SandRidge Permian Trust, organized as a grantor trust under Delaware law, was established in 2011 to hold and manage overriding royalty interests in oil and natural gas properties located in the Permian Basin of West Texas. The trust was sponsored by SandRidge Energy Inc. and commenced operations following its initial public offering. Its sole purpose is to own a defined royalty interest in specified acreage and to distribute revenues received from hydrocarbon production to its unit holders on a periodic basis.
The trust’s mineral portfolio consists of royalty interests averaging 2.6875% in approximately 250,000 net acres across the Midland Basin, primarily concentrated in Reeves and Ward counties. The properties cover multiple formations, including the Wolfcamp and Spraberry intervals, which have experienced significant development activity. SandRidge Permian Trust does not participate in drilling, completion or day-to-day field operations; instead, it relies on designated operators to develop the acreage and remit royalty proceeds based on net production volumes and prevailing commodity prices.
Revenue distributions to trust unit holders are generated from the sale of oil, natural gas and natural gas liquids produced on the trust’s acreage. While the trust has a finite life tied to the depletion of its royalty interests, it benefits from ongoing drilling programs by operators seeking to capitalize on the Permian Basin’s resource potential. The trust’s administrative agent oversees cash collections, compliance with the trust agreement and coordination with field operators, offering unit holders transparency into production levels and the status of well performance.
Governance of SandRidge Permian Trust is overseen by a board of trustees, independent of the sponsor, charged with ensuring the trust operates in accordance with its governing documents. While day-to-day management is limited by design, the trust engages external advisors and service providers for legal, tax and administrative functions. Leadership continuity and robust operator partnerships have supported the trust’s ability to deliver royalty income streams from one of North America’s most active oil and gas regions.
AI Generated. May Contain Errors.
Free PERS Stock Alerts