Income and Cash Flow - The Trust derives all or substantially all of its income and cash flow from the Net Profits Interest, which entitles it to receive 80% of the net profits from the sale of oil and natural gas production from the Underlying Properties [25]. - The Trust makes monthly cash distributions to holders of its Trust units, with distributions generally relating to sales from a one-month period [24]. - The Trust will dissolve if the annual cash proceeds available for distribution are less than $2.0 million for any two consecutive years [46]. - The Trust's net profits are computed monthly, and any negative net profits will result in no payment for that period, affecting future distributions [33]. - The Trust's cash distributions are highly dependent on oil and natural gas prices, which are volatile and can fluctuate widely, potentially reducing proceeds to Trust unitholders [75]. - Lower oil and natural gas prices have historically resulted in reduced net proceeds, which could eliminate cash available for distribution to Trust unitholders [76]. - The ability of OPEC and other oil-exporting nations to maintain production levels significantly impacts commodity prices, affecting cash distributions to Trust unitholders [82]. - Actual reserves and future production may be less than current estimates, which could reduce cash distributions and the value of Trust units [83]. - The amount of cash available for distribution depends on access to gathering, transportation, and processing facilities, which could be limited, affecting sales of oil and natural gas [88]. - The unavailability or high cost of equipment, supplies, and personnel could increase operational costs, reducing cash available for distribution to Trust unitholders [91]. - Public health concerns, such as COVID-19, could adversely affect global demand for oil and gas, impacting cash distributions [80]. - Changes in federal tax law may affect the tax treatment of investments in Trust units, potentially impacting cash distributions [77]. - The Trust's distributions to unitholders could be reduced due to the complexities of tax reporting and potential changes in federal tax law [159]. - Distributable income for 2025 was $4,712,736, compared to $5,161,498 in 2024 and $6,262,256 in 2023, reflecting a significant reduction in cash available for distribution [219]. - The distributable income per unit for 2025 was $0.387371, down from $0.424259 in 2024 and $0.514745 in 2023, showing a decline in returns to unitholders [219]. Operational Risks and Regulations - The Trust's operations are subject to stringent environmental regulations, which may impose significant obligations and increase operational costs [45]. - The competitive nature of the oil and natural gas industry may impact the Trust's Net Profits Interest due to the presence of financially stronger competitors [41]. - The EPA designated two per- and polyfluoroalkyl substances (PFAS) as hazardous substances under CERCLA on September 6, 2022, increasing potential liabilities for companies historically using these chemicals [49]. - In October 2023, the EPA released a final rule eliminating an exemption for PFAS reporting in small concentrations, which could increase compliance costs for companies [52]. - The EPA's National Enforcement and Compliance Initiatives for fiscal years 2024-2027 include identifying and characterizing PFAS contamination, indicating a focus on regulatory scrutiny in this area [49]. - The Clean Water Act imposes strict controls on pollutant discharges, with potential delays in oil and gas project development due to permit requirements [54]. - The EPA's final rule on March 12, 2025, aims to revise wastewater regulations for oil and gas extraction, potentially lowering production costs and promoting beneficial reuse of produced water [54]. - The EPA's new NSPS standards, effective December 2, 2023, aim to reduce methane and VOC emissions from oil and gas operations, introducing a "super emitter" program [60]. - Many states have adopted GHG emission reduction goals that may impose moratoriums on drilling and limits on permitting, impacting the oil and gas industry [61]. - The EPA's rules require monitoring and reporting of GHG emissions from petroleum and natural gas systems, expanding regulatory obligations for companies [58]. - Future regulatory changes regarding waste management could increase operational costs for companies involved in oil and gas exploration and production [52]. - The EPA's final Greenhouse Gas Reporting rule requires certain sources to report GHGs over 25,000 tons per year, which could increase compliance costs for the company [62]. - The company faces potential operational delays and increased costs due to new federal and state regulations on hydraulic fracturing, which could reduce oil and gas production [67]. - The Endangered Species Act may impose restrictions on the company's operations if new species are listed as endangered, potentially increasing costs and limiting production activities [68]. - The company is subject to various federal and state health and safety regulations, which could impact operational costs and compliance [70]. - The designation of critical habitat areas for endangered species could materially restrict access to lands necessary for operations [69]. - The company may incur additional costs due to increased regulatory scrutiny and potential litigation related to hydraulic fracturing practices [67]. - Compliance with environmental laws may generate significant costs and liabilities, reducing cash available for distribution to Trust unitholders [135]. - Increased regulation on hydraulic fracturing could lead to higher costs and operational delays for T2S, potentially reducing oil and gas production [139]. - The adoption of climate change legislation could increase operating costs for T2S and reduce demand for its oil and gas products [143]. - The potential physical effects of climate change may disrupt production and increase costs for T2S, affecting cash distributions to Trust unitholders [144]. - T2S faces cybersecurity threats that could adversely affect its operations and financial condition, including potential data breaches and operational disruptions [147]. - Cyber-attacks on third-party oil and gas distribution systems could delay or prevent delivery to markets, impacting T2S's business [149]. Production and Reserves - The Underlying Properties consist of 31,354 gross (22,394 net) acres in the Permian Basin, which is a significant area for oil and natural gas production [26]. - As of December 31, 2025, the Underlying Properties had proved reserves of 2.8 MMBoe, with 100% of the volumes and PV-10 value attributable to proved developed reserves [167]. - Approximately 94% of the 2.8 MMBoe of proved reserves were operated by T2S as of December 31, 2025 [167]. - The Permian Clearfork area has an estimated 0.9 MMBoe of total proved reserves, all of which are proved developed reserves [168]. - The Permian Abo area has an estimated 0.4 MMBoe of total proved reserves, all of which are proved developed reserves [169]. - The Permian Shelf area has an estimated 0.3 MMBoe of total proved reserves, all of which are proved developed reserves [170]. - The Permian Platform area has an estimated 1.2 MMBoe of total proved reserves, all of which are proved developed reserves [171]. - The reserves from the Underlying Properties are depleting assets, and production will diminish over time, potentially leading to decreased cash distributions [98]. - Maintenance projects on the Underlying Properties may affect the quantity of proved reserves and future production rates, depending on market prices [101]. - The Trust does not have the ability to acquire new properties to replace depleting assets, limiting future revenue potential [101]. - No productive development wells were drilled in 2025, maintaining a total of 0.0 gross and net productive wells [191]. - The company operated 426 gross wells as of December 31, 2025, with a net well count of 258 [187]. - Oil production for the year ended December 31, 2025, was 252.8 MBbls, while natural gas production was 312.4 MMcf, resulting in total production of 304.9 MBoe [193]. - The average net daily production for 2025 was 835.25 Boe/d, down from 950.08 Boe/d in 2024 [193]. Financial Performance - For the year ended December 31, 2025, T2S reported that Phillips 66, Plains All American Pipeline, Energy Transfer Partners, and Enterprise Crude Oil LLC accounted for 34.34%, 17.01%, 16.31%, and 14.69% respectively, of its total oil and natural gas revenues [40]. - T2S's net profits income for 2025 was $5,559,315, a decrease of 6.7% from $5,959,482 in 2024 and a 21.8% decline from $7,127,379 in 2023 [219]. - Total revenue for 2025 was $5,607,416, down from $6,018,264 in 2024 and $7,186,191 in 2023, indicating a downward trend in revenue generation [219]. - Total operating expenses per Boe decreased to $22.65 in 2025 from $24.97 in 2024, with lease operating expenses at $18.84 per Boe [192]. - Total costs for the year ended December 31, 2025, amounted to $10,885,077, a decrease from $15,569,271 in 2024 [194]. - T2S revised its 2025 capital and workover budget from $4.5 million to approximately $1.0 million due to market conditions, preserving liquidity and financial flexibility [217]. - Total capital expenditure by the end of 2025 was $515,530, indicating a focus on maintaining production levels amid economic pressures [217]. Trust Structure and Governance - The Trust has no employees and does not conduct any operations or activities beyond managing the Net Profits Interest [23]. - The Trust will receive net profits only from the Net Profits Interest, with no voting rights for unitholders regarding operational decisions [118]. - Trust unitholders have limited ability to enforce provisions of the Conveyance creating the Net Profits Interest [129]. - The Trust may face delisting from the NYSE if it fails to maintain an average closing price of at least $1.00 over a 30-day period [131]. - T2S's ability to fulfill obligations to the Trust may be limited by restrictions under its debt agreements [128]. - T2S may sell some or all of the Underlying Properties without considering the interests of the Trust unitholders [130]. - The Trustee can only be replaced by a majority vote of the Trust unitholders, making it difficult to remove or replace the Trustee [127]. - Boaz Energy conveyed 4,884,861 Trust units to Ustx, LLC on March 31, 2025, which may impact the trading price of the Trust units [132]. - The Trust filed a Registration Statement on Form S-3 on April 28, 2022, seeking registration of 5,801,675 Trust units held by Boaz Energy, confirmed effective by the SEC on May 9, 2022 [132]. - The Trust indirectly bears 80% of all costs and expenses paid by T2S, including environmental compliance costs associated with the Underlying Properties [138].

Core Insights - Prelude Therapeutics has received FDA clearance for the Investigational New Drug (IND) application for PRT12396, a mutant-selective JAK2V617F inhibitor, with a Phase 1 study expected to start in Q2 2026 [1][4] - The company is also advancing PRT13722, a highly-selective oral KAT6A degrader, with an IND filing anticipated in mid-2026 and Phase 1 study initiation planned for the second half of 2026 [1][5] - Prelude's current cash runway is projected to last into Q2 2027, with $106 million in cash and equivalents as of December 31, 2025 [1][14] R&D Pipeline Updates - The JAK2V617F mutation is a significant driver in myeloproliferative neoplasms (MPNs), affecting approximately 95% of polycythemia vera patients, 60% of essential thrombocythemia patients, and 55% of myelofibrosis patients [3] - Prelude has developed novel allosteric inhibitors targeting the JAK2 JH2 "deep pocket" where the V617F mutation resides, showing potential to reduce mutant allele burden and improve treatment outcomes for MPN patients [3] - The KAT6A oral degrader program targets ER+ breast cancer, with the potential for improved efficacy and tolerability compared to non-selective inhibitors [5] Financial Performance - For the year ended December 31, 2025, Prelude reported a net loss of $99.5 million, or $1.29 per share, a decrease from a net loss of $127.2 million, or $1.68 per share, in the previous year [17][21] - Research and development expenses decreased to $94.3 million from $118.0 million in the prior year, attributed to reduced stock-based compensation and discontinued clinical trials [15] - General and administrative expenses also decreased to $22.4 million from $28.7 million, primarily due to lower stock-based compensation and employee-related expenses [16] Upcoming Milestones - The Phase 1 study of PRT12396 will be an open-label, multi-center trial focusing on patients with high-risk polycythemia vera and intermediate to high-risk myelofibrosis [4] - Prelude plans to present initial preclinical data for its KAT6A program at upcoming conferences, showcasing its commitment to advancing its R&D pipeline [6][11] - The company will participate in the Citizens Life Sciences Conference on March 10, 2026, where key executives will discuss the company's strategic direction and upcoming milestones [12]

Core Insights - Prelude Therapeutics has received FDA clearance to proceed with a Phase 1 study for PRT12396, a mutant-selective JAK2V617F inhibitor aimed at treating myeloproliferative neoplasms (MPNs) [1][2] - The company plans to begin dosing the first patient by Q2 of 2026, marking a significant milestone in its strategic focus on JAK2 and KAT6 programs [2] Company Developments - The Phase 1 study will be an open-label, multi-center trial assessing safety, efficacy, and pharmacokinetics in patients with high-risk polycythemia vera (PV) and intermediate to high-risk myelofibrosis (MF) [2] - Prelude's JAK2V617F inhibitor program is under an exclusive option agreement with Incyte, which was announced in November 2025 [3] Scientific Background - JAK2V617F is a key mutation affecting approximately 95% of patients with polycythemia vera, 60% of those with essential thrombocythemia, and 55% of myelofibrosis patients [4] - Prelude has developed novel allosteric inhibitors that specifically target V617F+ cells, which may reduce mutant allele burden and improve treatment outcomes for MPN patients [4] Company Overview - Prelude Therapeutics is focused on precision oncology, developing innovative medicines for cancer patients with high unmet needs [5] - The company's pipeline includes selective KAT6A degraders and JAK2V617F inhibitors, aiming to leverage targeted protein degradation for next-generation therapies [5]

Financial Distribution - PermRock Royalty Trust announced a cash distribution of $235,849.49, equating to $0.019386 per Trust Unit, based on production during November 2025[6] - The cash distribution is payable on February 13, 2026, to record holders as of January 30, 2026[6] - The Trust's financial condition reflects its operational performance and cash distribution strategy[6] Compliance and Reporting - The report was filed in accordance with the Securities Exchange Act of 1934, ensuring compliance with regulatory requirements[7] - The Trust's operations are subject to the general instructions of Form 8-K, indicating a structured reporting process[7] - The Trust is not classified as an emerging growth company under the relevant securities regulations[5] Trust Structure - The Trust does not have directors or executive officers, with Argent Trust Company acting as the trustee[11] - The Trust is listed on the New York Stock Exchange under the symbol PRT[5] Transparency - The announcement was made via a press release dated January 20, 2026, highlighting the Trust's commitment to transparency[8] - The Trust's financial results are based on its operations and production metrics from the previous month, indicating ongoing revenue generation[6]

Core Viewpoint - PermRock Royalty Trust (NYSE: PRT) has experienced a significant decline in share price, dropping 13.02% within a week, primarily due to disappointing financial performance and investor sentiment [1][2]. Financial Performance - The trust declared its lowest monthly cash distribution of $199,572.97, or $0.016404 per share, for December 2025, which negatively impacted investor sentiment [3]. - Oil cash receipts for October amounted to $1.07 million, reflecting a decrease of $0.05 million from the previous month, attributed to a 7.3% month-over-month decline in prices [4]. - Natural gas cash receipts for October fell by 60% from the prior month to $0.02 million, driven by reduced sales volumes and prices [4]. - Operating expenses increased by $0.03 million to $0.51 million, mainly due to higher workover expenses [4].

Core Viewpoint - The energy sector has several oversold stocks that present potential buying opportunities for undervalued companies [1] Group 1: Oversold Stocks - Delek US Holdings Inc (NYSE:DK) has an RSI value of 24, with a stock price decline of approximately 23% over the past month, reaching a 52-week low of $11.02 [5] - Par Pacific Holdings Inc (NYSE:PARR) has an RSI value of 27.9, with a stock price decline of around 24% over the past month, hitting a 52-week low of $11.86 [6] - PermRock Royalty Trust (NYSE:PRT) has an RSI value of 13.6, with a stock price decline of about 27% over the past month, reaching a 52-week low of $2.73 [6] Group 2: Price Actions and Analyst Ratings - Delek US Holdings closed at $29.66 after a 0.9% drop on Wednesday, with an analyst rating of Outperform and a price target raised from $45 to $51 [5] - Par Pacific closed at $35.14 after a 1.1% drop on Wednesday, with a capital expenditure guidance of $190 million to $220 million for 2026 [6] - PermRock Royalty Trust closed at $2.79 after a 4.6% drop on Wednesday, reporting second-quarter earnings of 10 cents per share, down from 11 cents per share year-over-year [6]

Core Viewpoint - The energy sector has several oversold stocks that present potential buying opportunities for undervalued companies [1] Group 1: Oversold Stocks - Delek US Holdings Inc (NYSE:DK) has an RSI value of 24, with a stock price decline of approximately 23% over the past month, reaching a 52-week low of $11.02 [5] - Par Pacific Holdings Inc (NYSE:PARR) has an RSI value of 27.9, with a stock price decline of around 24% over the past month, hitting a 52-week low of $11.86 [6] - PermRock Royalty Trust (NYSE:PRT) has an RSI value of 13.6, with a stock price decline of about 27% over the past month, reaching a 52-week low of $2.73 [6] Group 2: Price Actions and Analyst Ratings - Delek US Holdings closed at $29.66 after a 0.9% drop, with an analyst rating of Outperform and a price target raised from $45 to $51 [5] - Par Pacific closed at $35.14 after a 1.1% drop, with recent capital expenditure guidance announced [6] - PermRock Royalty Trust closed at $2.79 after a 4.6% drop, with second-quarter earnings reported at 10 cents per share, down from 11 cents per share year-over-year [6]

[Filing Information](index=1&type=section&id=Filing%20Information) This section provides essential details about the registrant, its trustee, and the specifics of the 8-K filing [Registrant and Filing Details](index=1&type=section&id=Registrant%20and%20Filing%20Details) This section provides the core identification details of the registrant, PermRock Royalty Trust, its trustee, and the specific nature of the 8-K filing, including the date of the report - The registrant is **PERMROCK ROYALTY TRUST**, incorporated in Delaware[2](index=2&type=chunk) - The trustee for PermRock Royalty Trust is **Argent Trust Company**, located at 3838 Oak Lawn Ave., Suite 1720, Dallas, Texas 75219[2](index=2&type=chunk) - The report date is **October 21, 2025**, filed as a Form 8-K Current Report[1](index=1&type=chunk)[2](index=2&type=chunk) [Securities Registered](index=1&type=section&id=Securities%20Registered) This part details the specific class of securities registered by the Trust and the exchange on which they are traded Securities Registered | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :----------------------- | :---------------- | :---------------------------------------- | | Units of Beneficial Interest | PRT | New York Stock Exchange | - The registrant is not an emerging growth company[5](index=5&type=chunk) [Item 2.02 Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) This section reports on the Trust's financial performance, specifically detailing a cash distribution to unitholders [Cash Distribution Announcement](index=2&type=section&id=Cash%20Distribution%20Announcement) PermRock Royalty Trust announced a cash distribution to its unitholders, primarily based on production during August 2025, with specific record and payment dates Cash Distribution Details | Metric | Value | | :--------------------- | :------------- | | Total Distribution | $384,018.36 | | Per Trust Unit | $0.031565 | | Record Date | October 31, 2025 | | Payment Date | November 17, 2025 | | Production Month Basis | August 2025 | - The information in this Form 8-K is deemed 'furnished' and not 'filed' with the SEC, limiting liabilities under Section 18 of the Securities Exchange Act of 1934[7](index=7&type=chunk) [Item 9.01 Financial Statements and Exhibits](index=2&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits) This section lists the financial statements and other documents included as exhibits to the current report [Exhibits](index=2&type=section&id=Exhibits) This section lists the documents filed as exhibits to the 8-K report Exhibits List | Exhibit No. | Description | | :---------- | :-------------------------- | | 99.1 | Press Release dated October 21, 2025 | [SIGNATURES](index=3&type=section&id=SIGNATURES) This section provides the official authorization and signatory details for the filed report [Authorization and Signatory](index=3&type=section&id=Authorization%20and%20Signatory) This section confirms the official signing of the report by the authorized representative of the Trustee, validating the filing - The report was signed on behalf of **PERMROCK ROYALTY TRUST** by Argent Trust Company, as Trustee[10](index=10&type=chunk)[11](index=11&type=chunk) - **Nancy Willis**, Director of Royalty Trust Services and Trust Administrator, signed the report on **October 21, 2025**[11](index=11&type=chunk) - The Trust explicitly states it has no directors or executive officers[11](index=11&type=chunk)

Financial Performance - As of September 30, 2025, total assets amounted to $70,672,085, a decrease of 4.4% from $73,992,200 on December 31, 2024[10] - Distributable income for the three months ended September 30, 2025, was $1,111,576, down 17.0% from $1,340,784 in the same period of 2024[12] - The net profits income for the nine months ended September 30, 2025, was $4,502,918, slightly down from $4,503,683 in 2024, indicating a stable revenue stream[12] - The total revenue for the three months ended September 30, 2025, was $1,258,795, a decline of 19.5% compared to $1,564,340 in 2024[12] - The trust declared distributions of $1,111,576 for the three months ended September 30, 2025, which is equal to the distributable income for that period[16] - The amortization of net profits interest for the three months ended September 30, 2025, was $926,436, slightly lower than $943,931 in 2024[16] - For the three months ended September 30, 2025, net profits income received by the Trust was $1,246,690, a decrease of 19.5% from $1,548,855 in the same period of the prior year due to decreased oil and gas production and lower prices[58] - Distributable income for the three months ended September 30, 2025, was $1,111,576, or $0.091367 per Trust unit, compared to $1,548,855 and $0.1275 per unit in the prior year[59] - Total gross profits for the three months ended September 30, 2025, were $3,928,334, down from $5,739,895 in the prior year[67] Assets and Liabilities - The trust corpus at the end of the period was $69,293,250, reflecting a decrease of 4.5% from $72,379,939 at the end of 2024[10] - The trust's cash and short-term investments decreased to $1,378,835 from $1,612,261, a decline of 14.5%[10] - The trust's total liabilities and trust corpus remained balanced at $70,672,085 as of September 30, 2025[10] - Total cash reserves remained unchanged at $1,000,000 as of September 30, 2025, and September 30, 2024[61] - As of September 30, 2025, cash reserves held by the Trustee for administrative expenses totaled $1,000,000[33] Operational Highlights - Oil sales volumes decreased by 11,442 Bbls (16.2%) for the three months ended September 30, 2025, compared to the same period in 2024, and 23,985 Bbls (11.0%) for the nine months ended September 30, 2025[69] - The average realized oil price per Bbl decreased to $63.58 for the three months ended September 30, 2025, from $78.07 in the same period of 2024[71] - Natural gas sales volumes decreased slightly by 614 Mcf for the three months ended September 30, 2025, compared to the same period in 2024[70] - Development expenses related to the Underlying Properties decreased for the three and nine months ended September 30, 2025, as T2S participated in drilling only one non-operated well[77] - T2S successfully participated in a non-operated well in the Permian Shelf Area, which was drilled and completed in Q3 2025[84] Budget and Expenditures - T2S revised its capital and workover budget for 2025 from an initial $4.0 million to approximately $1.0 million due to market conditions[39] - Approximately $0.2 million had been spent from the revised budget as of September 30, 2025[55] - The decrease in planned expenditures is primarily due to the deferral of two wells in Crane County, Texas, originally scheduled for drilling[84] - T2S revised its capital expenditure budget for 2025 from $4.0 million to approximately $1.0 million to preserve liquidity and maintain financial flexibility[83] - As of September 30, 2025, T2S had expended approximately $0.2 million of the initial budget[83] Trust Operations - The Trust's main asset is the Net Profits Interest, which entitles it to receive 80% of the net profits from oil and natural gas production from the Underlying Properties[49] - The Trust is required to make monthly cash distributions of substantially all its monthly cash receipts after deducting fees and expenses[50] - The Trust declared a cash distribution of $0.031565 per Trust unit based on production during August 2025[87] - In August 2025, the underlying sales volumes included 22,490 barrels of oil and 25,914 Mcf of gas, with average prices of $58.06 per barrel and $2.31 per Mcf[88] Governance and Compliance - The Trust's disclosure controls and procedures were evaluated as effective as of September 30, 2025[93] - There have been no material changes in the risk factors disclosed in the Trust's Annual Report for the year ended December 31, 2024[97] - The Trust does not have any directors or officers, and therefore has not adopted insider trading policies[101] - The trust's investment in net profits interest is assessed periodically for impairment, with no current indications of impairment despite market volatility[31]

Group 1 - The article does not provide any specific content or key points related to a company or industry [1]