SUBSCRIBE
PROFILE

Permian Basin Royalty reduces June distribution due to high costs

Permian Basin Royalty Trust announces a reduced distribution for June due to ongoing excess costs at Waddell Ranch properties and lower volumes from Texas Royalty Properties.

Share:

Subscribe for unlimited access to all energy sector news.

Over 150 multisector articles and analyses every week.

Your 1st year at 99 $*

then 199 $/year

SUBSCRIBE — 99 $ for the 1st year

Create a free account to read this article

*renews at 199$/year, cancel anytime before renewal.

Permian Basin Royalty Trust (PBT), managed by Argent Trust Company, declared a cash distribution of USD 0.012976 per unit, payable to unit holders recorded as of June 30, 2025. This distribution, payable on July 15, 2025, does not include revenues from Waddell Ranch properties, where production costs still exceed gross proceeds.

Complex situation at Waddell Ranch

Issues related to Waddell Ranch persist with the operator Blackbeard Operating LLC no longer providing monthly information necessary for precise calculation of the Net Profits Interest (NPI). Since May 2024, Blackbeard has limited this information to a quarterly frequency, preventing complete integration of data into the Trust’s monthly distributions.

Argent Trust specifies that no revenue from Waddell Ranch properties was received for the June distribution. Accumulated excess costs must be entirely recovered before resuming payments from this property.

Notable revenue decline in Texas

Meanwhile, Texas Royalty Properties recorded a decline in natural gas production volumes, dropping to 8,278 thousand cubic feet (Mcf) from 9,894 Mcf in the previous month. Despite a slight increase in gas prices to USD 9.48 per Mcf, total revenues were negatively impacted by a decline in oil prices to USD 65.46 per barrel from USD 68.39 the previous month.

In terms of volume, the Trust’s Texas properties produced 14,430 barrels of oil, slightly higher than the 13,619 barrels in the previous month but insufficient to offset the negative effects of overall pricing and volume. After deducting taxes and expenses amounting to USD 139,241, net profits reached USD 1,021,112, thus contributing USD 970,056 to the monthly distribution.

Ongoing judicial dispute

The litigation between the Trust and Blackbeard Operating continues in the District Court of Tarrant County, Texas. Argent Trust claims damages exceeding USD 9 million, alleging Blackbeard miscalculated and deducted certain operating costs between April 2020 and December 2023.

A joint audit of 2024 operations is currently underway. This lawsuit, scheduled to begin on November 17, 2025, promises complexity with significant financial implications for both parties.

This situation leaves open the question of the evolution of future distributions and the financial transparency of the involved operators.

  • Popular on energynews.pro
ONEOK and partners launch Eiger Express project to link Permian to Gulf
BP Restarts Whiting Refinery After Flooding: Regional Market Pressures Emerge
CNOOC signs two gas exploration contracts in Indonesia with EnQuest and Agra
Masdar completes financing for the 2 GW Al Sadawi solar project in Saudi Arabia
Solar will dominate more than half of the new power capacity planned in the United States in 2025
Cenovus acquires MEG Energy for $7.9 billion in strategic deal
Cenovus Energy announces the acquisition of MEG Energy through a mixed transaction aimed at strengthening its position in oil sands while optimizing cost structure and integrated production.
Vantage Drilling extends conditional agreement for the Platinum Explorer rig
Vantage Drilling International Ltd. extends the validity of its conditional letter of award until August 29, without changes to the initial terms.
Libya’s NOC Plans Bilateral Forum with American Energy Stakeholders
Libya is preparing to host an energy forum in partnership with American companies to boost investment in its oil and gas sectors.
The United States Sanctions Greek Shipper for Iranian Oil Trafficking
Washington increases pressure on Iran’s oil sector by sanctioning a Greek shipper and its affiliates, accused of facilitating crude exports to Asia despite existing embargoes.
BOEM validates final review for 30 offshore sales in the Gulf of America
The Bureau of Ocean Energy Management formalizes a strategic environmental review, setting the framework for 30 oil sales in the Gulf of America by 2040, in line with a new federal law and current executive directives.
Hungary Seeks U.S. Support After New Disruptions on the Druzhba Pipeline
Amid repeated disruptions on the Druzhba pipeline, attributed to Ukrainian strikes, Hungary has requested U.S. support to secure its oil supply.
Aker BP quadruples estimates for Omega Alfa field in the North Sea
Norwegian producer Aker BP raises its oil potential forecast for the Omega Alfa well, part of the Yggdrasil project, with estimated resources reaching up to 134 million barrels of oil equivalent.
Moretti expected to chair Petrobras board with ministerial backing
Bruno Moretti, current special secretary to the presidency, is in pole position to lead Petrobras’ board of directors after Pietro Mendes’ resignation for a regulatory role.
Next Bridge Raises $6 Million to Fund Panther Project in Louisiana
Next Bridge Hydrocarbons completes a $6 million private debt raise to support its involvement in the Panther project while restructuring part of its existing debt.
Sinopec Shanghai Posts Half-Year Loss Amid Declining Petrochemical Demand
Sinopec Shanghai Petrochemical reported a net loss in the first half of 2025, impacted by reduced demand for fuels and chemical products, as well as declining sales volumes.
Togolese ZIH Acquires Petrogal GB with Structured Financing from Ecobank
Zener International Holding takes over Petrogal’s assets in Guinea-Bissau, backed by a $24 million structured financing deal arranged with support from Ecobank and the West African Development Bank.
Pietro Mendes resigns from Petrobras to lead Brazilian oil agency ANP
Petrobras board chairman Pietro Mendes resigned after his appointment to lead the National Petroleum Agency, confirmed by the Senate.
Bahrain signs strategic energy agreement with EOG Resources
Bahrain has signed an energy concession agreement with EOG Resources and Bapco Energies, reinforcing its national strategy and opening the way to new opportunities in oil and gas exploration.
Talos identifies new hydrocarbon reserve in the Gulf of Mexico
Talos Energy confirmed the presence of oil in the Daenerys area, located in the Gulf of Mexico, after a successful sub-salt drilling operation completed ahead of schedule.
Ithaca Energy doubles production in H1 2025 and raises its forecasts
Thanks to strong operational performance, Ithaca Energy recorded record production in the first half of 2025, supporting improved annual guidance and significant dividend distributions.
Oil prices rise after unexpected decline in US crude stocks
A surprise drop in US crude inventories and renewed focus on peace talks in Ukraine are shaping oil market dynamics.
Resumption of Russian Oil to Hungary Despite Tensions Linked to Ukrainian Strikes
The Druzhba pipeline has resumed flows to Hungary, while recent strikes raise questions about the energy interests at stake within the European Union.
Namibia: FPSO shortage and rig costs constrain the oil agenda
The resumption of Shell’s drilling operations and the advancement of competing projects are unfolding in a context dominated by the availability of FPSOs and deepwater drilling capacity, which dictate industrial sequencing and development costs.
Indonesia Energy enters the Brazilian market with a strategic exploratory agreement
Indonesia Energy Corporation signs a memorandum of understanding with Aguila Energia to identify oil and gas assets in Brazil, marking a first incursion outside its domestic market.
YPF Transfers Seven Oil Zones to Terra Ignis to Refocus Its Assets
YPF transfers management of seven conventional zones to Terra Ignis, marking a key step in its strategy to refocus on higher-value projects.

Log in to read this article

You'll also have access to a selection of our best content.

or

Go unlimited with our annual offer: 99 $ for the 1styear year, then 199 $ /year.

SUBSCRIBE - €99
Consent Preferences