Permian Basin Royalty Trust
PBT
Energy
3
exclusion reasons
2 themes
This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
Permian Basin Royalty Trust is a financial vehicle whose sole purpose is to distribute income from the production of oil and natural gas. The trust holds overriding royalty interests in specific properties within the Permian Basin of Texas, primarily the Waddell Ranch and the Texas Royalty Properties. Its revenue is directly derived from the sale of crude oil and natural gas produced from these upstream extraction assets, with no other business operations or revenue sources. According to its 2024 Annual Report, the trust’s reserves and distributions are governed by standards promulgated by the Society of Petroleum Engineers, explicitly tying its financial performance to the volume and price of fossil fuels extracted.
Permian Basin Royalty Trust is a fossil fuel income vehicle whose sole business is to collect and distribute royalties from oil and gas production. The trust holds a 75% net overriding royalty interest in producing properties within the Permian Basin, one of the world's largest and most active oil fields. Its monthly distributions to unitholders are funded entirely by revenue from the sale of crude oil and natural gas extracted by its operating partners.
The trust's financial and legal activities are directly tied to fossil fuel extraction. In 2025, it settled litigation with its operator, Blackbeard Operating, LLC, for $9 million over a dispute regarding the proper calculation of royalties paid from April 2020 through December 2023. This legal action underscores the trust's complete dependence on the volatile economics of oil and gas production for its income. As a passive holder of mineral rights, the trust provides capital to and derives profit from the ongoing expansion of fossil fuel development without engaging in operational transition planning.
Permian Basin Royalty Trust holds mineral and royalty interests in oil and gas producing properties located in the Permian Basin of Texas. The trust’s revenue is derived directly from the extraction activities on these lands, which are situated in a region with a documented history of environmental contamination linked to oil and gas operations. This includes groundwater pollution from produced water spills, surface soil contamination from leaks and pipeline failures, and the broader ecological damage associated with extensive drilling and hydraulic fracturing in the area.
While the trust itself is not an operator, its financial existence is inextricably linked to the environmental impacts of the extraction it funds. The Permian Basin has been the site of numerous documented incidents involving releases of toxic fluids, including produced water containing hydrocarbons, heavy metals, and naturally occurring radioactive materials. These operations contribute to the legacy of soil and water contamination in the region. The trust has no operational control to mitigate these damages, nor does it publish any environmental remediation plans or set aside funds for legacy liabilities, effectively profiting from an activity with inherent and documented ecological harm.
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