PERMIAN BASIN ROYALTY TRUST

Permian Basin Royalty Trust holds net overriding royalty interests in oil and gas properties across Texas. The trust generates revenue by receiving a percentage of production revenues from operators working on these properties, without bearing the costs of exploration, development, or production operations. This business model provides exposure to hydrocarbon price movements and production from established fields.

The trust's primary asset is a 95% net overriding royalty interest in Texas Royalty properties, comprising approximately 125 separate royalty interests across 33 Texas counties with roughly 51,000 net-producing acres. This portfolio includes interests in established fields such as Yates, Wasson, East Texas, Kelly-Snyder, Panhandle Regular, McElroy, and Seminole, among others. Additionally, the trust holds a 75% net overriding royalty interest in Waddell Ranch properties located in Crane County, Texas, encompassing the Dune, Sand Hills, and University-Waddell fields.

With a market capitalization of approximately $0.9 billion and based in Dallas, the trust operates with minimal overhead compared to integrated oil and gas producers. As a royalty trust structure, it does not directly employ production personnel; rather, it relies on third-party operators to develop and extract hydrocarbons from its leased acreage while the trust collects its contractual royalty share of revenues.