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A sweeping transformation is underway in the heart of America's energy sector as the $2.2B Permian Combo brings together SoftVest LP and Blackbeard Holdings in a transaction valued at approximately $2.24 billion. The landmark agreement will merge the Dallas-based Permian Basin Royalty Trust with Blackbeard's extensive oil, gas, mineral, and land portfolio, creating a publicly traded land and minerals company designed for long-term growth.

The deal represents more than a corporate merger—it is a strategic reshaping of one of the nation's most recognizable royalty trusts. Like fitting together pieces of a decades-old puzzle, the combination aims to reunite valuable assets while modernizing a business structure that has remained largely unchanged for 45 years.

Paul Hastings LLP is serving as legal adviser to SoftVest, while Vinson & Elkins LLP is representing Blackbeard Holdings throughout the transaction.

Royalty Trust to Become Publicly Traded Corporation

In an announcement released late Tuesday, the companies revealed plans to convert the long-standing Permian Basin Royalty Trust into a traditional publicly traded corporation operating under the name PBT Land & Minerals.

The trust currently owns royalty interests tied to oil and gas-producing properties across Texas. Once the transaction closes, those assets will be combined with Blackbeard's expanding land and mineral holdings to establish a significantly larger and more diversified enterprise.

Blackbeard Contributes Massive Asset Portfolio

Under the terms of the agreement, Blackbeard will contribute U.S. Land Guild, its land and minerals platform, along with additional leased mineral interests across the Permian Basin.

The contribution includes approximately 80,000 net royalty acres and 68,000 surface acres, substantially increasing the combined company's footprint in one of the world's most productive energy regions.

Leadership of the newly formed company will transition to Blackbeard's management team. Current Blackbeard Chief Financial Officer Jordan Barrett will assume the role of chief executive officer of PBT Land & Minerals, while SoftVest Advisors founder Eric Oliver will serve as chairman.

The companies also noted that an existing operational facility at U.S. Land Guild is already in place and is expected to be expanded as part of the integration process.

Waddell Ranch Assets Take Center Stage

A cornerstone of the transaction centers on the historic Waddell Ranch, where ownership interests will be restructured to strengthen the combined company's long-term asset base.

Barrett said the proposed merger creates an opportunity to reunite much of the ranch's original surface and mineral estate. He added that the expanded portfolio is expected to fuel sustainable growth through an operator-aligned, capital-light business model.

As part of the agreement, the trust's existing net profits interest in the Waddell Ranch will be converted into a cost-free royalty interest representing approximately 31,000 net royalty acres before being contributed to the new company.

At the same time, the underlying cost-bearing interest associated with those ranch assets will transfer to Blackbeard's operating business in exchange for selected royalty interests.

Ownership Structure Gives Existing Investors Majority Stake

Following completion of the transaction, existing Permian Basin Royalty Trust unitholders are expected to own approximately 59% of PBT Land & Minerals.

Blackbeard and its affiliated equity investors will collectively hold the remaining 41% ownership interest.

The combined company will adopt an Up-C corporate structure, allowing current trust investors to receive one Class A common share for every trust unit they own.

Those Class A shares are expected to be listed for trading on both the New York Stock Exchange and NYSE Texas, providing investors with broader market access.

Closing Expected in Second Half of 2026

The $2.2B Permian Combo remains subject to customary closing conditions, including approval from Permian Basin Royalty Trust unitholders and required regulatory clearances.

If approvals proceed as expected, the transaction is anticipated to close during the second half of 2026, marking the beginning of a new chapter for one of Texas' oldest royalty trusts.

Legal Teams Guide Multibillion-Dollar Transaction

The legal teams overseeing the complex merger include several experienced dealmakers.

The Paul Hastings LLP advisory team is led by global M&A co-chair Eduardo Gallardo.

Representing Blackbeard Holdings, Vinson & Elkins LLP has assembled a team led by partners Thomas Zentner, Bryan Loocke, Sang Lee, and Doug McWilliams, guiding the company through the multibillion-dollar transaction.