Revenue and Income - Total revenue for the Trust in 2022 was $54,417,857, a significant increase from $11,805,514 in 2021, representing a growth of approximately 360%[167] - Distributable income for 2022 was $53,543,824, or $1.15 per Unit, compared to $10,721,775, or $0.23 per Unit in 2021[180] - Royalty income for the year ended December 31, 2022, was $54,417,857, significantly higher than $11,805,514 in 2021, indicating an increase of approximately 360%[212] - Distributable income for 2022 was $53,543,824, compared to $10,721,775 in 2021, reflecting an increase of about 400%[212] - The distribution payable to unit holders as of December 31, 2022, was $1,755,444, up from $1,148,527 in 2021, marking a rise of approximately 53%[210] - The total distributable income for 2022 was $54,417,857,000, with a distribution per unit of $1.15, compared to $11,805,514,000 and $0.230042 per unit in 2021[261] Oil and Gas Sales - Oil revenue accounted for $41,357,571 in 2022, which is 76% of total revenue, compared to 81% in 2021[167] - Gas revenue increased to $13,060,286 in 2022, making up 24% of total revenue, up from 19% in 2021[167] - Total oil sales for 2022 were 2,297,565 barrels, an increase of approximately 84% from 2021, while total gas sales reached 12,587,044 Mcf, a 145% increase[170] - The average price of oil rose to $94.11 per barrel in 2022, up from $63.34 in 2021, while the average price of gas increased to $5.54 per Mcf from $3.53[167] Assets and Expenditures - As of December 31, 2022, total assets of the Trust amounted to $3,134,877, an increase from $2,601,215 in 2021, representing a growth of approximately 20.5%[210] - Capital expenditures in 2022 were approximately $124.3 million, significantly higher than $66.6 million in 2021 and $10.3 million in 2020[171] - Lease operating expenses and property taxes for 2022 totaled approximately $43.7 million, up from $23 million in 2021[176] - The Trust's total expenditures for 2022 were $922,404, a decrease from $1,088,851 in 2021, showing a reduction of approximately 15%[212] Reserves and Future Cash Flows - As of December 31, 2022, proved oil reserves increased to 11,553 thousand barrels and proved gas reserves increased to 25,737 thousand Mcf[256] - Proved developed reserves of oil were 8,022 thousand barrels and gas were 21,216 thousand Mcf as of December 31, 2022[256] - The standardized measure of discounted future net cash inflows as of December 31, 2022, is $686,467,000, a significant increase from $259,856,000 in 2021 and $80,091,000 in 2020[260] - Future net cash inflows for 2022 totaled $1,205,227,000, compared to $465,149,000 in 2021 and $170,446,000 in 2020, indicating strong growth[260] - The Trust experienced extensions, discoveries, and other additions amounting to $201,239,000 in 2022, up from $51,245,000 in 2021[260] Financial Management and Risks - The Trust has no material interest rate risk due to its short-term nature of investments and lack of long-term debt instruments[197] - The Trust does not engage in foreign currency transactions, thus avoiding exposure to foreign currency-related market risks[197] - There are no new accounting pronouncements expected to significantly impact the Trust's financial statements[196] - Contingencies related to Underlying Properties could reduce future royalty income payments and cash distributions to Unit holders[231] - The Trust is classified as a grantor trust for federal income tax purposes, meaning Unit holders are taxed directly on their proportionate share of income[237] Cash Flow and Distributions - The Trust's cash and short-term investments increased to $2,855,444 in 2022 from $2,248,527 in 2021, representing a growth of about 27%[210] - The Trust declared distributions of $0.036797 per unit for January 2023 and $0.041356 per unit for February 2023, reflecting ongoing cash flow generation[266] - Monthly Distribution Amounts are determined based on cash received, liabilities paid, and cash reserves, with negative amounts carried forward[234] Valuation Adjustments - The accretion of discount for 2022 was $25,986,000, compared to $8,009,000 in 2021, indicating a positive trend in the valuation of future cash flows[260] - Revisions of previous estimates and other adjustments contributed $253,804,000 to the standardized measure in 2022, highlighting the dynamic nature of reserve valuations[260]

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The Trust's financial position significantly improved by September 30, 2022, driven by increased cash and royalty revenues, with statements prepared on a modified cash basis Condensed Statement of Assets, Liabilities and Trust Corpus | | September 30, 2022 (Unaudited) | December 31, 2021 | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and short-term investments | $11,524,889 | $2,248,527 | | Net overriding royalty interests | $310,139 | $352,688 | | **TOTAL ASSETS** | **$11,835,028** | **$2,601,215** | | **LIABILITIES AND TRUST CORPUS** | | | | Distribution payable to Unit holders | $10,424,889 | $1,148,527 | | Commitments and reserves | $1,100,000 | $1,100,000 | | Trust corpus | $310,139 | $352,688 | | **TOTAL LIABILITIES AND TRUST CORPUS** | **$11,835,028** | **$2,601,215** | Condensed Statement of Distributable Income (Unaudited) | | Three Months Ended Sep 30, 2022 | Three Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | Royalty income | $27,323,759 | $3,344,086 | $39,032,624 | $8,409,389 | | Distributable income | $27,198,499 | $2,984,263 | $38,291,500 | $7,482,108 | | Distributable income per Unit | $0.58 | $0.06 | $0.82 | $0.16 | - The financial statements are prepared on a **modified cash basis**, a comprehensive accounting method other than **GAAP**, where revenues are not accrued in the month of production and expenses are recorded when paid[12](index=12&type=chunk)[33](index=33&type=chunk) - Subsequent to the quarter end, on October 21, 2022, the Trust declared a distribution of **$0.208587 per Unit**, payable in November 2022[47](index=47&type=chunk) [Item 2. Trustee's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Trustee%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The Trustee's analysis attributes significant year-over-year increases in royalty and distributable income to rising commodity prices and production [Three Months Ended September 30, 2022 Compared to Three Months Ended September 30, 2021](index=18&type=section&id=Three%20Months%20Ended%20September%2030%2C%202022%20Compared%20to%20Three%20Months%20Ended%20September%2030%2C%202021) Q3 2022 royalty income surged due to higher commodity prices and production, significantly increasing distributable income per unit Q3 Performance and Pricing Comparison | Metric | Q3 2022 | Q3 2021 | | :--- | :--- | :--- | | Royalty Income | $27,323,759 | $3,344,086 | | Distributable Income | $27,198,499 | $2,984,263 | | Distributable Income per Unit | $0.58 | $0.06 | | Average Oil Price per Bbl | $108.75 | $68.34 | | Average Gas Price per Mcf | $6.60 | $3.36 | Q3 Production Volumes (Underlying Properties) | Production | Q3 2022 | Q3 2021 | | :--- | :--- | :--- | | Total Oil Sales (Bbls) | 612,050 | 342,171 | | Total Gas Sales (Mcf) | 3,434,117 | 1,221,263 | - Capital expenditures on the Waddell Ranch properties increased to **$34.7 million** (gross) in Q3 2022 from **$26.8 million** (gross) in Q3 2021[58](index=58&type=chunk) [Nine Months Ended September 30, 2022 Compared to Nine Months Ended September 30, 2021](index=21&type=section&id=Nine%20Months%20Ended%20September%2030%2C%202022%20Compared%20to%20Nine%20Months%20Ended%20September%2030%2C%202021) Nine-month royalty income significantly increased due to higher commodity prices and production, with Waddell Ranch properties resuming contributions Nine-Month Performance and Pricing Comparison | Metric | Nine Months 2022 | Nine Months 2021 | | :--- | :--- | :--- | | Royalty Income | $39,032,624 | $8,409,389 | | Distributable Income | $38,291,500 | $7,482,108 | | Distributable Income per Unit | $0.82 | $0.16 | | Average Oil Price per Bbl | $96.49 | $58.79 | | Average Gas Price per Mcf | $5.56 | $2.92 | Nine-Month Production Volumes (Underlying Properties) | Production | Nine Months 2022 | Nine Months 2021 | | :--- | :--- | :--- | | Total Oil Sales (Bbls) | 1,634,583 | 833,399 | | Total Gas Sales (Mcf) | 8,849,731 | 3,509,450 | - Capital expenditures on the Waddell Ranch properties for the nine-month period totaled **$87.3 million** (gross), a significant increase from **$46.8 million** (gross) in the same period of 2021[67](index=67&type=chunk) [Calculation of Royalty Income](index=23&type=section&id=Calculation%20of%20Royalty%20Income) This section details the net profit calculation for the Trust's royalty interests, showing Q3 2022 contributions from Waddell Ranch and Texas Royalty Q3 Royalty Income Calculation by Property (in thousands) | | Waddell Ranch (2022) | Texas Royalty (2022) | Waddell Ranch (2021) | Texas Royalty (2021) | | :--- | :--- | :--- | :--- | :--- | | Gross Proceeds | $82,659 | $6,560 | $34,166 | $3,916 | | Less: Total Deductions | $53,911 | $494 | $34,166 | $396 | | **Net Profits** | **$28,748** | **$6,066** | **$0** | **$3,520** | | Net Overriding Royalty % | 75% | 95% | 75% | 95% | | **Royalty Income** | **$21,561** | **$5,763** | **$0** | **$3,344** | - The Waddell Ranch properties did not contribute to royalty income in Q3 2021 due to a **Net Profit Interest (NPI) deficit**, which was **fully recovered** as of September 30, 2022[72](index=72&type=chunk) [Item 3. Qualitative and Quantitative Disclosures About Market Risk](index=25&type=section&id=Item%203.%20Qualitative%20and%20Quantitative%20Disclosures%20About%20Market%20Risk) This section is not applicable to the Trust due to its qualification as a smaller reporting company - Disclosure about market risk is not required due to the Trust's status as a **smaller reporting company**[77](index=77&type=chunk) [Item 4. Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) The Trustee evaluated the Trust's disclosure controls and procedures, concluding their effectiveness with no material changes to internal controls - Based on an evaluation, the Trustee concluded that the Trust's disclosure controls and procedures are **effective** in recording, processing, summarizing, and reporting required information on a **timely basis**[78](index=78&type=chunk) - **No changes** in the Trust's internal control over financial reporting occurred during the quarter that have **materially affected**, or are reasonably likely to materially affect, these controls[79](index=79&type=chunk) [PART II - OTHER INFORMATION](index=27&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1A. Risk Factors](index=27&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the Trust's 2021 Annual Report on Form 10-K have occurred - **No material change** to the risk factors disclosed in the 2021 Form 10-K has occurred during the nine months ended September 30, 2022[81](index=81&type=chunk) [Item 6. Exhibits](index=27&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including Sarbanes-Oxley certifications and incorporated key governing documents - The exhibits include certifications required under **Sections 302 and 906 of the Sarbanes-Oxley Act of 2002**[85](index=85&type=chunk) - Key legal documents, such as the Amended and Restated Royalty Trust Indenture and Net Overriding Royalty Conveyances, are **incorporated by reference** from previous filings[84](index=84&type=chunk) [SIGNATURES](index=30&type=section&id=SIGNATURES) The report was signed on November 14, 2022, by Ron E. Hooper, SVP Royalty Trust Management of Simmons Bank, as Trustee - The report was signed on **November 14, 2022**, by an authorized representative of **Simmons Bank**, the **Trustee** for the Permian Basin Royalty Trust[87](index=87&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period ended June 30, 2022 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number 1-8033 PERMIAN BASIN ROYALTY TRUST (Exact Name of Registrant as Specified in the Permian Basin Royalty Trust Indenture) Texas 75-6280532 (State or ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period ended March 31, 2022 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _________ to ________ Commission file number: 1-8033 PERMIAN BASIN ROYALTY TRUST (Exact Name of Registrant as Specified in the Permian Basin Royalty Trust Indenture) Texas ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 1-8033 PERMIAN BASIN ROYALTY TRUST (Exact Name of Registrant as Specified in the Permian Basin Royalty Trust Indenture) (State or Other Jurisdiction of I ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period ended September 30, 2021 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number 1-8033 PERMIAN BASIN ROYALTY TRUST (Exact Name of Registrant as Specified in the Permian Basin Royalty Trust Indenture) Texas 75-6280532 (Stat ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period ended June 30, 2021 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _________ to ________ Commission file number 1-8033 PERMIAN BASIN ROYALTY TRUST (Exact Name of Registrant as Specified in the Permian Basin Royalty Trust Indenture) Texas 75 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period ended March 31, 2021 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _________ to ________ Commission file number: 1-8033 PERMIAN BASIN ROYALTY TRUST (Exact Name of Registrant as Specified in the Permian Basin Royalty Trust Indenture) (State ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 1-8033 PERMIAN BASIN ROYALTY TRUST (Exact Name of Registrant as Specified in the Permian Basin Royalty Trust Indenture) (State or Other Jurisdiction of I ...