UPDATE: Permian Basin Royalty Trust Issues '16 CapEx Budget Plan

Permian Basin Royalty Trust

("Permian") today declared a cash distribution to the holders of its units of beneficial interest of $0.020699 per unit, payable on January 15, 2016, to unit holders of record on December 31, 2015. This month's distribution decreased slightly from the previous month due to a decrease in the pricing of gas on the Texas Royalty Properties, whereas the Waddell Ranch Properties were in deficit this month and contributed nothing to this month's distribution. WADDELL RANCH Production for the underlying properties at the Waddell Ranch was 74,039 barrels of oil and 438,340 Mcf of gas. The production for the Trust's allocated portion of the Waddell Ranch was (14,477) barrels of oil and (82,611) Mcf of gas. The average price for oil was $45.63 per bbl and for gas was $2.34 per Mcf. This would primarily reflect production and pricing for the month of October for oil and the month of September for gas. These allocated volumes were significantly impacted by the pricing of both oil and gas. This production and pricing for the Underlying Properties resulted in revenues for the Waddell Ranch Properties of $4,395,136. Deducted from these would be the Lease Operating Expense (LOE) of $1,828,975, taxes of $380,832 and Capital Expenditures (CAPEX) of $1,734,720 totaling $3,944,527 resulting in a Net Profit of $450,609 for the month of November. With the Trust's Net Profit Interest (NPI) of 75% of the underlying properties, this would result in a net contribution by the Waddell Ranch Properties of $337,957 to this month's distribution. This amount along with the negative deficit carryover from prior periods brings deficit to be recouped to ($816,029). There is no distribution from the Waddell Ranch's NPI for this month. The 2015 ten workover well program has been completed and producing. The drill well program of ten vertical and two horizontal wells for the 2015 program was started in June 2015. During October, one well was completed and producing, with three other wells were being completed. ConocoPhillips has advised the Trustee of the 2015 capital expenditure budget which should total $48 million for the entire Waddell Ranch Project and $22.5 million net to the Trust. There were ten vertical wells, two horizontal wells, ten recompletions, and various facilities projects. The workover/recompletions have completed along with the 12 vertical/horizontal drilling which began in June and to be completed in November, 2015. The facilities work occurred throughout the year. ConocoPhillips has advised the Trustee of the 2016 capital expenditure budget which will total $11.6 million for the entire Waddell Ranch Project and $5.1 million net to the Trust. There will be no new drilled wells, eight recompletions, and some facilities projects. These workover/recompletions will occur during the year, along with the ongoing facilities work. Underlying Properties Net to Trust Sales Volumes Volumes Average Price Oil (bbls) Gas (Mcf) Oil (bbls) Gas (Mcf) Oil (per bbl) Gas (per Mcf) Current Month Waddell Ranch 74,039 438,340 (14,477)* (82,611)* $45.63 $2.34** Texas Royalties 26,462 33,031 25,139* 31,379* $44.92 $4.09** Prior Month Waddell Ranch 71,614 426,766 (20,077)* (118,669)* $44.78 $2.60** Texas Royalties 26,550 36,184 25,222* 31,374* $44.29 $4.96** *These volumes are the net to the trust, after allocation of expenses to Trust's net profit interest, including any prior period adjustments. **This pricing includes sales of gas liquid products. TEXAS ROYALTY PROPERTIES Production for the underlying properties at the Texas Royalties was 26,462 barrels of oil and 33,031 Mcf of gas. The production for the Trust's allocated portion of the Texas Royalties was 25,139 barrels of oil and 31,379 Mcf of gas. The average price for oil was $44.92 per bbl and for gas was $4.09 per Mcf. This would primarily reflect production and pricing for the month of October for oil and the month of September for gas. These allocated volumes were impacted by the pricing of both oil and gas. This production and pricing for the underlying properties resulted in revenues for the Texas Royalties of $1,323,854. Deducted from these would be taxes of $189,487 resulting in a Net Profit of $1,134,367 for the month of November. With the Trust's Net Profit Interest (NPI) of 95% of the Underlying Properties, this would result in net contribution by the Texas Royalties of $1,077,649 to this month's distribution. General and Administrative Expenses deducted for the month were $112,899 resulting in a distribution of $964,757 to 46,608,796 units outstanding, or $.020699 per unit. The worldwide market conditions continue to affect the pricing for domestic production. It is difficult to predict what effect these conditions will have on future distributions. Permian's cash distribution history, current and prior year financial reports and tax information booklets, a link to filings made with the Securities and Exchange Commission and more can be found on its website at http://www.pbt-permian.com/. The new toll free number customer service number for the trust is 1-855-588-7839.