PermRock Royalty Trust (PRT)
Market Price (1/15/2026): $3.08 | Market Cap: $37.5 MilSector: Energy | Industry: Oil & Gas Exploration & Production
PermRock Royalty Trust (PRT)
Market Price (1/15/2026): $3.08Market Cap: $37.5 MilSector: EnergyIndustry: Oil & Gas Exploration & Production
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 11% | Weak multi-year price returns2Y Excs Rtn is -66%, 3Y Excs Rtn is -124% | Expensive valuation multiplesP/SPrice/Sales ratio is 8.1x |
| Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 85% | Weak revenue growthRev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is -20%, Rev Chg QQuarterly Revenue Change % is -20% | |
| Low stock price volatilityVol 12M is 28% | Key risksPRT key risks include [1] its unhedged exposure to commodity price volatility, Show more. | |
| Megatrend and thematic driversMegatrends include US Energy Independence. Themes include US Oilfield Technologies. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 11% |
| Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 85% |
| Low stock price volatilityVol 12M is 28% |
| Megatrend and thematic driversMegatrends include US Energy Independence. Themes include US Oilfield Technologies. |
| Weak multi-year price returns2Y Excs Rtn is -66%, 3Y Excs Rtn is -124% |
| Expensive valuation multiplesP/SPrice/Sales ratio is 8.1x |
| Weak revenue growthRev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is -20%, Rev Chg QQuarterly Revenue Change % is -20% |
| Key risksPRT key risks include [1] its unhedged exposure to commodity price volatility, Show more. |
Why The Stock Moved
Qualitative Assessment
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PermRock Royalty Trust (PRT) experienced a 27.9% stock price decline from approximately October 31, 2025, to January 15, 2026, primarily due to a combination of declining commodity prices and decreased distributions.
1. Significant Decrease in Monthly Dividend Distributions
The Trust's monthly cash distributions decreased notably during the period. Specifically, a dividend of $0.0164 per share was declared on December 19, 2025, for payment on January 15, 2026, representing a decrease of $0.0124 from the prior month's dividend. This followed a dividend announcement of $0.0288 per share on November 17, 2025. This reduction in distributions directly impacts investor returns and the attractiveness of a royalty trust.
2. Falling Natural Gas Prices and Forecasts for Lower Prices
Natural gas prices, particularly the Henry Hub spot price, saw a significant decline. The U.S. Energy Information Administration (EIA) lowered its Henry Hub natural gas spot price forecast for the first quarter of 2026 to an average of $3.38 per million British thermal units (MMBtu) from an earlier estimate of $4.35/MMBtu, citing milder-than-normal January temperatures. The Henry Hub spot price dropped to below $3/MMBtu on January 9, 2026, from approximately $5/MMBtu a month prior.
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1. Significant Decrease in Monthly Dividend Distributions
The Trust's monthly cash distributions decreased notably during the period. Specifically, a dividend of $0.0164 per share was declared on December 19, 2025, for payment on January 15, 2026, representing a decrease of $0.0124 from the prior month's dividend. This followed a dividend announcement of $0.0288 per share on November 17, 2025. This reduction in distributions directly impacts investor returns and the attractiveness of a royalty trust.
2. Falling Natural Gas Prices and Forecasts for Lower Prices
Natural gas prices, particularly the Henry Hub spot price, saw a significant decline. The U.S. Energy Information Administration (EIA) lowered its Henry Hub natural gas spot price forecast for the first quarter of 2026 to an average of $3.38 per million British thermal units (MMBtu) from an earlier estimate of $4.35/MMBtu, citing milder-than-normal January temperatures. The Henry Hub spot price dropped to below $3/MMBtu on January 9, 2026, from approximately $5/MMBtu a month prior.
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Stock Movement Drivers
Fundamental Drivers
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Market Drivers
10/31/2025 to 1/14/2026| Return | Correlation | |
|---|---|---|
| PRT | -27.9% | |
| Market (SPY) | 1.2% | -0.3% |
| Sector (XLE) | 9.1% | 7.2% |
Fundamental Drivers
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Market Drivers
7/31/2025 to 1/14/2026| Return | Correlation | |
|---|---|---|
| PRT | -27.5% | |
| Market (SPY) | 9.5% | -7.6% |
| Sector (XLE) | 11.2% | 5.1% |
Fundamental Drivers
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Market Drivers
1/31/2025 to 1/14/2026| Return | Correlation | |
|---|---|---|
| PRT | -26.8% | |
| Market (SPY) | 15.7% | 14.0% |
| Sector (XLE) | 12.4% | 26.2% |
Fundamental Drivers
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Market Drivers
1/31/2023 to 1/14/2026| Return | Correlation | |
|---|---|---|
| PRT | -51.5% | |
| Market (SPY) | 76.2% | 13.1% |
| Sector (XLE) | 17.3% | 32.7% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| PRT Return | 195% | 24% | -38% | -12% | -13% | 1% | 78% |
| Peers Return | 102% | 179% | -34% | 1% | -0% | 6% | 299% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 2% | 85% |
Monthly Win Rates [3] | |||||||
| PRT Win Rate | 75% | 67% | 42% | 50% | 50% | 100% | |
| Peers Win Rate | 54% | 71% | 42% | 46% | 40% | 100% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 100% | |
Max Drawdowns [4] | |||||||
| PRT Max Drawdown | -2% | -2% | -41% | -19% | -13% | 0% | |
| Peers Max Drawdown | -2% | -5% | -44% | -34% | -24% | -2% | |
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | 0% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: PBT, CRT, MTR, TPL.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 1/14/2026 (YTD)
How Low Can It Go
| Event | PRT | S&P 500 |
|---|---|---|
| 2022 Inflation Shock | ||
| % Loss | -58.1% | -25.4% |
| % Gain to Breakeven | 138.9% | 34.1% |
| Time to Breakeven | Not Fully Recovered days | 464 days |
| 2020 Covid Pandemic | ||
| % Loss | -81.9% | -33.9% |
| % Gain to Breakeven | 453.4% | 51.3% |
| Time to Breakeven | 370 days | 148 days |
| 2018 Correction | ||
| % Loss | -63.6% | -19.8% |
| % Gain to Breakeven | 174.7% | 24.7% |
| Time to Breakeven | Not Fully Recovered days | 120 days |
Compare to PBT, CRT, MTR, TPL
In The Past
PermRock Royalty Trust's stock fell -58.1% during the 2022 Inflation Shock from a high on 6/8/2022. A -58.1% loss requires a 138.9% gain to breakeven.
Preserve Wealth
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Asset Allocation
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PermRock Royalty Trust owns 80% net profits interest in the oil and natural gas production properties acquired by Boaz Energy II, LLC in Permian Basin, Texas. Its underlying properties comprising 22,997 net acres, which include 2,434 net acres on the Central Basin Platform of the Permian Basin in Hockley and Terry counties, Texas; 1,667 net acres on the Central Basin Platform of the Permian Basin in Terry and Cochran counties, Texas; 14,727 net acres on the Eastern Shelf of the Permian Basin in Glasscock, Schleicher, Stonewall, and Coke counties, Texas; and 4,169 net acres on the Central Basin Platform of the Permian Basin in Ward, Crane, Terry, and Ector counties, Texas. The company was founded in 2017 and is based in Fort Worth, Texas.
AI Analysis | Feedback
Analogy 1: A Real Estate Investment Trust (REIT) for oil and gas royalties.
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- Cash Distributions to Unitholders: The trust collects net profits from underlying oil and natural gas production and distributes the available cash to its unitholders on a regular basis.
- Passive Investment Vehicle for Oil & Gas Royalties: PRT offers investors a financial instrument to gain exposure to the income generated from oil and natural gas royalty interests without direct operational involvement.
AI Analysis | Feedback
```htmlPermRock Royalty Trust (PRT) is a royalty trust that derives its revenue from a net profits interest in oil and natural gas properties. As such, the trust does not directly sell oil and gas to end customers (either companies or individuals). Instead, it receives payments from the operating company that extracts and sells the resources from the underlying properties.
Therefore, PRT's major "customer" (the entity that is obligated to make the net profits interest payments to the trust) is:
- Permian Resources Operating, LLC, which is a subsidiary of **Permian Resources Corporation** (PR).
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- The Bank of New York Mellon (NYSE: BK)
- Deloitte & Touche LLP
- Vinson & Elkins LLP
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PermRock Royalty Trust (PRT) is a Delaware statutory trust, and as such, it does not have a traditional management team with a CEO or CFO in the conventional sense. The Trust's affairs are managed by a corporate trustee. The current Trustee for PermRock Royalty Trust is Argent Trust Company, effective December 30, 2022, succeeding Simmons Bank. The Trust itself has no employees. The Trustee's primary function is to collect monthly net proceeds attributable to the net profits interest and make monthly distributions to unitholders, after deducting administrative expenses and any amounts necessary for cash reserves. Given this structure, and the explicit information that PermRock Royalty Trust has no CEO, it is not possible to provide a list of individual management team members, including a CEO and CFO, for PermRock Royalty Trust.AI Analysis | Feedback
The key risks to PermRock Royalty Trust (PRT) primarily stem from its structure as a royalty trust in the energy sector.
- Commodity Price Volatility: PermRock Royalty Trust's financial performance and distributions are exceptionally sensitive to the fluctuating prices of oil and natural gas. The trust's revenue is "dramatically reliant on the price of oil" and "inherently exposed to downside in energy prices". A significant risk highlighted is the absence of a hedging program to mitigate against price drops. The suspension of dividends for five months in 2020 due to a weak oil price environment serves as a clear illustration of this risk.
- Declining Production from Underlying Assets: The trust's income stream is directly linked to the volume of oil and gas produced from its properties in the Permian Basin. There is evidence of "declining production against a steady payout commitment," with oil and natural gas production volumes reported to have "declined every year since 2019". This trend indicates that the underlying assets are maturing, which could lead to a "structural decline" in the trust's cash flow over time.
- Dependence on the Operator: PermRock Royalty Trust is a passive entity, holding an 80% net profits interest, but it lacks "management control over or responsibility for costs relating to the operation of the Underlying Properties". The trust's success and the consistency of its distributions are "functionally dependent upon the stability and competence of the operating company". Historically, Boaz Energy operated these properties, which were subsequently sold to T2S Permian Acquisition II LLC. Any operational issues, poor asset management, or financial instability of the operator could negatively impact the trust's performance and returns.
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The accelerating global transition to alternative energy sources (such as solar, wind, and electric vehicles) and enhanced energy efficiency measures, which could lead to a sustained, structural decline in demand for crude oil and natural gas. This fundamental shift threatens to permanently depress commodity prices, thereby undermining the long-term profitability of the trust's underlying oil and gas assets and, consequently, its ability to generate distributions.
AI Analysis | Feedback
PermRock Royalty Trust (PRT) primarily derives its revenue from an 80% net profits interest in oil and natural gas producing properties located in the Permian Basin of West Texas and southeastern New Mexico. Therefore, the addressable market for PermRock Royalty Trust's main products or services is the crude oil and natural gas production within the Permian Basin, United States. Based on available data for the Permian Basin (United States):- In 2023, crude oil production was approximately 5,790 thousand barrels of oil per day (mbd).
- In 2023, natural gas production was approximately 19,315 million cubic feet per day (mmcfd).
- Crude oil output in the Permian Basin is projected to reach 6.6 million barrels per day (b/d).
- Marketed natural gas production is expected to grow to an impressive 25.8 billion cubic feet per day.
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PermRock Royalty Trust (PRT) is expected to have its future revenue growth over the next 2-3 years primarily driven by the following factors:
- Fluctuations in Oil and Natural Gas Prices: The Trust's revenue is directly tied to the market prices of oil and natural gas. Higher commodity prices translate into increased royalty income, while lower prices can negatively impact revenue. For instance, a decline in net profits income in 2024 was attributed to decreased oil and natural gas sales volumes and prices. Conversely, the Trust tends to benefit significantly from rising oil prices.
- Oil and Natural Gas Production Volumes: Revenue is derived from the royalties on oil and natural gas produced from the underlying properties in the Permian Basin. An increase in oil sales volumes has been observed, with a 10.9% rise to 24,965 barrels from 22,491 barrels in a recent period, though natural gas volumes saw a decrease. Sustained or increased production volumes are crucial for long-term earnings for oil producers.
- Operator's Capital Expenditures and Drilling Activities: The activities of the operating company (currently Boaz Energy, with a pending sale of interests to T2S Permian Acquisition II LLC expected to close by the end of March 2025) directly influence the production from the underlying properties. Capital expenditures, such as those for drilling activities on non-operated wells in the Permian Shelf, impact future production volumes and thus the Trust's royalty income.
- Strategic Focus on the Permian Basin: The Trust's strategic positioning, with its focus on oil and natural gas properties in the Permian Basin, a highly prolific oil-producing region in the U.S., allows it to capitalize on the region's production rates. The continued strategic emphasis and successful operations in this basin by the operator are vital for revenue generation.
AI Analysis | Feedback
PermRock Royalty Trust (PRT) is a statutory trust formed to own a perpetual 80% net profits interest in certain oil and natural gas producing properties in the Permian Basin of West Texas. The Trust's primary function is to collect net proceeds and make monthly distributions to unitholders, after deducting administrative expenses and any necessary cash reserves. Due to its structure as a royalty trust, the capital allocation decisions typically associated with operating companies, such as direct share repurchases, share issuances, inbound or outbound investments, and capital expenditures, are not generally undertaken by the Trust itself. The underlying operator (Boaz Energy II, LLC) handles the capital expenditures related to the oil and natural gas properties before calculating the net profits distributed to the Trust. As a result, no significant capital allocation decisions falling into the specified categories have been identified for PermRock Royalty Trust over the last 3-5 years.Research & Analysis
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Peer Comparisons for PermRock Royalty Trust
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 13.15 |
| Mkt Cap | 0.0 |
| Rev LTM | 6 |
| Op Inc LTM | 5 |
| FCF LTM | 236 |
| FCF 3Y Avg | 323 |
| CFO LTM | 559 |
| CFO 3Y Avg | 491 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | -27.2% |
| Rev Chg 3Y Avg | -19.3% |
| Rev Chg Q | -13.6% |
| QoQ Delta Rev Chg LTM | -4.8% |
| Op Mgn LTM | 78.9% |
| Op Mgn 3Y Avg | 86.6% |
| QoQ Delta Op Mgn LTM | -0.1% |
| CFO/Rev LTM | 72.3% |
| CFO/Rev 3Y Avg | 70.9% |
| FCF/Rev LTM | 30.5% |
| FCF/Rev 3Y Avg | 47.9% |
Price Behavior
Price Behavior
| Market Price | $2.82 | |
| Market Cap ($ Bil) | 0.0 | |
| First Trading Date | 05/02/2018 | |
| Distance from 52W High | -31.7% | |
| 50 Days | 200 Days | |
| DMA Price | $3.72 | $3.77 |
| DMA Trend | down | down |
| Distance from DMA | -24.2% | -25.2% |
| 3M | 1YR | |
| Volatility | 33.1% | 28.4% |
| Downside Capture | 96.68 | 23.84 |
| Upside Capture | -99.99 | -9.61 |
| Correlation (SPY) | 0.2% | 12.8% |
PRT Betas & Captures as of 12/31/2025
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | -0.58 | 0.00 | -0.13 | -0.19 | 0.17 | 0.29 |
| Up Beta | -3.42 | 0.05 | -0.04 | -0.45 | 0.04 | -0.03 |
| Down Beta | -0.70 | -0.24 | -0.08 | 0.26 | 0.48 | 0.56 |
| Up Capture | -345% | -129% | -90% | -54% | 0% | 4% |
| Bmk +ve Days | 11 | 23 | 37 | 72 | 143 | 431 |
| Stock +ve Days | 6 | 14 | 25 | 54 | 120 | 354 |
| Down Capture | 322% | 130% | 64% | 17% | 24% | 79% |
| Bmk -ve Days | 11 | 18 | 27 | 55 | 108 | 320 |
| Stock -ve Days | 14 | 22 | 33 | 64 | 117 | 357 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| PRT vs. Other Asset Classes (Last 1Y) | |||||||
|---|---|---|---|---|---|---|---|
| PRT | Sector ETF | Equity | Gold | Commodities | Real Estate | Bitcoin | |
| Annualized Return | -19.5% | 11.4% | 20.0% | 71.6% | 5.6% | 10.4% | 1.0% |
| Annualized Volatility | 28.9% | 25.1% | 19.3% | 20.0% | 15.3% | 16.7% | 34.5% |
| Sharpe Ratio | -0.75 | 0.39 | 0.82 | 2.59 | 0.15 | 0.42 | 0.11 |
| Correlation With Other Assets | 26.1% | 12.7% | -0.5% | 14.5% | 19.0% | 4.4% | |
ETFs used for asset classes: Sector ETF = XLE, Equity = SPY, Gold = GLD, Commodities = DBC, Real Estate = VNQ, Bitcoin = BTCUSD
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| PRT vs. Other Asset Classes (Last 5Y) | |||||||
|---|---|---|---|---|---|---|---|
| PRT | Sector ETF | Equity | Gold | Commodities | Real Estate | Bitcoin | |
| Annualized Return | 8.5% | 23.0% | 14.6% | 18.8% | 11.6% | 5.8% | 21.0% |
| Annualized Volatility | 42.6% | 26.7% | 17.1% | 15.6% | 18.7% | 18.8% | 48.2% |
| Sharpe Ratio | 0.33 | 0.78 | 0.69 | 0.97 | 0.50 | 0.22 | 0.46 |
| Correlation With Other Assets | 45.0% | 16.7% | 9.9% | 38.7% | 13.2% | 6.8% | |
ETFs used for asset classes: Sector ETF = XLE, Equity = SPY, Gold = GLD, Commodities = DBC, Real Estate = VNQ, Bitcoin = BTCUSD
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| PRT vs. Other Asset Classes (Last 10Y) | |||||||
|---|---|---|---|---|---|---|---|
| PRT | Sector ETF | Equity | Gold | Commodities | Real Estate | Bitcoin | |
| Annualized Return | -11.9% | 9.4% | 15.1% | 15.1% | 7.6% | 5.4% | 71.7% |
| Annualized Volatility | 61.0% | 29.8% | 18.0% | 14.8% | 17.6% | 20.8% | 55.7% |
| Sharpe Ratio | 0.05 | 0.36 | 0.72 | 0.84 | 0.35 | 0.23 | 0.92 |
| Correlation With Other Assets | 43.9% | 24.8% | 8.1% | 33.6% | 26.0% | 9.1% | |
ETFs used for asset classes: Sector ETF = XLE, Equity = SPY, Gold = GLD, Commodities = DBC, Real Estate = VNQ, Bitcoin = BTCUSD
Smart multi-asset allocation framework can stack odds in your favor. Learn How
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 09/30/2025 | 11/13/2025 | 10-Q (09/30/2025) |
| 06/30/2025 | 08/13/2025 | 10-Q (06/30/2025) |
| 03/31/2025 | 05/14/2025 | 10-Q (03/31/2025) |
| 12/31/2024 | 03/28/2025 | 10-K (12/31/2024) |
| 09/30/2024 | 11/13/2024 | 10-Q (09/30/2024) |
| 06/30/2024 | 08/09/2024 | 10-Q (06/30/2024) |
| 03/31/2024 | 05/14/2024 | 10-Q (03/31/2024) |
| 12/31/2023 | 04/01/2024 | 10-K (12/31/2023) |
| 09/30/2023 | 11/14/2023 | 10-Q (09/30/2023) |
| 06/30/2023 | 08/14/2023 | 10-Q (06/30/2023) |
| 03/31/2023 | 05/15/2023 | 10-Q (03/31/2023) |
| 12/31/2022 | 03/31/2023 | 10-K (12/31/2022) |
| 09/30/2022 | 11/14/2022 | 10-Q (09/30/2022) |
| 06/30/2022 | 08/15/2022 | 10-Q (06/30/2022) |
| 03/31/2022 | 05/16/2022 | 10-Q (03/31/2022) |
| 12/31/2021 | 03/31/2022 | 10-K (12/31/2021) |
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