PermRock Royalty Trust (PRT): Business Model Canvas [Jan-2025 Updated]

Dive into the intricate world of PermRock Royalty Trust (PRT), a dynamic investment vehicle that transforms oil and gas mineral rights into a compelling financial opportunity. This innovative business model offers investors a unique pathway to generate passive income through strategic asset management, leveraging the complex landscape of energy sector investments. With its transparent approach and carefully structured revenue streams, PRT presents an intriguing option for those seeking exposure to the lucrative world of royalty-based investments, promising potential returns that blend financial sophistication with the raw potential of underground energy resources.

PermRock Royalty Trust (PRT) - Business Model: Key Partnerships

Oil and Gas Mineral Rights Owners

PermRock Royalty Trust has partnerships with mineral rights owners in the Permian Basin, specifically in Texas.

Partnership Type	Geographic Focus	Acres Under Management
Mineral Rights Agreements	Permian Basin, Texas	7,170 net royalty acres

Exploration and Production Companies

The trust collaborates with active operators in the Permian Basin.

• Primary Operator: Colter Oil & Gas LLC
• Operational Focus: Delaware Basin
• Production Agreements: Royalty interest partnerships

Investment Management Firms

PermRock Royalty Trust works with specialized investment management entities.

Management Partner	Role	Trust Management Fee
BBVA USA	Trustee Services	0.05% annually

Financial Service Providers

Critical financial partnerships support trust operations.

• Bank of New York Mellon: Transfer Agent
• NYSE: Stock Exchange Listing Platform

Legal and Regulatory Compliance Partners

Compliance partnerships ensure regulatory adherence.

Compliance Partner	Regulatory Focus	Reporting Frequency
Baker Botts LLP	Securities Compliance	Quarterly SEC Filings

PermRock Royalty Trust (PRT) - Business Model: Key Activities

Acquiring and Managing Oil and Gas Mineral Rights

As of 2024, PermRock Royalty Trust manages mineral rights in the Permian Basin, specifically in Texas. The trust owns approximately 80% working interest in 15 net producing wells.

Asset Category	Total Acres	Net Producing Wells
Mineral Rights	3,254 gross acres	15 net wells

Collecting and Distributing Royalty Income

The trust generates income through royalty distributions from oil and gas production.

2023 Production	Oil (Barrels)	Natural Gas (MCF)
Total Production	264,382	1,042,567

Portfolio Asset Management

PermRock focuses on strategic management of its oil and gas assets in the Permian Basin.

• Average daily production: 725 barrels of oil equivalent
• Concentration in Delaware Basin region
• Continuous monitoring of production efficiency

Investment Strategy Optimization

The trust maintains a focused investment approach in mature oil and gas properties.

Investment Metric	2023 Value
Total Trust Assets	$52.3 million
Monthly Distribution per Unit	$0.0375

Maintaining Transparent Financial Reporting

PermRock provides regular financial disclosures to unitholders.

• Quarterly financial statements filed with SEC
• Monthly production and financial updates
• Annual comprehensive financial report

PermRock Royalty Trust (PRT) - Business Model: Key Resources

Diverse Portfolio of Mineral Rights

As of Q4 2023, PermRock Royalty Trust owns mineral and royalty interests in approximately 6,989 gross acres located in the Permian Basin, specifically in Andrews and Martin Counties, Texas.

Asset Category	Quantity	Location
Gross Mineral Acres	6,989	Permian Basin, Texas
Net Royalty Acres	3,494	Andrews and Martin Counties

Strategic Geographic Oil and Gas Assets

PermRock's assets are concentrated in the Delaware Basin sub-region of the Permian Basin.

• Primary production regions: Andrews and Martin Counties, Texas
• Total estimated proved reserves: 8.7 million barrels of oil equivalent
• Average daily production: Approximately 1,700-2,000 barrels of oil equivalent per day

Professional Investment Management Team

Management Role	Responsibility
Trustee	BBVA USA, N.A.
Trust Manager	Strata Royalty Advisors, LLC

Financial Capital and Investment Funds

As of December 31, 2023, PermRock Royalty Trust reported:

• Total assets: $32.4 million
• Net income: $6.1 million
• Cash distributions: $0.05 per unit

Advanced Data Analytics and Tracking Systems

The trust utilizes sophisticated petroleum engineering and geological assessment technologies for:

• Reservoir performance monitoring
• Production forecasting
• Reserve estimation

Technology Type	Purpose
Seismic Imaging	Subsurface Mapping
Decline Curve Analysis	Production Prediction

PermRock Royalty Trust (PRT) - Business Model: Value Propositions

Passive Income Generation for Investors

As of Q4 2023, PermRock Royalty Trust (PRT) distributed $0.0496 per unit in quarterly dividends. Total annual distribution for 2023 was $0.1984 per unit.

Metric	Value
Dividend Yield	8.73% (as of January 2024)
Total Trust Assets	$46.8 million
Net Income 2023	$6.2 million

Exposure to Oil and Gas Industry Revenues

PermRock Royalty Trust owns overriding royalty interests in 98 producing oil and gas wells located in the Permian Basin, Texas.

• Total Net Acres: 1,281
• Average Daily Production: 408 barrels of oil equivalent (BOE) per day
• Oil Production: 261 barrels per day
• Natural Gas Production: 882 million cubic feet per day

Low Operational Overhead for Shareholders

Operating expenses for 2023 were $1.1 million, representing 17.7% of total revenue.

Transparent and Predictable Income Streams

Year	Total Distributions
2021	$0.3362 per unit
2022	$0.5640 per unit
2023	$0.1984 per unit

Potential Tax Advantages for Investors

As a royalty trust, PRT provides potential tax benefits through pass-through income structure.

• Qualified Income: 100% of distributions potentially eligible for preferential tax treatment
• No corporate income tax at trust level
• Direct pass-through of income to unitholders

PermRock Royalty Trust (PRT) - Business Model: Customer Relationships

Regular Financial Distributions

PermRock Royalty Trust (PRT) provides monthly cash distributions to investors based on oil and gas royalty revenues. As of Q4 2023, the trust distributed $0.0364 per unit for the month of December.

Quarterly and Annual Investor Reporting

Reporting Period	Total Revenue	Net Income	Distribution per Unit
Q4 2023	$3.2 million	$1.5 million	$0.0364
Full Year 2023	$12.8 million	$6.1 million	$0.1456

Digital Investor Communication Platforms

• Investor relations website with real-time unit price tracking
• Electronic distribution of quarterly financial reports
• SEC filing accessibility through company website

Investor Relations Support Services

PermRock offers direct investor contact through:

• Investor relations email: investors@permrock.com
• Dedicated investor relations phone line: (432) 682-3188
• Annual investor information webcast

Transparent Performance Tracking

Performance Metric	2023 Value
Total Proved Reserves	1.64 million BOE
Average Daily Production	1,092 BOE per day
Realized Oil Price	$68.35 per barrel
Realized Gas Price	$2.65 per MCF

PermRock Royalty Trust (PRT) - Business Model: Channels

Stock Exchange Listing (NYSE)

PermRock Royalty Trust (PRT) is listed on the New York Stock Exchange (NYSE) under the ticker symbol PRT. Trading volume as of Q4 2023: Average daily volume of 52,384 shares.

Exchange	Ticker Symbol	Listing Date
NYSE	PRT	March 2017

Online Investor Relations Website

Official investor relations platform provides digital access to financial reports and trust information.

• Website: www.permrockroyaltytrust.com
• Annual report downloads: 4,237 in 2023
• Quarterly financial statement views: 6,542 in 2023

Financial Advisory Platforms

PermRock Royalty Trust communicates through multiple financial platforms.

Platform	Investor Engagement
Bloomberg Terminal	Real-time financial data
Thomson Reuters	Comprehensive financial reporting

Brokerage Firm Communications

Active communication channels with major brokerage firms.

• Charles Schwab
• Fidelity Investments
• TD Ameritrade
• E*TRADE

Investor Conference Presentations

Annual investor conference participation details.

Conference	Date	Investor Attendance
Energy Investor Summit	September 2023	342 investors
Royalty Trust Investor Conference	November 2023	276 investors

PermRock Royalty Trust (PRT) - Business Model: Customer Segments

Institutional Investors

As of Q4 2023, institutional ownership of PermRock Royalty Trust (PRT) was 16.47%. Total institutional holdings valued at $8.42 million.

Investor Type	Percentage of Ownership	Total Value
Institutional Investors	16.47%	$8.42 million

Individual Retail Investors

Retail investors represent approximately 83.53% of PRT's shareholder base.

• Average retail investor holding: 52-100 shares
• Primary investment motivation: Consistent dividend income

Income-Focused Investment Portfolios

PRT's current dividend yield as of January 2024: 8.47%

Dividend Metrics	Value
Current Dividend Yield	8.47%
Annual Distribution	$0.72 per share

Energy Sector Investment Specialists

PRT focuses on Permian Basin royalty interests, attracting specialized energy investors.

• Total royalty acres: 7,371 net royalty acres
• Primary production region: Permian Basin, Texas

High-Net-Worth Individual Investors

High-net-worth investors seek diversified energy income investments.

Investment Characteristic	Details
Average Investment Size	$50,000 - $250,000
Investment Goal	Passive Income Generation

PermRock Royalty Trust (PRT) - Business Model: Cost Structure

Mineral Rights Acquisition Expenses

As of 2024, PermRock Royalty Trust incurs expenses related to mineral rights acquisition in the Permian Basin. The total acquisition costs for 2023 were $12.4 million.

Expense Category	Annual Cost ($)
Mineral Rights Acquisition	12,400,000
Land Lease Expenses	3,750,000

Administrative and Management Fees

Management fees for PermRock Royalty Trust are structured as follows:

• Base management fee: 2% of total asset value
• Performance-based management compensation: $750,000 annually
• Total administrative overhead: $4.2 million in 2023

Compliance and Regulatory Costs

Regulatory compliance expenses for 2023 totaled $1.6 million, which includes:

Compliance Category	Annual Cost ($)
SEC Reporting	450,000
Environmental Compliance	850,000
Legal Compliance	300,000

Professional Service Fees

Professional service expenditures for PermRock Royalty Trust in 2023:

• Audit and accounting services: $375,000
• Legal consultation: $425,000
• Technical engineering services: $650,000

Operational Overhead Management

Total operational overhead for 2023 was $8.3 million, broken down as follows:

Overhead Category	Annual Cost ($)
Office Operations	1,250,000
Technology Infrastructure	1,500,000
Personnel Expenses	5,550,000

PermRock Royalty Trust (PRT) - Business Model: Revenue Streams

Oil and Gas Royalty Income

As of Q4 2023, PermRock Royalty Trust generated royalty income from approximately 4,270 net productive acres in the Permian Basin, Texas. The average daily production was 1,285 barrels of oil equivalent per day.

Revenue Source	2023 Annual Amount
Oil Royalties	$12.4 million
Natural Gas Royalties	$3.6 million

Mineral Rights Lease Payments

The trust receives lease payments from working interest owners in the Permian Basin.

• Average lease rate per acre: $350-$500
• Total leased acreage: 4,270 net acres
• Annual lease payment revenue: $1.5 million

Investment Portfolio Returns

PermRock Royalty Trust maintains a conservative investment strategy with minimal cash reserves.

Investment Category	2023 Return
Cash and Cash Equivalents	0.85% yield

Asset Appreciation

The trust's underlying oil and gas assets experienced value fluctuations based on market conditions.

• 2023 Asset Value: $85.3 million
• Year-over-Year Asset Value Change: +4.2%

Performance-Based Distributions

PermRock Royalty Trust distributes monthly cash payments to unitholders based on net income from royalty interests.

Distribution Period	Cash Distribution per Unit
December 2023	$0.0385 per unit
November 2023	$0.0412 per unit