Permian Basin Royalty Trust is a royalty trust that collects a share of oil and gas revenue from properties in Texas, like a landlord earning rent from wells it doesn't operate.
Revenue comes from royalties on oil and gas production, with net margins around 92% (2025) and 94% (2024), reflecting minimal costs as a pass-through entity.
The trust's moat is its contractual royalty interests in established fields, which competitors like ExxonMobil or Chevron cannot easily replicate. However, production declines and commodity price volatility erode its value, so the moat is eroding.
Key events, in time order
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