PBT Permian Basin Royalty Trust

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): December 18, 2023

PERMIAN BASIN ROYALTY TRUST

(Exact name of Registrant as specified in its charter)

Registrant’s Telephone Number, including area code: (855) 588-7839

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):

Securities registered pursuant to Section 12(b) of the Act:

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

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.  ☐

On December 18, 2023, the Registrant issued a press release announcing its monthly cash distribution to unitholders of record on December 29, 2023. The press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

This Report on Form 8-K is being furnished pursuant to Item 2.02, Results of Operations and Financial Condition. The information furnished is not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, is not subject to the liabilities of that section and is not deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: December 18, 2023

Exhibit 99.1

Permian Basin Royalty Trust

PERMIAN BASIN ROYALTY TRUST

ANNOUNCES DECEMBER CASH DISTRIBUTION

DALLAS, Texas, December 18, 2023 – Argent Trust Company, as Trustee of the Permian Basin Royalty Trust (NYSE: PBT) (“Permian”) today declared a cash distribution to the holders of its units of beneficial interest of $0.106232 per unit, payable on January 16, 2023, to unit holders of record on December 29, 2023.

This month’s distribution decreased from the previous month due to an increase in production costs on the Waddell Ranch Properties relative to the payment of ad valorem taxes. This was partially offset by an increase in volumes of oil and gas produced on both the Waddell Ranch Properties and Texas Royalty Properties for the month of October.

WADDELL RANCH

In reporting October production of the Underlying Properties for this month’s press release, production for oil volumes was 268,044 (gross) and was priced at approximately $84.60 per bbl. Production for gas volumes (including gas liquids) was 886,479 Mcf (gross) and was priced at approximately $1.41 per Mcf, which now includes the value received from plant products and natural gas liquids. Net revenue for the underlying properties of the Waddell ranch was $22,824,450 (gross) for October. Lease Operating Expenses were $11,056,888 (gross) and Capital Expenditures (CAPEX) were $6,863,629 (gross) for October, netting a positive Net Profit Interest (NPI) of $4,903,933. This would put the trust’s proceeds of 75% as a positive $3,677,949 (net) to contribute to this month’s distribution. For the month of October, revenue increased compared to the prior month. The overall decrease in prices was offset by the uptick in volumes as the result of one additional day plus an eight percent increase in volumes produced by day. Production costs in October significantly increased due to an Ad Valorem true up to replace estimates with the actual tax based on statements from the county. This was partially offset by a decrease in capital projects due to the absence of horizontal completion costs that had been reported in prior months. Given that if current oil and gas pricing continues, Waddell Ranch may or may not be able to continue to contribute to the distribution in the foreseeable future, to cover the ongoing CAPEX budget. The Waddell Ranch Properties NPI contributed to this month’s distribution.

First sales received for the month of October 2023 wells were as follows: (all net to the Trust), 0.8 new drill wells, including 0.0 horizontal wells, 5.6 recompleted wells. Waiting on completion, as of 10/31/2023, were 1.5 drill wells, including 0.4 horizontal wells and 3.0 recompletion wells. Also, 3.4 wells, plugged and abandoned, were completed.

Blackbeard has provided the projected 2023 capital expenditure budget for the Waddell Ranch Properties to be an estimated $96.8 million (net to the Trust) with a projection of about 30.75 new drill wells and 45 recompletions along with about 37.5 plug and abandoned wells. At this point in time, approximately 76% of that budget has been incurred.

TEXAS ROYALTY PROPERTIES

Production for the underlying properties at the Texas Royalties was 16,522 barrels of oil and 20,507 Mcf of gas. The production for the Trust’s allocated portion of the Texas Royalties was 14,833 barrels of oil and 18,418 Mcf of gas. The average price for oil was $86.51 per bbl and for gas was $4.25 which includes significant NGL pricing per Mcf. This would primarily reflect production and pricing for the month of October for oil and the month of September for gas. These allocated volumes were impacted by the pricing of both oil and gas. This production and pricing for the underlying properties resulted in revenues for the Texas Royalties of $1,516,513. Deducted from these were taxes of $151,857 resulting in a Net Profit of $1,364,657 for the month of October. With the Trust’s Net Profit Interest (NPI) of 95% of the Underlying Properties, this would result in a net contribution by the Texas Royalties of $1,296,424 to this month’s distribution.

General and Administrative Expenses deducted for the month were $32,998 resulting in a distribution of $4,951,350 to 46,608,796 units outstanding, or $0.106232 per unit.

The worldwide market conditions continue to affect the pricing for domestic production. It is difficult to predict what effect these conditions will have on future distributions.

The 2022 Annual Report with Form 10-K and the January 1, 2023 Reserve Summary are posted on Permian’s website. Permian’s cash distribution history, current and prior year financial reports, tax information booklets, and a link to filings made with the Securities and Exchange Commission, all can be found on Permian’s website at http://www.pbt-permian.com/. Additionally, printed reports can be requested and are mailed free of charge.

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Contact: Nancy Willis, Vice President, Argent Trust Company, Trustee, Toll Free – 1.855.588.7839