10-Q 1 pbt_10q_9-30-2025.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 September 30, 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 November 13, 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


	September 30, 2025 (Unaudited)		December 31, 2024
ASSETS
Cash and short-term investments	$	6,493,208	$	2,122,585
Net overriding royalty interests in producing oil and gas properties (net of accumulated amortization of $10,812,793 and $10,810,809 at September 30, 2025 and December 31, 2024, respectively)		162,423		164,407
TOTAL ASSETS	$	6,655,631	$	2,286,992
LIABILITIES AND TRUST CORPUS
Distribution payable to Unitholders (Note 3)	$	5,393,208	$	1,022,585
Commitments and reserves for contingencies (Note 7)		1,100,000		1,100,000
Total Liabilities	$	6,493,208	$	2,122,585
Trust corpus – 46,608,796 Units of beneficial interest authorized and outstanding		162,423		164,407
TOTAL LIABILITIES AND TRUST CORPUS	$	6,655,631	$	2,286,992


	Three Months Ended September 30, 2025			Three Months Ended September 30, 2024
Royalty income (Note 3)	$	7,258,464		$	8,366,375
Interest income		15,049			54,534
Total Income		7,273,513			8,420,909
General and administrative expenditures		(411,626	)		(367,625	)
Distributable income	$	6,861,887		$	8,053,284
Distributable income per Unit (46,608,796 Units outstanding)	$	0.15		$	0.17


	Nine Months Ended September 30, 2025			Nine Months Ended September 30, 2024
Royalty income (Note 3)	$	13,403,049		$	23,175,406
Interest income		47,324			122,688
Total Income		13,450,373			23,298,094
General and administrative expenditures		(1,595,019	)		(1,315,916	)
Distributable income	$	11,855,354		$	21,982,178
Distributable income per Unit (46,608,796 Units outstanding)	$	0.25		$	0.47


	Three Months Ended September 30, 2025			Three Months Ended September 30, 2024
Trust corpus, beginning of period	$	163,122		$	197,625
Amortization of net overriding royalty interests		(699	)		(12,000	)
Distributable income		6,861,887			8,053,284
Distributions declared		(6,861,887	)		(8,053,284	)
Total Trust Corpus, end of period	$	162,423		$	185,625
Distributions per Unit (46,608,796 Units outstanding)	$	0.15		$	0.17


	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
Net excess costs (recovery) for the quarter ended 6/30/25		8,337,807		6,253,355
Net excess costs (recovery) for the quarter ended 9/30/25		7,669,844		5,752,383
Cumulative excess costs remaining at 9/30/2025	$	43,549,283	$	32,661,962
Accrued interest at 9/30/25		2,049,458		1,537,094
Total remaining to be recovered at 9/30/25	$	45,598,741	$	34,199,056



	Waddell Ranch Properties
	2025								2024
	June		July		August		Total		June		July		August		Total
Royalties
Oil sales (Bbls)		284,412		311,967		317,533		913,912		179,458		180,415		173,200		533,073
Gas sales (Mcf)		1,300,630		1,351,303		1,421,045		4,072,978		1,140,593		1,135,195		1,112,088		3,387,875
Properties From Which The Royalties Were Carved:
Oil:
Total oil sales (Bbls)		379,216		415,956		423,377		1,218,549		239,277		240,553		230,934		710,764
Average per day (Bbls)		12,641		13,418		13,657		13,245		7,976		7,760		7,449		7,726
Average realized price per Bbl	$	61.61	$	59.58	$	65.65		62.32	$	83.75	$	78.55	$	77.35	$	79.91
Gas:
Total gas sales (Mcf)		1,734,174		1,801,737		1,894,727		5,430,638		1,520,790		1,513,593		1,482,784		4,517,167
Average per day (Mcf)		57,806		58,121		61,120		59,029		50,693		48,826		47,832		49,100
Average realized price per Mcf	$	0.96	$	1.34	$	1.72	$	1.35	$	1.04	$	1.06	$	1.47	$	1.19


	Texas Royalty Properties
	2025								2024
	July		August		September		Total		July		August		September		Total
Royalties
Oil sales (Bbls)		12,190		14,645		13,944		40,779		14,033		14,513		18,843		47,389
Gas sales (Mcf)		10,109		8,742		10,800		29,651		5,905		5,101		6,337		17,343
Properties From Which The Royalties Were Carved:
Oil:
Total oil sales (Bbls)		13,896		16,672		15,856		46,424		15,751		16,295		20,846		52,892
Average per day (Bbls)		448		538		529		516		525		526		695		575
Average realized price per Bbl	$	68.37	$	62.02	$	65.76		65.20	$	80.60	$	77.62	$	79.03		79.06
Gas:
Total gas sales (Mcf)		11,503		9,952		12,275		33,730		6,626		5,722		7,012		19,360
Average per day (Mcf)		383		321		409		375		214		185		234		210
Average realized price per Mcf	$	11.75	$	7.53	$	6.65	$	8.65	$	10.48	$	11.27	$	10.00	$	10.54


	For the Nine Months Ended September 30,
	2025				2024
	WADDELL RANCH PROPERTIES(1)		TEXAS ROYALTY PROPERTIES		WADDELL RANCH PROPERTIES		TEXAS ROYALTY PROPERTIES
Royalties
Oil sales (Bbls)		2,310,987		127,460		1,468,441		136,427
Gas sales (Mcf)		11,138,948		83,263		8,761,191		60,943
Properties From Which The Royalties Were Carved:
Oil:
Total oil sales (Bbls)		3,081,316		144,375		1,957,921		152,790
Average per day (Bbls)		11,246		529		7,172		560
Average price per Bbl	$	66.68	$	67.66		76.62	$	77.40
Gas:
Total gas sales (Mcf)		14,851,931		94,326		11,681,587		68,239
Average per day (Mcf)		54,204		346		42,790		250
Average price per Mcf	$	1.80	$	9.11	$	1.61	$	9.69


	Three Months Ended September 30,
	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	$	75,942,158		$	3,026,825		$	56,795,882		$	4,181,717
Gas proceeds		7,333,899			291,741			5,375,448			204,061
Total		83,276,057			3,318,566			62,171,330			4,385,778
Less:
Severance tax:
Oil		3,500,952			123,880			2,588,394			169,810
Gas		29,496			8,314			20,816			—
Gathering and Transportation Costs		8,395,922			42,726			6,731,048			33,061
Lease operating expense and property tax:
Oil and gas		26,550,683			240,000			22,637,650			240,000
Capital expenditures		53,339,765			—			24,032,607			—
Total		91,816,818			414,920			56,010,515			442,871
Net profits		(8,540,761	)		2,903,646			6,160,815			3,942,907
Net overriding royalty interests		75	%		95	%		75	%		95	%
Royalty income	$	(6,405,571	)		2,758,464		$	4,620,611			3,745,762


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 Nancy Willis, Director of Royalty Trust Services, Argent Trust Company, Trustee of Permian Basin Royalty Trust, dated November 13, 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 November 13, 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: November 13, 2025	By:	/s/ NANCY WILLIS
		Nancy Willis
		Director of Royalty Trust Services

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 September 30, 2025 Compared to Three Months Ended September 30, 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