Vmbook Online ordering

Permian Basin Royalty Trust

Permian Basin Royalty Trust is a public company that trades on the NYSE under the ticker symbol PBT. It is an express trust founded in 1980. Its primary function is to own royalty interests in oil and natural gas properties in the Permian Basin area of West Texas and southeastern New Mexico.

The trust'ises its revenue from the production of oil and gas at the underlying properties by collecting royalty payments instead of directly exploring, producing, or operating the properties. The trust does not have any employees or operate any of the underlying properties; instead, it relies on third-party operators to manage the properties. The trust's revenue is generated from the wells and equipment used in the extraction process.

As the trust does not have a fixed number of authorized shares, its float is typically small, and its trading volume is typically low. In such cases, less shares trading can lead to large price swings. As a result, only experienced traders should consider trading the trust.

The company's cash distributions to trust unitholders are created by the revenue generated by the royalty interests and have historically been distributed monthly. Possible investors are urged to consult with their tax advisers for any possible federal and state income tax consequences. The trust makes direct royalty payments to its owners, commonly referred to as unitholders. Since it's not a taxable entity, it doesn't have to pay federal income taxes.

The Permian Basin Royalty Trust is categorized within the Energy sector; specifically, Energy Equipment & Services, Oil and Gas Pipeline companies. It is ranked a 4 out of 5 for sector appeal, with Energy equipment and services ranking first out of more than 12 sectors, and Oil and Gas Pipelines ranking third out of more than 11 sectors.

The company's biggest risk factors include the standard vulnerabilities and volatility of such small-cap energy companies.