royalty trust


Also found in: Wikipedia.

Royalty Trust

A corporate structure for companies involved in oil, gas, mining, or similar industries. In a royalty trust, profits are not subject to corporate taxation, provided that at least 90% are distributed as dividends to shareholders. Royalty trusts prevent double taxation of dividends. Royalty trusts are generally publicly traded and their shares behave just like ordinary stocks. They exist in both Canada and the United States. T. Boone Pickens created the first royalty trust in 1979.

royalty trust

An ownership interest in certain assets, generally crude oil or gas production and real estate. Unlike the usual corporate organization, a trust arrangement permits income and tax benefits to flow through to the individual owners. Thus, some investors argue that a trust produces more value for the owners.
References in periodicals archive ?
M2 EQUITYBITES-August 21, 2019-Cross Timbers Royalty Trust announces distribution of USD0.071539 per unit for August 2019
Global Banking News-August 21, 2019-Cross Timbers Royalty Trust announces distribution of USD0.071539 per unit for August 2019
BANKING AND CREDIT NEWS-January 2, 2019-PermRock Royalty Trust declares UD 0.114 per unit monthly cash distribution
Industry observers agreed that selling the royalty trust was a good move for SandRidge because it allows executives to focus on what they do best.
announced Hugoton Royalty Trust, an express trust created under the laws of Texas pursuant to the Hugoton Royalty Trust Royalty Trust Indenture, has qualified to trade on the OTCQX(r) Best Market.
International Resource News-February 6, 2012--Sabine Royalty Trust announces cash distribution(C)1994-2012 ENPublishing - http://www.enpublishing.co.uk
A royalty trust is a legal entity established as income-producing vehicle to purchase royalty interests (profit interests) in mature, low-risk natural resource (e.g., oil and gas) properties.
Normally, a royalty trust investment should be made within a retirement account to shelter the flow of current income against taxes, as long as the investment is intended to meet future retirement needs and retirement account contribution limits are not a concern.
M2 EQUITYBITES-August 21, 2019-Hugoton Royalty Trust announces no distribution in August 2019
Global Banking News-August 21, 2019-Hugoton Royalty Trust announces no distribution in August 2019
Compass Bank, as Trustee of the San Juan Basin Royalty Trust (the "Trust") (NYSE:SJT), has declared a monthly cash distribution to the holders of its units of beneficial interest of USD 3,415,851.12 or USD 0.073288 per unit, based principally upon estimated production during the month of October 2017, the company said.
International Resource News-December 20, 2011--Permian Basin Royalty Trust announces cash distribution(C)1994-2011 ENPublishing - http://www.enpublishing.co.uk