PBT has increased production of Oil on the Waddell Ranch by 1,044% in 24 months with quality allocation of capital. All debt was recently paid off from drilling and completion activities and the monthly cash distribution is set to skyrocket on top of an energy crisis.
This is an extraordinary well-reasoned analysis of PBT. I own units and I will likely buy more pending cash availability. Absolutely correct that the chronic underinvestment in energy is likely going to keep crude prices high (as compared to recent years) for the forseeable future. It is also incredibly insightful to highlight the operators favorable business decisions. In the oil/gas trust sector, the operator is key. As happy as I am with my PBT I have a huge loss on my lrt (ll&e) that is not listed anymore "0". That trust was great paid out monthly until new operator took it over quantum and breitbern and suddenly no distributions because of escrow reserve requirements. The lrt trust has a 15 percent interest in wells in Florida's Jay Field and production is strong. Yet no distributions... A shareholder replaced the Trustee and there's a case pending in Texas for fraud against the operator for fraud I can only hope there's a favorable judgement and recovery for unitholders. It shows how important the operator is. No distributions for the last 10 years after decades of monthly payouts just incredulous. My financial loss is staggering as the units currently have no value. And the list income is obvious. Oil and gas production is a rough business and there are corrupt fraudsters out there. Fortunately, PBT seems to be in very good and honest hands. Thank you Broncho for this excellent analysis.
There are two unit holders local to the Permian Basin in Midland, TX that currently own more than 15% of the total shares of PBT. I considered their options against a rouge Operator since Blackbeard is still fairly new even though their CEO had ties to XTO and worked the same Devonian geology that Blackbeard is targeting on the trust only 20 miles away.
Gideon Powell owns 10% or 4.63M shares and Eric Oliver 5% or 2.76M shares and a large options position.
Gideon Powell - COO & President at Cholla Petroleum Inc. Cholla Petroleum, Inc. into one of Texas' largest independent oil and gas exploration companies, personally overseeing the completion of more than 1,150 oil and gas wells. Until the very end, even from the hospital bed, Loyd continued to wildcat for oil and gas, reviewing reports, asking for updates on wells and even monitoring progress on his most recent venture into bitcoin mining.
Eric Oliver lobbied to become trustee of Texas Pacific Land Trust and was later awarded a board seat for the trust after a compromise following a post proxy vote.
Will be interesting to see their reaction if they see Blackbeard overstep with CAPEX especially with this directly in their backyard only miles from boths home offices of Midland, TX.
Thank you for the write up on PBT. My question- how long will it take for the market to "wake up" to the potential of PBT and increase the price? It seems like the market doesnt really care/follow this potential blockbuster stock.
From what I've seen with other royalty trusts in the past the performance of the underlying equity will reflect the cash distribution potential once it's proven out over 3 consecutive payouts. Since PBT is a monthly cash distribution this should be Q3 now that they are full debt free and the recent increase percentage wise was note worthy.
Some investors have already taken notice of the potential such as Eric Oliver of SoftVest that is also a board member of Texas Pacific Land Trust. He took a sizable position in Q1 of both shares and options with a total share count of 2.76M.
This is an extraordinary well-reasoned analysis of PBT. I own units and I will likely buy more pending cash availability. Absolutely correct that the chronic underinvestment in energy is likely going to keep crude prices high (as compared to recent years) for the forseeable future. It is also incredibly insightful to highlight the operators favorable business decisions. In the oil/gas trust sector, the operator is key. As happy as I am with my PBT I have a huge loss on my lrt (ll&e) that is not listed anymore "0". That trust was great paid out monthly until new operator took it over quantum and breitbern and suddenly no distributions because of escrow reserve requirements. The lrt trust has a 15 percent interest in wells in Florida's Jay Field and production is strong. Yet no distributions... A shareholder replaced the Trustee and there's a case pending in Texas for fraud against the operator for fraud I can only hope there's a favorable judgement and recovery for unitholders. It shows how important the operator is. No distributions for the last 10 years after decades of monthly payouts just incredulous. My financial loss is staggering as the units currently have no value. And the list income is obvious. Oil and gas production is a rough business and there are corrupt fraudsters out there. Fortunately, PBT seems to be in very good and honest hands. Thank you Broncho for this excellent analysis.
There are two unit holders local to the Permian Basin in Midland, TX that currently own more than 15% of the total shares of PBT. I considered their options against a rouge Operator since Blackbeard is still fairly new even though their CEO had ties to XTO and worked the same Devonian geology that Blackbeard is targeting on the trust only 20 miles away.
Gideon Powell owns 10% or 4.63M shares and Eric Oliver 5% or 2.76M shares and a large options position.
Gideon Powell - COO & President at Cholla Petroleum Inc. Cholla Petroleum, Inc. into one of Texas' largest independent oil and gas exploration companies, personally overseeing the completion of more than 1,150 oil and gas wells. Until the very end, even from the hospital bed, Loyd continued to wildcat for oil and gas, reviewing reports, asking for updates on wells and even monitoring progress on his most recent venture into bitcoin mining.
Eric Oliver lobbied to become trustee of Texas Pacific Land Trust and was later awarded a board seat for the trust after a compromise following a post proxy vote.
Will be interesting to see their reaction if they see Blackbeard overstep with CAPEX especially with this directly in their backyard only miles from boths home offices of Midland, TX.
Interesting perspective. It's all about conflicts of interest and whether an owner has sufficient interest to force an operator to act properly.
Thank you for the write up on PBT. My question- how long will it take for the market to "wake up" to the potential of PBT and increase the price? It seems like the market doesnt really care/follow this potential blockbuster stock.
From what I've seen with other royalty trusts in the past the performance of the underlying equity will reflect the cash distribution potential once it's proven out over 3 consecutive payouts. Since PBT is a monthly cash distribution this should be Q3 now that they are full debt free and the recent increase percentage wise was note worthy.
Some investors have already taken notice of the potential such as Eric Oliver of SoftVest that is also a board member of Texas Pacific Land Trust. He took a sizable position in Q1 of both shares and options with a total share count of 2.76M.
https://www.sec.gov/Archives/edgar/data/0001803391/000138713122001938/pbt-sc13g_123121.htm