Get Paid Monthly with PermRock Royalty Trust?
Oil prices are still being fueled by geopolitical risks in the Middle East, as Israel and Iran continue their assaults. The involvement of the U.S. in the conflict is increasing the level of volatility.
Brent Crude prices have jumped from $65.00 per barrel in early June to more than $76.00 per barrel on June 20. Over the same time frame, West Texas Intermediate (WTI) prices have climbed from around $63.00 per barrel to around $75.00 per barrel.
With all eyes on the Middle East, the typical bullish factors impacting the economy, including U.S. Federal Reserve decisions, Chinese imports, and Organization of Petroleum Exporting Countries Plus (OPEC+) policy, have taken a backseat, and will continue to do so until Middle East geopolitics come more into focus.
These near- and longer-term conditions are a favorable trend for energy plays like PermRock Royalty Trust (NYSE:PRT).
PermRock Royalty Trust owns a perpetual interest in oil-and-natural-gas-producing properties located in the Permian Basin in Texas. It receives an 80% net profit interest from the sale of production from certain properties owned by T2S Permian Acquisition II LLC in the Permian Basin of West Texas, rather than a specific portion of production. (Source: “Form 10K,” U.S. Securities and Exchange Commission, May 14, 2025.)
Its underlying properties consist of four operating areas in the Permian Basin in Texas, totaling approximately 31,354 gross (22,394 net) acres.
PRT Stock: Monthly Payout of $0.03/Unit
Because PermRock declared a monthly dividend, it announces its financial results on a monthly basis, too. In May, the company reported oil cash receipts of $1.49 million, a marginal decrease of $10,000 from the prior month. (Source: “PermRock Royalty Trust Declares Monthly Cash Distribution,” PermRock Royalty Trust, May 19, 2025.)
During the month, the trust sold 22,232 barrels of oil, compared to 21,413 in the prior month. The average price per barrel was $66.92, down from $70.27 per barrel in April.
PermRock’s natural gas receipts totaled $80,000, a decrease of $30,000 from the prior month. During the month, natural gas averaged $3.19 per thousand cubic feet (Mcf), as compared to $4.15 per Mcf in the prior month.
This resulted in a monthly cash distribution of $371,192.79, $0.030511 per unit, or $0.37 per unit on an annual basis for a forward yield of nine percent. (Source: “Cash Distributions,” PermRock Royalty Trust, last accessed June 20, 2025.)
PRT stock paid out its first monthly dividend in May 2018. As expected, the monthly payout fluctuates based on the price of oil and gas and sales volumes. The red line in the chart below represents the dividend payout, and the blue line is the price of WTI.
Some months are more prosperous than others. During the 2020 health crisis, PermRock suspended its payout for five months.
Chart courtesy of StockCharts.com
PRT Stock Outpacing S&P 500
PRT stock had a rough go of it between October 2023 and December 2024. But things changed in December 2024. That’s when PermRock announced the pending sale of its underling properties from Boaz Energy to T2S; the acquisition closed this past March.
By early March, PRT stock was trading at its highest level in more than a year. That momentum was upended on fears of a global trade war and what it would do to the economy and, for energy stocks, the demand for oil and gas.
PRT stock has been clawing its way back since early April, though. As of June 20, it’s trading up:
- 15.5% since early April
- 25% over the last six months
- 20% year over year
The Lowdown on PRT Stock
PermRock Royalty Trust is an oil and gas exploration and production company that owns a perpetual interest in oil and natural gas properties in the Permian Basin in Texas. And, thanks to historically strong demand for oil and gas, it has been able to provide its shareholders with an ultra-high-yield monthly dividend.
Insiders have a big stake in PRT stock, with 40.2% of all outstanding shares. This should entice them to see the trust perform well. (Source: “PermRock Royalty Trust (PRT),” Yahoo! Finance, last accessed June 20, 2025.)
Institutional ownership is quite small, at just two percent of all outstanding shares, but those bullish on PermRock are well-known names such as BlackRock Inc, Royal Bank of Canada, and PNC Financial Services Group, Inc..