received from Blackbeard during the fourth quarter of 2024 were included in the following month's distribution calculation and held for investment for a longer period of time than was held during the fourth quarter of 2023. Total general and administrative expenses was $382,860 for the fourth quarter of 2024 compared to $162,490 for the fourth quarter of 2023. The increase in expenses primarily related to timing of payments of legal and auditor expenses.
Current wording
Royalty income received by the Trust for the fourth quarter of 2025 amounted to $2,652,251 or $0.06 per Unit, a decrease from the fourth quarter of 2024, when the Trust received royalty income of $3,784,959 or $0.08 per Unit. The decrease in the fourth quarter of 2025 was due in part to no royalty income being received from the Waddell Ranch properties for the full quarter ended December 31, 2025, as opposed to just the last two months of the quarter ended December 31, 2024. Interest income for the fourth quarter of 2025 amounted to $25,437 compared to $28,091 for the fourth quarter of 2024. The decrease in interest income is primarily attributable to decreased amounts of funds available for investment. Total general and administrative expenses were $232,880 for the fourth quarter of 2025 compared to $382,860 for the fourth quarter of 2024. The decrease in expenses primarily related to timing of payments of legal and auditor expenses.
Previous wording
Nothwithstanding requests from the Trustee to Blackbeard, the operator of the Waddell Ranch properties, Blackbeard has refused to provide the Trustee information necessary to calculate the net proceeds as of the NYSE notification date beginning May 2024 such that Royalty income of the Trust for the fourth quarter is associated with actual oil and gas production for the period from July through September of the current year for the Waddell Ranch properties and August through October for the same period in 2023. Royalty income for the Trust for the fourth quarter 2024 for the Texas Royalty properties is associated with actual oil and gas production from August through October 2024. Oil and gas production attributable to the Underlying Properties for each month in the fourth quarter of 2024 and the comparable period for 2023 are as follows:
Current wording
As of May 2024, Blackbeard, the operator of the Waddell Ranch properties, has provided the Trustee information necessary to calculate the net proceeds after the NYSE notification date such that royalty income of the Trust for the fourth quarter is associated with actual oil and gas production for the period from July through September of the current and prior years for the Waddell Ranch properties. Royalty income for the Trust for the fourth quarters of 2024 and 2025 for the Texas Royalty properties is associated with actual oil and gas production from August through October of both years. Oil and gas production attributable to the Underlying Properties for each month in the fourth quarter of 2025 and the comparable period for 2025 are as follows:
Previous wording
For the Waddell Ranch properties, the posted price of oil decreased for the fourth quarter of 2024 compared to the fourth quarter of 2023, resulting in an average price per barrel of $73.78 compared to $84.40 in the same period of 2023. The average price of gas decreased for the fourth quarter of 2024 compared to the same period in 2023, resulting in an average price per Mcf of $1.23 compared to $2.27 in the fourth quarter of 2023. Oil production decreased in the fourth quarter of 2024 compared to the same period in 2023 for the Waddell Ranch properties.
Current wording
For the Waddell Ranch properties, the posted price of oil decreased for the fourth quarter of 2025 compared to the fourth quarter of 2024, resulting in an average price per barrel of $64.16 compared to $73.78 in the same period of 2024. The average price of gas increased for the fourth quarter of 2025 compared to the same period in 2024, resulting in an average price per Mcf of $1.58 compared to $1.23 in the fourth quarter of 2024. Both oil and gas production increased in the fourth quarter of 2025 compared to the same period in 2024 for the Waddell Ranch properties.
Previous wording
For the Texas Royalty properties, the posted price of oil decreased for the fourth quarter of 2024 compared to the fourth quarter of 2023, resulting in an average price per barrel of $74.57 compared to $83.22 in the same period of 2023. The average price of gas increased for the fourth quarter of 2024 compared to the same period in 2023, resulting in an average price per Mcf of $10.79 compared to $4.13 in the fourth quarter of 2023. Oil production increased in the fourth quarter of 2024 compared to the same period in 2023 for the Texas Royalty properties.
Current wording
For the Texas Royalty properties, the posted price of oil decreased for the fourth quarter of 2025 compared to the fourth quarter of 2024, resulting in an average price per barrel of $62.90 compared to $74.57 in the same period of 2024. The average price of gas decreased for the fourth quarter of 2025 compared to the same period in 2024, resulting in an average price per Mcf of $7.88 compared to $10.79 in the fourth quarter of 2024. Oil production decreased, while gas production increased in the fourth quarter of 2025 compared to the same period in 2024 for the Texas Royalty properties.
Previous wording
Development information for the Waddell Ranch properties such as well completions, workovers, remedial activities, and plugging and abandonment, was not provided by Blackbeard. This information has previously been provided monthly since Argent Trust Company has become Trustee of the Trust until May 2024.
Current wording
Development information for the Waddell Ranch properties such as well completions, workovers, remedial activities, and plugging and abandonment, is not provided by Blackbeard.
Previous wording
The Trustee routinely reviews its royalty interests in oil and gas properties for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. If an impairment event occurs and it is determined that the carrying value of the Trust’s royalty interests may not be recoverable, an impairment will be recognized as measured by the amount by which the carrying amount of the royalty interests exceeds the fair value of these assets, which would likely be measured by discounting projected cash flows. There was no impairment of the assets as of December 31, 2024.
Current wording
The Trustee routinely reviews its royalty interests in oil and gas properties for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. If an impairment event occurs and it is determined that the carrying value of the Trust’s royalty interests may not be recoverable, an impairment will be recognized as measured by the amount by which the carrying amount of the royalty interests exceeds the fair value of these assets, which would likely be measured by discounting projected cash flows. There was no impairment of the assets during the years ended December 31, 2025, 2024, or 2023.
Previous wording
The financial statements of the Trust are prepared on the following basis:
Current wording
The financial statements of the Trust are prepared on the following modified cash basis of accounting and are not intended to present financial position and results of operations in conformity with accounting principles generally accepted in the United States of America (“GAAP”):
Previous wording
Revenues from Royalty Interests are recognized in the period in which amounts are received by the Trust. Royalty income received by the Trust in a given calendar year will generally reflect the proceeds from crude oil and natural gas produced for the twelve-month period ended October 31 st in that calendar year. For 2024, this was the case for the Texas Royalty properties. Blackbeard has refused to provide the Trustee information necessary to calculate the net proceeds for the Waddell Ranch properties as of the NYSE notification date beginning May 2024 such that Royalty income for 2024 is associated with actual oil and gas production for the 11-month period ended September 30, 2024.
Current wording
Revenues from royalty interests are recognized in the period in which amounts are received by the Trust. For the Texas Royalty Properties, royalty income received by the Trust in a given calendar year will generally reflect the proceeds from crude oil and natural gas produced for the twelve-month period ended October 31 st in that calendar year. As of May 2024, Blackbeard has provided the Trustee information necessary to calculate the net proceeds for the Waddell Ranch properties after the NYSE notification date such that royalty income for 2025 is associated with actual oil and gas production for the 12-month period of October 1, 2024 through September 30, 2025. There was no royalty income received from Blackbeard for the calendar year 2025.