PermRock Royalty Trust

PermRock Royalty Trust is a Delaware statutory trust that holds a net profits interest in oil and natural gas properties in the Permian Basin of Texas. The trust receives a share of production economics from the underlying properties and distributes substantially all cash receipts to unitholders after trust expenses.

— PermRock Royalty Trust
%
Net Profits Interest100% The trust's core asset entitles it to 80% of net profits from the underlying oil and gas properties.
Cash Distributions0% Monthly distributions of substantially all cash receipts to trust unitholders after trust expenses and reserves.

PermRock Royalty Trust does not sell products to end customers in the usual operating-company sense; its economic...

  • Trust unitholdersprimary

    Investors buy trust units to receive monthly cash distributions tied to the net profits interest.

  • Oil and gas purchasersprimary

    Refiners, marketers, and gas buyers purchase production from the underlying properties.

  • Operator and working-interest participantssecondary

    The operator and related working-interest owners participate in drilling, workovers, and field development economics.

The trust's underlying properties are located in the Permian Basin in Texas, with operating areas including the Permian...

  • •Underlying properties are concentrated in the Permian Basin, Texas
  • •Operating areas include Permian Clearfork and Permian Shelf
  • •Cash flows depend on U.S. onshore oil and gas production volumes
  • •Regional price differentials and field costs affect distributable income

PermRock Royalty Trust is structured to pass through net profits from the underlying properties rather than to operate...

01
Preserve and monetize the net profits interestlong-term

The trust's value comes from its contractual share of field-level net profits.

02
Support field development through operator capital programsmedium-term

Drilling, workovers, and waterflood optimization can sustain production and cash flow.

03
Manage trust-level reserves and administrative expensesshort-term

Reserves and fees directly affect distributable cash available to unitholders.

The trust is exposed to commodity price volatility, production declines, and operating cost inflation because its...

high

Commodity price volatility

Oil and gas prices directly drive gross profits and net profits income.

Scope
Oil, natural gas, and NGL-linked cash flows
Materiality
high
high

Production decline or well underperformance

Lower volumes reduce the trust's share of net profits from the properties.

Scope
Permian Basin wells and field output
Materiality
high
high

Operating and development cost inflation

Lease operating, development, and severance costs are deducted before net profits are allocated.

Scope
Field-level cost structure
Materiality
high
high

Operator dependence

The trust has no management control over operations, capital spending, or field timing.

Scope
T2S/operating partner decisions
Materiality
high
medium

Geographic concentration in the Permian Basin

The trust depends on a single U.S. basin and a limited set of underlying properties.

Scope
Texas Permian Basin
Materiality
medium
Modified cash basis reporting
Reduces accrual estimates but increases importance of cash timing
Capital reserve activity
Affects distributable cash and period comparability
Net profits interest calculation
Directly determines monthly trust income and distributions
Distribution timing and production lag
Can shift reported cash receipts across quarters

PERMIAN BASIN ROYALTY TRUST

PBT · Oil Royalty Traders

Permianville Royalty Trust

PVL · Crude Petroleum & Natural Gas

Permian Resources Corp

PR · Crude Petroleum & Natural Gas

Permex Petroleum Corp

Drilling Oil & Gas Wells

Riley Exploration Permian, Inc.

REPX · Crude Petroleum & Natural Gas

Diamondback Energy, Inc.

FANG · Crude Petroleum & Natural Gas

: 29/04/2026