Permian Basin Royalty Trust Cuts August Distribution 57% as Waddell Ranch Costs Exceed Proceeds
PBT has more than doubled off its 52-week low of $15.64.
Summary
The Trust declared an August cash distribution of $0.018701 per unit, down 57% from July's $0.043566. The drop is driven by the absence of the $1,125,000 Blackbeard settlement payment that boosted July, plus lower natural gas volumes and oil pricing at Texas Royalty Properties. Waddell Ranch remains in an excess cost position, meaning no proceeds from that property are included this month. This follows the July 28 announcement of the $2.2B SoftVest-Blackbeard combination, which is still pending a unitholder vote. The distribution decline is material for income-focused holders, but the merger remains the dominant catalyst for the stock.
At the time of this announcement, PBT was trading at $34.07 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $1.6B. The 52-week trading range was $15.64 to $35.50. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: PR Newswire.