The Permian Basin Royalty Trust reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with total royalty income of $26.96 million, down from $29.01 million in 2023. This decrease is attributed to a lack of royalty income from the Waddell Ranch properties during October and November 2024, which resulted in a deficit position for those months. The Trust's distributable income also fell to $25.42 million, or $0.55 per unit, compared to $27.98 million, or $0.60 per unit, in the previous year. The average price of oil decreased to $75.88 per barrel in 2024 from $76.72 in 2023, while the average price of gas dropped significantly from $2.40 per Mcf to $1.45 per Mcf.
Operationally, the Trust faced challenges due to Blackbeard Operating, LLC, the operator of the Waddell Ranch properties, which has not provided necessary information for calculating net proceeds since May 2024. This lack of communication has delayed distributions and contributed to the Trust's inability to report accurate production figures. The Trust's total oil production for 2024 was approximately 2.21 million barrels, while gas production reached about 12.20 million Mcf. The Trust's total capital expenditures for the year were approximately $109.4 million, a decrease from $120.5 million in 2023.
The Trust's assets as of December 31, 2024, totaled $2.29 million, a decrease from $6.27 million in 2023, primarily due to the decline in net overriding royalty interests. The liabilities also decreased to $2.12 million from $6.05 million, reflecting the Trust's reduced operational scale. The Trust's general and administrative expenses increased to $1.70 million in 2024, up from $1.12 million in 2023, largely due to higher professional fees and unitholder service fees.
Looking ahead, the Trust's outlook remains uncertain due to ongoing volatility in oil and gas prices, which are influenced by various external factors including geopolitical tensions and market conditions. The Trust's future royalty income is expected to be impacted by the creditworthiness of operators and the potential for increased production costs. The Trustee has indicated that it will continue to monitor these developments closely, but the lack of a development plan from Blackbeard for 2025 raises concerns about the future production capabilities of the Waddell Ranch properties. The Trust's ability to recover from its current deficit position will depend on improvements in market conditions and operational transparency from its operators.
About PERMIAN BASIN ROYALTY TRUST
About 10-K Filings
A 10-K form is a comprehensive annual report that public companies in the United States must file with the SEC, providing a detailed overview of the company's financial condition, performance, and business strategies.
Key points about the 10-K:
- Frequency: Filed annually, typically within 60 to 90 days after the end of the company's fiscal year.
-
Content: It includes:
- Detailed financial statements audited by an independent accounting firm
- Management's Discussion and Analysis (MD&A) of financial condition and results
- Description of the company's business, properties, and legal proceedings
- Risk factors and market risks
- Executive compensation and corporate governance information
- Importance: Considered the most comprehensive and important document a public company files with the SEC.
- Length: Often exceeds 100 pages due to its extensive and detailed nature.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.