Permian Basin Royalty Trust is one of the oldest and most established oil and gas royalty trusts in the United States, created in 1980 by Southland Royalty Company. The trust was formed to provide investors with a means of receiving monthly income derived from oil and natural gas production without direct exposure to exploration and development risks. Headquartered in Dallas, Texas, it has maintained a long-standing reputation for stability, transparency, and consistent distributions throughout decades of energy market cycles.
The trust’s assets consist primarily of overriding royalty interests in producing oil and gas properties located in the Permian Basin of West Texas and other regions of the southwestern United States. These properties include interests in both developed and undeveloped acreage, producing from multiple formations within one of the most prolific hydrocarbon basins in North America. Production operations are managed by independent operating companies, with the trust itself serving as a passive entity that collects and distributes the income generated from these wells.
Revenues are generated from the sale of crude oil and natural gas produced from the underlying properties, and after deduction of applicable taxes and administrative expenses, net proceeds are distributed monthly to unitholders. Because the trust does not engage in drilling or operational activity, its performance is closely tied to commodity price movements and production trends. This structure allows investors to benefit directly from fluctuations in oil and gas markets, providing a straightforward link between resource extraction and investment returns.