Permian Basin Royalty Trust (PBT) major unitholder SoftVest and Blackbeard have agreed to combine Permian Basin with the latter's US Land Guild minerals and land business in a transaction valued at about $2.24 billion, according to a Tuesday statement.

The transaction would create PBT Land and Minerals, with existing Permian Basin unitholders expected to own about 59% of the combined company, while Blackbeard and its affiliates owning the remaining 41%.

Blackbeard will contribute US Land Guild and other leased minerals representing 80,000 net royalty acres and 68,000 surface acres, while Permian Basin's net profits interest in the Waddell Ranch will be converted into a cost-free royalty interest, according to the companies.

The combined company also expects to conduct a $120 million rights offering and private placement, with the rights offering fully backstopped by SoftVest and Horizon Kinetics.

The companies expect to close the transaction in H2, subject to Permian Basin unitholders' approval, regulatory approvals and other customary closing conditions.