SoftVest Seeks Easier Amendment Rules at Permian Basin

Permian Basin ( (PBT) ) has issued an update.

On or about February 10, 2026, SoftVest, L.P., a 13.3% unitholder in Permian Basin Royalty Trust, mailed court documents to fellow unitholders concerning its petition to modify the trust’s governing indenture. The materials, sent pursuant to a Texas district court process, informed investors of a May 8, 2026 bench trial in Tarrant County on SoftVest’s request to change how the trust can be amended.

SoftVest is asking the court to eliminate the existing requirement that certain amendments obtain approval from 75% of outstanding units and to allow all indenture provisions to be amended by a unitholder vote under a majority-of-quorum standard. The push follows a December 2025 special meeting where a non-binding proposal to remove super-majority voting won 98.5% of votes cast and gained support from proxy advisers Glass Lewis and ISS, underscoring strong investor backing for more flexible governance at the trust.

SoftVest’s notice emphasizes that the legal proceeding seeks no relief against individual unitholders and does not require them to take action, framing the court case as a continuation of the governance mandate expressed at the December 2025 vote. If the court ultimately grants the requested modifications, Permian Basin Royalty Trust could face a significantly lower barrier to future indenture changes, potentially reshaping control dynamics and strategic options available to large investors and the trustee.

More about Permian Basin

Permian Basin Royalty Trust is an oil and gas royalty trust that holds overriding royalty interests in producing properties in the Permian Basin, distributing net proceeds from these interests to its unitholders. The trust structure limits active operations, with governance and amendment rights defined by its trust indenture and influenced by large unitholders and court oversight.

SoftVest, L.P., which owns about 13.3% of Permian Basin Royalty Trust units, has been an active investor focused on changing the trust’s governance to reduce super-majority voting thresholds. Its efforts highlight growing governance activism within royalty trusts, where concentrated holders seek more flexible amendment mechanisms to pursue perceived value-enhancing changes.

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