The Permian Basin Royalty Trust reported significant financial performance improvements for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Royalty income for the third quarter of 2024 reached $8.37 million, a substantial increase from $3.32 million in the prior year. For the nine-month period, royalty income totaled $23.18 million, up from $14.60 million in 2023. This growth is attributed to higher average realized oil prices, which increased to $79.91 per barrel for Waddell Ranch properties and $79.06 per barrel for Texas Royalty properties, compared to $70.78 and $71.45 per barrel, respectively, in the same quarter of 2023.

Distributable income also saw a notable rise, with $8.05 million reported for the third quarter of 2024, translating to $0.17 per unit, compared to $3.20 million or $0.07 per unit in the same quarter of 2023. For the nine months ended September 30, 2024, distributable income was $21.98 million, or $0.47 per unit, compared to $13.70 million, or $0.29 per unit, in the previous year.

Despite the positive revenue trends, total assets decreased to $3.92 million as of September 30, 2024, from $6.27 million at the end of 2023. Cash and short-term investments also fell to $3.73 million from $6.05 million during the same period. The distribution payable to unit holders was $2.36 million, down from $4.95 million at the end of 2023.

Operationally, the Trust's oil sales from Waddell Ranch properties totaled 533,073 barrels in the third quarter of 2024, slightly down from 542,628 barrels in the same quarter of 2023. Gas sales increased to 3.39 million Mcf from 3.17 million Mcf year-over-year. For the nine-month period, total oil sales were 1.96 million barrels, down from 2.02 million barrels in 2023, while gas sales remained relatively stable at 11.68 million Mcf compared to 11.60 million Mcf in the prior year.

The Trust's capital expenditures for drilling and maintenance activities on Waddell Ranch properties were $24 million in Q3 2024, a decrease from $31.8 million in Q3 2023. Lease operating expenses and property taxes increased to $22.6 million in Q3 2024 from $20.2 million in the same quarter of 2023.

The Trust is currently involved in legal proceedings against Blackbeard Operating, LLC, seeking over $25 million in damages related to alleged improper deductions from royalty payments. The preliminary trial date is set for April 21, 2025. The Trust's operations have also been impacted by delays in receiving necessary information from Blackbeard, affecting the timing of royalty income recognition.