PermRock Royalty Trust: Boaz Energy Completes Sale of Underlying Properties
DALLAS, March 31, 2025 – PermRock Royalty Trust (NYSE: PRT) recently announced that Boaz Energy II, LLC (“Boaz Energy”) and its affiliate, Boaz Energy II Royalty, LLC (“Boaz Royalty”), have completed the sale of the oil and gas properties underlying the Trust to T2S Permian Acquisition II LLC (“T2S Permian”).
Background
The sale, which was first announced on January 10, 2025, involved two separate transactions. Boaz Energy and Boaz Royalty sold their rights, title, and interest in the Underlying Properties to T2S Permian. Simultaneously, Boaz Energy sold 4,884,861 Trust units representing beneficial interests in the Trust to Ustx LLC, a Delaware limited liability company and wholly-owned subsidiary of T2S Permian.
Impact on PermRock Royalty Trust
The sale marks a significant change for the Trust. The Underlying Properties, which generated the income distributed to Trust unitholders, have been transferred to a new owner. However, the Trust’s net profits interest and conveyance remain in place, ensuring that the Trust will continue to receive a percentage of the profits from the Underlying Properties.
Impact on the Oil and Gas Industry
The sale of the Underlying Properties by Boaz Energy to T2S Permian is a common occurrence in the oil and gas industry. Companies frequently buy and sell oil and gas properties to expand their portfolios or divest from non-core assets. This transaction highlights the ongoing activity and investment in the Permian Basin, one of the world’s most prolific oil and gas regions.
Conclusion
The completion of the sale of the Underlying Properties by Boaz Energy and Boaz Royalty to T2S Permian marks a significant milestone for PermRock Royalty Trust. The Trust will continue to receive a percentage of the profits from the Underlying Properties, thanks to the net profits interest and conveyance that remain in place. The transaction also underscores the ongoing activity and investment in the oil and gas industry, particularly in the Permian Basin.
- Boaz Energy and Boaz Royalty have completed the sale of the Underlying Properties to T2S Permian.
- The Trust will continue to receive a percentage of the profits from the Underlying Properties.
- The transaction highlights ongoing activity and investment in the oil and gas industry, particularly in the Permian Basin.
As a Trust unitholder, this news may impact your investment in PermRock Royalty Trust. However, the net profits interest and conveyance remain in place, ensuring that the Trust will continue to generate income. The transaction also underscores the ongoing investment and activity in the oil and gas industry, which could lead to future opportunities or challenges.
On a larger scale, the sale of the Underlying Properties to T2S Permian highlights the ongoing investment and activity in the oil and gas industry, particularly in the Permian Basin. This trend is expected to continue, as companies seek to expand their portfolios or divest from non-core assets.
