The Trust's distribution does not include proceeds from the Waddell Ranch properties, as production costs exceeded gross proceeds for February, resulting in a continuing excess cost position. The operator of the Waddell Ranch properties, Blackbeard, provides necessary information for calculating net profits interest proceeds after the announcement date, which means any proceeds received will be included in the following month’s distribution.
For February 2026, the Trust reported production of 15,009 barrels of oil and 9,793 Mcf of gas from the underlying Texas Royalty Properties, with a net profit of $783,853 after deducting taxes and expenses. The Trust's net profit interest of 95% from these properties contributed $744,660 to this month’s distribution. The average price for oil was $56.56 per barrel, while gas averaged $6.02 per Mcf.
The Trust also noted that general and administrative expenses deducted for the month, net of interest earned, were $247,710, leading to a total distribution of $496,950 to 46,608,796 units outstanding. The ongoing global market conditions continue to impact pricing for domestic production, making it challenging to predict future distributions.
Additionally, the Trust disclosed that SoftVest, L.P., a unit holder, mailed documents to unitholders regarding a court petition seeking modifications to the Trust’s Indenture. This includes a request to amend the requirement for certain amendments to receive approval from 75% of outstanding units, potentially allowing for easier governance changes in the future. A hearing is scheduled for May 8, 2026, to discuss these proposed changes.
