UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549   FORM 10-Q    ☒
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period ended September 30, 2023  ☐
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _________ to ________ Commission file number 1-8033   PERMIAN BASIN ROYALTY TRUST (Exact Name of Registrant as Specified in the Permian Basin Royalty Trust Indenture)    Texas

75-6280532(State or Other Jurisdiction
of Incorporation or Organization)

(I.R.S. Employer
Identification No.) Argent Trust Company 3838 Oak Lawn Avenue Suite 1720 Dallas, Texas
75219 (Address of Principal Executive Offices; Zip Code) (855) 588-7839 (Registrants Telephone Number, Including Area Code) N/A (Former Name, Former
Address and Former Fiscal Year, If Changed Since Last Report) Securities registered pursuant to Section 12(b) of the Act:  Title of Each Class

Trading Symbol(s)

Name of Each Exchange on
Which RegisteredUnits of Beneficial Interest

PBT

New York Stock Exchange   Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90
days.    Yes  ☒    No  ☐ Indicate by check mark whether the registrant has
submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period
that the registrant was required to submit such files).    Yes  ☐    No  ☐ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of large accelerated filer, accelerated filer, smaller reporting
company, and emerging growth company in Rule 12b-2 of the Exchange Act.  Large accelerated filer

☒

Accelerated filer

☐Non-accelerated filer

☐

Smaller reporting company

☐Emerging growth company

☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended
transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange
Act).    Yes  ☐    No  ☒ Number of Units of beneficial interest
of the Trust outstanding at November 8, 2023: 46,608,796.




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PERMIAN BASIN ROYALTY TRUST PART I - FINANCIAL INFORMATION  Item 1.
Financial Statements The condensed financial statements included herein have been prepared by Argent Trust Company as Trustee for the Permian Basin Royalty Trust (the
Trust), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Effective December 30, 2022, Argent Trust Company (the Trustee) became the new trustee for the Trust. Certain
information and footnote disclosures normally included in annual financial statements have been condensed or omitted pursuant to such rules and regulations, although the Trustee believes that the disclosures are adequate to make the information
presented not misleading. It is suggested that these condensed interim financial statements and notes thereto be read in conjunction with the financial statements and the notes thereto included in the Trusts latest annual report on Form 10-K. In the opinion of the Trustee, all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the assets, liabilities and trust corpus of the Trust as of September 30, 2023,
and the distributable income and the changes in trust corpus for the three-month and nine-month periods ended September 30, 2023 and 2022, have been included. The distributable income for such interim periods is not necessarily indicative of
the distributable income for the full year. Unless specified otherwise, all amounts included herein are presented in US dollars. The condensed interim
financial statements as of September 30, 2023 and for the three-month and nine-month periods ended September 30, 2023 and 2022, included herein, have been reviewed by Weaver and Tidwell, L.L.P., an independent registered public accounting
firm, as stated in their report appearing herein.  PageReport of Independent Registered Public Accounting Firm (PCAOB ID Number 410)


3Condensed Statement of Assets, Liabilities and Trust Corpus


5Condensed Statement of Distributable Income (Unaudited)


6Condensed Statements of Changes in Trust Corpus (Unaudited)


8  2




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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Unit Holders of Permian Basin Royalty Trust and Argent
Trust Company, Trustee Dallas, Texas Results of Review
of Interim Financial Statements We have reviewed the accompanying condensed statements of assets, liabilities and trust corpus of Permian Basin
Royalty Trust (the Trust) as of September 30, 2023, and the related condensed statements of distributable income and changes in trust corpus for the three-month and nine-month periods ended September 30, 2023 and 2022, and the
related notes (collectively referred to as the condensed interim financial statements or interim financial information). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying
condensed interim financial statements for them to be in conformity with the modified cash basis of accounting, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. As described in Note 2 to the condensed interim financial statements, these condensed interim financial statements were prepared on a modified cash basis of
accounting, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. We have
previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the statement of assets, liabilities, and trust corpus as of December 31, 2022, and the related
statements of distributable income and changes in trust corpus for the year then ended (not presented herein); and in our report dated March 1, 2023 we expressed an unqualified opinion on those financial statements. In our opinion, the
information set forth in the accompanying condensed statement of assets, liabilities and trust corpus as of December 31, 2022, is fairly stated, in all material respects, in relation to the statement of assets, liabilities, and trust corpus
from which it has been derived. Basis for Review Results These condensed interim financial statements are the responsibility of the Trustee. We conducted our reviews in accordance with the standards of the PCAOB. We
are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange
Commission and the PCAOB.  3




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A review of interim financial information consists principally of applying analytical procedures and making
inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the
financial statements taken as a whole. Accordingly, we do not express such an opinion. /s/ WEAVER AND TIDWELL, L.L.P. Dallas, Texas November 8, 2023  4




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PERMIAN BASIN ROYALTY TRUST CONDENSED STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS  September 30,2023(Unaudited)


December 31,2022ASSETSCash and short-term investments

$
2,146,065


$
2,855,444Net overriding royalty interests in producing oil and gas properties (net of accumulated
amortization of $10,815,783 and $10,695,783 at September 30, 2023 and December 31, 2022, respectively)

$
159,433



279,433TOTAL ASSETS

$
2,305,498


$
3,134,877LIABILITIES AND TRUST CORPUSDistribution payable to Unit holders

$
1,046,065


$
1,755,444Commitments and reserves for contingencies (Note 6)


1,100,000



1,100,000Trust corpus  46,608,796 Units of beneficial interest authorized and outstanding


159,433



279,433TOTAL LIABILITIES AND TRUST CORPUS

$
2,305,498


$
3,134,877 The accompanying notes are an integral part of these condensed financial statements.   5




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PERMIAN BASIN ROYALTY TRUST CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME (UNAUDITED)  THREE MONTHS ENDEDSeptember 30, 2023


THREE MONTHS ENDEDSeptember 30, 2022Royalty income

$
3,317,431


$
27,323,759Interest income


24,119



11,4523,341,550



27,335,211General and administrative expenditures


(139,520
)


(136,712
)Distributable income

$
3,202,030


$
27,198,499Distributable income per Unit (46,608,796 Units)

$
.07


$
.58 The accompanying notes are an integral part of these condensed financial statements.  6




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PERMIAN BASIN ROYALTY TRUST CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME (UNAUDITED)  NINE MONTHS ENDEDSeptember 30, 2023


NINE MONTHS ENDEDSeptember 30, 2022Royalty income

$
14,598,202


$
39,032,624Interest income


61,191



14,47014,659,393



39,047,094Reserved for Expenses






General and administrative expenditures


(955,607
)


(755,594
)Distributable income

$
13,703,786


$
38,291,500Distributable income per Unit (46,608,796 Units)

$
.29


$
.82 The accompanying notes are an integral part of these condensed financial statements.  7




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PERMIAN BASIN ROYALTY TRUST CONDENSED STATEMENTS OF CHANGES IN TRUST CORPUS (UNAUDITED)  THREE MONTHS ENDEDSeptember 30, 2023


THREE MONTHS ENDEDSeptember 30, 2022Trust corpus, beginning of period

$
199,433


$
326,085Amortization of net overriding royalty interests


(40,000
)


(15,946
)Distributable income


3,202,030



27,198,499Distributions declared


(3,202,030
)


(27,198,499
)Total Trust Corpus, end of period

$
159,433


$
310,139Distributions per Unit

$
.07


$
.58 The accompanying notes are an integral part of these condensed financial statements.  8




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PERMIAN BASIN ROYALTY TRUST CONDENSED STATEMENTS OF CHANGES IN TRUST CORPUS (UNAUDITED)  NINE MONTHS ENDEDSeptember 30, 2023


NINE MONTHS ENDEDSeptember 30, 2022Trust corpus, beginning of period

$
279,433


$
352,688Amortization of net overriding royalty interests


(120,000
)


(42,549
)Distributable income


13,703,786



38,291,500Distributions declared


(13,703,786
)


(38,291,500
)Total Trust Corpus, end of period

$
159,433


$
310,139Distributions per Unit

$
.29


$
.82 The accompanying notes are an integral part of these condensed financial statements.  9




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PERMIAN BASIN ROYALTY TRUST NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)  1.
TRUST ORGANIZATION AND PROVISIONS The Permian Basin Royalty Trust (Trust) was established as of November 1, 1980. Argent Trust Company (Trustee) is
Trustee for the Trust. The net overriding royalties conveyed to the Trust include (1) a 75% net overriding royalty in Southland Royalty Companys fee mineral interest in the Waddell Ranch in Crane County, Texas (the Waddell Ranch
properties) and (2) a 95% net overriding royalty carved out of Southland Royalty Companys major producing royalty properties in Texas (the Texas Royalty properties). The net overriding royalty for the Texas Royalty
properties is subject to the provisions of the lease agreements under which such royalties were created. The net overriding royalties above are collectively referred to as the Royalties. On November 3, 1980, Units of Beneficial Interest (Units) in the Trust were distributed to the Trustee for the benefit of
Southland Royalty Companys shareholders of record as of November 3, 1980, who received one Unit in the Trust for each share of Southland Royalty Company common stock held. The Units are traded on the New York Stock Exchange. Burlington Resources Oil & Gas Company LP (BROG), a subsidiary of ConocoPhillips, was the interest owner for the Waddell
Ranch properties and Riverhill Energy Corporation (Riverhill Energy), formerly a wholly owned subsidiary of Riverhill Capital Corporation (Riverhill Capital) and formerly an affiliate of Coastal Management Corporation
(CMC), was the interest owner for the Texas Royalty properties. In February 1997, BROG sold its interest in the Texas Royalty properties to Riverhill Energy. Riverhill Energy currently conducts all field, technical and accounting
operations for the Texas Royalty Properties. BROG notified the Trust that on November 1, 2019, the Waddell Ranch properties that are subject to the Net Overriding Royalty Conveyance (Permian Basin Royalty Trust-Waddell Ranch) dated
November 1, 1980, were sold to Blackbeard Operating, LLC (Blackbeard) of Fort Worth, Texas. Blackbeard became the operator effective as of April 1, 2020. The Trustee was advised that in the first quarter of 1998, Schlumberger Technology Corporation (STC) acquired all of the shares of
stock of Riverhill Capital. Prior to such acquisition by STC, CMC and Riverhill Energy were wholly owned subsidiaries of Riverhill Capital. The Trustee was further advised that in connection with STCs acquisition of Riverhill Capital, the
shareholders of Riverhill Capital acquired ownership of all of the shares of stock of Riverhill Energy. Thus, the ownership in the Texas Royalty properties referenced above remained in Riverhill Energy, the stock ownership of which was acquired by
the former shareholders of Riverhill Capital.  10




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On January 9, 2014, Bank of America N.A. (as successor to The First National Bank of
Fort Worth) gave notice to Unit holders that it would be resigning as trustee of the Trust subject to certain conditions that included the appointment of Southwest Bank as successor trustee. At a Special Meeting of Trust Unit holders, the Unit
holders approved the appointment of Southwest Bank as successor trustee of the Trust once the resignation of Bank of America N.A. took effect and also approved certain amendments to the Trust Indenture. The effective date of Bank of America
N.A.s resignation and the effective date of Southwest Banks appointment as successor trustee was August 29, 2014. Effective October 19, 2017, Simmons First National Corporation (SFNC) completed its acquisition of
First Texas BHC, Inc., the parent company of Southwest Bank. SFNC is the parent company of Simmons Bank. SFNC merged Southwest Bank with Simmons Bank effective February 20, 2018. On November 4, 2021, the Trustee announced that it had entered into an agreement with Argent Trust Company, a Tennessee chartered trust
company (Argent), pursuant to which the Trustee would be resigning as trustee of the Trust and would nominate Argent as successor trustee of the Trust. The effective date of Simmons Banks resignation and Argents appointment
as successor trustee was December 30, 2022. The defined term Trustee as used herein shall refer to Bank of America N.A. for periods prior to August 29, 2014, shall refer to Southwest Bank for periods from August 29, 2014
through February 19, 2018, shall refer to Simmons Bank for periods from February 20, 2018 through December 29, 2022, and shall refer to Argent for periods on and after December 30, 2022. The terms of the Trust Indenture provide, among other things, that:  

the Trust shall not engage in any business or commercial activity of any kind or acquire any assets other than
those initially conveyed to the Trust;  

the Trustee may not sell all or any part of the Royalties unless approved by holders of 75% of all Units
outstanding in which case the sale must be for cash and the proceeds promptly distributed;  

the Trustee may establish a cash reserve for the payment of any liability which is contingent or uncertain in
amount;  

the Trustee is authorized to borrow funds to pay liabilities of the Trust; and  

the Trustee will make monthly cash distributions to Unit holders (see Note 3).  11




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2.
ACCOUNTING POLICIES Basis of Accounting The
financial statements of the Trust are prepared on the following basis:  

Royalty income recorded for a month is the amount computed and paid to the Trustee on behalf of the Trust by the
interest owners. Royalty income consists of the amounts received by the owners of the interest burdened by the Royalties from the sale of production less accrued production costs, development and drilling costs, applicable taxes, operating charges
and other costs and deductions multiplied by 75% in the case of the Waddell Ranch properties and 95% in the case of the Texas Royalty properties.  

Trust expenses, consisting principally of routine general and administrative costs, recorded are based on
liabilities paid and cash reserves established out of cash received or borrowed funds for liabilities and contingencies.  

Distributions to Unit holders are recorded when declared by the Trustee. The financial statements of the Trust differ from financial statements prepared in accordance with accounting principles generally accepted in
the United States of America (GAAP) because revenues are not accrued in the month of production, expenses are recorded when paid and certain cash reserves may be established for contingencies which would not be accrued in financial
statements prepared in accordance with GAAP. Amortization of the Royalties calculated on a unit-of-production basis is charged directly to trust corpus. This
comprehensive basis of accounting other than GAAP corresponds to the accounting permitted for royalty trusts by the U.S. Securities and Exchange Commission as specified by Staff Accounting Bulletin Topic 12:E, Financial Statements of Royalty
Trusts. Use of Estimates The preparation of financial statements in conformity with the basis of accounting described above requires management to make estimates and
assumptions that affect reported amounts of certain assets, liabilities, revenues and expenses as of and for the reporting periods. Actual results may differ from such estimates.  12




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Contingencies Contingencies related to the underlying properties that are unfavorably resolved would generally be reflected by the Trust as reductions to
future royalty income payments to the Trust with corresponding reductions to cash distributions to Unit holders. Distributable Income
Per Unit Basic distributable income per Unit is computed by dividing distributable income by the weighted average of Units
outstanding. Distributable income per Unit assuming dilution is computed by dividing distributable income by the weighted average number of Units and equivalent Units outstanding. The Trust had no equivalent Units outstanding for any period
presented. Therefore, basic distributable income per Unit and distributable income per Unit assuming dilution are the same. New
Accounting Pronouncements There are no new accounting pronouncements that are expected to have significant impact on the Trusts
financial statements.  3.
NET OVERRIDING ROYALTY INTERESTS AND DISTRIBUTION TO UNIT HOLDERS The amounts to be distributed to Unit holders (Monthly Distribution Amounts) are determined on a monthly basis. The Monthly
Distribution Amount is an amount equal to the sum of cash received by the Trustee during a calendar month attributable to the Royalties, any reduction in cash reserves and any other cash receipts of the Trust, including interest, reduced by the sum
of liabilities paid and any increase in cash reserves. If the Monthly Distribution Amount for any monthly period is a negative number, then the distribution will be zero for such month. To the extent the distribution amount is a negative number,
that amount will be carried forward and deducted from future monthly distributions until the cumulative distribution calculation becomes a positive number, at which time a distribution will be made. Unit holders of record will be entitled to receive
the calculated Monthly Distribution Amount for each month on or before 10 business days after the monthly record date, which is generally the last business day of each calendar month. The cash received by the Trustee consists of the amounts received by owners of the interest burdened by the Royalties from the sale of
production less the sum of applicable taxes, accrued production costs, development and drilling costs, operating charges and other costs and deductions, multiplied by 75% in the case of the Waddell Ranch properties and 95% in the case of the Texas
Royalty properties.  13




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4.
FEDERAL INCOME TAXES For federal income tax purposes, the Trust constitutes a fixed investment trust that is taxed as a grantor trust. A grantor trust is not
subject to federal income tax at the trust level. The Unit holders are considered for federal tax purposes to own the Trusts income and principal as though no trust were in existence. The income of the Trust is deemed to have been received or
accrued by each Unit holder at the time such income is received or accrued by the Trust and not when distributed by the Trust. If the Trust borrows funds to pay liabilities of the Trust, as contemplated in the Trust Indenture, tax-exempt Unit holders could be required to recognize unrelated business taxable income.  5.
STATE TAX CONSIDERATIONS All revenues from the Trust are from sources within Texas, which does not impose an individual income tax. Texas imposes a franchise tax at a
rate of 0.75% on gross revenues less certain deductions, as specifically set forth in the Texas franchise tax statutes. Entities subject to the Texas franchise tax generally include trusts and most other types of entities that provide limited
liability protection, unless otherwise exempt. Trusts that receive at least 90% of their federal gross income from certain passive sources, including royalties from mineral properties and other non-operated
mineral interest income, and do not receive more than 10% of their income from operating an active trade or business, generally are exempt from the Texas franchise tax as passive entities. The Trust has been and expects to continue to be
exempt from Texas franchise tax as a passive entity. Because the Trust should be exempt from Texas franchise tax at the Trust level as a passive entity, each Unit holder that is a taxable entity under the Texas franchise tax generally will be
required to include its portion of Trust revenues in its own Texas franchise tax computation. This revenue is sourced to Texas under provisions of the Texas Administrative Code providing that such income is sourced according to the principal place
of business of the Trust, which is Texas. Unit holders should consult their tax advisors regarding state tax requirements, if any,
applicable to such Unit holders ownership of Trust units.  14




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6.
COMMITMENTS AND CONTINGENCIES Contingencies related to the Underlying Properties that are unfavorably resolved would generally be reflected by the Trust as reductions to
future royalty income payments to the Trust with corresponding reductions to cash distributions to Unit holders.  7.
SUBSEQUENT EVENTS Subsequent to September 30, 2023, the Trust declared a distribution on October 20, 2023, of $0.042862 per Unit payable on
November 14, 2023 to unitholders of record on October 31, 2023. *    *    *    *    *  15




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Item 2.
Trustees Discussion and Analysis Forward Looking Information Certain information included
in this report contains, and other materials filed or to be filed by the Trust with the Securities and Exchange Commission (as well as information included in oral statements or other written statements made or to be made by the Trust) may contain
or include, forward looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Such forward looking statements may be or may concern,
among other things, capital expenditures, drilling activity, development activities, production efforts and volumes, hydrocarbon prices and the results thereof, and regulatory matters. Although the Trustee believes that the expectations reflected in
such forward-looking statements are reasonable, such expectations are subject to numerous risks and uncertainties and the Trustee can give no assurance that they will prove correct. There are many factors, none of which are within the Trustees
control, that may cause such expectations not to be realized, including, among other things, factors such as actual oil and gas prices and the recoverability of reserves, capital expenditures, general economic conditions, actions and policies of
petroleum-producing nations and other changes in the domestic and international energy markets. Such forward looking statements generally are accompanied by words such as estimate, expect, predict,
anticipate, goal, should, assume, believe, or other words that convey the uncertainty of future events or outcomes. Commodity Prices The Trusts income and monthly
distributions are heavily influenced by commodity prices. Commodity prices may fluctuate widely in response to (i) relatively minor changes in the supply of and demand for oil and natural gas, (ii) market uncertainty and (iii) a
variety of additional factors that are beyond the Trustees control. Recently, there has been volatility in oil and natural gas prices due in part to significantly decreased demand as a result of the novel coronavirus (COVID-19) pandemic beginning in 2020, followed by increasing prices in 2021, and the first half of 2022. A combination of these factors resulted in the price of oil falling below zero to $(37.63) per
barrel of oil on April 20, 2020, recovering the following day to $10.01 per barrel of oil. As of October 30, 2023, the price of oil was $83.03 per barrel. It is uncertain how the war in Ukraine, resulting sanctions against Russia, conflict
between Israel and Hamas, and OPEC production will affect oil prices in the coming months. Factors that may impact future commodity prices, including the price of oil and natural gas, include but are not limited to:  

political conditions in major oil producing regions, especially in the Middle East and Russia;  

worldwide economic conditions;  16




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

weather conditions;  

trade barriers;  

public health concerns, including the COVID 19 pandemic;  

the supply and price of domestic and foreign crude oil or natural gas;  

the level of consumer demand;  

the price and availability of alternative fuels;  

the proximity to, and capacity of, transportation facilities;  

the effect of worldwide energy conservation measures; and  

the nature and extent of governmental regulation and taxation. Although the Trustee cannot predict the occurrence of events that may affect future commodity prices or the degree to which these prices will be affected, gas
royalty income for a given period generally relates to production three months prior to the period and crude oil royalty income for a given period generally relates to production two months prior to the period and will generally approximate current
market prices in the geographic region of the production at the time of production. When crude oil and natural gas prices decline, the Trust is affected in two ways. First, distributable income from the Royalty Properties is reduced. Second,
exploration and development activity by operators on the Royalty Properties may decline as some projects may become uneconomic and are either delayed or eliminated. It is impossible to predict future crude oil and natural gas price movements, and
this reduces the predictability of future cash distributions to Unit holders. Three Months Ended September 30, 2023 Compared to Three Months
Ended September 30, 2022 For the quarter ended September 30, 2023, royalty income received by the Trust amounted to $3,317,431 compared to
royalty income of $27,323,759 during the third quarter of 2022. The decrease in royalty income is primarily attributable to no net profits interest income being received from the Waddell Ranch properties due to an excess in working interest costs.
Additionally, a decrease in oil and gas pricing, somewhat offset by an increase in oil and gas production for the quarter ended September 30, 2023 contributed to the decrease in royalty income. Average oil and gas prices were $70.82 and $2.06,
respectively, for the quarter ending September 30, 2023 compared to $108.75 and $6.60 for the quarter ended September 30, 2022.  17




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Interest income for the quarter ended September 30, 2023 was $24,119 compared to $11,452 during the
third quarter of 2022. The increase in interest income is primarily attributable to increased amounts of funds available for investment. Total expenses during the third quarter of 2023 amounted to $139,520 compared to $136,712 during the third
quarter of 2022. The slight increase in total exenses can be primarily attributed to increased expense for professional services, printing expenses and the timing of payment of expenses. These transactions resulted in distributable income for the quarter ended September 30, 2023 of $3,202,030 or $0.07 per Unit of beneficial interest.
Distributions of $0.021749, $0.024535 and $0.022414 per Unit were made to Unit holders of record as of July 31, 2023, August 31, 2023, and September 29, 2023, respectively. For the third quarter of 2022, distributable income was
$27,198,499 or $0.58 per Unit of beneficial interest. Royalty income for the Trust for the third quarter of the calendar year is associated with actual
oil and gas production for the period of May, June and July 2023 from the properties from which the Trusts net overriding royalty interests (Royalties) were carved. Oil and gas sales attributable to the Royalties and the properties
from which the Royalties were carved are as follows:  18




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Three Months EndedSeptember 30,2023


2022Royalties:Oil sales (Bbls)


588,470



468,501Gas sales (Mcf)


3,218,907



2,580,493Properties From Which The Royalties Were Carved:Oil:Total oil sales (Bbls)


775,044



612,050Average per day (Bbls)


8,424



6,801Average price per Bbl

$
70.82


$
108.75Gas:Total gas sales (Mcf)


4,281,577



3,434,117Average per day (Mcf)


46,538



38,157Average price per Mcf

$
2.06


$
6.60 The average received price of oil decreased to an average price of $70.82 per Bbl in the third quarter of 2023, compared to
$108.75 per Bbl in the third quarter of 2022 due to worldwide market variables. The average price of gas (including natural gas liquids) decreased from $6.60 per Mcf in the third quarter of 2022 to $2.06 (including pricing for gas liquids) per Mcf
in the third quarter of 2023 due to change in overall market variables. Since the oil and gas sales attributable to the Royalties are based on an
allocation formula that is dependent on such factors as price and cost (including capital expenditures), the production amounts in the Royalties section of the above table do not provide a meaningful comparison. Oil sales volumes increased and gas
sales volumes increased from the Underlying Properties (as defined in the Trusts Annual Report on Form 10-K for the year ended December 31, 2022) for the applicable period in 2023 compared to 2022. Capital expenditures for drilling, remedial and maintenance activities on the Waddell Ranch properties during the third quarter of 2023 totaled
$31.8 million (gross) as compared to $34.7 million (gross) for the third quarter of 2022. Blackbeard has previously informed the Trustee that the 2023 capital expenditures budget has been approved at $96.8 million (gross) for the
Waddell Ranch properties. The total amount of capital expenditures for 2022 with regard to the Waddell Ranch Properties totaled $124 million (gross).  19




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The Trustee has been advised that there were 13.6 workover wells completed, 7.9 new wells completed, 7.2 new
wells in progress and 15.4 workover wells in progress during the three months ended September 30, 2023, as compared to 10.1 (net to the Trust) workover wells completed and 12.4 (net to the Trust) new wells completed, 4.5 (net to the Trust) new
wells in progress, and 2.6 (net to the Trust) workover wells in progress for the three months ended September 30, 2022, on the Waddell Ranch properties. Lease operating expenses and property taxes totaled $20.2 million (gross) for the third quarter of 2023, compared to $11.5 million (gross) for the
same period in 2022 on the Waddell Ranch properties due to increased maintenance work. Nine Months Ended September 30, 2023 Compared to Nine
Months Ended September 30, 2022 For the nine months ended September 30, 2023, royalty income received by the Trust amounted to $14,598,202
compared to royalty income of $39,032,624for the nine months ended September 30, 2022. The decrease in royalty income is primarily attributable to increased capital expenditures for the Waddell Ranch properties resulting in net profits
interest income not being received in March 2023 through April 2023 and from July 2023 through the end of the nine month period in addition to a decrease in oil and gas pricing as compared to the nine months ended September 30, 2022. Average
oil and gas prices were $74.06 and $2.45for the nine months ended September 30, 2023 compared to $96.49 and $5.56 for the nine months ended September 30, 2022. Interest income for the nine months ended September 30, 2023, was $61,191compared to $14,470 during the nine months ended September 30,
2022. The increase in interest income is primarily attributable to a substantial increase in the amount of funds available for investment. Total expenses during the nine months ended September 30, 2023, amounted to $955,607 compared to $755,594
during the nine months ended September 30, 2022. The increase in total expenses can be primarily attributed to increased expenses for professional services, printing expenses and the timing expenses. These transactions resulted in distributable income for the nine months ended September 30, 2022 of $13,703,786 or $0.29per Unit. For the nine
months ended September 30, 2022, distributable income was $38,291,500, or $0.82per Unit. Royalty income for the Trust for the nine months
ended September 30, 2023, is associated with actual oil and gas production for the period November 2022 through July 2023 from the properties from which the Royalties were carved. Oil and gas sales attributable to the Royalties and the
properties from which the Royalties were carved are as follows:  20




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Nine Months Ended2023


2022Royalties:Oil sales (Bbls)


1,660,384



1,254,088Gas sales (Mcf)


8,867,208



6,653,864Properties From Which The Royalties Were Carved:Oil:Total oil sales (Bbls)


2,177,868



1,634,583Average per day (Bbls)


7,798



9,031Average price per Bbl

$
74.06


$
96.49Gas:Total gas sales (Mcf)


11,781,576



8,849,731Average per day (Mcf)


43,156



48,894Average price per Mcf

$
2.45


$
5.56 The average received price of oil decreased during the nine months ended September 30, 2023 to $74.06 per barrel compared
to $96.49 per barrel for the same period in 2022 due to worldwide market variables. The decreasein the average price of gas (including natural gas liquids) from $5.56 per Mcf for the nine months ended September 30, 2022, to $2.45 per
Mcf for the nine months ended September 30, 2023 was due to change in overall market variables. Since the oil and gas sales attributable to the
Royalties are based on an allocation formula that is dependent on such factors as price and cost (including capital expenditures), the production amounts in the Royalties section of the above table do not provide a meaningful comparison. Oil volumes
increased and gas sales volumes increased from the properties from which the Royalties are carved for the applicable period of 2023 compared to 2022. Capital expenditures for drilling, remedial and maintenance activities on the Waddell Ranch properties for the nine months ended September 30, 2023
totaled $96.7 million (gross) compared to $87.3 million (gross) to the Trust for the same period in 2022. Blackbeard has previously advised the Trust that the 2023 capital expenditures budget for the Waddell Ranch properties is
$96.8 million (gross).  21




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The Trustee has been advised that 35.8 (net to the Trust) workover wells were completed and 38.3 (net to the
Trust) workover wells were in progress, along with 21.1 (net to the Trust) new drill wells completed and 28.2 (net to the Trust) waiting on completion on the Waddell Ranch properties during the nine months ended September 30, 2023, as compared
to 30.4 (net to the Trust) workover wells completed and 2.6 (net to the Trust) workover wells in progress, along with 30 (net to the Trust) new wells completed and 4.5 (net to the Trust) waiting on completion, on the Waddell Ranch properties during
the nine months ended September 30, 2022. Lease operating expenses and property taxes totaled $53.0 million for the nine months ended
September 30, 2023, compared to $31.3 million for the same period in 2022. The increase in lease operating expense is primarily attributable to increased spending on facilities and maintenance. Calculation of Royalty Income The Trusts royalty
income is computed as a percentage of the net profit from the operation of the properties in which the Trust owns net overriding royalty interests. The royalty income received and recorded by the Trust was determined by the operator as noted below.
These percentages of net profits are 75% and 95% in the case of the Waddell Ranch properties and the Texas Royalty properties, respectively. Royalty income received by the Trust for the three months ended September 30, 2023 and 2022,
respectively, were computed as shown in the table below:  22




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THREE MONTHS ENDED SEPTEMBER 302023


2022WADDELLRANCHPROPERTIES


TEXASROYALTYPROPERTIES


WADDELLRANCHPROPERTIES


TEXASROYALTYPROPERTIESGross proceeds of sales from the Underlying PropertiesOil proceeds

$
51,209,934


$
3,682,551


$
60,385,100


$
6,174,254Gas proceeds


8,576,111



228,468



22,274,172



385,270Other (adjustment)


284,301
(1)










Total


60,070,346



3,911,019



82,659,272



6,559,524Less:Severance tax:Oil


2,299,547



142,516



2,714,747



230,721Gas


262,467



3,769



1,391,246



22,867Other


5,699,654



32,701



3,824,716



Lease operating expense and property tax:Oil and gas


19,967,274



240,000



11,236,250



240,000Capital expenditures


31,841,404







37,744,153



Total


60,070,346



418,986



53,911,112



493,588Net profits


0



3,492,033



28,748,160



6,065,936Net overriding royalty interests


75
%


95
%


75
%


95
%Royalty income

$
0



3,317,431


$
21,561,120



5,762,639   (1)
Due to the NPI deficit, the Waddell Ranch properties did not contribute to royalty income for the three months
ended September 30, 2023. As of September 3, 2023, the cumulative NPI deficit is $213,227 for the underlying property (at 75%). The NPI deficit must be recovered from future proceeds of the Waddell Ranch properties prior to any other
proceeds being paid to the Trust.  23




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Critical Accounting Policies and Estimates A disclosure of critical accounting policies and the more significant judgments and estimates used in the preparation of the Trusts financial statements
is included in Item 7 of the Trusts Annual Report on Form 10-K for the year ended December 31, 2022. There have been no significant changes to the critical accounting policies during the nine months
ended September 30, 2023. Distributable Income Per Unit Basic distributable income per Unit is computed by dividing distributable income by the weighted average of Units outstanding. Distributable income per Unit
assuming dilution is computed by dividing distributable income by the weighted average number of Units and equivalent Units outstanding. The Trust had no equivalent Units outstanding for any period presented. Therefore, basic distributable income
per Unit and distributable income per Unit assuming dilution are the same. New Accounting Pronouncements There are no new accounting pronouncements that are expected to have significant impact on the Trusts financial statements.  Item 3.
Qualitative and Quantitative Disclosures About Market Risk The Trust is a passive entity and other than the Trusts ability to periodically borrow money as necessary to pay expenses, liabilities and obligations of
the Trust that cannot be paid out of cash held by the Trust, the Trust is prohibited from engaging in borrowing transactions. The amount of any such borrowings is unlikely to be material to the Trust. The Trust periodically holds short-term
investments acquired with funds held by the Trust pending distribution to Unit holders and funds held in reserve for the payment of Trust expenses and liabilities. Because of the short-term nature of these borrowings and investments and certain
limitations upon the types of such investments which may be held by the Trust, the Trustee believes that the Trust is not subject to any material interest rate risk. The Trust does not engage in transactions in foreign currencies which could expose
the Trust or Unit holders to any foreign currency related market risk. The Trust invests in no derivative financial instruments and has no foreign operations or long-term debt instruments.  24




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Item 4.
Controls and Procedures On May 14, 2013, the Committee of Sponsoring Organizations of the Treadway Commission issued an updated version of its Internal Control  Integrated
Framework (the 2013 Framework) which helps organizations design, implement and evaluate the effectiveness of internal control concepts and simplify their use and application. As of the end of the period covered by this report, the
Trustee carried out an evaluation of the effectiveness of the design and operation of the Trusts disclosure controls and procedures pursuant to Exchange Act Rules 13a-15 and 15d-15 based on the criteria established in the 2013 Framework. Based upon that evaluation, the Trustee concluded that the Trusts disclosure controls and procedures are effective in recording, processing,
summarizing and reporting, on a timely basis, information required to be disclosed by the Trust in the reports that it files or submits under the Securities Exchange Act of 1934 and are effective in ensuring that information required to be disclosed
by the Trust in the reports that it files or submits under the Securities Exchange Act of 1934 is accumulated and communicated to the Trustee to allow timely decisions regarding required disclosure. In its evaluation of disclosure controls and
procedures, the Trustee has relied, to the extent considered reasonable, on information provided by Blackbeard, the owner of the Waddell Ranch properties, and Riverhill Energy Corporation, the owner of the Texas Royalty properties. There has not
been any change in the Trusts internal control over financial reporting during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Trusts internal control over financial
reporting.  25




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PART II - OTHER INFORMATION  Item 1A.
Risk Factors Risk factors relating to the Trust are contained in Item 1A of the Trusts Annual Report on Form 10-K for the
fiscal year ended December 31, 2022. Except as set forth in such filing, no material change to such risk factors has occurred during the nine months ended September 30, 2023. Items 2 through 4. Not applicable.  Item 5.
Other Information The Trust does not have any directors or officers, and as a result, no such persons adopted or terminated any Rule
10b5-1 trading arrangement or any non-Rule 10b5-1 trading arrangement, as defined in Item 408(a) of Regulation S-K.  Item 6.
Exhibits  4.1
Permian Basin Amended
 and Restated Royalty Trust Indenture dated June 20, 2014, between Southland Royalty Company (now Burlington Resources Oil & Gas Company LP) and The First National Bank of Fort Worth (now Argent Trust Company), as Trustee, heretofore
filed as Exhibit 4.1 to the Trusts Quarterly Report on Form 10-Q to the Securities and Exchange Commission for the quarterly period ended June 30, 2014, is incorporated herein by reference. *  4.2
Amendment No. 
1 to the Amended and Restated Royalty Trust Indenture of Permian Basin Royalty Trust, dated May 
4, 2022, heretofore filed as Exhibit 4.1 to the Trusts Form 8-K to the Securities and Exchange Commission filed on May 6, 2022, is incorporated herein by reference. *  4.3
Net Overriding Royalty Conveyance (Permian Basin Royalty Trust) from Southland Royalty Company (now Burlington
Resources Oil & Gas Company LP) to The First National Bank of Fort Worth (now Argent Trust Company), as Trustee, dated November 3, 1980 (without Schedules), heretofore filed as Exhibit (4)(b) to the Trusts Annual Report on Form 10-K to the Securities and Exchange Commission for the fiscal year ended December 31, 1980, is incorporated herein by reference. * (P)  26




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4.4
Net Overriding Royalty Conveyance (Permian Basin Royalty Trust) from Southland Royalty Company (now Burlington
Resources Oil & Gas Company LP) to The First National Bank of Fort Worth (now Argent Trust Company), as Trustee, dated November 3, 1980 (without Schedules), heretofore filed as Exhibit (4)(b) to the Trusts Annual Report on Form 10-K to the Securities and Exchange Commission for the fiscal year ended December 31, 1980, is incorporated herein by reference. * (P)  10.1
Registration Rights Agreement
 dated as of July 21, 2004 by and between Burlington Resources, Inc. and Bank of America, N.A., as trustee of Permian Basin Royalty Trust, heretofore filed as Exhibit 10.1 to the Trusts Quarterly Report on Form 10-Q to the Securities and Exchange Commission for the quarterly period ended June 30, 2004 is incorporated herein by reference. *  10.2
Underwriting Agreement
 dated December 15, 2005 among the Permian Basin Royalty Trust, Burlington Resources, Inc., Burlington Resources Oil & Gas L.P. and Lehman Brothers Inc. and Wachovia Capital Markets, LLC as representatives of the several underwriters,
heretofore filed as Exhibit 10.1 to the Trusts current report on Form 8-K to the Securities and Exchange Commission filed on December 19, 2005, is incorporated herein by reference. *  10.3
Underwriting Agreement
 dated August 2, 2005 among the Permian Basin Royalty Trust, Burlington Resources, Inc., Burlington Resources Oil & Gas L.P. and Goldman Sachs & Co. and Lehman Brothers Inc. as representatives of the several underwriters,
heretofore filed as Exhibit 10.1 to the Trusts current report on Form 8-K to the Securities and Exchange Commission filed on August 8, 2005, is incorporated herein by reference. *  10.4
Underwriting Agreement
 dated August 17, 2006 among Permian Basin Royalty Trust, ConocoPhillips, Burlington Resources Oil & Gas Company LP and Lehman Brothers Inc. and Wachovia Capital Markets, LLC as representatives of the several underwriters heretofore
filed as Exhibit 10.1 to the Trusts current report on Form 8-K to the Securities and Exchange Commission filed on August 22, 2006, is incorporated herein by reference. *  27




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31.1
Certification by Glynnis Elo, Assistant Vice President of Argent Trust Company, Trustee
 of Permian Basin Royalty Trust, dated November8, 2023 and submitted pursuant to Rule 13a-14(a)/15d-14(a) and pursuant to Section 302 of
the Sarbanes-Oxley Act of 2002.  32.1
Certificate by Argent Trust Company, Trustee of Permian Basin Royalty Trust, dated November 8,
 2023 and submitted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350).  *
A copy of this Exhibit is available to any Unit holder, at the actual cost of reproduction, upon written
request to the Trustee, Argent Trust Company, 3838 Oak Lawn Avenue, Suite 1720, Dallas, Texas 75219.  (P)
Paper exhibits.  28




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SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned
thereunto duly authorized.  ARGENT TRUST COMPANY,TRUSTEE FOR THEPERMIAN BASIN ROYALTY TRUSTBy:

/s/ GLYNNIS ELOGlynnis EloAssistant Vice President
 Date: November 8, 2023 (The Trust has no directors or executive officers.)  29