PermRock Royalty Trust (PRT): History, Ownership, Mission, How It Works & Makes Money

When you look at PermRock Royalty Trust (PRT), are you seeing a high-yield income stream or a commodity price proxy that is defintely tied to the Permian Basin? This Delaware statutory trust is not an operating company; its entire mission is to own an 80% net profits interest (NPI) in oil and natural gas properties, making it a pure pass-through for unitholders.

The numbers show the story: the Trust just declared a November 2025 cash distribution of $350,855.06 (or $0.028839 per unit), reflecting the core business of collecting and distributing net cash flow from the T2S Permian Acquisition II LLC-operated assets.

With a trailing twelve-month dividend yield sitting near 9.64% as of November 2025, and Q3 2025 revenue reported at $1.26 million, understanding its unique structure-and why its valuation is less about growth and more about commodity price stability-is crucial for your investment strategy.

PermRock Royalty Trust (PRT) History

You're looking for the foundational story of PermRock Royalty Trust (PRT), and the key takeaway is simple: it was structured from the start in 2017 as a passive, long-life income vehicle, not an operating company. Its entire existence is tied to a single, significant asset transfer from its sponsor, Boaz Energy II, LLC, which set its permanent operating parameters.

Given Company's Founding Timeline

Year established

The Trust was established in 2017 through a trust agreement.

Original location

PermRock Royalty Trust is a Delaware statutory trust, a structure chosen for its specific legal and tax benefits as a pass-through entity. Its underlying assets, the oil and gas leaseholds, are located in the Permian Basin of West Texas.

Founding team members

The Trust was formed by three principal entities: Boaz Energy II, LLC (the Trustor and sponsor), Argent Trust Company (the Trustee, effective December 30, 2022), and Wilmington Trust, National Association (the Delaware Trustee). Boaz Energy II, LLC remains the owner and operator of the majority of the underlying properties.

Initial capital/funding

The Trust's initial public offering (IPO) in May 2018 involved the sale of 6,250,000 trust units at $17.00 per unit. This offering raised $106 million for the sponsor, Boaz Energy II, LLC, which then conveyed the principal asset to the Trust. The Trust itself is non-operating and does not hold capital in the traditional sense; its value is the perpetual right to net profits.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The single most transformative decision for PermRock Royalty Trust was its initial structuring as a passive grantor trust (a flow-through, non-taxable entity) that cannot acquire additional properties, use leverage, or hedge its production, other than initial hedges put in place by Boaz Energy. This decision defintely locks in the Trust's business model for its estimated life of at least 75 years.

• Conveyance of the 80% NPI: The transfer of the Net Profits Interest (NPI) from Boaz Energy II, LLC on May 4, 2018, defined the Trust's entire asset base-an 80% share of net profits from specific Permian Basin oil and gas properties. This is the core of the business model.
• The Perpetual, Non-Operating Mandate: Unlike actively managed trusts, the Trust's governing agreement strictly limits the Trustee to administrative functions, such as collecting net proceeds and distributing cash flow. This means unitholders are exposed directly to the performance of the underlying properties, which consist of about 31,354 gross acres in the Permian Basin.
• Commodity Price Exposure: Because the Trust cannot hedge its production, its monthly distributions are highly sensitive to oil and natural gas prices, leading to a volatile dividend history despite a high current TTM yield of $0.38 per unit as of November 2025.

If you want to understand the long-term strategic direction and governance, you should review the Mission Statement, Vision, & Core Values of PermRock Royalty Trust (PRT).

PermRock Royalty Trust (PRT) Ownership Structure

PermRock Royalty Trust is a publicly traded statutory trust, meaning its ownership is distributed among unitholders on the New York Stock Exchange (NYSE: PRT), but its control structure is unique. It operates without a traditional executive management team, instead relying on an independent Trustee to manage its assets and distribute cash flow.

The Trust's governance is fundamentally passive; the Trustee, Argent Trust Company, is legally restricted from engaging in any business or commercial activity, including acquiring new properties, so the focus is entirely on distributing net profits from the existing asset base. This structure means control is split between the Trustee's administration and the collective power of its unitholders, particularly the large institutional and private equity investors.

If you want to dig deeper into the cash flows that drive these distributions, you can review Breaking Down PermRock Royalty Trust (PRT) Financial Health: Key Insights for Investors.

PermRock Royalty Trust's Current Status

PermRock Royalty Trust is a Delaware statutory trust, not an operating company. It trades publicly on the NYSE under the ticker PRT and has approximately 12.17 million Trust Units outstanding as of the 2025 fiscal year.

Its core asset is a perpetual net profits interest (NPI), which entitles the Trust to receive 80% of the net profits from the sale of oil and natural gas production from the underlying properties in the Permian Basin of West Texas.

The actual drilling and field operations are handled by the operator of the underlying properties, which is currently T2S Permian Acquisition II LLC.

PermRock Royalty Trust's Ownership Breakdown

The ownership structure is heavily weighted toward the general public and a significant block of private capital, which is common for royalty trusts that have undergone a corporate restructuring or asset sale. Here's the breakdown of beneficial ownership as of the 2025 fiscal year, which shows where the power lies.

PermRock Royalty Trust's Leadership

Since PermRock Royalty Trust is a passive grantor trust, it does not have a CEO, CFO, or a traditional board of directors. The key decision-making and administrative functions are instead carried out by the appointed Trustee, who acts on behalf of the unitholders.

The Trust is governed by two primary entities:

• The Trustee: Argent Trust Company is the primary Trustee, responsible for collecting the net profits income, paying the Trust's administrative expenses, and distributing the net cash flow to unitholders monthly.
• The Delaware Trustee: Wilmington Trust, National Association serves as the Delaware Trustee.

The specific individual overseeing the Trust's day-to-day administration and communication with unitholders is also publicly identified:

• Nancy Willis, Director of Royalty Trust Services and Trust Administrator for Argent Trust Company.

The Trustee's role is strictly administrative, not strategic, which is a defintely critical point for investors to understand. The Trust's performance is almost entirely dependent on the oil and gas production and commodity prices managed by the operator, T2S Permian Acquisition II LLC.

PermRock Royalty Trust (PRT) Mission and Values

PermRock Royalty Trust's mission is fundamentally a legal mandate: to serve as a pass-through vehicle, collecting net profits from its oil and gas interests and distributing nearly all of that cash to you, the unitholder. Its core value is a commitment to a transparent, passive, and high-yield income stream.

PermRock Royalty Trust's Core Purpose

As a statutory trust, PermRock Royalty Trust (PRT) doesn't have the same cultural DNA or long-term aspirations as an operating company like ExxonMobil or Chevron. Its existence is defined by its Trust Agreement, which dictates a singular, non-negotiable purpose. This structure is the whole point-it cuts out the complexity of operations for investors.

Here's the quick math on its function: The Trust owns a Net Profits Interest (NPI), which is a right to receive a percentage of the revenue from the sale of oil and natural gas after certain operating expenses are paid. For the underlying properties in the prolific Delaware Basin of West Texas, that NPI stands at a commanding 80% of the net profits.

Official Mission Statement (De Facto)

The Trust's formal purpose, which acts as its mission, is centered entirely on its fiduciary duty to its unitholders. It's a very clean, straightforward mandate.

• Own the Net Profits Interest (NPI) in the underlying oil and natural gas properties.
• Collect the monthly net proceeds attributable to the NPI.
• Distribute all available cash, after administrative expenses and reserves, to the Trust unitholders.
• Perform only the necessary administrative functions, with no involvement in drilling or field operations.

In November 2025, for example, the Trust declared a distribution of $350,855.06, or $0.028839 per unit, based on September 2025 production, showing this mandate in action. You get the cash, period.

Vision Statement (Investor Objective)

The Trust's vision isn't about expanding into new markets or developing new tech; it's about providing a specific, high-quality investment profile. This is what you buy into.

• Deliver reliable income streams over the life of the underlying oil and gas reserves.
• Offer passive, royalty-based exposure to one of North America's most active and established oil and gas regions-the Permian Basin.
• Align the investment structure with commodity market changes and production trends, giving you a direct, unhedged lever to oil prices.

For income-focused investors, this vision translates into a high yield, which was around 10.83% to 10.95% in late 2025. That's a serious income stream. You can see how that yield is generated by Breaking Down PermRock Royalty Trust (PRT) Financial Health: Key Insights for Investors.

PermRock Royalty Trust Slogan/Tagline

PermRock Royalty Trust does not use a public-facing slogan or tagline; its legal name and structure speak for themselves. If I had to distill its value proposition into a single, honest phrase, it would be:

• Direct cash flow from the Permian Basin.

The Trust's entire market capitalization, which was approximately $47.2 million in November 2025, reflects the market's valuation of this singular, finite cash flow stream. It's a pure-play income vehicle, defintely not a growth stock.

PermRock Royalty Trust (PRT) How It Works

PermRock Royalty Trust (PRT) is a passively managed statutory trust that does not operate oil and gas properties, but instead owns a perpetual 80% net profits interest (NPI) in producing wells across the Permian Basin, distributing the resulting net cash flow to its unitholders monthly.

You're looking for a clear, no-nonsense view of how this structure actually generates returns, so let's look at the mechanics. The Trust acts as a financial conduit, translating oil and gas sales into a monthly cash distribution for investors, minus operating and administrative costs.

PermRock Royalty Trust's Product/Service Portfolio

The Trust's entire business model is built around a single, non-operating financial asset-the Net Profits Interest (NPI)-which serves as the primary product that generates cash flow for its investors. The key is that the Trust is a financial vehicle, not an energy producer.

PermRock Royalty Trust's Operational Framework

The operational process is simple because the Trust itself has no employees and conducts no drilling. It's a pure pass-through mechanism, which is why it's a great example of a non-operating asset structure.

• Production: T2S Permian Acquisition II LLC, the operator, handles all drilling, maintenance, and sales from the underlying properties, which cover approximately 31,354 gross acres in the Permian Basin.
• Revenue Calculation: Gross revenue from the sale of oil and natural gas is calculated. For the September 2025 production period, for instance, oil sales volumes were 18,078 barrels at an average price of $62.03 per barrel, generating $1.12 million in cash receipts.
• Net Profits Determination: The operator deducts direct operating expenses, including marketing and lease operating expenses, plus severance and ad valorem taxes. Total direct operating expenses for the September 2025 production were $0.48 million.
• NPI Collection: The Trust, through its Trustee, Argent Trust Company, receives 80% of the resulting net profits interest.
• Distribution: The Trustee deducts administrative expenses and any necessary cash reserves, then distributes the remaining net cash flow to unitholders. The November 2025 declaration resulted in a total distribution of $350,855.06.

The entire cycle, from production to payment, typically runs on a two-month lag. Honestly, it's a simple, defintely streamlined process.

For a deeper dive into the numbers driving these distributions, you should check out Breaking Down PermRock Royalty Trust (PRT) Financial Health: Key Insights for Investors.

PermRock Royalty Trust's Strategic Advantages

The Trust's competitive edge isn't in technology or scale, but in its unique legal and financial structure, which offers investors a specific type of exposure to the energy market.

• Pure Passive Income Stream: Unitholders get direct exposure to commodity prices and production volumes without any capital expenditure risk or operational liability, which is a significant draw for income-focused investors.
• Flow-Through Tax Structure: As a grantor trust, income is generally reported on a Form 1099, and unitholders may be eligible for a depletion deduction, which can shield a portion of the income from tax.
• Geographic Concentration: The NPI is concentrated in the prolific Delaware Basin, a sub-basin of the Permian Basin, known for its long-life reserves and extensive shale formations.
• No Acquisition or Debt Mandate: The Trust Agreement prohibits the Trust from acquiring new properties or taking on debt (leverage), which eliminates the financial risk often associated with growth-focused energy companies.

What this structure hides is the direct exposure to commodity price volatility; distributions fluctuate monthly, so you need to keep an eye on oil and gas pricing. Year-to-date through November 2025, the total distribution per unit is $0.342128, showing the variability of this income stream.

PermRock Royalty Trust (PRT) How It Makes Money

PermRock Royalty Trust (PRT) generates its revenue by holding a passive Net Profits Interest (NPI), which is the right to receive an 80% share of the net cash flow from the sale of crude oil and natural gas produced from its underlying properties in the Permian Basin of West Texas. The Trust is a non-operating entity, meaning it makes money purely from royalties on production without the operational costs and risks of drilling and field work.

PermRock Royalty Trust's Revenue Breakdown

The Trust's revenue is overwhelmingly dependent on oil production, a critical factor for investors to understand. Based on the underlying cash receipts from production in September 2025, which determined the November 2025 distribution, crude oil sales drive nearly all the gross income before expenses are deducted.

Here's the quick math for the September 2025 production period: oil cash receipts totaled $1.12 million, while natural gas receipts were only $0.05 million, making the total gross cash receipts about $1.17 million.

Business Economics

The economic engine of PermRock Royalty Trust is a pure-play royalty model that insulates the Trust from direct operational risk but exposes it completely to commodity price volatility and production decline. It's a simple, high-margin model, but it lacks growth mechanisms.

• Net Profits Interest (NPI) Structure: The Trust receives 80% of the net profits from the underlying properties, which are operated by T2S Permian Acquisition II LLC. Net profit is calculated after deducting all operating expenses, taxes, and capital expenditures.
• Pricing Strategy: Revenue is directly tied to the realized wellhead prices of crude oil and natural gas. For Q3 2025, the average realized oil price was $63.58 per barrel (Bbl), down from the prior year, while natural gas fetched $1.88 per thousand cubic feet (Mcf).
• Cost Structure: The Trust itself has minimal administrative costs, but the underlying properties' costs are significant deductions before the net profit is calculated. For the September 2025 production, total direct operating expenses were a substantial $0.48 million, plus another $0.12 million for severance and ad valorem taxes.
• Capital Allocation Limit: The Trust is legally restricted from acquiring new properties, so its long-term performance hinges entirely on the existing 22,394 net acres in the Permian Basin and the operator's (T2S) willingness to invest in workovers and drilling.

The key takeaway is that the Trust's cash flow is highly sensitive to the difference between oil sales and the operator's costs; a small change in costs can defintely swing the net profit wildly.

PermRock Royalty Trust's Financial Performance

Financial performance as of November 2025 shows a business focused on maintaining distributions through cost control, even as top-line revenue faces pressure from lower commodity prices and declining volumes.

• Total Revenue: For the nine months ended September 30, 2025, the Trust reported revenue (which is its net profits interest) of $4.54 million, essentially flat compared to the $4.55 million from the same period a year ago.
• Quarterly Decline: The third quarter of 2025 saw a noticeable revenue dip to $1.26 million, down from $1.56 million in Q3 2024, reflecting the impact of lower oil sales volumes and prices.
• Distributable Income: Distributable income for the nine months ended September 30, 2025, was $3.78 million, resulting in a distribution of $0.310563 per unit for that period.
• Capital Expenditure Reduction: The operator, T2S, revised its 2025 capital and workover plan significantly, cutting it from $4.0 million down to $1.0 million as of Q3 2025, deferring two planned wells. This action helps boost near-term distributable cash but introduces risk to future production volumes.
• Cash Reserves: The Trust maintained a cash reserve for administrative expenses of $1.0 million as of September 30, 2025.

To fully grasp the strategic framework driving these numbers, you should review the Mission Statement, Vision, & Core Values of PermRock Royalty Trust (PRT).

PermRock Royalty Trust (PRT) Market Position & Future Outlook

PermRock Royalty Trust operates as a small-cap, pure-play income vehicle in the energy sector, offering investors a high-yield, debt-free exposure to the Permian Basin, but its future distributions are tightly coupled with volatile commodity prices and natural production declines. As of November 2025, the Trust maintains a strong balance sheet with zero debt, yet its growth remains constrained by its statutory inability to acquire new assets or hedge production, making it a high-risk, high-reward bet on oil prices.

You can get a deeper look into the operational stability and cash flow mechanics of this structure here: Breaking Down PermRock Royalty Trust (PRT) Financial Health: Key Insights for Investors

Competitive Landscape

In the royalty trust sub-sector, PermRock Royalty Trust is a smaller but significant player, competing primarily on its high yield and the quality of its underlying Permian Basin assets. Here's the quick math on market share, using market capitalization as a proxy for the royalty trust sub-sector as of November 2025, since production and revenue figures vary wildly month-to-month based on oil prices.

PermRock Royalty Trust's market capitalization stands at approximately $47.3 million as of November 2025, placing it just behind its closest peers like Permianville Royalty Trust (PVL) at $61.1 million and Cross Timbers Royalty Trust (CRT) at $53.3 million.

Opportunities & Challenges

The Trust's forward trajectory is a simple equation: oil prices minus operating costs. Since the Trust cannot acquire new properties, all future upside hinges on the underlying operator's performance and the macro energy environment.

Industry Position

PermRock Royalty Trust is a niche player in the broader Energy sector, where it is ranked low-around 222nd out of 261 stocks by one market measure-due to its small size and non-operating structure.

• The Trust is valued cheaply relative to its peers and the sector, with a Price-to-Earnings (P/E) ratio of 8.85, notably lower than the Energy sector average of about 12.70.
• Its primary competitive edge is its simplicity: a statutory trust that passes through 80% of net profits interest (NPI) from a defined set of Permian Basin assets.
• The structure is defintely a double-edged sword: you get a clean balance sheet with $0.0 in total debt, but you give up any potential for corporate-driven growth or strategic hedging.
• For investors, the Trust's position is one of a pure-exposure vehicle, offering a direct, albeit volatile, income stream tied to the production and realized prices from its 22,394 net acres in the Permian Basin.