Form 4: Boaz Energy II, LLC Sells Significant Stake in PermRock Royalty Trust

Boaz Energy II, LLC sold 4,884,861 Trust Units in PermRock Royalty Trust to T2S Permian Acquisition II LLC on March 31, 2025, at approximately $2.48 per unit.

Summary

• Boaz Energy II, LLC, along with Karan Eves and Marshall Eves, filed a Form 4 regarding changes in beneficial ownership of PermRock Royalty Trust [PRT].
• On March 31, 2025, Boaz Energy II, LLC sold 4,884,861 Trust Units in a private sale to T2S Permian Acquisition II LLC, according to a Purchase and Sale Agreement dated January 10, 2025.
• The sale included other oil and gas properties held by the seller.
• The allocated value of the Trust Units sold was approximately $2.48 per Trust Unit.
• Prior to the sale, Boaz Energy II, LLC directly owned 4,888,061 Trust Units.
• Karan Eves and Marshall Eves each directly own 4,400 Trust Units and 38.94% of the limited liability company interests in Boaz Energy II, LLC.

Sentiment

Score: 5

Explanation: The sentiment is neutral as it primarily reports a transaction. The sale itself doesn't inherently indicate positive or negative sentiment without additional context.

Industry Context

This transaction reflects ongoing consolidation and asset reallocation within the oil and gas sector, particularly in royalty trusts and related properties.

Comparison to Industry Standards

• Comparable transactions in the oil and gas royalty trust sector often involve private sales to larger entities seeking to expand their portfolio of producing assets.
• The valuation of $2.48 per Trust Unit can be compared to recent valuations of similar royalty trusts to assess whether it aligns with industry benchmarks.
• Companies like Viper Energy Partners LP (VNOM) and Black Stone Minerals, L.P. (BSM) are examples of publicly traded royalty companies that could be used for comparison.

Stakeholder Impact

• Shareholders of PermRock Royalty Trust may experience changes in the trust's dynamics due to the shift in ownership.
• The impact on employees and other stakeholders is likely minimal as the transaction primarily involves a change in ownership of Trust Units.

Key Dates

Keywords

PermRock Royalty Trust, Boaz Energy II LLC, Trust Units, Beneficial Ownership, Form 4, Sale, T2S Permian Acquisition II LLC, Oil and Gas Properties