Permian Basin Royalty Trust Files 2023 Annual Report on Form 10-K

TL;DR

<b>Permian Basin Royalty Trust has filed its 2023 annual report (10-K) with the SEC, detailing its operations and financial status.</b>

AI Summary

PERMIAN BASIN ROYALTY TRUST (PBT) filed a Annual Report (10-K) with the SEC on February 29, 2024. Permian Basin Royalty Trust filed its annual report for the fiscal year ended December 31, 2023. The trust is registered under the Securities Exchange Act of 1934. Units of Beneficial Interest are traded under the symbol PBT on the New York Stock Exchange. The filing is a Form 10-K, indicating an annual report. The registrant is incorporated in Texas and has its principal executive offices in Dallas.

Why It Matters

For investors and stakeholders tracking PERMIAN BASIN ROYALTY TRUST, this filing contains several important signals. This filing provides stakeholders with a comprehensive overview of the trust's performance and financial health for the fiscal year 2023. As a publicly traded entity, the 10-K filing is crucial for investors to assess the trust's value, risks, and future prospects.

Risk Assessment

Risk Level: low — PERMIAN BASIN ROYALTY TRUST shows low risk based on this filing. The filing is a standard annual report (10-K) and does not contain new or unusual risk disclosures beyond typical industry considerations.

Analyst Insight

Review the full 10-K filing for detailed financial statements, operational data, and risk factors to understand the trust's performance and outlook.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reported Period)
• 2024-02-29 — Filing Date (Date of Submission)
• 1-8033 — Commission File Number (SEC Registration)
• 75-6280532 — IRS Employer Identification No. (Tax Identification)

Key Players & Entities

• PERMIAN BASIN ROYALTY TRUST (company) — Registrant Name
• PBT (company) — Trading Symbol
• New York Stock Exchange (company) — Exchange
• ARGENT TRUST COMPANY (company) — Trustee/Principal Executive Offices
• Dallas (company) — City
• Texas (company) — State of Incorporation/Business Address
• 2023 (date) — Fiscal Year End
• 2024-02-29 (date) — Filing Date

FAQ

Risk Factors

• Regulatory Compliance [medium — regulatory]: The trust must comply with various regulations governing oil and gas royalties and SEC reporting requirements.
• Commodity Price Volatility [high — market]: The trust's revenue and profitability are directly impacted by fluctuations in oil and natural gas prices.
• Production Levels [high — operational]: The trust's financial performance depends on the production levels from the underlying oil and gas properties.
• Distribution Variability [medium — financial]: Distributions to unitholders can vary significantly based on production, commodity prices, and operating expenses.

Key Dates

• 2023-12-31: Fiscal Year End — Defines the reporting period for the annual financial statements.
• 2024-02-29: Filing Date — Date the 10-K report was officially submitted to the SEC.

Glossary

Units of Beneficial Interest

Represents ownership in the trust, entitling holders to a share of the trust's net profits. (This is the primary security traded by investors in the Permian Basin Royalty Trust.)

Key Financial Figures

• $1,161,957,284 — tly completed second fiscal quarter was $1,161,957,284. At February 29, 2024, there were 46,
• $50,000,000 — plus and undivided profits in excess of $50,000,000, or other interest bearing accounts in
• $78.72 — February 20, 2024, the price of oil was $78.72. Factors that may impact future commodi

Filing Documents

• d753409d10k.htm (10-K) — 585KB
• d753409dex231.htm (EX-23.1) — 6KB
• d753409dex311.htm (EX-31.1) — 11KB
• d753409dex321.htm (EX-32.1) — 5KB
• d753409dex97.htm (EX-97) — 26KB
• d753409dex991.htm (EX-99.1) — 31KB
• g753409g53g09.jpg (GRAPHIC) — 20KB
• g753409sp36g1.jpg (GRAPHIC) — 4KB
• g753409sp36g2.jpg (GRAPHIC) — 2KB
• 0001193125-24-053153.txt (&nbsp;) — 701KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 3 Item 1B. Unresolved Staff Comments 10 Item 1C. Cybersecurity 10 Item 2.

Properties

Properties 11 Item 3.

Legal Proceedings

Legal Proceedings 25 Item 4. Mine Safety Disclosures 25 PART II Item 5. Market for Units of the Trust, Related Security Holder Matters and Trust Purchases of Units 26 Item 6. Removed and Reserved 26 Item 7.

Managements Discussion and Analysis of Financial Condition and Results of

Managements Discussion and Analysis of Financial Condition and Results of Operation 28 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 32 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 33 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 45 Item 9A.

Controls and Procedures

Controls and Procedures 45 Item 9B. Other Information 47 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspection 47 PART III Item 10. Directors and Executive Officers of the Registrant 48 Item 11.

Executive Compensation

Executive Compensation 48 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 49 Item 13. Certain Relationships and Related Transactions, and Director Independence 49 Item 14. Principal Accounting Fees and Services 50 PART IV Item 15. Exhibits, Financial Statement Schedules 51 (i) Table of Contents PART I Item1.

Business

Business The Permian Basin Royalty Trust (the Trust) is an express trust created under the laws of the state of Texas by the Permian Basin Royalty Trust Indenture (the Trust Indenture) entered into on November 3, 1980, between Southland Royalty Company (Southland Royalty) and The First National Bank of Fort Worth, as Trustee. Argent Trust Company, a Tennessee chartered trust company (Argent), is the current Trustee of the Trust. The principal office of the Trust (sometimes referred to herein as the Registrant) is located at 3838 Oak Lawn Ave, Suite 1720, Dallas, Texas (telephone number (855) 588-7839). On October 23, 1980, the stockholders of Southland Royalty approved and authorized that companys conveyance of net overriding royalty interests (equivalent to net profits interests) to the Trust for the benefit of the stockholders of Southland Royalty of record at the close of business on the date of the conveyance consisting of a 75% net overriding royalty interest carved out of that companys fee mineral interests in the Waddell Ranch properties in Crane County, Texas and a 95% net overriding royalty interest carved out of that companys major producing royalty properties in Texas. The conveyance of these interests (the Royalties) was made on November 3, 1980, effective as to production from and after November 1, 1980 at 7:00 a.m. The properties and interests from which the Royalties were carved and which the Royalties now burden are collectively referred to herein as the Underlying Properties. The Underlying Properties are more particularly described under Item 2. Properties herein. The function of the Trustee is to collect the income attributable to the Royalties, to pay all expenses and charges of the Trust, and then to distribute the remaining available income to the Unit holders. The Trust is not empowered to carry on any business activity and has no employees, all administrative functions being performed by the Trustee. The Royalties constitute the princ

Risk Factors

Risk Factors Crude oil and natural gas prices are volatile and fluctuate in response to a number of factors; Lower prices could reduce the net proceeds payable to the Trust and Trust distributions. The Trusts income and monthly distributions are heavily influenced by commodity prices. Commodity prices may fluctuate widely in response to (i) relatively minor changes in the supply of and demand for oil and natural gas, (ii) market uncertainty and (iii) a variety of additional factors that are beyond the Trustees control. As of February 20, 2024, the price of oil was $78.72. Factors that may impact future commodity prices, including the price of oil and natural gas, include but are not limited to: political conditions in major oil producing regions, especially in the Middle East and Russia, including the conflicts between Russia and Ukraine and Israel and Hamas; worldwide economic and geopolitical conditions; weather conditions; trade barriers; public health concerns, such as COVID-19; the supply and price of domestic and foreign crude oil or natural gas; 3 Table of Contents the level of consumer demand; the price and availability of alternative fuels; the proximity to, and capacity of, transportation facilities; the effect of worldwide energy conservation measures; and the nature and extent of governmental regulation and taxation. Although the Trustee cannot predict the occurrence of events that may affect future commodity prices or the degree to which these prices will be affected, gas royalty income for a given period generally relates to production three months prior to the period and crude oil royalty income for a given period generally relates to production two months prior to the period and will generally approximate current market prices in the geographic region of the production at the time of production. When crude oil and natural gas prices decline, the Trust is affected in two ways. First, distributable income from the Underl

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