Permian Basin Royalty Trust: Production, Distribution (And Risk) Rising
- PBT's Waddell capital reinvestment program has raised costs, production, and the distribution.
- Future production and costs are subject to greater uncertainty than in the past.
- PBT's distribution may pop in late 2014/15 and it could be a good play for risk-friendly investors (50% upside).
- However, PBT's forecast rate of return for investors is less than other trusts, making it a poor income play.