Cash Distribution - PermRock Royalty Trust announced a cash distribution of $289,632.56, equating to $0.023807 per Trust Unit, based on production during February 2025[7] - The cash distribution is payable on May 14, 2025, to record holders as of April 30, 2025[7]

Financial Performance - Distributable income for the three months ended March 31, 2025, was $1,466,195, an increase of 30.7% compared to $1,122,502 for the same period in 2024[12] - Distributable income per unit increased to $0.120517 for the three months ended March 31, 2025, up from $0.092268 in 2024, reflecting a growth of approximately 30.6%[12] - Net profits income for the three months ended March 31, 2025, was $1,710,763, compared to $1,296,408 in 2024, marking an increase of approximately 31.9%[12] - For the three months ended March 31, 2025, net profits income received by the Trust was $1,710,763, an increase from $1,296,408 in the same period of the prior year, primarily due to slightly higher gas prices and lower operating expenses[55] - Total gross profits for the three months ended March 31, 2025, were $5,117,329, a decrease from $5,738,920 in the same period in 2024[60] - Net profits for the three months ended March 31, 2025, were $1,818,454, down from $1,970,510 in the same period in 2024[60] Assets and Liabilities - Total assets as of March 31, 2025, were $72,773,860, a decrease from $73,992,200 as of December 31, 2024, representing a decline of approximately 1.6%[10] - The Trust corpus decreased to $71,286,955 as of March 31, 2025, down from $72,379,939 at the end of 2024, indicating a reduction of about 1.5%[10] - The Trust's total liabilities and corpus were equal to total assets at $72,773,860 as of March 31, 2025, maintaining a balanced financial position[10] - As of March 31, 2025, the balance of funds held by T2S to cover future capital expenses was $270,174 net to the Trust[34] - As of March 31, 2025, the Trust had cash reserves totaling $1,000,000 to cover future administrative expenses[74] Revenue and Production - The Trust's revenue and distributions are significantly influenced by the volatile prices of oil and natural gas, which are subject to various external factors[29] - Average oil production for February 2025 was 21,413 barrels, with an average price of $70.27 per barrel[42] - For the three months ended March 31, 2025, oil sales volumes decreased by 4,880 Bbls (6.5%) compared to the same period in 2024, primarily due to a natural decline in production properties and decreased demand[62] - Natural gas sales volumes decreased by 4,780 Mcf (5.7%) for the three months ended March 31, 2025, compared to the same period in 2024, attributed to similar factors as oil[63] - The average realized oil price per Bbl decreased to $69.36 for the three months ended March 31, 2025, down from $73.06 in the same period in 2024[60] - The average realized natural gas price per Mcf increased to $3.19 for the three months ended March 31, 2025, compared to $3.14 in the same period in 2024[65] Cash Distributions - The Trust declared a cash distribution of $0.023807 per Trust unit based on production during February 2025[41] - A cash distribution of $0.023807 per Trust unit was declared on April 17, 2025, based on production during February 2025[76] - The Trust holds 12,165,732 Trust units outstanding, with monthly cash distributions made to unitholders after deducting fees and expenses[35] Capital Expenditure - T2S's estimated capital and workover budget for 2025 is $4.0 million, with approximately $0.1 million expended as of March 31, 2025[54] - T2S's estimated capital expenditure budget for 2025 is $4.0 million, with approximately $0.1 million expended as of March 31, 2025[75] - The majority of capital spent in 2025 to date was on non-operated projects in the Permian Shelf Area[39] Ownership and Management - As of May 12, 2025, Ustx LLC owned 4,884,861 Trust units, representing a significant transfer of ownership from Boaz Energy[24] - The Trustee's annual administrative fee for 2025 is $207,081, which will increase at a rate of 1% per year until the 20th anniversary of the Trust's formation[36] Interest Income - Interest income for the quarter ended March 31, 2025, was $12,540, a decrease of $2,422 compared to the same period in the prior year due to lower interest rates[57] Miscellaneous - No key financial data or performance summary is provided in the documents[91] - No user data or metrics are mentioned in the documents[91] - No future outlook or performance guidance is available in the documents[91] - No information on new products or technology development is included in the documents[91] - No details on market expansion or acquisitions are found in the documents[91] - No new strategies or initiatives are discussed in the documents[91]

Core Viewpoint - PermRock Royalty Trust announced the completion of the sale of its underlying oil and gas properties from Boaz Energy II, LLC to T2S Permian Acquisition II LLC, marking a significant transition in ownership and operational management of these assets [1][2]. Group 1: Transaction Details - The sale involved the transfer of all rights, title, and interest in the underlying properties from the Grantors (Boaz Energy and its affiliate) to the Buyer, T2S Permian Acquisition II LLC [2]. - Boaz Energy also sold 4,884,861 Trust units representing beneficial interests in the Trust to Ustx LLC, a wholly-owned subsidiary of the Buyer [2]. Group 2: Operational Transition - Boaz Energy plans to assist in the operational transition of the underlying properties to the Buyer, ensuring a smooth transfer of management responsibilities [3]. - Argent Trust Company, acting as the trustee of the Trust, will continue to administer the Trust in the usual manner during this transition [3]. Group 3: Trust Overview - PermRock Royalty Trust is a Delaware statutory trust that owns a net profits interest, allowing it to receive 80% of the net profits from oil and natural gas production from the underlying properties [4].

[Cautionary Note Regarding Forward-Looking Statements](index=3&type=section&id=CAUTIONARY%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section provides a cautionary note on forward-looking statements, highlighting inherent risks and uncertainties [Forward-Looking Statements Overview](index=3&type=section&id=Forward-Looking%20Statements%20Overview) Outlines Boaz Energy's and Trust's forward-looking statements, subject to risks like commodity price volatility and regulatory changes - Forward-looking statements cover Boaz Energy's capital expenditure budget, **2025** outlook (non-operated drilling, waterflood), new well drilling plans, estimated capital, Trustee's cash reserves, drilling activity, estimated present value of future cash flows, characteristics of Underlying Properties (reserves), impact of customer loss, reliance on third parties, insurance coverage, burdens on properties, title quality, litigation impact, tax treatment, bankruptcy treatment, distributions, Boaz Energy's unit sales, successor operator actions, and future cash retentions[10](index=10&type=chunk) - Key factors that could cause actual results to **materially differ** include changes in commodity prices, effects of armed conflicts, political and economic conditions, uncertainties in reserve estimation, drilling risks, development costs, production levels, operating expenses, capital availability, risks associated with Boaz Energy's ability to transfer operations, third-party performance, regulatory actions, OPEC actions, capital market conditions, competition, development project pursuit, severe weather, insurance adequacy, environmental compliance costs, general economic conditions in the Permian Basin, title deficiencies, conflicts of interest, litigation impact, and inflation[10](index=10&type=chunk)[14](index=14&type=chunk) - The Trust relies on Boaz Energy for information regarding the Underlying Properties, including operations, acreage, well and completion count, working interests, production volumes, sales revenues, capital expenditures, operating expenses, reserves, drilling plans, drilling results, and leasehold terms[13](index=13&type=chunk) [Glossary of Terms](index=5&type=section&id=GLOSSARY%20OF%20TERMS) This section defines key terms related to oil and natural gas production, reserves, and the Trust's operations [Key Definitions](index=5&type=section&id=Key%20Definitions) Defines key terms used throughout the report - Key terms defined include 'average realized sales price,' 'Bbl,' 'Boe,' 'Btu,' 'completion,' 'developed oil and natural gas reserves,' 'development well,' 'differential,' 'distributable income,' 'estimated future net revenues,' 'farm-in or farm-out agreement,' 'field,' 'GAAP,' 'gross acres or wells,' 'MBbl,' 'MBoe,' 'Mcf,' 'MMBoe,' 'MMBtu,' 'MMcf,' 'natural gas liquids (NGL),' 'net profits,' 'net profits income,' '**Net Profits Interest**,' 'net acres or net wells,' 'NGL,' 'non-operated,' 'NYMEX,' 'plugging of abandoned wells,' 'proved developed reserves,' 'proved reserves,' 'proved undeveloped reserves (PUDs),' 'PV-10,' 'reasonable certainty,' 'recompletion,' 'reservoir,' 'secondary recovery,' 'Tcf,' 'Trust units,' 'Underlying Properties,' 'waterflood,' 'working interest,' and 'workover'[16](index=16&type=chunk)[17](index=17&type=chunk)[18](index=18&type=chunk) [PART I](index=8&type=section&id=PART%20I) This part covers part i related disclosures [Item 1. Business](index=8&type=section&id=Item%201.%20Business) PermRock Royalty Trust holds an **80% Net Profits Interest** in Permian Basin oil and gas, with Boaz Energy selling its interest to T2S Permian Acquisition II LLC [General](index=8&type=section&id=General) This subsection provides general information about the Trust's formation and purpose [The Conveyance](index=8&type=section&id=The%20Conveyance) This subsection details the conveyance of the Net Profits Interest to the Trust [Computation of Net Profit](index=9&type=section&id=Computation%20of%20Net%20Profit) This subsection explains how the Net Profits Interest income is calculated [Marketing and Customers](index=9&type=section&id=Marketing%20and%20Customers) This subsection describes the marketing of oil and natural gas and major customers [Competition and Markets](index=10&type=section&id=Competition%20and%20Markets) This subsection discusses the competitive landscape and market conditions [Dissolution of the Trust](index=10&type=section&id=Dissolution%20of%20the%20Trust) This subsection outlines the conditions and process for the Trust's dissolution [Environmental Matters and Regulation](index=10&type=section&id=Environmental%20Matters%20and%20Regulation) This subsection addresses environmental regulations and their impact on operations - The Trust's **sole purpose** is to own the **Net Profits Interest**, distribute cash to unitholders, and perform administrative functions. It does not conduct any operations or activities and has no employees[23](index=23&type=chunk) - The **Net Profits Interest** grants the Trust **80% of the net profits** from oil and natural gas production from the Underlying Properties, which are **passive** in nature, meaning the Trust has **no control or responsibility** over operational costs[25](index=25&type=chunk) - On January **10**, **2025**, Boaz Energy agreed to sell all its right, title, and interest in the Underlying Properties (burdened by the **Net Profits Interest**) and its **4,884,861** Trust units to T2S Permian Acquisition II LLC. The Buyer (T2S) is expected to become the operator of the Underlying Properties after the **anticipated closing in March 2025**[28](index=28&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk) Underlying Properties Acreage | Area | Net Acres | | :--- | :--- | | Permian Clearfork | 2,434 | | Permian Abo | 1,667 | | Permian Shelf | 14,390 | | Permian Platform | 3,903 | | **Total** | **22,394** | - For the year ended December **31**, **2024**, major purchasers of oil and natural gas production from the Underlying Properties included Phillips **66** (**30.59%**), Plains All American Pipeline (**20.23%**), Energy Transfer Partners (**18.44%**), and Enterprise Crude Oil LLC (**12.79%**)[40](index=40&type=chunk) [Item 1A. Risk Factors](index=15&type=section&id=Item%201A.%20Risk%20Factors) Outlines significant risks to the Trust's financial condition and distributions, such as commodity price volatility and operational uncertainties [Business and Operating Risks](index=17&type=section&id=BUSINESS%20AND%20OPERATING%20RISKS) This subsection details risks related to the Trust's business and operational activities [Risks Related to the Structure of the Trust](index=25&type=section&id=RISKS%20RELATED%20TO%20THE%20STRUCTURE%20OF%20THE%20TRUST) This subsection outlines risks inherent in the Trust's organizational structure [Risks Related to Ownership of the Trust Units](index=27&type=section&id=RISKS%20RELATED%20TO%20OWNERSHIP%20OF%20THE%20TRUST%20UNITS) This subsection describes risks associated with holding Trust units [Legal, Environmental and Regulatory Risks](index=28&type=section&id=LEGAL,%20ENVIRONMENTAL%20AND%20REGULATORY%20RISKS) This subsection covers legal, environmental, and regulatory compliance risks [Cybersecurity Risks](index=30&type=section&id=CYBERSECURITY%20RISKS) This subsection addresses potential cybersecurity threats and their implications [Tax Risks Related to the Trust Units](index=31&type=section&id=TAX%20RISKS%20RELATED%20TO%20THE%20TRUST%20UNITS) This subsection explains tax-related risks for Trust unitholders - Oil and natural gas prices are **volatile**, and **lower prices could reduce** proceeds to the Trust and cash distributions to unitholders. Factors include global economic conditions, foreign imports/exports, political conditions (e.g., Middle East, Russia-Ukraine conflict), public health concerns (e.g., COVID-19), technological advances, alternative fuel prices, infrastructure availability, governmental regulation, trade barriers, energy conservation, and acts of force majeure[76](index=76&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk) - The Trust's assets are **concentrated in the Permian Basin**, making it vulnerable to regional adverse developments, supply/demand factors, governmental regulation, and midstream capacity constraints[95](index=95&type=chunk) - The Trust is **passive**, and unitholders have **no ability to influence** Boaz Energy or other third-party operators regarding the operation or development of the Underlying Properties. Boaz Energy may transfer properties without unitholder consent, and **conflicts of interest could arise**[116](index=116&type=chunk)[117](index=117&type=chunk)[122](index=122&type=chunk) - The Trust faces **legal, environmental, and regulatory risks**, including compliance costs for environmental laws (CERCLA, RCRA, CWA, CAA), potential liabilities from spills, increased regulation of hydraulic fracturing, climate change legislation impacting operating costs and demand, and restrictions on drilling due to endangered species[132](index=132&type=chunk)[133](index=133&type=chunk)[136](index=136&type=chunk)[139](index=139&type=chunk)[141](index=141&type=chunk) - **Cybersecurity threats** to Boaz Energy's IT systems and networks, or to third-party distribution systems, could lead to unauthorized access, data loss, operational disruptions, litigation, regulatory action, and increased costs, ultimately affecting the Trust's distributions[143](index=143&type=chunk)[144](index=144&type=chunk)[145](index=145&type=chunk) - **Tax risks** include the possibility that the IRS could challenge the Trust's **grantor trust status**, leading to more complex and costly tax reporting. Unitholders are required to pay U.S. federal income taxes on their share of the Trust's income, even if cash distributions are not received, and a portion of any gain on disposition of Trust units could be taxed as ordinary income[147](index=147&type=chunk)[151](index=151&type=chunk)[153](index=153&type=chunk) [Item 1B. Unresolved Staff Comments](index=32&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) There are **no unresolved staff comments** - **No unresolved staff comments**[155](index=155&type=chunk) [Item 1C. Cybersecurity](index=32&type=section&id=Item%201C.%20Cybersecurity) Describes the Trust's cybersecurity risk management program - The Trustee is responsible for oversight of the Trust's cybersecurity risks, with dedicated personnel assessing and managing the cyber risk management program[156](index=156&type=chunk) - The Trustee's cyber risk management program includes technological capabilities for prevention and detection, password protection, employee training, and independent verification of information changes, based on recognized best practices and standards[157](index=157&type=chunk)[158](index=158&type=chunk) - Prior cybersecurity incidents have had **no material adverse effect** on the Trust's business, financial condition, results of operations, or cash flows[159](index=159&type=chunk) [Item 2. Properties](index=32&type=section&id=Item%202.%20Properties) Describes the Trust's underlying properties, including reserves, acreage, well counts, and production data [Description of the Underlying Properties](index=32&type=section&id=Description%20of%20the%20Underlying%20Properties) This subsection provides a detailed description of the Trust's underlying oil and natural gas properties [Major Producing Areas](index=33&type=section&id=Major%20Producing%20Areas) This subsection identifies the primary oil and natural gas producing regions [Oil and Natural Gas Data](index=33&type=section&id=Oil%20and%20Natural%20Gas%20Data) This subsection presents key data on oil and natural gas reserves and production [Abandonment and Sale of Underlying Properties](index=37&type=section&id=Abandonment%20and%20Sale%20of%20Underlying%20Properties) This subsection discusses the abandonment and sale procedures for underlying properties [Title to Properties](index=38&type=section&id=Title%20to%20Properties) This subsection addresses the legal title and ownership of the Trust's properties - The Underlying Properties comprise **31,354** gross (**22,394** net) acres in the Permian Basin, consisting of long-life reserves in mature, conventional oil fields[160](index=160&type=chunk)[162](index=162&type=chunk) Proved Reserves Attributable to the Trust (as of December 31, 2024) | Category | Oil (MBbls) | Natural Gas (MMcf) | Total (MBoe) | PV-10 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Proved Developed | 1,391.2 | 795.8 | 1,523.8 | $55,472.3 | | Proved Undeveloped | 171.8 | 757.5 | 298.1 | $8,973.2 | | **Total Proved** | **1,563.0** | **1,553.3** | **1,821.9** | **$64,445.5** | - Proved undeveloped reserves **increased** for the year ended December **31**, **2024**, primarily due to newly identified drilling locations in the Peak Victor field in Crane County[180](index=180&type=chunk) Oil and Natural Gas Production Data (Years Ended December 31) | Metric | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | **Production volumes:** | | | | | Oil (MBbls) | 289.9 | 317.8 | 351.7 | | Natural Gas (MMcf) | 341.1 | 387.6 | 409.9 | | Total (MBoe) | 346.7 | 382 | 420 | | Average net daily production (Boe/d) | 950.08 | 1,047.67 | 1,150.75 | | **Average realized sales prices:** | | | | | Oil ($/Bbl) | $75.33 | $76.24 | $93.15 | | Natural gas ($/Mcf) | $2.54 | $3.74 | $7.94 | | Average price per Boe | $65.93 | $67.15 | $85.74 | | **Total operating expenses per Boe:** | | | | | Lease operating expense | $19.64 | $19.05 | $15.28 | | Severance and ad valorem taxes | $3.83 | $5.11 | $5.16 | | Total operating expenses per Boe | $24.97 | $24.79 | $22.58 | - The Trust's title to the **Net Profits Interest** is considered **good and defensible**, and in a bankruptcy of Boaz Energy, the **Net Profits Interest** is believed to remain **outside of any Boaz Energy bankruptcy estate**[198](index=198&type=chunk)[199](index=199&type=chunk)[200](index=200&type=chunk) [Item 3. Legal Proceedings](index=39&type=section&id=Item%203.%20Legal%20Proceedings) The lawsuit 'Thaleia L. Marston, Trustee of the Marston Trust v. Blackbeard Operating, LLC, et.al' has **concluded**, with the Court of Appeals affirming the trial court's judgment - The **2018** Litigation, 'Thaleia L. Marston, Trustee of the Marston Trust v. Blackbeard Operating, LLC, et.al,' naming Boaz Energy and the Trust as defendants, has **concluded** with the Court of Appeals **affirming the trial court's judgment** in favor of the defendant appellees on February **5**, **2025**[201](index=201&type=chunk) [Item 4. Mine Safety Disclosures](index=39&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is **not applicable** to the Trust - Mine Safety Disclosures are **not applicable**[202](index=202&type=chunk) [PART II](index=39&type=section&id=PART%20II) This part covers part ii related disclosures [Item 5. Market for Registrant's Common Equity, Related Unitholder Matters and Issuer Purchases of Equity Securities](index=39&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity,%20Related%20Unitholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Trust units (PRT) are listed on the NYSE, with **12,165,732** units outstanding as of **March 27, 2025**, and the Trust makes monthly cash distributions - Trust units are listed on the New York Stock Exchange (NYSE) under the symbol 'PRT'[204](index=204&type=chunk) - As of **March 27, 2025**, there were **12,165,732** Trust units outstanding, held by **9** unitholders of record, including **7,253,071** units held by beneficial owners in street name[204](index=204&type=chunk) - The Trust makes monthly cash distributions of substantially all its cash receipts, after deducting fees, expenses, and any cash reserves, to unitholders[205](index=205&type=chunk) - The Trust does not maintain any equity compensation plans, nor has it engaged in unregistered sales or issuer purchases of equity securities[206](index=206&type=chunk)[207](index=207&type=chunk)[208](index=208&type=chunk) [Item 6. Reserved](index=39&type=section&id=Item%206.%20Reserved) This item is reserved and contains no information - Item **6** is **reserved**[209](index=209&type=chunk) [Item 7. Trustee's Discussion and Analysis of Financial Condition and Results of Operations](index=40&type=section&id=Item%207.%20Trustee%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Discusses the Trust's financial condition and results of operations, highlighting decreased income in **2024** and Boaz Energy's **2025** capital budget [Overview](index=40&type=section&id=Overview) This subsection provides a general overview of the Trust's financial condition and operations [2024 Recap and 2025 Outlook](index=40&type=section&id=2024%20Recap%20and%202025%20Outlook) This subsection summarizes **2024** performance and outlines the outlook for **2025** [Results of Operations](index=40&type=section&id=Results%20of%20Operations) This subsection analyzes the Trust's financial results from its operations [Distributable Income](index=41&type=section&id=Distributable%20Income) This subsection details the calculation and components of distributable income [Years Ended December 31, 2024, and 2023](index=41&type=section&id=Years%20Ended%20December%2031,%202024,%20and%202023) This subsection compares financial results for the years ended December **31**, **2024**, and **2023** [Years Ended December 31, 2023, and 2022](index=41&type=section&id=Years%20Ended%20December%2031,%202023,%20and%202022) This subsection compares financial results for the years ended December **31**, **2023**, and **2022** [Computation of Income from the Net Profits Interest Received by the Trust](index=42&type=section&id=Computation%20of%20Income%20from%20the%20Net%20Profits%20Interest%20Received%20by%20the%20Trust) This subsection explains the methodology for computing income from the Net Profits Interest [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) This subsection discusses the Trust's liquidity position and capital availability [Boaz Energy Capital Expenditure Budget](index=44&type=section&id=Boaz%20Energy%20Capital%20Expenditure%20Budget) This subsection outlines Boaz Energy's planned capital expenditures for the Underlying Properties [Off-Balance Sheet Arrangements](index=45&type=section&id=Off-Balance%20Sheet%20Arrangements) This subsection discloses any off-balance sheet arrangements impacting the Trust [New Accounting Pronouncements](index=45&type=section&id=New%20Accounting%20Pronouncements) This subsection addresses the impact of recently issued accounting pronouncements [Critical Accounting Policies and Estimates](index=45&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This subsection describes the Trust's critical accounting policies and estimates - The Trust's only asset and source of income is the **Net Profits Interest**, entitling it to **80% of net profits** from oil and natural gas production from the Underlying Properties. The Trust is **passive** and has **no management control** over operational costs[210](index=210&type=chunk) - In **2024**, Boaz Energy participated in non-operated drilling, recompletion projects, waterflood conformance, and reactivations. For **2025**, Boaz Energy plans to drill new producing wells in the Permian Platform and invest in workovers and waterflood pattern conformance, subject to modification by the successor operator[213](index=213&type=chunk)[214](index=214&type=chunk) Distributable Income (Years Ended December 31) | Metric | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Net profits income | $5,959,482 | $7,127,379 | $13,160,845 | | Interest income | $58,782 | $58,812 | $16,591 | | Total revenue | $6,018,264 | $7,186,191 | $13,177,436 | | Expenditures – general and administrative | ($856,766) | ($923,935) | ($873,480) | | Cash reserves | $0 | $0 | $0 | | **Distributable income** | **$5,161,498** | **$6,262,256** | **$12,303,956** | | Distributable income per unit | $0.424259 | $0.514745 | $1.011357 | - The **decrease** in net profits income for **2024** compared to **2023** was primarily due to **decreased** oil and natural gas sales volumes and prices. General and administrative expenditures **decreased** due to lower legal expenses[219](index=219&type=chunk)[220](index=220&type=chunk)[229](index=229&type=chunk)[230](index=230&type=chunk)[231](index=231&type=chunk) - Boaz Energy's estimated capital budget for **2025** for the Underlying Properties is **$4 million**, primarily for two new drill wells in Crane County (**1** producer, **1** injector), workovers, and waterflood pattern conformance. The **2024** capital expenditure was **$3.8 million**[247](index=247&type=chunk)[248](index=248&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures about Market Risk](index=46&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This item is **not applicable** to the Trust - Quantitative and Qualitative Disclosures about Market Risk are **not applicable**[261](index=261&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=47&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) Presents the Trust's audited financial statements for **2024**, prepared on a modified cash basis, including the auditor's report, statements, and notes [Report of Independent Registered Public Accounting Firm](index=48&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) This subsection presents the independent auditor's report on the Trust's financial statements [Statement of Assets, Liabilities, and Trust Corpus](index=49&type=section&id=Statement%20of%20Assets,%20Liabilities,%20and%20Trust%20Corpus) This subsection provides the Trust's statement of assets, liabilities, and trust corpus [Statements of Distributable Income](index=50&type=section&id=Statements%20of%20Distributable%20Income) This subsection presents the Trust's statements of distributable income [Statements of Changes in Trust Corpus](index=51&type=section&id=Statements%20of%20Changes%20in%20Trust%20Corpus) This subsection details the changes in the Trust's corpus over time [Notes to Consolidated Financial Statements](index=52&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This subsection provides explanatory notes to the Trust's consolidated financial statements - The financial statements were prepared on the modified cash basis of accounting, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America (GAAP)[267](index=267&type=chunk)[289](index=289&type=chunk) Statement of Assets, Liabilities, and Trust Corpus (as of December 31) | Category | 2024 | 2023 | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and Short-Term Investments | $1,612,261 | $1,368,611 | | Net Profits Interests | $72,379,939 | $75,876,170 | | **TOTAL ASSETS** | **$73,992,200** | **$77,244,781** | | **LIABILITIES & TRUST CORPUS** | | | | Distribution Payable to Unitholders | $612,261 | $368,611 | | Cash Reserves | $1,000,000 | $1,000,000 | | Trust Corpus | $72,379,939 | $75,876,170 | | **TOTAL LIABILITIES & TRUST CORPUS** | **$73,992,200** | **$77,244,781** | Statements of Distributable Income (Years Ended December 31) | Metric | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Net Profits Income | $5,959,482 | $7,127,379 | $13,160,845 | | Interest Income | $58,782 | $58,812 | $16,591 | | Total Revenue | $6,018,264 | $7,186,191 | $13,177,436 | | Expenditures – General and Administrative | ($856,766) | ($923,935) | ($873,480) | | **Distributable Income** | **$5,161,498** | **$6,262,256** | **$12,303,956** | | Distributable Income per Unit | $0.424259 | $0.514745 | $1.011357 | Statements of Changes in Trust Corpus (Years Ended December 31) | Metric | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Trust Corpus, Beginning of Period | $75,876,170 | $80,041,113 | $83,821,848 | | Amortization of Net Profits Interest | ($3,496,231) | ($4,164,943) | ($3,780,735) | | Distributable Income | $5,161,498 | $6,262,256 | $12,303,956 | | Distributions Declared | ($5,161,498) | ($6,262,256) | ($12,303,956) | | **Trust Corpus, End of Period** | **$72,379,939** | **$75,876,170** | **$80,041,113** | Reconciliation of Proved Reserve Quantities Attributable to the Trust (as of December 31) | Metric | 2024 (MBoe) | 2023 (MBoe) | 2022 (MBoe) | | :--- | :--- | :--- | :--- | | Balance, Proved Reserves as of Dec 31 | 1,822 | 1,877 | 3,424 | | Revisions of previous estimates | (292) | (1,330) | (572) | | Extensions, discoveries and other additions | — | 165 | 165 | | Production | (347) | (382) | (382) | | **Balance, Proved Reserves as of Dec 31** | **1,822** | **1,877** | **3,424** | | Proved developed reserves | 1,524 | 1,788 | 2,191 | | Proved undeveloped reserves | 298 | 89 | 1,233 | [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=60&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) There have been **no changes in or disagreements** with accountants on accounting and financial disclosure - There have been **no changes in or disagreements** with accountants on accounting and financial disclosure[332](index=332&type=chunk) [Item 9A. Controls and Procedures](index=60&type=section&id=Item%209A.%20Controls%20and%20Procedures) Evaluates the Trust's disclosure controls and procedures, concluding they were **effective** as of December **31**, **2024** - The Trustee concluded that the Trust's disclosure controls and procedures were **effective** as of December **31**, **2024**, relying on information provided by Boaz Energy and the Trust's independent reserve engineers[333](index=333&type=chunk)[334](index=334&type=chunk) - The Trustee concluded that the Trust's internal control over financial reporting was **effective** as of December **31**, **2024**, based on criteria established in the Internal Control-Integrated Framework (**2013**)[336](index=336&type=chunk) - There were no changes in the Trust's internal control over financial reporting during the quarter ended December **31**, **2024**, that materially affected or are reasonably likely to materially affect it[338](index=338&type=chunk) [Item 9B. Other Information](index=60&type=section&id=Item%209B.%20Other%20Information) States there is no other information to disclose, and **no Rule 10b5-1 trading arrangements** or insider trading policies exist - The Trust has **no directors or officers**, and therefore, **no Rule 10b5-1 trading arrangements** were adopted or terminated, nor are there insider trading policies[340](index=340&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=60&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is **not applicable** to the Trust - Disclosure Regarding Foreign Jurisdictions that Prevent Inspections is **not applicable**[339](index=339&type=chunk) [PART III](index=61&type=section&id=PART%20III) This part covers part iii related disclosures [Item 10. Directors, Executive Officers and Corporate Governance](index=61&type=section&id=Item%2010.%20Directors,%20Executive%20Officers%20and%20Corporate%20Governance) The Trust has **no directors or executive officers**, with affairs managed by the Trustee, and relies on the Trustee's standards of conduct - The Trust has **no directors or executive officers**; its affairs are managed by the Trustee, who can only be removed and replaced by a majority vote of Trust unitholders[342](index=342&type=chunk) - Due to the absence of a board of directors, the Trust does not have an audit committee, an audit committee financial expert, or a nominating committee[343](index=343&type=chunk) - The Trust does not have its own code of ethics, with employees of the Trustee (Argent Trust Company) complying with Argent Trust Company's standards of conduct[346](index=346&type=chunk) - Based on review of reports, the Trust believes no beneficial owner of more than ten percent of its Units failed to file any report required by Section **16(a)** on a timely basis during **2023**[345](index=345&type=chunk) [Item 11. Executive Compensation](index=61&type=section&id=Item%2011.%20Executive%20Compensation) The Trust has **no executive officers** or employees, with the Trustee receiving an **annual administrative fee** of **$205,033** in **2024** - The Trust does not have any **executive officers**, directors, or employees, and thus **no executive compensation**[347](index=347&type=chunk) - The Trustee receives an **annual administrative fee**, which was **$205,033** in **2024**, subject to annual escalation as described in Note **6**[347](index=347&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Unitholder Matters](index=61&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Unitholder%20Matters) Outlines security ownership, with Boaz Energy selling its **4,884,861** Trust units and interest to T2S Permian Acquisition II LLC by **March 2025** Security Ownership of Certain Beneficial Owners (as of March 25, 2025) | Name and Address of Beneficial Owner | Title of Class | Amount and Nature of Beneficial Ownership | Percent of Class | | :--- | :--- | :--- | :--- | | Boaz Energy II, LLC, Marshall Eves, and Karan Eves | Trust units | 4,884,861 | 40.2 % | - Boaz Energy has entered into a Purchase and Sale Agreement to sell its **4,884,861** Trust units and its interest in the Underlying Properties to T2S Permian Acquisition II LLC, with closing anticipated by the end of **March 2025**[350](index=350&type=chunk)[352](index=352&type=chunk)[353](index=353&type=chunk)[354](index=354&type=chunk) - As of **March 28, 2025**, Argent Trust Company, the Trustee, has **no beneficial ownership** of or power to vote any of the outstanding Trust units[358](index=358&type=chunk) [Item 13. Certain Relationships and Related Transactions and Director Independence](index=62&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%20and%20Director%20Independence) Related transactions include the Trustee's **annual administrative fee** and a Registration Rights Agreement with Boaz Energy, with the Trust having **no board of directors** - The Trust paid the Trustee **$205,033** in administrative fees in **2024**, with the fee expected to be approximately **$207,081** in **2025**[355](index=355&type=chunk) - The Trust and Boaz Energy are parties to a Registration Rights Agreement, which allows Boaz Energy and its affiliates to demand the Trust effect the registration of their registrable Trust units[356](index=356&type=chunk) - The Trust does not have a board of directors and relies on an exemption from NYSE director independence requirements[359](index=359&type=chunk) [Item 14. Principal Accountant Fees and Services](index=63&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Weaver and Tidwell, L.L.P. served as the principal auditor, with audit fees of **$140,356** in **2024**, and the Trustee approves all services Principal Accountant Fees (Years Ended December 31) | Fee Type | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Audit fees | $140,356 | $124,008 | $80,000 | | Audit-related fees | — | — | — | | Tax fees | — | — | — | | All other fees | — | — | — | | **Total fees** | **$140,356** | **$124,008** | **$80,000** | - The Trustee grants pre-approval and approval for all services performed by the principal auditor, as the Trust has **no audit committee**[360](index=360&type=chunk)[362](index=362&type=chunk) [PART IV](index=64&type=section&id=PART%20IV) This part covers part iv related disclosures [Item 15. Exhibits and Financial Statement Schedules](index=64&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists financial statements included in Part II, Item **8**, and provides a comprehensive list of exhibits - The financial statements are included in Part II, Item **8** of this Annual Report on Form **10-K**[365](index=365&type=chunk) - Financial statement schedules are **omitted** due to the absence of conditions requiring them or because the information is already provided in the financial statements or notes[365](index=365&type=chunk) - Exhibits include the Certificate of Trust, Trust Agreement (original and amended), Description of Trust Units, Conveyance of **Net Profits Interest**, Registration Rights Agreement, Consent of Cawley, Gillespie & Associates, Inc., and various certifications[367](index=367&type=chunk) [Item 16. Form 10-K Summary](index=64&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is **not applicable** - Form **10-K** Summary is **not applicable**[368](index=368&type=chunk) [Signatures](index=65&type=section&id=SIGNATURES) This part covers signatures related disclosures [Signature of Registrant](index=65&type=section&id=Signature%20of%20Registrant) The report is signed by Argent Trust Company, as Trustee, on **March 28, 2025**, with the Trust having **no principal executive officer** or board of directors - The report is signed by Argent Trust Company, as Trustee, by Jana Egeler, VP Trust Administrator, on **March 28, 2025**[371](index=371&type=chunk) - PermRock Royalty Trust has **no principal executive officer**, principal financial officer, board of directors, or persons performing similar functions[371](index=371&type=chunk)

Cash Distribution - PermRock Royalty Trust announced a cash distribution of $489,995.26, equating to $0.040276 per Trust Unit, based on production during November 2024[6] - The cash distribution is payable on February 14, 2025, to record holders as of January 31, 2025[6]

Transaction Overview - Boaz Energy and its affiliate Boaz Royalty entered into a Purchase and Sale Agreement with T2S Permian Acquisition II LLC on January 10, 2025, regarding the sale of the Underlying Properties and 4,884,861 Boaz Trust Units [4] - The Underlying Properties are subject to the Net Profits Interest conveyed to the Trust, which grants the Trust the right to receive 80% of the net profits from oil and natural gas production [4][5] Transaction Details - The Grantors will sell and convey to the Buyer all of Boaz Energy's right, title, and interest in the Underlying Properties, which remain burdened by the Net Profits Interest and subject to the Conveyance [1] - The transaction includes the sale of 4,884,861 Boaz Trust Units representing beneficial interests in the Trust [1] - The Closing is anticipated to occur in March 2025, subject to customary closing conditions being satisfied [2] Post-Transaction Operations - From and after the Closing, the Buyer will own the Underlying Properties and the Boaz Trust Units, and the Buyer (or an affiliate) will become the operator of the Underlying Properties [2] - Boaz Energy will facilitate the transfer of operations of the Underlying Properties from Boaz Energy to the Buyer [3] - Argent Trust Company, as trustee of the Trust, expects to continue the administration of the Trust in the ordinary course of business [3] Company Background - PermRock Royalty Trust is a Delaware statutory trust formed to own a net profits interest representing the right to receive 80% of the net profits from the sale of oil and natural gas production from the Underlying Properties [5]

Cash Distribution - PermRock Royalty Trust announced a cash distribution of $367,645.06, equating to $0.030219 per Trust Unit, based on production in August 2024[3] - The cash distribution is payable to record holders of Trust Units as of October 31, 2024, on November 15, 2024[3]

Core Insights - Prelude Therapeutics announced interim clinical data for PRT2527, a selective CDK9 inhibitor, showing activity in relapsed/refractory lymphoid malignancies, including patients previously treated with CAR-T therapy [1][3] - The company plans to seek a partner for the future development of PRT2527 in hematologic malignancies [1] Clinical Trial Overview - The ongoing open-label, dose-escalation trial involved 46 patients treated and safety evaluable as of September 17, 2024 [2][5] - PRT2527 was well-tolerated across four dosing cohorts for monotherapy and three for combination therapy with zanubrutinib, demonstrating an acceptable safety profile [2][4] Efficacy Results - The overall response rate (ORR) for PRT2527 monotherapy was 17.4%, with complete responses (CRs) in 1 patient and partial responses (PRs) in 3 patients [9] - In the combination cohort, the ORR was 38.5%, with CRs in 3 patients and PRs in 2 patients [10] Safety Profile - The most common treatment-emergent adverse events (TEAEs) included neutropenia (48%) and nausea (33%), with grade ≥3 TEAEs being neutropenia (46%) and anemia (11%) [6] - Dose interruptions due to TEAEs occurred in 17 patients, primarily due to neutropenia, which was managed with growth factor support [7] Future Development Plans - The company intends to focus resources on advancing its SMARCA degrader programs while seeking a partner for the CDK9 program beyond the current Phase 1 study [12] - Prelude Therapeutics is recognized for developing innovative medicines in oncology, with a pipeline that includes novel drug candidates and targeted protein degradation technologies [13]

Cash Distribution - PermRock Royalty Trust announced a cash distribution of $365,300.26, equating to $0.030026 per Trust Unit, payable on October 15, 2024[3] - The cash distribution is based principally on production during July 2024[3]

Core Insights - Prelude Therapeutics announced encouraging interim clinical data for PRT3789, a first-in-class SMARCA2 degrader targeting patients with SMARCA4 mutations, showing objective responses in non-small cell lung cancer (NSCLC) and esophageal cancer [1][5][12] - The drug was well-tolerated with no dose-limiting toxicities reported, and the company is advancing to the 9th dosing cohort in its ongoing Phase 1 trial [3][7][13] Patient Data - As of August 5, 2024, 65 patients were safety evaluable, with 46 patients being efficacy evaluable, all having tumors with SMARCA4 mutations [2][6] - Among 26 advanced NSCLC or esophageal patients evaluable for efficacy, 7 experienced tumor shrinkage, with 3 confirmed partial responses [4][9] Safety Profile - Adverse events reported were mostly mild to moderate, including nausea (24.5%), decreased appetite (18.5%), and fatigue (18.5%), with no serious adverse events related to the study drug [7][3] - A maximum tolerated dose has not yet been identified, and dose escalation continues [3][6] Pharmacokinetics and Pharmacodynamics - Preliminary pharmacokinetic data indicated a dose-dependent increase in exposure, with mean concentrations above the SMARCA2 plasma DC50 for approximately 8 hours at the highest dose [8] - Pharmacodynamic effects showed a 70-75% inhibition of SMARCA2 at higher doses, demonstrating the selectivity of PRT3789 [8] Future Plans - The company aims to confirm the biologically active dose for PRT3789 by year-end and continue studies in combination with docetaxel [5][13] - An investor conference call is scheduled for September 13, 2024, to discuss the findings further [10] Upcoming Presentations - Interim Phase 1 data will be presented at the EORTC-NCI-AACR Symposium on October 24, 2024, highlighting the clinical results of PRT3789 [11] Company Overview - Prelude Therapeutics focuses on developing innovative precision oncology medicines, including first-in-class SMARCA2 degraders, to address high unmet medical needs in cancer treatment [15]