PERMIAN BASIN ROYALTY TRUST: May 2026 Distribution Update

If you own units of Permian Basin Royalty Trust (PBT), here is the breakdown of the latest distribution news. PBT is a passive investment; it does not run operations itself. Instead, it holds royalty interests in oil and gas properties, collects revenue from operators, and passes it on to you after subtracting administrative costs.

1. The Payout Details

The Trust has announced a cash distribution of $0.020355 per unit.

• Payment Date: June 12, 2026
• Ex-Dividend Date: May 29, 2026 (You must own the units by the close of business on this day to qualify).

2. Why is the payout lower this month?

Payouts for PBT fluctuate based on the performance of the underlying assets. Two primary factors impacted this month’s lower distribution:

• Waddell Ranch "Excess Costs": The Trust earns money based on net profits. At Waddell Ranch, the operator (Blackbeard Operating LLC) reported that costs, taxes, and capital spending exceeded revenue. Under the Trust’s rules, these "excess costs" must be recovered from future revenue before the Trust can receive net income from these specific properties. Consequently, there was no net income contribution from Waddell Ranch this month.
• Absence of One-Time Gains: Last month’s payout was bolstered by a one-time $1.125 million settlement from the operator. This month’s distribution reflects standard operations without that additional cash infusion.

3. Reporting Changes at Waddell Ranch

The operator has shifted to reporting production and cost data for Waddell Ranch on a quarterly basis rather than monthly. This creates a reporting delay. You will no longer see month-to-month performance details in the monthly distribution news; for granular data on production and costs, you should refer to the Trust’s quarterly (10-Q) and annual (10-K) filings.

4. Governance Update

A court recently approved a request from a major investor, SoftVest, to change the Trust’s governance rules. The threshold for changing the Trust Agreement has been lowered from a 75% "supermajority" to a simple majority. This makes it significantly easier for investors to propose and approve changes to how the Trust is managed moving forward.

5. The Takeaway for Investors

• Expect Volatility: Because PBT earns "net profits," your payout is highly sensitive to both oil prices and the operator's spending. Any increase in drilling or maintenance costs directly reduces your check. If costs exceed revenue, the Trust must clear that deficit before you see further income from those properties.
• Texas Royalties Provide a Floor: While Waddell Ranch struggled this month, the Texas Royalty Properties remained profitable, providing the entirety of this month’s income. Stronger production and pricing at these properties prevented the distribution from being even lower.
• Governance Matters: The shift to a simple majority vote empowers the investor base. It is now much easier for activist investors to influence the Trust’s strategy, which could lead to operational or administrative changes in the future.

6. What happens next?

You do not need to take any action. If you hold units on May 29, 2026, the cash will be deposited into your brokerage account on June 12, 2026. Moving forward, keep a close watch on the Trust’s quarterly filings to see when Waddell Ranch clears its cost deficit, as this will be the primary indicator of when that segment might return to contributing to your monthly distributions.