Permian Basin Royalty Trust settles Blackbeard dispute for $9M

[Oil field site, in the evening, oil pumps are running, The oil pump and the beautiful sunset reflected in the water]
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Permian Basin Royalty Trust (NYSE:PBT [https://seekingalpha.com/symbol/PBT]) said late Tuesday it reached a settlement agreement [https://seekingalpha.com/pr/20205830-permian-basin-royalty-trust-announces-settlement-of-blackbeard-litigation] with Blackbeard Operating in litigation over royalty payment calculations at the Waddell Ranch properties in Texas, in which PBT holds a 75% net overriding royalty.

Under the settlement, Blackbeard agreed to pay $9M to Permian Basin Royalty Trust (NYSE:PBT [https://seekingalpha.com/symbol/PBT]), with $4.5M due within 30 days and the remaining amount to be paid in four quarterly installments of $1.125M each during 2026.

The agreement also establishes new terms for overhead rates that may be charged to PBT and permits 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.

MORE ON PERMIAN BASIN ROYALTY TRUST

* Permian Basin Royalty Trust: High Uncertainty - High Risk [https://seekingalpha.com/article/4791947-permian-basin-royalty-trust-high-uncertainty-high-risk]
* Dividend scorecard for Permian Basin Royalty Trust [https://seekingalpha.com/symbol/PBT/dividends/scorecard]
* Financial information for Permian Basin Royalty Trust [https://seekingalpha.com/symbol/PBT/income-statement]