SoftVest, Blackbeard combine Permian royalty, land assets in $2.2 billion deal
(WO) — SoftVest and Blackbeard have signed a definitive agreement to combine the Permian Basin Royalty Trust (PBT) with Blackbeard's land and mineral assets in a transaction valued at approximately $2.24 billion, creating a new publicly traded company focused on Permian basin royalty and surface assets.
The combined company, to be named PBT Land and Minerals, Inc. (New PBT), will own approximately 111,000 net royalty acres and 68,000 surface acres, primarily across the Central Basin Platform in the Permian basin. Existing PBT unitholders are expected to own about 59% of the combined company, while Blackbeard and its affiliates will hold the remaining 41%.
As part of the transaction, Blackbeard will contribute approximately 80,000 net royalty acres and 68,000 surface acres, while PBT's existing net profits interest in the Waddell Ranch will be converted into a cost-free royalty interest representing approximately 31,000 net royalty acres. The company said the restructuring is designed to simplify the asset base and align mineral ownership with ongoing development activity.
New PBT will be led by members of Blackbeard's management team, with Jordan Barrett, Blackbeard's current chief financial officer, serving as chief executive officer. Eric Oliver, president of SoftVest Advisors, will chair the board of directors.
The company said the combined platform is positioned to benefit from continued development of the Waddell Ranch, where affiliate Blackbeard Operating has increased production from approximately 3,000 bpd to more than 35,000 bpd through modern drilling and completion techniques. Blackbeard Operating is currently the largest producer in the Central Basin Platform, while affiliate Nile Midstream provides oil, gas and water gathering infrastructure supporting field development.
The transaction also expands New PBT's exposure to surface-related revenue opportunities, including produced water infrastructure and other energy development projects across the Permian basin.
The combined company is expected to assume a JPMorgan-led $500 million senior secured revolving credit facility, with an additional $100 million accordion feature available. The companies expect New PBT to maintain leverage below 0.4x pro forma annualized adjusted EBITDA following the transaction.
The transaction remains subject to customary closing conditions, including approval by PBT unitholders.
