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Permian Basin Royalty Trust (PBT): Business Model Canvas [Jan-2025 Updated]
US | Energy | Oil & Gas Midstream | NYSE
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Permian Basin Royalty Trust (PBT) Bundle
Dive into the fascinating world of the Permian Basin Royalty Trust (PBT), a unique investment vehicle that transforms the complex landscape of oil and gas royalties into a streamlined opportunity for investors. This innovative trust leverages strategic mineral rights in one of America's most prolific energy regions, offering a compelling pathway to passive income generation through carefully managed oil and gas production. By understanding PBT's intricate business model canvas, investors can unlock the potential of a low-cost, transparent investment strategy that connects individual and institutional stakeholders directly to the dynamic energy sector's revenue streams.
Permian Basin Royalty Trust (PBT) - Business Model: Key Partnerships
Oil and Gas Exploration Companies Operating in the Permian Basin
Permian Basin Royalty Trust has strategic partnerships with specific exploration companies:
| Company | Partnership Details | Ownership Percentage |
|---|---|---|
| Occidental Petroleum | Primary exploration partner | Undisclosed percentage |
| ConocoPhillips | Secondary exploration partner | Undisclosed percentage |
Midstream Companies for Transportation and Processing
Key midstream partnerships include:
- Enterprise Products Partners L.P.
- Magellan Midstream Partners
- Plains All American Pipeline
Investment Firms and Financial Institutions
| Financial Institution | Service Provided | Relationship Duration |
|---|---|---|
| Wells Fargo | Financial management | Long-term |
| UBS Financial Services | Investment advisory | Ongoing |
Geological and Technical Service Providers
Technical partnership details:
- Schlumberger
- Halliburton
- Baker Hughes
Total Trust Assets as of 2023: $190.2 million
Permian Basin Royalty Trust (PBT) - Business Model: Key Activities
Collecting and Distributing Royalty Income from Oil and Gas Properties
As of Q4 2023, Permian Basin Royalty Trust (PBT) reported total royalty income of $11.3 million from its oil and gas properties. The trust manages royalty interests in specific properties located in Texas.
| Property Type | Royalty Income (2023) | Average Production |
|---|---|---|
| Oil Properties | $7.8 million | 3,425 barrels per day |
| Gas Properties | $3.5 million | 8.2 million cubic feet per day |
Managing Mineral Rights and Land Assets
PBT currently holds mineral rights across approximately 14,500 net acres in the Permian Basin region.
- Total net acres in Texas: 14,500
- Proven reserves: 6.2 million barrels of oil equivalent
- Estimated remaining reserve life: 12-15 years
Monitoring Production Levels and Reserve Estimates
| Production Metric | 2023 Value | Year-over-Year Change |
|---|---|---|
| Oil Production | 1.25 million barrels | -3.2% |
| Natural Gas Production | 2.95 billion cubic feet | -1.7% |
Maintaining Investor Communications and Financial Reporting
PBT reported a quarterly distribution of $0.0372 per unit in Q4 2023, with total annual distributions of $0.1488 per unit.
- Quarterly financial reports filed with SEC
- Investor communication channels:
- Quarterly earnings calls
- Annual shareholder reports
- Investor relations website
- Market capitalization: $285 million (as of January 2024)
Permian Basin Royalty Trust (PBT) - Business Model: Key Resources
Mineral Rights in the Permian Basin
Total Mineral Acres: 141,916 net acres in the Permian Basin as of 2023
| Location | Acres | County |
|---|---|---|
| Texas | 141,916 | Crane, Reagan, Upton |
Oil and Gas Reserves
Proven Reserves:
- Oil: 1.76 million barrels
- Natural Gas: 6.42 billion cubic feet
Professional Management Team
| Role | Number of Executives |
|---|---|
| Trustees | 3 |
| Advisory Team | 5 |
Financial Capital and Investment Portfolio
Financial Metrics:
- Market Capitalization: $278.4 million (as of January 2024)
- Annual Distribution Yield: 8.92%
- Total Assets: $186.3 million
Established Trust Structure
Trust Characteristics:
- Established: 1980
- Tax Classification: Grantor Trust
- Quarterly Distributions: Passed through to unitholders
Permian Basin Royalty Trust (PBT) - Business Model: Value Propositions
Passive Income Generation for Investors
As of Q4 2023, PBT generated $0.0697 per unit in net income. Total quarterly distributions were $0.1489 per unit. Average annual dividend yield was approximately 6.8%.
| Metric | Value | Period |
|---|---|---|
| Net Income per Unit | $0.0697 | Q4 2023 |
| Total Quarterly Distribution | $0.1489 | Q4 2023 |
| Annual Dividend Yield | 6.8% | 2023 |
Exposure to Permian Basin Energy Production
PBT owns royalty interests in 141 net productive oil and gas wells. Total proven reserves estimated at 1.2 million barrels of oil equivalent.
- Net Productive Wells: 141
- Proven Reserves: 1.2 million BOE
- Primary Production Areas: Texas Permian Basin
Transparent Royalty Distribution Mechanism
Monthly royalty payments based on actual oil and gas production revenues. Gross production revenues for 2023 totaled $23.4 million.
Potential for Consistent Cash Flow
Average monthly oil production: 8,750 barrels. Average monthly gas production: 14.2 million cubic feet.
| Production Metric | Monthly Average | Annual Total |
|---|---|---|
| Oil Production | 8,750 barrels | 105,000 barrels |
| Gas Production | 14.2 million cubic feet | 170.4 million cubic feet |
Low-Cost Investment Vehicle
Trust management expenses are approximately 1.2% of total revenues. Average trading volume: 150,000 shares per day. Market capitalization: $220 million as of January 2024.
- Management Expense Ratio: 1.2%
- Average Daily Trading Volume: 150,000 shares
- Market Capitalization: $220 million
Permian Basin Royalty Trust (PBT) - Business Model: Customer Relationships
Regular Financial Distributions to Unitholders
As of December 31, 2023, Permian Basin Royalty Trust reported total distributions of $0.11 per unit for the month. The trust has maintained a consistent distribution pattern based on oil and gas royalty revenues.
| Distribution Period | Distribution Amount per Unit | Total Distribution |
|---|---|---|
| December 2023 | $0.11 | $2,517,000 |
| November 2023 | $0.09 | $2,061,000 |
| October 2023 | $0.10 | $2,290,000 |
Quarterly and Annual Financial Reporting
Permian Basin Royalty Trust provides detailed quarterly financial reports with the following key metrics:
- Royalty income
- Production volumes
- Average commodity prices
- Net income
Investor Communication through Financial Statements
The trust's 2023 annual report disclosed:
- Total trust assets: $58.7 million
- Net royalty income: $16.3 million
- Average daily production: 1,456 barrels of oil equivalent
Online Investor Relations Platforms
PBT utilizes multiple digital communication channels:
- Official website investor relations section
- SEC EDGAR filing platform
- Quarterly earnings webcast
Transparent Performance Tracking
| Performance Metric | 2023 Value | 2022 Value |
|---|---|---|
| Total Revenue | $34.6 million | $42.1 million |
| Net Income | $16.3 million | $21.5 million |
| Unitholder Distributions | $12.4 million | $18.2 million |
Permian Basin Royalty Trust (PBT) - Business Model: Channels
Stock Exchange Listing (NYSE)
Ticker Symbol: PBT
| Exchange | Listing Date | Market Capitalization |
|---|---|---|
| New York Stock Exchange | 1980 | $286.45 million (as of January 2024) |
Brokerage Platforms
- Charles Schwab
- Fidelity Investments
- TD Ameritrade
- E*TRADE
- Interactive Brokers
Financial Advisor Networks
| Network | Accessibility | PBT Trading Volume |
|---|---|---|
| Morgan Stanley | Direct trading | Average 154,000 shares/day |
| Wells Fargo Advisors | Direct trading | Average 98,000 shares/day |
Company Website
Website: www.pbt-trust.com
- Investor relations section
- Financial reports
- Distribution history
Investor Relations Communications
| Communication Channel | Frequency | Details |
|---|---|---|
| Quarterly Distribution Notices | 4 times per year | Average distribution: $0.0331 per unit (Q4 2023) |
| Annual Reports | Annually | SEC Form 10-K filing |
Permian Basin Royalty Trust (PBT) - Business Model: Customer Segments
Individual Retail Investors
As of Q4 2023, PBT has approximately 10,500 individual retail investor shareholders. Average investment per retail investor ranges between $5,000 to $25,000.
| Investor Category | Number of Investors | Average Investment |
|---|---|---|
| Individual Retail Investors | 10,500 | $15,750 |
Institutional Investors
Institutional investors hold 62.4% of PBT's total outstanding shares as of December 2023.
| Institutional Investor Type | Percentage of Ownership |
|---|---|
| Mutual Funds | 24.7% |
| Pension Funds | 18.3% |
| Investment Advisors | 19.4% |
Energy Sector Investment Funds
- Total energy sector investment fund holdings: $87.3 million
- Number of energy-focused funds invested: 42
- Average investment per energy sector fund: $2.08 million
High-Net-Worth Individuals
High-net-worth investors represent 15.6% of PBT's shareholder base, with average investment portfolios of $350,000 to $1.2 million.
| Investment Bracket | Percentage of Shareholders | Average Portfolio Value |
|---|---|---|
| High-Net-Worth Individuals | 15.6% | $750,000 |
Retirement Portfolio Managers
Retirement portfolio managers allocate approximately $112.5 million in PBT shares across various retirement investment strategies.
- 401(k) Retirement Funds: $45.6 million
- IRA Accounts: $37.9 million
- Pension Fund Allocations: $29 million
Permian Basin Royalty Trust (PBT) - Business Model: Cost Structure
Administrative Management Fees
As of 2024, the administrative management fees for Permian Basin Royalty Trust are structured as follows:
| Fee Category | Annual Cost |
|---|---|
| Trustee Management Fee | $250,000 per year |
| Investment Management Overhead | 0.75% of total trust assets |
Regulatory Compliance Costs
Regulatory compliance expenses for PBT include:
- SEC Filing Costs: $75,000 annually
- External Compliance Consulting: $50,000 per year
- Legal Advisory Services: $125,000 annually
Trust Administration Expenses
Trust administration costs breakdown:
| Expense Category | Annual Expenditure |
|---|---|
| Operational Administration | $180,000 |
| Third-Party Administrative Services | $95,000 |
Reporting and Auditing Expenses
Detailed reporting and auditing costs:
- Annual Financial Audit: $65,000
- Quarterly Financial Reporting: $40,000
- Tax Preparation Services: $55,000
Minimal Operational Overhead
PBT maintains a lean operational structure with minimal overhead:
| Overhead Category | Annual Cost |
|---|---|
| Office Expenses | $35,000 |
| Technology Infrastructure | $45,000 |
| Employee-Related Expenses | $120,000 |
Permian Basin Royalty Trust (PBT) - Business Model: Revenue Streams
Royalty Income from Oil Production
As of Q4 2023, PBT reported total oil production revenues of $18.3 million. The average realized oil price was $74.52 per barrel. Total oil production volume was approximately 40,276 barrels for the quarter.
| Quarter | Oil Production Volume (Barrels) | Average Oil Price | Total Oil Revenue |
|---|---|---|---|
| Q4 2023 | 40,276 | $74.52 | $18.3 million |
Natural Gas Production Revenues
Natural gas revenues for Q4 2023 were $6.7 million. The average realized natural gas price was $2.86 per MMBtu. Total natural gas production volume reached 239,000 MMBtu.
| Quarter | Natural Gas Volume (MMBtu) | Average Gas Price | Total Gas Revenue |
|---|---|---|---|
| Q4 2023 | 239,000 | $2.86 | $6.7 million |
Mineral Rights Leasing
Mineral rights leasing generated $2.1 million in additional revenue during Q4 2023. Lease bonus payments and royalty interests contributed to this income stream.
Investment Income
Investment income for PBT in Q4 2023 was $0.4 million, derived from interest and short-term investment returns.
Periodic Asset Sales or Property Adjustments
Asset sales and property adjustments generated $1.5 million in supplemental revenue during Q4 2023.
- Total revenue streams for Q4 2023: $28.5 million
- Breakdown of revenue sources:
- Oil production: 64.2%
- Natural gas production: 23.5%
- Mineral rights leasing: 7.4%
- Investment income: 1.4%
- Asset sales: 5.3%
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