Permian Basin Royalty Trust (PBT) Q1 2025 earnings summary

Executive summary

• Royalty income for Q1 2025 was $3.05M, down from $6.01M in Q1 2024, due to no royalty income from Waddell Ranch properties amid excess costs and withheld operator data.

• Distributable income for Q1 2025 was $2.60M ($0.06/unit), compared to $5.49M ($0.12/unit) in Q1 2024.

• Ongoing litigation with Blackbeard Operating, LLC over $25M in alleged improper overhead and expense deductions from royalty payments.

Financial highlights

• Q1 2025 royalty income: $3.05M; interest income: $16.5K; expenses: $475K.

• Distributable income per unit: $0.06 in Q1 2025, down from $0.12 in Q1 2024.

• Cash and short-term investments at March 31, 2025: $1.95M, down from $2.12M at year-end 2024.

• No royalty income from Waddell Ranch properties in Q1 2025 due to excess costs; Texas Royalty properties contributed all royalty income.

• Distribution declared April 17, 2025: $0.019615 per unit, payable May 14, 2025.

Outlook and guidance

• Future distributions remain uncertain due to ongoing excess costs at Waddell Ranch and operator's refusal to provide timely data.

• Commodity price volatility, especially oil price declines from $79.28/bbl in January to $58.50/bbl in May 2025, may further impact income.