PERMIAN BASIN ROYALTY TRUST ANNOUNCES SETTLEMENT OF BLACKBEARD LITIGATION
Permian Basin Royalty Trust (NYSE: PBT) has reached a settlement agreement with Blackbeard Operating, LLC regarding litigation over royalty payment calculations at the Waddell Ranch properties. Under the settlement, Blackbeard will pay the Trust a total of $9 million, with $4.5 million due within 30 days and the remaining amount to be paid in four quarterly installments of $1.125 million during 2026.
The agreement also establishes new terms for overhead rates, third-party charges, and technical labor costs against the Trust's 75% net overriding royalty. Additionally, it provides guidelines for future royalty payment calculations and grants the Trust the option to conduct annual site audits.
Permian Basin Royalty Trust (NYSE: PBT) ha raggiunto un accordo stragiudiziale con Blackbeard Operating, LLC relativo alla controversia sui calcoli delle royalty per le propriet脿 Waddell Ranch. In base all'intesa, Blackbeard verser脿 al Trust complessivamente 9 milioni di dollari, di cui 4,5 milioni entro 30 giorni e il resto in quattro rate trimestrali da 1,125 milioni durante il 2026.
L'accordo definisce inoltre nuovi parametri per le tariffe generali, gli addebiti di terzi e i costi del personale tecnico imputabili al 75% della royalty netta sovrapposta del Trust. Prevede anche le linee guida per i futuri calcoli delle royalty e concede al Trust la facolt脿 di effettuare audit annuali nei siti.
Permian Basin Royalty Trust (NYSE: PBT) ha alcanzado un acuerdo con Blackbeard Operating, LLC sobre la litigaci贸n relativa al c谩lculo de pagos por regal铆as en las propiedades Waddell Ranch. Seg煤n el acuerdo, Blackbeard pagar谩 al Trust un total de 9 millones de d贸lares, de los cuales 4,5 millones se abonar谩n en 30 d铆as y el resto en cuatro cuotas trimestrales de 1,125 millones durante 2026.
El convenio tambi茅n establece nuevos t茅rminos para las tasas generales, cargos de terceros y costos de mano de obra t茅cnica imputables al 75% de la regal铆a neta sobrepuesta del Trust. Adem谩s, fija pautas para futuros c谩lculos de regal铆as y otorga al Trust la opci贸n de realizar auditor铆as anuales en los emplazamientos.
Permian Basin Royalty Trust (NYSE: PBT)电� Blackbeard Operating, LLC鞕� Waddell Ranch 鞛愳偘鞚� 搿滌棿韹� 歆�旮� 靷办爼鞐� 甏�頃� 靻岇啞鞚� 頃╈潣頄堨姷雼堧嫟. 頃╈潣鞐� 霐半澕 Blackbeard电� 韸鸽煬鞀ろ姼鞐� 齑� 900毵� 雼煬毳� 歆�旮夗晿氅�, 鞚� 欷� 450毵� 雼煬电� 30鞚� 鞚措偞鞐�, 雮橂ǜ歆�电� 2026雲� 欷� 攵勱赴氤勲 112.5毵� 雼煬鞌� 雱� 彀鞐� 瓯胳硱 歆�旮夗暕雼堧嫟.
霕愴暅 鞚措矆 頃╈潣电� 韸鸽煬鞀ろ姼鞚� 75% 靾滌磮瓿茧鞐错嫲鞐� 雽�頃� 臧勳爲牍勳湪, 鞝�3鞛� 牍勳毄 氚� 旮办垹 鞚鸽牓牍勳毄鞐� 雽�頃� 靸堧鞖� 臁瓣贝鞚� 攴滌爼頃╇媹雼�. 頄ロ泟 搿滌棿韹� 靷办爼鞐� 雽�頃� 歆�旃弰 毵堧牗霅橃棃瓿�, 韸鸽煬鞀ろ姼臧� 鞐瓣皠 順勳灔 臧愳偓(site audit)毳� 鞁れ嫓頃� 靾� 鞛埖鐢 靹犿儩甓岆弰 攵�鞐惄雼堧嫟.
Permian Basin Royalty Trust (NYSE: PBT) a conclu un accord avec Blackbeard Operating, LLC concernant le litige sur le calcul des paiements de redevances pour les propri茅t茅s Waddell Ranch. Conform茅ment 脿 l'accord, Blackbeard versera au Trust un total de 9 millions de dollars, dont 4,5 millions dans les 30 jours et le solde en quatre versements trimestriels de 1,125 million au cours de 2026.
L'accord 茅tablit 茅galement de nouveaux termes pour les taux de frais g茅n茅raux, les charges de tiers et les co没ts de main-d'艙uvre technique imputables 脿 la redevance nette suppl茅ante de 75% du Trust. Il fixe aussi des lignes directrices pour les futurs calculs de redevances et donne au Trust la possibilit茅 d'effectuer des audits de site annuels.
Permian Basin Royalty Trust (NYSE: PBT) hat eine Vergleichsvereinbarung mit Blackbeard Operating, LLC bez眉glich der Rechtsstreitigkeiten 眉ber die Berechnung von Lizenzzahlungen auf den Waddell Ranch-Anlagen erzielt. Laut Vereinbarung zahlt Blackbeard dem Trust insgesamt 9 Millionen USD, davon 4,5 Millionen innerhalb von 30 Tagen und den Rest in vier viertelj盲hrlichen Raten zu je 1,125 Millionen im Jahr 2026.
Der Vergleich legt zudem neue Regelungen f眉r Gemeinkostens盲tze, Drittanbietergeb眉hren und technische Arbeitskosten fest, die gegen die 75%ige Net Overriding Royalty des Trusts angerechnet werden. Au脽erdem enth盲lt er Richtlinien f眉r k眉nftige Berechnungen der Lizenzzahlungen und r盲umt dem Trust die M枚glichkeit j盲hrlicher Vor-Ort-Pr眉fungen ein.
- None.
- Trust agrees to not make future claims for ordinary line loss volumes
- Trust must bear the expense of annual site audits if conducted
Insights
PBT secures $9M settlement from Blackbeard, with clear terms for future royalty calculations, benefiting unitholders with immediate and structured payments.
Permian Basin Royalty Trust has successfully resolved its litigation against Blackbeard Operating with a $9 million settlement - a significant win for unitholders. The payment structure provides both immediate liquidity (
The settlement's structural components are particularly valuable beyond the monetary recovery. It establishes clear parameters for overhead rates chargeable to the Trust and delineates specific conditions for third-party charges related to salt water disposal and gathering/transportation. The agreement on technical labor charges for reservoir engineers using an agreed allocation methodology adds transparency to future accounting.
For unitholders, this resolution eliminates litigation uncertainty and expense while creating a more predictable royalty calculation framework. The negotiated audit rights - allowing annual site audits at the Trust's expense - provide an important verification mechanism to ensure compliance with the settlement terms.
The provisions regarding ordinary line loss (defined by third-party purchase agreements) and agreed-upon reporting requirements further strengthen the Trust's position by establishing clear boundaries and information flow. This comprehensive settlement effectively resolves current claims while implementing safeguards against similar disputes arising in the future, preserving unitholder value and trust management efficiency.
Pursuant to the settlement agreement,聽Blackbeard has agreed to pay the Trust
Additionally, the settlement agreement established the overhead rate that may be charged to the Trust and permits聽Blackbeard to pass through third-party charges for salt water disposal and gathering and transportation, and charge technical labor on reservoir engineers using an agreed allocation methodology against the net overriding royalty. The parties also agreed that the Trust would not make future claims for lost volumes in the case of ordinary line loss (as defined by third party purchase agreements with purchasers). The Trust will have the option to conduct annual site audits, at its expense. The settlement agreement also set forth agreed reporting that Blackbeard will provide the Trustee going forward.
"We are pleased that we were able to resolve these claims in a way that provides value to Trust unitholders, as well as anticipated predictability with regard to how future royalty payments are calculated," said Nancy Willis, Director of Royalty Trust Services of Argent Trust Company.
FORWARD-LOOKING STATEMENTS
Any statements in this press release about future events or conditions, and other statements containing the words "estimates," "believes," "anticipates," "plans," "expects," "will," "may," "intends," and similar expressions, other than historical facts, constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Factors or risks that could cause the Trust's actual results to differ materially from the results the Trustee anticipates include, but are not limited to the factors described in Part I, Item 1A, "Risk Factors" of the Trust's Annual Report on Form 10-K for the year ended December 31, 2024, and Part II, Item 1A, "Risk Factors" of subsequently filed Quarterly Reports on Form 10-Q.
Actual results may differ materially from those indicated by such forward-looking statements. In addition, the forward-looking statements included in this press release represent the Trustee's views as of the date hereof. The Trustee anticipates that subsequent events and developments may cause its views to change. However, while the Trustee may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Trustee's views as of any date subsequent to the date hereof.
Contact: Jana聽Egeler,聽Vice聽President,聽Argent Trust聽Company,聽Trustee, Toll聽Free聽鈥撀�1.855.588.7839
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SOURCE Permian Basin Royalty Trust
FAQ
What is the total settlement amount Blackbeard will pay to Permian Basin Royalty Trust (PBT)?
What was the reason for PBT's lawsuit against Blackbeard Operating?
What percentage of net overriding royalty does PBT hold in the Waddell Ranch properties?
What new rights does the settlement agreement grant to PBT?
How will the settlement payment schedule work for PBT shareholders?
