PermRock Royalty Trust Declares Monthly Cash Distribution

PermRock Royalty Trust Declares Monthly Cash Distribution

By ADMIN
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PermRock Royalty Trust Announces Monthly Cash Distribution to Unitholders

PermRock Royalty Trust (NYSE: PRT), a trust that holds royalty interests in oil and natural gas properties, has officially declared its monthly cash distribution to unitholders for the most recent production period. This announcement highlights the ongoing financial returns investors receive from the Trust’s underlying assets, despite fluctuations in commodity receipts and operating expenses.

Distribution Details and Payment Schedule

The Trust declared a monthly cash distribution totaling $235,849.49, equivalent to $0.019386 per Trust Unit. This distribution will be payable on February 13, 2026 to holders of record as of January 30, 2026. The distribution amount is principally based on oil and natural gas production during November 2025.

This monthly distribution underscores PermRock’s commitment to returning income to its unitholders regularly, following its business model of passing through net profits from energy production to investors.

Production and Cash Receipt Trends

Oil cash receipts for the period were reported at approximately $0.91 million, marking a decrease of around $0.16 million compared to the previous distribution period. This drop was primarily due to lower oil sales volumes. Conversely, natural gas cash receipts showed a modest increase to about $0.03 million, driven by higher sales volumes and prices.

Operating Expenses and Taxes

Total direct operating expenses, which include marketing, lease operating costs, and workover expenses, were around $0.41 million. This figure reflects a decrease of roughly $0.10 million from the prior month, largely because there were no workovers performed and there was reduced usage of chemicals, repairs, and maintenance costs.

Severance and ad valorem taxes also declined, totaling approximately $0.03 million, due to the application of tax credits accrued in earlier periods.

Capital Expenditures and Trust Activities

The Trust reported no capital expenditures for the current month since all drilling activities initiated in 2025 were completed. This means that there were no additional costs related to development drilling that could impact net profits used in monthly cash distributions.

Trust Structure and Distribution Mechanics

PermRock Royalty Trust is structured to distribute its net profits interest (NPI) from certain oil and gas producing properties located primarily in the Permian Basin of West Texas. Unitholders receive monthly cash distributions based on the Trust’s net cash flow, which reflects revenues from oil and gas sales after deducting operating expenses and taxes.

These distributions vary each month depending on production volumes, commodity prices, and associated costs. The Trust’s model allows investors to benefit directly from oil and natural gas production without participating in operational decisions.

Historical Context and Investor Considerations

PermRock’s monthly distribution is part of a continuing series of profit returns. In previous months, different distribution amounts have been declared, reflecting changing production results and market conditions. For example, distributions declared in late 2025 included amounts based on earlier production months.

Investors in the Trust should note that monthly payout amounts can fluctuate significantly. These fluctuations are influenced by oil and natural gas market prices, production volumes, and operating costs, which can vary with commodity markets and operational conditions.

Benefits and Risks for Unitholders

One of the main benefits of investing in the Trust is the potential for high dividend yields. Some financial data services estimate forward dividend yields near double digits, making PermRock an attractive monthly income investment for certain investors focused on cash flow.

However, it’s crucial for investors to understand that distributions are not fixed and can decrease if production falls or commodity prices weaken. Variable monthly dividends mean that income from the Trust may change from period to period.

Conclusion

PermRock Royalty Trust’s latest monthly cash distribution reinforces its role as a consistent source of income for unitholders, even amid changing oil and gas market conditions. With a declared distribution of $235,849.49 for November production and a payment date set for February 13, 2026, the Trust continues its pattern of delivering monthly net profit distributions. Investors should remain aware of the variable nature of these payouts and consider how shifts in production and commodity prices may influence future distributions.

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