Permian Basin Royalty Trust settles litigation for $9 million payment

Permian Basin Royalty Trust (NYSE: PBT) reached a settlement agreement with Blackbeard Operating, LLC regarding litigation over unpaid royalties from properties in Crane County, Texas.

Under the settlement terms, Blackbeard agreed to pay the Trust $9 million. The company will pay $4.5 million within 30 days and the remaining $4.5 million in four quarterly installments of $1.125 million each during 2026.

The lawsuit sought to recover more than $9 million in damages the Trust alleged resulted from Blackbeard's failure to properly calculate and pay royalties. The Trust holds a 75% net overriding royalty in the Waddell Ranch properties operated by Blackbeard.

The settlement agreement established specific operational terms including overhead rates that may be charged to the Trust and permits Blackbeard to pass through third-party charges for salt water disposal and gathering and transportation. The agreement allows technical labor charges on reservoir engineers using an agreed allocation methodology.

The parties agreed the Trust would not make future claims for lost volumes in cases of ordinary line loss as defined by third-party purchase agreements. The Trust retains the option to conduct annual site audits at its own expense. The settlement also established reporting requirements for Blackbeard going forward.

Argent Trust Company serves as Trustee of the Permian Basin Royalty Trust. The information is based on a company press release.

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