Wed, May 14, 3:39 PM (41 days ago)
**Permian Basin Royalty Trust (PBT) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** Q1 2025 royalty income was $3,054,697, down from $6,005,642 in Q1 2024 due to a deficit position in the Waddell Ranch properties. - **Profit Margins:** Distributable income was $2,596,212 (Q1 2025) vs. $5,492,206 (Q1 2024). - **Cash Flow:** Total expenses decreased to $475,008 in Q1 2025 from $552,484 in Q1 2024. - **Earnings Changes:** Distributable income per unit was $0.06 in Q1 2025, down from $0.12 in Q1 2024. **Quarterly Performance Discussion:** - **Waddell Ranch Properties:** No royalty income due to excess costs; capital expenditures increased to $47.9 million. - **Texas Royalty Properties:** Slight decrease in oil volumes, increase in gas volumes; average realized prices for oil and gas decreased. - **Commodity Prices:** Volatility due to geopolitical conditions; oil prices decreased from $79.28 to $58.50 per barrel. **Trends & Uncertainties:** - **Legal Proceedings:** Ongoing lawsuit against Blackbeard Operating, LLC, seeking recovery of damages. - **Operational Impact:** Blackbeard's refusal to provide timely information affects monthly distributions. - **Market Risks:** Commodity price fluctuations and geopolitical conditions impact income and distributions. **Future Operations:** - **Liquidity:** Limited to royalty income and periodic borrowings; no material interest rate risk. - **Controls & Procedures:** Effective disclosure controls and procedures in place; reliance on information from property owners. **Summary:** Permian Basin Royalty Trust faced challenges in Q1 2025 due to operational issues with the Waddell Ranch properties and commodity price volatility. The trust's income and distributions are heavily influenced by these factors, with ongoing legal proceedings and operational uncertainties impacting future performance. The trust maintains effective controls and procedures but relies on third-party information for critical financial data.