10-Q 1 pbt_10q_3-31-2025.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period to________

Commission File Number: 001-08033

PERMIAN BASIN ROYALTY TRUST

(Exact name of registrant as Specified in the Permian Basin Trust Indenture)


Texas	75-6280532
( State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
Argent Trust Company 3838 Oak Lawn Ave, Suite 1720 Dallas, Texas 75219
(Address of Principal Executive Offices; Zip Code)

(855) 588-7839

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


	Trading Symbol(s)	Name of each exchange on which registered
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Units of Beneficial Interest	PBT	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☐ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes☐ No ☒

Number of units of beneficial interest outstanding at May 14, 2025: 46,608,796


		Page

Report of Independent Registered Public Accounting Firm (PCAOB ID Number 410)		3
Condensed Interim Statements of Assets, Liabilities and Trust Corpus		4
Condensed Interim Statements of Distributable Income (Unaudited)		5
Condensed Interim Statements of Changes in Trust Corpus (Unaudited)		6


	March 31, 2025 (Unaudited)		December 31, 2024
ASSETS
Cash and short-term investments	$	1,948,624	$	2,122,585
Net overriding royalty interests in producing oil and gas properties (net of accumulated amortization of $10,811,451 and $10,810,809 at March 31, 2025 and December 31, 2024, respectively)		163,765		164,407
TOTAL ASSETS	$	2,112,389	$	2,286,992
LIABILITIES AND TRUST CORPUS
Distribution payable to Unitholders	$	848,624	$	1,022,585
Commitments and reserves for contingencies (Note 7)		1,100,000		1,100,000
Total Liabilities	$	1,948,624	$	2,122,585
Trust corpus – 46,608,796 Units of beneficial interest authorized and outstanding		163,765		164,407
TOTAL LIABILITIES AND TRUST CORPUS	$	2,112,389	$	2,286,992


	Three Months Ended March 31, 2025			Three Months Ended March 31, 2024
Royalty income	$	3,054,697		$	6,005,642
Interest income		16,523			39,048
Total Income		3,071,220			6,044,690
General and administrative expenditures		(475,008	)		(552,484	)
Distributable income	$	2,596,212		$	5,492,206
Distributable income per Unit (46,608,796 Units outstanding)	$	0.06		$	0.12


	Three Months Ended March 31, 2025			Three Months Ended March 31, 2024
Trust corpus, beginning of period	$	164,407		$	221,474
Amortization of net overriding royalty interests		(642	)		(11,849	)
Distributable income		2,596,212			5,492,206
Distributions declared		(2,596,212	)		(5,492,206	)
Total Trust Corpus, end of period	$	163,765		$	209,625
Distributions per Unit (46,608,796 Units outstanding)	$	0.06		$	0.12


	Underlying Properties		Net to the Trust
Cumulative excess costs remaining at 12/31/2024	$	13,623,356	$	10,217,517
Net excess costs (recovery) for the quarter ended 3/31/25	$	13,918,276	$	10,438,707
Cumulative excess costs remaining at 3/31/2025	$	27,541,632	$	20,656,224
Accrued interest at 3/31/25	$	564,855	$	423,641
Total remaining to be recovered at 3/31/25	$	28,106,487	$	21,079,865



	Waddell Ranch Properties
	2024 - 2025								2024
	December		January		February		Total		January		February		March		Total
Royalties
Oil sales (Bbls)		200,636		193,737		233,428		627,801		182,538		189,199		190,240		561,977
Gas sales (Mcf)		1,220,898		1,031,786		1,153,901		3,406,586		1,065,556		1,087,466		1,051,211		3,204,233
Properties From Which The Royalties Were Carved:
Oil:
Total oil sales (Bbls)		267,515		258,316		311,237		837,068		243,384		252,265		253,653		749,302
Average per day (Bbls)		8,630		8,333		11,116		9,301		7,851		8,699		8,182		8,234
Average realized price per Bbl	$	71.04	$	67.81	$	67.64		68.83	$	76.54	$	70.25	$	72.45	$	73.08
Gas:
Total gas sales (Mcf)		1,627,864		1,375,715		1,538,535		4,542,114		1,420,742		1,449,955		1,401,615		4,272,312
Average per day (Mcf)		52,512		44,378		54,948		50,468		45,830		49,998		45,213		46,948
Average realized price per Mcf	$	1.89	$	0.77	$	2.31	$	1.66	$	1.55	$	2.10	$	2.38	$	2.01


	Texas Royalty Properties
	2025								2024
	January		February		March		Total		January		February		March		Total
Royalties
Oil sales (Bbls)		14,914		13,469		14,957		43,340		14,965		15,348		14,665		44,978
Gas sales (Mcf)		8,213		8,774		9,462		26,449		8,510		8,483		4,825		21,818
Properties From Which The Royalties Were Carved:
Oil:
Total oil sales (Bbls)		16,839		15,307		16,839		48,985		16,739		17,227		16,538		50,504
Average per day (Bbls)		543		547		543		544		540		615		533		549
Average realized price per Bbl	$	67.69	$	68.37	$	70.81		68.96	$	80.33	$	73.43	$	71.75		75.17
Gas:
Total gas sales (Mcf)		9,283		9,971		10,659		29,913		9,503		9,520		5,430		24,453
Average per day (Mcf)		299		356		344		332		307		340		175		266
Average realized price per Mcf	$	9.56	$	8.38	$	7.88	$	8.61	$	7.67	$	7.93	$	11.68	$	9.09


	Three Months Ended March 31,
	2025						2024
	WADDELL RANCH PROPERTIES (1)			TEXAS ROYALTY PROPERTIES			WADDELL RANCH PROPERTIES			TEXAS ROYALTY PROPERTIES
Gross proceeds of sales from the Underlying Properties
Oil proceeds	$	57,571,976		$	3,378,836		$	54,725,566		$	3,796,343
Gas proceeds		7,687,489			256,333			8,581,077			211,803
Total		65,259,465			3,635,169			63,306,643			4,008,146
Less:
Severance tax:
Oil		2,945,725			129,325			2,473,897			153,038
Gas		76,852			11,688			75,192			4,680
Gathering and Transportation Costs		7,368,268			38,685			6,121,069			31,784
Lease operating expense and property tax:
Oil and gas		21,417,188			240,000			22,788,576			240,000
Capital expenditures		47,934,563			—			28,373,337			—
Total		79,742,596			419,698			59,832,070			429,502
Net profits		(14,483,131	)		3,215,471			3,474,573			3,578,644
Net overriding royalty interests		75	%		95	%		75	%		95	%
Royalty income	$	(10,862,348	)		3,054,697		$	2,605,929			3,399,712


4.1	Permian Basin Amended and Restated Royalty Trust Indenture dated June 20, 2014, between Southland Royalty Company (now Burlington Resources Oil & Gas Company LP) and The First National Bank of Fort Worth (now Argent Trust Company), as Trustee, heretofore filed as Exhibit 4.1 to the Trust’s Quarterly Report on Form 10-Q to the Securities and Exchange Commission for the quarterly period ended June 30, 2014, is incorporated herein by reference. *

4.2	Amendment No. 1 to the Amended and Restated Royalty Trust Indenture of Permian Basin Royalty Trust, dated May 4, 2022, heretofore filed as Exhibit 4.1 to the Trust’s Form 8-K to the Securities and Exchange Commission filed on May 6, 2022, is incorporated herein by reference. *

4.3	Net Overriding Royalty Conveyance (Permian Basin Royalty Trust) from Southland Royalty Company (now Burlington Resources Oil & Gas Company LP) to The First National Bank of Fort Worth (now Argent Trust Company), as Trustee, dated November 3, 1980 (without Schedules), heretofore filed as Exhibit (4)(b) to the Trust’s Annual Report on Form 10-K to the Securities and Exchange Commission for the fiscal year ended December 31, 1980, is incorporated herein by reference. * (P)

4.4	Net Overriding Royalty Conveyance (Permian Basin Royalty Trust) from Southland Royalty Company (now Burlington Resources Oil & Gas Company LP) to The First National Bank of Fort Worth (now Argent Trust Company), as Trustee, dated November 3, 1980 (without Schedules), heretofore filed as Exhibit (4)(b) to the Trust’s Annual Report on Form 10-K to the Securities and Exchange Commission for the fiscal year ended December 31, 1980, is incorporated herein by reference. * (P)

31.1	Certification by Jana Egeler, Vice President of Argent Trust Company, Trustee of Permian Basin Royalty Trust, dated May 14, 2025, and submitted pursuant to Rule 13a-14(a)/15d-14(a) and pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1	Certificate by Argent Trust Company, Trustee of Permian Basin Royalty Trust, dated May 14, 2025 and submitted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350).


	ARGENT TRUST COMPANY, TRUSTEE FOR THE PERMIAN BASIN ROYALTY TRUST

Date: May 14, 2025	By:	/s/ JANA EGELER
		Jana Egeler
		Vice President

Item 1. Financial Statements

Report of Independent Registered Public Accounting Firm

CONDENSED INTERIM STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS

PERMIAN BASIN ROYALTY TRUST

Basis of Accounting

Commodity Prices

Liquidity and Capital Resources

Results of Operations

Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024

Calculation of Royalty Income

Item 1. Legal Proceedings

Item 1A. Risk Factors

Item 5. Other Information

Item 6. Exhibits

SEC Form 10-Q filed by Permian Basin Royalty Trust