Permian Basin Royalty Trust Plunges 17.36% on Gas Price Drop

On May 8, 2025, Permian Basin Royalty Trust experienced a significant drop of 17.36% in pre-market trading, reflecting a notable decline in investor sentiment.

Permian Basin Royalty Trust, an oil and gas trust, has been facing challenges due to fluctuating oil and gas prices. In 2024, the trust reported a 10% decrease in distributable income per unit, from $0.60 to $0.54, primarily due to a 40% plunge in natural gas prices. Despite some months of increased distributions in late 2023, recent months have seen a reduction in distributions due to high operating expenses and low commodity prices.

The trust's assets are static, meaning no further properties can be added, and it operates as a pass-through vehicle for royalties. The trust's financial performance is heavily influenced by the prices of oil and gas, which have been volatile. The average realized price of oil edged down only slightly, but the price of natural gas saw a significant decline, impacting the trust's overall income.