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

Ever wondered how you can invest in oil and gas without directly drilling? PermRock Royalty Trust (PRT) offers a unique avenue, but how exactly does it work and generate income for its investors? Established in 2017, PermRock Royalty Trust provides a fascinating case study in the energy sector, particularly within the prolific Permian Basin. With a recent market cap of $45.50 million and a dividend yield of 12.10%, understanding its history, ownership, and operational model is crucial for making informed investment decisions.

PermRock Royalty Trust (PRT) History

PermRock Royalty Trust Founding Timeline

Year established

The PermRock Royalty Trust was established in 2017.

Original location

The trust is associated with the Permian Basin region, reflecting the location of its oil and gas interests.

Founding team members

While the specific individuals involved in the initial establishment of the trust are not widely publicized in the same manner as a traditional company, the trust was formed by Boaz Energy, LLC, as the initial depositor.

Initial capital/funding

The initial funding and capital came from the underlying oil and gas properties contributed by Boaz Energy, LLC. The exact valuation at the time of the trust's creation would be detailed in the original SEC filings and associated documents.

PermRock Royalty Trust Evolution Milestones

PermRock Royalty Trust Transformative Moments

Several transformative moments have shaped the PermRock Royalty Trust, impacting its operational and financial trajectory:

• Market Fluctuations: The trust's performance is directly tied to the prices of oil and natural gas. Significant price volatility in these commodities has led to fluctuations in the trust's income and, consequently, the distributions to its unit holders. For example, lower oil prices in late 2018 and during the 2020 pandemic significantly reduced distributions.
• Operational Changes: Changes in the operational strategies of the underlying property operators, such as drilling new wells or enhancing production techniques, can impact the trust's revenue.
• Acquisition and Divestiture Activities: Any acquisition or divestiture of properties by the operators of the underlying assets can significantly alter the trust's asset base and future income potential.
• Regulatory and Tax Changes: Shifts in regulations or tax laws related to oil and gas production can affect the profitability and, therefore, the distributions from the trust.

These moments underscore the importance of closely monitoring market conditions, operational activities, and regulatory changes to understand the potential impacts on the PermRock Royalty Trust's performance. More insights about the company can be found here: Mission Statement, Vision, & Core Values of PermRock Royalty Trust (PRT).

PermRock Royalty Trust (PRT) Ownership Structure

Understanding the ownership structure of PermRock Royalty Trust (PRT) provides insights into who controls the company and how its governance is structured.

PermRock Royalty Trust's Current Status

PermRock Royalty Trust (PRT) is a publicly traded royalty trust. This means that ownership is distributed among public investors who can buy and sell shares on the open market.

PermRock Royalty Trust's Ownership Breakdown

As a publicly traded entity, PRT's ownership is distributed among many shareholders. While specific individual holdings can fluctuate, here's a general overview of the typical ownership structure:

PermRock Royalty Trust's Leadership

As a royalty trust, PermRock Royalty Trust's operations are managed by a trustee. The trustee is responsible for overseeing the trust's assets and distributing royalties to the unitholders. Here are some key aspects of the leadership and management structure:

• Trustee: The trustee is the central figure in the trust's management. As of April 2025, the specific trustee and their contact information can be found in PermRock Royalty Trust's filings with the Securities and Exchange Commission (SEC).
• Responsibilities: The trustee is responsible for managing the trust's assets, collecting royalties from the underlying oil and gas properties, and distributing those royalties to the unitholders. The trustee also ensures compliance with all applicable laws and regulations.
• SEC Filings: Information about the trustee, including their name, contact information, and any changes in the trustee, is typically disclosed in the trust's SEC filings, such as the annual report on Form 10-K and quarterly reports on Form 10-Q.

To gain more in-depth knowledge about PermRock Royalty Trust (PRT), consider exploring this resource: Breaking Down PermRock Royalty Trust (PRT) Financial Health: Key Insights for Investors

PermRock Royalty Trust (PRT) Mission and Values

PermRock Royalty Trust operates with a focus on generating and distributing income to its unitholders through its net profits interests in oil and natural gas properties. While a formal mission statement isn't publicly available, understanding their core purpose and how they operate provides insight into their values.

PermRock Royalty Trust's Core Purpose

Official mission statement

PermRock Royalty Trust does not have a formally published mission statement. However, its core purpose can be inferred from its structure and operations, which are centered around:

• Acquiring and holding net profits interests (NPIs) in oil and natural gas properties.
• Generating revenue from the production and sale of oil and natural gas from these properties.
• Distributing available cash to unitholders after deducting operating expenses and any reserves for future liabilities.

Vision statement

Similar to its mission statement, PermRock Royalty Trust does not have a specific, publicly declared vision statement. However, a clear vision can be derived from its operational goals:

• To provide a stable and reliable income stream for its unitholders through the efficient management of its net profits interests.
• To maximize the value of its assets by capitalizing on opportunities in the oil and gas market.
• To maintain a transparent and straightforward business model that allows investors to easily understand the Trust's performance and prospects.

Company slogan/tagline

PermRock Royalty Trust does not have an official slogan or tagline. Investors interested in the Trust can further explore its financial standing by reviewing: Breaking Down PermRock Royalty Trust (PRT) Financial Health: Key Insights for Investors

PermRock Royalty Trust (PRT) How It Works

PermRock Royalty Trust operates by acquiring and holding net profits interests (NPIs) in oil and natural gas properties located in the Permian Basin of Texas. The Trust does not conduct operations itself but receives income from these NPIs, which is then distributed to its unitholders after deducting administrative expenses.

PermRock Royalty Trust's Product/Service Portfolio

PermRock Royalty Trust's Operational Framework

The operational framework of PermRock Royalty Trust revolves around the following key aspects:

• Acquisition of Net Profits Interests: The Trust acquires NPIs, which entitle it to a percentage of the net profits from the sale of oil and natural gas produced from specific properties.
• Production and Sales: The oil and gas properties are operated by third-party companies that are responsible for exploration, drilling, production, and sales.
• Calculation of Net Profits: Net profits are calculated by subtracting operating expenses, capital expenditures, and other allowable deductions from the gross revenues generated by the sale of oil and natural gas.
• Distribution to Unitholders: The Trust distributes the net profits it receives, less administrative expenses, to its unitholders on a quarterly basis. The amount of the distribution depends on the production volumes, commodity prices, and operating expenses of the underlying properties.

PermRock Royalty Trust's Strategic Advantages

PermRock Royalty Trust's strategic advantages include:

• Focus on the Permian Basin: The Trust's assets are concentrated in the Permian Basin, one of the most prolific oil and gas producing regions in the United States. This geographic focus allows the Trust to benefit from the region's favorable geology, established infrastructure, and experienced operators.
• Net Profits Interests: The Trust's NPIs provide direct exposure to the profitability of the underlying oil and gas properties. This structure aligns the Trust's interests with those of the operators, as both parties benefit from increased production and lower operating costs.
• Simplicity and Transparency: The Trust's structure is relatively simple, with a clear mandate to distribute net profits to unitholders. The Trust also provides regular updates on its financial performance and the operations of the underlying properties.

To gain a deeper understanding of PermRock Royalty Trust's financial health, consider exploring this resource: Breaking Down PermRock Royalty Trust (PRT) Financial Health: Key Insights for Investors

PermRock Royalty Trust (PRT) How It Makes Money

PermRock Royalty Trust (PRT) generates revenue by acquiring and holding net profits interests in oil and natural gas properties in the Permian Basin. The trust receives income from the production and sale of these resources, distributing the proceeds to its unit holders after deducting operating expenses.

PermRock Royalty Trust's Revenue Breakdown

As the trust operates by acquiring and holding net profits interests, its revenue streams are directly tied to the production and sale of oil and natural gas from underlying properties. The percentage of total revenue and growth trends can fluctuate based on commodity prices and production volumes.

PermRock Royalty Trust's Business Economics

The economics of PermRock Royalty Trust are fundamentally driven by:

• Commodity Prices: The prices of oil and natural gas significantly impact revenue. Higher prices lead to increased revenue, while lower prices decrease it.
• Production Volumes: The amount of oil and natural gas produced from the underlying properties directly affects the trust's income. Declining production can reduce revenue unless offset by higher prices.
• Operating Expenses: The costs associated with operating and maintaining the properties, including taxes and administrative fees, reduce the net profits available for distribution.
• Net Profits Interest (NPI): PRT holds a specific percentage of net profits interests in the underlying properties. This NPI determines the portion of revenue PRT receives after deducting expenses.

Understanding these factors is crucial for assessing the trust's ability to generate income and distribute it to unit holders. Learn more about the Mission Statement, Vision, & Core Values of PermRock Royalty Trust (PRT).

PermRock Royalty Trust's Financial Performance

Analyzing PermRock Royalty Trust's financial performance involves looking at several key metrics:

• Revenue: Total revenue from oil and natural gas sales, reflecting the impact of commodity prices and production volumes.
• Net Profit: The profit remaining after deducting all operating expenses, which determines the amount available for distribution to unit holders.
• Distributable Income: The actual amount of income distributed to unit holders per unit, indicating the yield on investment.
• Production Costs: Monitoring production costs helps assess the efficiency of the underlying operations and their impact on net profits.
• Cash Flow: Examining cash flow provides insight into the trust's ability to meet its obligations and sustain distributions.

Reviewing these metrics over time provides a comprehensive view of the trust's financial health and its ability to provide consistent returns to investors. As of the fiscal year 2024, these metrics would reflect the prevailing market conditions and operational performance of the trust's underlying assets.

PermRock Royalty Trust (PRT) Market Position & Future Outlook

PermRock Royalty Trust navigates the market with a focus on delivering value to its unitholders through its royalty interests in oil and gas properties. The trust's future outlook is closely tied to the performance of these underlying assets and broader industry trends. For more insights into the company's financial standing, consider reading Breaking Down PermRock Royalty Trust (PRT) Financial Health: Key Insights for Investors.

Competitive Landscape

Opportunities & Challenges

Industry Position

PermRock Royalty Trust operates within the oil and gas industry, specifically focusing on the royalty interest segment. Its position is influenced by:

• Production volumes from properties underlying the royalty interests.
• Prevailing prices for oil and natural gas.
• Operating expenses, which are relatively low due to the nature of royalty interests.

The Trust's success is directly linked to the productivity and profitability of the oil and gas wells from which it derives royalties. Its market capitalization and unit price reflect investor sentiment regarding the stability and potential growth of these royalty streams.