PERMIAN BASIN ROYALTY TRUST

Permian Basin Royalty Trust filed an Amended 10-K for the fiscal year ended December 31, 2025, to correct disclosures related to oil and gas production, reserves, and financial statements. The amendment also includes updated certifications. The filing highlights significant risks, including a Unit holder's petition to judicially modify the Trust indenture, potential delays in distributions due to operator information timing, and the inherent uncertainty of reserve estimates for its depleting assets.

Permian Basin Royalty Trust announced it received a Schedule 13D from SoftVest, L.P. and other parties regarding a proposed business combination. SoftVest and Blackbeard Holdings, LLC have agreed to a preliminary non-binding term sheet to combine the Trust with certain Blackbeard assets. The proposal involves forming a new corporation, New PubCo, which would acquire all Trust assets and operations, along with US Land Guild, LLC, a Blackbeard subsidiary. The Trust and its Trustee were not involved in negotiating the term sheet and are providing this information for unitholders, noting that the combination would likely require unitholder approval.

Permian Basin Royalty Trust declared a cash distribution of $0.020355 per unit, payable on June 12, 2026, to unitholders of record on May 29, 2026. This distribution decreased from the prior month, primarily due to a previous settlement payment. The Waddell Ranch properties did not contribute proceeds due to excess costs, while the Texas Royalty Properties contributed $998,283. Additionally, a court approved SoftVest's petition to modify the Trust's Indenture, eliminating the 75% approval requirement for certain amendments and allowing amendments by a majority of unitholders with a quorum.

Permian Basin Royalty Trust reported an increase in Q1 2026 distributable income to $3.03 million, up from $2.60 million in Q1 2025, primarily boosted by a $1.13 million partial settlement payment from Blackbeard. Concurrently, the 96th District Court approved significant modifications to the Trust Indenture, eliminating the 75% Unitholder approval requirement for certain amendments and allowing future amendments by a majority vote. Despite the income increase, Waddell Ranch properties continued to operate at a deficit due to excess costs, and average realized oil and gas prices declined compared to the prior year.

The 96th District Court of Tarrant County, Texas, approved modifications to the Permian Basin Royalty Trust's Indenture, as requested by unitholder SoftVest, L.P. These changes eliminate the 75% unitholder approval requirement for certain amendments and replace the section on prohibited amendments with a provision allowing any amendment by a majority vote of unitholders constituting a quorum. Argent Trust Company, as trustee, subsequently entered into Amendment No. 2 to implement these court-approved modifications.

Permian Basin Royalty Trust announced a change in the scheduled time for a hearing before the 96th District Court of Tarrant County on May 8, 2026. The hearing, which relates to a unitholder's petition seeking judicial modification of the Trust's Indenture, has been rescheduled from 10:30 a.m. Central Time to 9:30 a.m. Central Time. The petition by SoftVest, L.P. aims to amend the Indenture to reduce the approval threshold for certain amendments and allow any provision to be amended by a majority unitholder vote.

Permian Basin Royalty Trust announced a cash distribution of $0.038014 per unit, payable on May 14, 2026, to unitholders of record on April 30, 2026. The trust also noted that production costs exceeded gross proceeds for the Waddell Ranch properties in March, resulting in a continuing excess cost position for those assets.