Stock Track | Permian Basin Royalty Trust Soars 5.83% Intraday on Proposed Business Combination News

Permian Basin Royalty Trust's stock soared 5.83% during Tuesday's intraday trading session following news of a proposed business combination that could reshape the company's structure and future prospects.

The price movement comes after SoftVest Advisors, a major unitholder of PBT, and Blackbeard Holdings announced they have signed a preliminary non-binding term sheet for a potential business combination. The proposed transaction would create a new Texas-based, NYSE-listed company that would own Permian Basin Royalty Trust's assets along with Blackbeard subsidiary US Land Guild, which holds approximately 66,500 acres of surface estate and a 15% royalty interest tied to certain oil and gas properties.

Under the proposed agreement, PBT's existing net profits interests would be converted into a cost-free 15% royalty interest, eliminating prior net profits interest cost exposure and potentially generating more stable cash flow. Following the deal, existing PBT unitholders would own about 58% of the new company, while Blackbeard and its affiliates would hold roughly 42%. The combined entity would seek to expand its land and royalty holdings across the Central Basin Platform.