Permian Basin Royalty Trust (PBT) Q4 2024 earnings summary

Executive summary

• Permian Basin Royalty Trust reported 2024 distributable income of $25.4 million ($0.55 per unit), down from $27.98 million ($0.60 per unit) in 2023 and $53.54 million ($1.15 per unit) in 2022, reflecting lower oil and gas prices and operational challenges.

• Royalty income for 2024 was $26.96 million, with oil accounting for 90% and gas 10% of total royalty income.

• Waddell Ranch properties did not contribute to royalty income in October and November 2024 due to a net profits interest deficit, impacting fourth quarter results.

• Blackbeard, the operator of Waddell Ranch, withheld key operational and financial data from May 2024, causing delays in distributions and limiting reserve disclosures.

Financial highlights

• Total royalty income decreased 7% year-over-year to $26.96 million in 2024; oil prices averaged $75.88/bbl (down from $76.72 in 2023), and gas prices averaged $1.45/Mcf (down from $2.40 in 2023).

• Distributable income per unit was $0.55 in 2024, compared to $0.60 in 2023 and $1.15 in 2022.

• Lease operating expenses for Waddell Ranch increased to $82.2 million in 2024 from $79.6 million in 2023.

• Capital expenditures for Waddell Ranch were $109.4 million (gross) in 2024, down from $120.5 million in 2023.

• General and administrative expenses rose to $1.7 million in 2024, up from $1.1 million in 2023, mainly due to legal and audit costs.

Outlook and guidance

• Blackbeard has refused to provide a 2025 capital expenditure budget or development plan, preventing disclosure of proved undeveloped reserves and limiting forward-looking guidance.

• Oil and gas prices remain volatile; as of February 24, 2025, NYMEX oil was $71.06/bbl and gas $3.86/MMBtu, which may impact future cash flows.