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The #1 Oil and Gas Royalty for Huge Monthly Income
If you’re looking for more ways to make income in this economy… without taking big risks, I can help you.
This little-known alternative investment can provide you with big monthly income from the oil and gas surge coming this year.
The oil and gas industry is on course to experience a surge in both demand and price.
By investing in my favorite oil and gas royalty, you’ll gain a never-ending stream of money.
I consider this investment the ultimate passive income and capital gains opportunity for 2025.
More Upside Potential… Less Risk
Founded in 1980 and based in Dallas, Texas, Permian Basin Royalty Trust (NYSE: PBT) owns highly productive oil and gas properties in Texas. As its name implies, the company operates in the Permian Basin, America’s largest oil basin.
The company owns a 75% royalty interest in the Waddell Ranch properties located in Crane County, Texas. The Waddell Ranch properties contain approximately 268 productive oil wells, 38 productive gas wells and 50 injection wells.
The company also holds a 95% overriding royalty in the Texas Royalty properties, which consist of approximately 125 separate royalty interests in 33 counties in Texas.
Here’s the critical thing to understand. It’s the reason this investment provides huge potential and less risk!
The company doesn’t do the drilling, transporting or handling of any product. It simply collects royalties on the oil and gas that are drilled.
Oil and gas exploration and production are costly, risky and time-consuming processes. Permian Basin Royalty Trust doesn’t get involved in any of that.
But once the oil and gas begin pumping out of the ground… the cash register starts ringing for Permian Basin Royalty Trust.
Not surprisingly, the stock price somewhat mirrors the prices of oil and gas. When energy prices rise, so does Permian Basin Royalty Trust’s stock. When the prices of oil and gas fall, the stock typically follows.
I’m bullish on energy prices. I expect oil and natural gas to move higher in 2025. And with both oil and Permian Basin trading near their 2-year lows… I anticipate a big bounce ahead.
And I’m not the only one…
Warren Buffett, billionaire Ken Griffin, activist investor Carl Icahn and hedge fund guru David Tepper, among others, have made big investments in the oil and gas industry.
There are good reasons for that:
- Russian sanctions have caused soaring oil and gas prices in Europe and elsewhere. In May 2023, Russia announced it was reducing production in an attempt to raise the price of oil.
- In June 2023, OPEC announced that it was cutting oil production to keep the price elevated.
- President Joe Biden has sold oil from the strategic reserves. Our strategic oil reserves are at the lowest level since 1985. Those reserves need to be replenished. The process has started and will add to demand.
- China is determined to reinvigorate its economy from its zero-COVID-19 lockdown policy. The pent-up demand is going to be enormous.
- Houthi rebels’ attacks on cargo ships in the Red Sea are causing oil tankers to avoid the Suez Canal and the Red Sea. This is adding to transportation costs, which will be passed along to consumers.
- The likelihood of an escalation of the Israel-Hamas conflict into a wider regional war could significantly disrupt global oil supply and cause a sudden spike in energy prices.
Frankly, any one of these catalysts is enough to send oil and gas prices sharply higher and support another rally in the energy sector.
But when you combine all of them together… it all points to higher prices. Potentially much higher.
The bottom line is… there’s not a lot of extra oil out there. And with inflation still high and the economy still chugging along, oil prices should soon be heading back toward $100, which would be very positive for Permian Basin Royalty Trust.
Take a look at the chart below to see what happened during oil’s most recent run-up from 2021 to 2022. As oil climbed higher over that two-year stretch, so did Permian Basin Royalty Trust’s stock price…
Oil had a nice jump, increasing nearly 124%. But look at what Permian Basin did… it exploded higher, with a total return of more than 720%!
Now is the time to buy it before prices start to move higher again.
But don’t wait too long… Permian Basin Royalty Trust will start to see major improvements in income and distributable cash as oil and gas prices rise.
Steady Income and Big Capital Gains
Permian Basin Royalty Trust saw a large jump in revenue from the third quarter of 2023 with $3.2 million in royalty income to $14.3 million in royalty income in the fourth quarter of 2023. This large increase contributed to Permian Basin Royalty Trust finishing the fiscal year with $28 million in royalty income. Average oil and gas prices were $76.72 and $2.40, respectively, for the fiscal year ending December 31, 2023, compared with $94.11 for oil and $5.54 for gas in the previous year.
These transactions resulted in a distributable income in 2023 of $0.60 per unit. (Royalty trusts issue units, not shares, and owners are unitholders, not stockholders.)
While oil prices have remained mostly stable in 2024, I (and many others) believe they will trend higher in 2025. That should dramatically improve Permian Basin Royalty Trust’s bottom line.
The first quarter of 2024 ending March 31, 2024 has already recorded a positive trajectory. The royalty income received by the Trust amounted to $6,005,642 compared to royalty income of $5,206,602 during the first quarter of 2023. The increase year over year can be attributed mainly to the increase in oil and natural gas production in that timeframe.
Another thing I like about Permian Basin Royalty Trust is that it pays a monthly distribution.
The current yield is 5.13%. That’s a significant improvement over what most bank savings or checking accounts are paying.
The monthly distribution will fluctuate, but with higher oil and gas prices on the horizon… healthy and steady income is a lock.
It’s hard not to get excited about Permian Basin Royalty Trust.
Based on the estimated net proved reserves, the future net value of Permian Basin Royalty Trust’s reserves is $1.2 billion. As oil and gas prices increase… so will the value of those reserves.
However nice the yield might be, we’re not buying the stock solely for that reason. We’re buying it because I also expect Permian Basin Royalty Trust to provide an excellent source of capital gains.
Let’s jump on Permian Basin Royalty Trust before oil prices really get moving again.
Action to Take: Buy Permian Basin Royalty Trust (NYSE: PBT) at the market. Place a 25% trailing stop on your position.
The Greatest Energy Bull Market of This Century
Nearly everything I’m seeing points to soaring oil and gas prices in the coming months.
Some of the world’s smartest investors are making huge bets on the oil and gas industry.
And I understand why…
It’s a way to collect monthly income over and over again – for life – while banking huge capital gains at the same time.
Permian Basin Royalty Trust FAQ
For those of you who want more information about Permian Basin Royalty Trust or royalty trusts in general, The Oxford Club Research Team provides answers to some frequently asked questions below.
Q: What is the company recommended in this report?
A: Permian Basin Royalty Trust (NYSE: PBT), a Texas-based company that owns royalty interests in highly productive oil and gas properties.
Q: What is a royalty trust?
A: A royalty trust typically owns a portfolio of assets that generate income. In exchange for investing in the trust, investors receive regular distributions of the royalty payments. A trust must distribute at least 90% of its taxable income to investors in the form of distributions.
Q: Can I use a discount broker to buy Permian Basin Royalty Trust?
A: Yes, you can use any brokerage firm to purchase Permian Basin Royalty Trust. We also have a list of recommended brokers and other investment specialists called Pillar One Advisors. They can be found here.
You can also go to this site for additional options.
Q: What kind of stop should be used on this recommendation?
A: Chief Income Strategist Marc Lichtenfeld recommends placing a 25% trailing stop on your position.
Q: Should Permian Basin Royalty Trust go in a taxable or tax-deferred account?
A: Because its distribution is taxable, Permian Basin Royalty Trust should be held in a tax-deferred account if possible.
Q: How often are the payments distributed?
A: The company pays monthly royalties, which you can see on its investor relations website here.
Q: How will the royalty be paid?
A: It will be deposited right into your brokerage account.
Q: When purchasing Permian Basin Royalty Trust, am I buying units or shares?
A: Royalty trusts issue units, not shares, so you are purchasing units.
Q: What were unitholders paid on a per-unit basis for 2023?
A: For 2023, unitholders were paid $.60 per unit. You can see the company’s quarterly reports here.
Q: Are cash distributions from Permian Basin Royalty Trust reported on a K-1 or 1099-MISC?
A: The cash distributions are reported on a 1099-MISC form sent to you by your broker.
Q: I subscribed to The Oxford Income Letter specifically for Permian Basin Royalty Trust. Now what?
A: One word: DIVERSIFY.
Now that you have a subscription with Chief Income Strategist Marc Lichtenfeld, it’s time to use it to your advantage.
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It takes a precise blend of time and strategy diversification – not just asset diversification – to build long-lasting wealth.
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