Permian Basin Royalty Trust Shares Dip 1.80 as $190M Surge Pushes It to 495th in Trading Activity Amid $9M Blackbeard Settlement

On August 19, 2025, Permian Basin Royalty Trust (PBT) reported a 1.80% decline in its stock price despite a surge in trading volume. The security recorded $190 million in trading activity, a 109.61% increase from the prior day, placing it 495th among active stocks. This movement followed a significant corporate development involving the trust's ongoing dispute with Blackbeard Operating, LLC.

The trust announced a $9 million settlement agreement resolving litigation over royalty calculation discrepancies at the Waddell Ranch properties. Under the terms, Blackbeard will pay $4.5 million within 30 days, with the remaining $4.5 million distributed in four quarterly installments of $1.125 million during 2026. The resolution includes revised parameters for overhead charges, third-party service fees, and technical labor allocation against the trust's 75% net overriding royalty interest. The agreement also establishes annual audit rights for the trust and clarifies reporting obligations to ensure transparency in future royalty calculations.

Trust management emphasized the settlement provides immediate liquidity and a predictable revenue stream while eliminating litigation-related uncertainties. The structured payment schedule and operational safeguards are expected to enhance unitholder confidence by creating a standardized framework for royalty distribution. The settlement preserves the trust's ability to conduct independent site audits and maintains clear definitions for ordinary line losses based on third-party agreements.

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