Financial Performance - The cumulative outstanding net profits shortfall decreased from approximately $1.1 million to approximately $0.6 million, resulting in no distribution for May 2025[3]. - Recorded oil cash receipts totaled $2.8 million for the current month, consistent with the prior month, while natural gas cash receipts increased by $0.1 million to $1.0 million[5][6]. - Total accrued operating expenses decreased by $0.2 million to $2.1 million, while capital expenditures remained steady at $1.0 million[7]. Production and Pricing - Oil production for January 2025 was reported at 37,927 Bbls, with an average wellhead price of $72.92/Bbl, while natural gas production for December 2024 was 379,445 Mcf at $2.66/Mcf[5][6]. - The Trust owns a net profits interest representing 80% of the net profits from oil and natural gas production from properties in Texas, Louisiana, and New Mexico[9]. Future Distributions - The Trust will not receive proceeds from net profits interest until the cumulative shortfall is eliminated, with expectations of returning to positive net profits in 2025 based on current commodity prices[8]. - Future distributions are expected to fluctuate based on production volumes, oil and gas prices, capital expenditures, and administrative expenses[9]. - The anticipated distribution is influenced by cash received from the Sponsor, which is affected by commodity price volatility[10]. - Low oil and natural gas prices may reduce profits and cash available for distribution, potentially resulting in no distributions in certain periods[10]. Risks and Considerations - The Trust's filings with the SEC detail risks associated with investments in its units, including potential future capital expenditures exceeding historical averages[10].

Financial Performance - The Trust's gross profits for Q1 2025 were $10,572,381, a decrease of 7% compared to $11,393,715 in Q1 2024[82] - The Trust reported a net loss of $3,023,619 for Q1 2025, compared to a profit of $211,715 in Q1 2024, marking a 1,528% decrease[82] - The net loss attributable to the Underlying Properties for the three months ended March 31, 2025 was $(3.0) million, a decrease of $3.2 million from a profit of $0.2 million in the same period in 2024[84] Revenue Breakdown - Oil sales decreased by 12% to $8,530,705, while natural gas sales increased by 21% to $2,041,676[82] - Oil sales decreased by $1.2 million due to a $0.1 million decrease in produced volumes and a $1.1 million decrease in realized prices, with the average oil price received dropping by 11%[84] - Natural gas sales increased by $0.4 million, driven by a $1.1 million increase in produced volumes, although realized prices fell by 27%[84] Operating Expenses - Direct operating expenses increased by 22% to $13,596,000, driven by a 133% rise in development expenses to $7,157,000[82] - Lease operating expenses decreased by $1.9 million compared to the same period in 2024, while development expenses increased by $4.1 million due to higher drilling and completion costs[84] - Compression, gathering, and transportation costs increased by $0.4 million due to new wells coming online during the three months ended March 31, 2025[84] Production Volumes - For the three months ended March 31, 2025, oil production volumes decreased by 1% to 114,380 Bbls compared to 115,343 Bbls in 2024, while natural gas production volumes increased by 66% to 1,180,460 Mcf from 711,124 Mcf[84] Cash and Reserves - The Trust experienced a shortfall of approximately $1.4 million as of March 31, 2025, due to direct operating and development expenses exceeding cash receipts[82] - As of March 31, 2025, the Trust had cash of $2,216,799 available for future expenses, compared to $2,193,787 as of December 31, 2024[88] - The Trustee has withheld $1,241,386 toward a cash reserve for future liabilities as of March 31, 2025, with no amounts withheld during the three months ended March 31, 2025 due to a Net Profits Interest shortfall[87] - The Trust has a $1.2 million letter of credit available for administrative expenses if cash on hand is insufficient[88] Future Outlook - The Sponsor expects capital expenditures for 2025 to be revised to a range of $10.0 million to $15.0 million, up from the previous range of $7.0 million to $13.0 million[74] - The Sponsor continues to maintain cash reserves for future development expenses despite the current macroeconomic uncertainties[72] Market Conditions - Oil prices fluctuated between $57 and $80 per barrel from December 2024 to May 2025, impacting budget planning for several companies[73] - Natural gas prices ranged from $2.93 to $4.49 per MMBtu during the same period, reflecting volatility in the market[73] Development Activity - Development activity on the Underlying Properties increased over 130% in Q1 2025 compared to the same period in 2024[72] - The Trust has not borrowed any funds since its formation and has no current plans to authorize borrowing[88]

Trust Structure and Operations - The Trust holds a net profits interest representing the right to receive 80% of the net profits from oil and natural gas production from certain properties in Texas, Louisiana, and New Mexico[46]. - The Trust is not subject to pre-set termination provisions based on production volume or time, and will dissolve upon specific conditions being met[60]. - The Trust's administrative functions are performed by the Trustee, which has no management control over the operation of the underlying properties[54]. - The Trust's net profits interest is passive, and it is not permitted to acquire other oil and natural gas properties beyond those necessary for the conservation of the net profits interest[53]. - The Trust's marketing of oil and natural gas production is managed by the Sponsor, which cannot charge marketing fees other than those paid to non-affiliates[61]. - The Trust unitholders are entitled to the same limitation of personal liability as stockholders of private corporations under Delaware law[77]. - The Trustee is not obligated to return any cash received from the Net Profits Interest[91]. - The Trust unitholders are not entitled to proceeds from the sale or transfer of the Sponsor's interest in the Underlying Properties[92]. - The Trust's cash distributions may be significantly affected by fluctuations in oil and natural gas prices, with a decline potentially leading to reduced profits and cash available for distribution to unitholders[157]. - The Trust's operations are concentrated in Texas, Louisiana, and New Mexico, making it vulnerable to adverse developments in these regions that could impact cash flows and distributions[175]. - The Trust has not entered into any hedge contracts for oil and natural gas production, exposing it to greater cash flow volatility due to price changes[159]. - The Trust's cash distributions are highly dependent on oil and natural gas prices, which can fluctuate widely due to various uncontrollable factors[153]. - The Trust's cash reserve totaled $1,241,386 as of December 31, 2024, with a targeted cash reserve of approximately $2.3 million being built gradually[58]. - The Trust has established a cash reserve for contingent liabilities, which could reduce net profits and distributions to unitholders[148]. - The Trust has established a cash reserve of approximately $2.3 million, withholding $50,000 monthly from distributions to build this reserve[186]. - As of December 31, 2024, the cumulative cash reserve balance was $1,241,386[186]. - The Trust indirectly bears an 80% share of all costs related to the Underlying Properties, which can reduce cash available for distribution[182]. - If operating and development expenses exceed gross profits, the Trust will not receive net profits until future gross profits exceed these costs[183]. - The Trust's cash distributions may be reduced by uninsured claims, as the Sponsor does not maintain comprehensive insurance for all operational risks[188]. - The Trust may be treated as an unsecured creditor in the event of the Sponsor's bankruptcy, risking the value of the Net Profits Interest[194]. - The Trust unitholders have no voting rights regarding the operations or development of the Underlying Properties, making it a passive investment[195]. - The Trust must dissolve if annual cash proceeds from the Net Profits Interest are less than $2 million for two consecutive years[199]. - Conflicts of interest may arise between the Sponsor and the Trust, potentially impacting cash distributions[200]. - The Trust is classified as a "smaller reporting company," with a market value of less than $250 million as of the end of the most recently completed second fiscal quarter[204]. - The Trust's financial statements are prepared on a modified cash basis, differing from GAAP, which may affect investor analysis[203]. - The Trust Units' average closing price must remain above $1.00 to avoid delisting from the NYSE, with a recent range of $1.55 to $1.395 over a 30-day trading period[206]. - The Trust's market price may not reflect the actual value of the Net Profits Interest due to external factors affecting cash distributions[208]. Financial Performance and Distributions - The Trust distributed remaining proceeds from the net profits interest to unitholders after paying obligations and expenses, with cash held in reserve potentially invested in interest-bearing obligations[59]. - Monthly distributions to Trust unitholders are determined based on available funds after deducting liabilities and reserves[71]. - 80% of the aggregate net profits from oil and natural gas sales will be paid to the Trust monthly[84]. - The Trust uses a modified cash basis of accounting for reporting net profits and expenses[90]. - If net profits for any period are negative, the Trust will receive no payment for that period, and the negative amount will be deducted from future gross profits[88]. - The Trust's income and expenses are recognized for tax purposes in the month received or paid, not when distributed[72]. - The Trust's income from net profits interest is influenced by major purchasers, with Pioneer Natural Resources USA accounting for 23% of sales in 2024 and Phillips 66 for 18%[63]. - The Trust had 33,000,000 Trust Units outstanding as of March 19, 2025[70]. - Actual reserves and future production may be less than current estimates, which could lead to reduced cash distributions and lower Trust Unit values[160]. - Future oil and natural gas prices will directly affect Trust distributions, reserves estimates, and future net revenues[67]. Regulatory and Environmental Considerations - The Sponsor believes it is in substantial compliance with all existing environmental laws and regulations, which may affect profitability and cash distributions to Trust unitholders[111]. - The regulatory burden on the oil and natural gas industry increases operational costs, potentially impacting the Sponsor's financial position[111]. - The Sponsor is subject to liability under CERCLA for hazardous substance releases, which may include costs for cleanup and damages to natural resources[114]. - The Sponsor generates petroleum hydrocarbon wastes classified as hazardous under RCRA, which imposes strict requirements on waste management[114]. - The EPA's 2023 rule on "waters of the United States" is currently in effect in about half of the states, impacting the Sponsor's regulatory obligations and permitting costs[119]. - The Sponsor's operations may face increased costs due to potential restrictions on wastewater disposal from hydraulic fracturing under the CWA[116]. - The EPA's 2024 regulations will require reductions in volatile organic compound and methane emissions from oil and gas sources constructed or modified after December 2022[127]. - The Sponsor has developed SPCC plans to comply with the Oil Pollution Act, which mandates measures to prevent oil spills[122]. - The Texas Railroad Commission announced draft amendments to water protection rules in October 2023, encouraging waste recycling[125]. - The Sponsor may incur capital expenditures for air pollution control equipment due to new air emissions regulations, but these are not expected to materially affect operations[130]. - The 2024 presidential election may influence air quality-related requirements affecting the Sponsor's operations[129]. - The Sponsor's ability to obtain permits may be delayed or prohibited due to stricter NAAQS implementation, impacting operational costs[128]. - The EPA adopted a final rule in 2024 to regulate methane emissions from new oil and gas sources, requiring reductions in GHG emissions through various operational controls[132]. - The Waste Emissions Charge (WEC) will apply to methane emissions exceeding 25,000 tons of CO2 equivalent, starting at $900 per ton in 2024 and increasing to $1,500 per ton in subsequent years[134]. - More than one-third of U.S. states are developing GHG emission inventories and regional cap-and-trade programs, which could impact the Sponsor's operations and financial condition[135]. - Changes in laws and regulations could increase operating costs and adversely affect the financial condition of the operators of the Underlying Properties[219]. - The SEC's final rule on climate-related disclosures mandates extensive reporting on climate risks and emissions, potentially increasing compliance costs for the Sponsor[226]. - New regulations on hydraulic fracturing could increase operational costs and delays, affecting the viability of oil and gas production[228]. - The Inflation Reduction Act of 2022 includes provisions that could impose additional costs and regulatory burdens on the oil and gas sector[223]. - The potential repeal of the EPA's WEC rules by Congress could impact the regulatory landscape for greenhouse gas emissions[223]. - The Sponsor faces uncertainty regarding the impact of climate change regulations on demand for its natural gas products[225]. - The Trust is subject to complex federal, state, and local laws, including environmental regulations, which could adversely affect operational feasibility[156]. - The Trust's operations are subject to stringent environmental laws, which could impose significant costs and liabilities, reducing cash available for distribution[211]. - Cyber-attacks pose significant risks to the Sponsor's IT systems, potentially leading to data theft and operational disruptions[231]. Market and Economic Factors - The oil and natural gas industry is highly competitive, affecting the Trust's net profits interest indirectly due to market conditions[65]. - The ability of OPEC and other oil-exporting nations to manage production levels significantly impacts commodity prices, which could further affect cash distributions to unitholders[163]. - The bankruptcy of the Sponsor or third-party operators could impede well operations and development of proved undeveloped reserves[148]. - The Sponsor's ability to perform obligations may be limited by restrictions under its debt agreements, potentially affecting operations[148]. - The adoption of climate change regulations could increase operating costs and reduce demand for the oil and natural gas produced by the Sponsor[156]. - The Trust is limited in its ability to acquire new properties or interests to replace depleting assets, leading to a gradual decline in cash distributions over time[177]. - Future maintenance projects on the Underlying Properties may be delayed or not undertaken, potentially increasing the rate of production decline beyond current expectations[178].

Financial Performance - In January 2025, the Trust reported a shortfall of approximately $1.3 million due to elevated capital expenditures, resulting in no monthly distribution for February 2025[3] - The cumulative net profits shortfall now totals approximately $2.2 million, which will be deducted from future net profits calculations[8] - Total accrued operating expenses decreased to $2.2 million, while capital expenditures decreased to $2.9 million[7] Production and Pricing - Oil production for the current month was 36,977 barrels, with an average wellhead price of $76.92 per barrel, an increase of $0.2 million from the prior month[5] - Natural gas production was reported at 386,922 Mcf, with an average price of $1.63 per Mcf, down $0.1 million from the prior month[6] Future Outlook - The Trust anticipates that the Underlying Properties will return to generating positive net profits in 2025 based on current commodity prices[8] - Future distributions are expected to fluctuate based on actual production volumes, oil and gas prices, and capital expenditures[9] - The Trust's ability to pay distributions is directly affected by commodity price volatility, which may lead to periods with no distributions[10] Ownership and Reporting - The Trust owns a net profits interest representing 80% of the net profits from oil and natural gas production from predominantly non-operated properties in Texas, Louisiana, and New Mexico[9] - The Trust's quarterly and other filed reports are available on the SEC's website, providing further insights into financial performance and risks[10]

Distribution and Cash Flow - Monthly cash distribution of $0.015000 per unit, payable on November 15, 2024 [1] - Future distributions expected to fluctuate based on production volumes, oil and gas prices, and capital expenditures [5] - Forward-looking statements highlight potential impacts of commodity price volatility and future capital expenditures on distributions [6] Oil Sales and Revenue - Current month oil sales volumes: 52,287 Bbls (1,687 Bbls/D) at an average price of $79.43/Bbl [2] - Oil cash receipts totaled $4.2 million, up $1.2 million from the prior month [2] Natural Gas Sales and Revenue - Current month natural gas sales volumes: 1,105,204 Mcf (36,840 Mcf/D) at an average price of $2.44/Mcf [2] - Natural gas cash receipts totaled $2.7 million, up $2.1 million from the prior month [3] Operating Expenses and Capital Expenditures - Total accrued operating expenses: $3.5 million, a $1.0 million increase month-over-month [3] - Capital expenditures increased to $1.9 million, up $1.6 million from the prior period [3] Cash Reserves and Future Development - $0.5 million withheld from net profits to establish a cash reserve for future development expenses [4]

Development Activity - The Sponsor reported a 150% increase in development activity on the Underlying Properties for the nine-month period ended September 30, 2024, compared to the same period in 2023[48]. - The Sponsor expects a majority of ongoing projects to be completed and begin producing by early 2025[54]. - The Sponsor has established a cash reserve for approved future development expenses expected in the near term[48]. - Development expenses surged by 169% to $17,808,000 for the nine months ended September 30, 2024, due to increased drilling and completion activities[64]. Financial Performance - For the three months ended September 30, 2024, total gross profits increased by 25% to $17,528,195 compared to $13,990,321 in the same period of 2023[56]. - Oil sales rose by 27% to $14,577,415, while natural gas sales increased by 19% to $2,950,780, contributing to the overall growth in gross profits[56]. - Net profits for the three months ended September 30, 2024, surged by 121% to $7,890,195, compared to $3,563,571 in the prior year[56]. - For the nine months ended September 30, 2024, total gross profits increased by 20% to $47,367,438 compared to $39,517,648 in the same period of 2023[64]. - Oil sales for the nine months increased by 34% to $40,037,899, while natural gas sales decreased by 24% to $7,329,539[64]. - Net profits for the nine months ended September 30, 2024, fell by 72% to $3,219,838 compared to $11,380,898 in the same period of 2023[64]. Cash and Liquidity - As of September 30, 2024, the Trust had cash of $1,808,446, an increase from $1,394,697 as of December 31, 2023, including amounts withheld for a cash reserve[72]. - The Trustee has been withholding $50,000 monthly since April 2023 to build a cash reserve, which totaled $1,091,386 as of September 30, 2024[71]. - The Trust has a $1.2 million letter of credit available for administrative expenses if cash on hand is insufficient[72]. - The Trust pays an annual administrative fee of $200,000 to the Trustee and $2,000 to the Delaware Trustee, along with other operational expenses[76]. - The Trust has not borrowed any funds since its formation and has no off-balance sheet arrangements[78]. - The Trust's only use of cash, aside from administrative expenses, is for distributions to Trust unitholders[70]. - The Trust's cash reserves may be invested in interest-bearing obligations of the U.S. government or money market funds[75]. Market Conditions - The West Texas Intermediate spot price of crude oil improved from $71.89 per barrel on December 31, 2023, to $69.58 per barrel on October 31, 2024[49]. - Natural gas prices declined year-over-year, with the Henry Hub spot price decreasing from $2.58 per MMBtu on December 31, 2023, to $1.82 per MMBtu on October 31, 2024[49]. - The average oil price realized decreased by 1% to $79.56 per barrel, while the average natural gas price realized dropped by 52% to $1.97 per Mcf[65]. Operational Expenses - Lease operating expenditures per barrel of oil equivalent declined for the nine months ended September 30, 2024, compared to the same period in 2023[51]. - Lease operating expenses increased by 15% to $20,733,000 for the nine months ended September 30, 2024, compared to $17,956,000 in the same period of 2023[64]. - For the nine months ended September 30, 2024, the Trust withheld $0.5 million and paid $0.7 million for general and administrative expenses, compared to $1.2 million withheld and $0.8 million paid in the same period of 2023[69]. Strategic Opportunities - There are potential opportunities for divestitures and/or leasing of some or all of the Underlying Properties as certain operators look to acquire assets[52]. - Four wells in the Haynesville area began paying revenues from first production during the three months ended September 30, 2024[54]. Accounting Policies - There were no material changes to the Trust's critical accounting policies or estimates during the nine months ended September 30, 2024[79].

Distribution Information - Permianville Royalty Trust announced a cash distribution of $0.014000 per unit, payable on October 15, 2024[1]. Production Data - Current month oil production was reported at 38,579 Bbls, down from 41,469 Bbls in the prior month, representing a decrease of approximately 4.5%[2]. - Natural gas production for the current month was 374,304 Mcf, a decrease from 394,278 Mcf in the prior month, reflecting a decline of about 5.1%[2]. Revenue and Cash Receipts - Recorded oil cash receipts totaled $3.0 million for the current month, down $0.3 million from the prior month, indicating a decrease of approximately 9.1%[3]. - Natural gas cash receipts increased to $0.6 million, up $0.1 million from the prior month, representing a rise of approximately 20%[3]. Expenses and Capital Expenditures - Total accrued operating expenses for the period were $2.5 million, an increase of $0.6 million month-over-month, or about 31.6%[3]. - Capital expenditures decreased to $0.4 million, down $0.2 million from the prior period, indicating a reduction of 33.3%[3]. Trust Structure and Future Outlook - The Trust owns a net profits interest representing the right to receive 80% of the net profits from oil and natural gas production from properties in Texas, Louisiana, and New Mexico[4]. - Future distributions are expected to fluctuate based on production volumes, oil and gas prices, and capital expenditures[4]. - The Trust's ability to pay distributions may be affected by commodity price volatility and other factors beyond its control[5].

Revenue and Profitability - In July 2024, revenues exceeded direct operating and development expenses, allowing the Trust to fully repay approximately $3.3 million in Net Profits Interest shortfall[30]. - The Trust declared a distribution of $0.0110000 per unit to unitholders, payable on August 14, 2024[30]. - For the three months ended June 30, 2024, oil sales increased by 82% to $15,754,950 compared to $8,639,804 in the same period of 2023[47]. - Total gross profits for the three months ended June 30, 2024, were $18,445,528, a 63% increase from $11,331,321 in 2023[47]. - Net profits attributable to the Underlying Properties for the three months ended June 30, 2024, were $(4.9) million, a decrease from $2.9 million in 2023[50]. - For the six months ended June 30, 2024, oil sales totaled $25,460,484, a 39% increase from $18,369,023 in the same period of 2023[55]. - Total gross profits for the six months ended June 30, 2024, were $29,839,243, reflecting a 17% increase from $25,527,327 in 2023[55]. - The Trust reported a Net Profits Interest shortfall of $(4.7) million for the six months ended June 30, 2024, compared to a profit of $7.8 million in the same period of 2023[58]. Sales and Production - Natural gas sales remained stable at $2,690,578, showing a negligible decrease of 0% from $2,691,517 in the prior year[47]. - Natural gas sales for the six months ended June 30, 2024, decreased by 39% to $4,378,759 from $7,158,304 in 2023[55]. - Natural gas sales decreased by $2.8 million primarily due to a 54% decrease in realized gas prices, despite a 33% increase in gas sales volumes which contributed an additional $2.3 million in revenues[59]. - Fifteen wells in Midland began paying revenues in the second quarter of 2024 following the completion of pending title work[45]. Expenses and Costs - Development expenditures for the six-month period ended June 30, 2024 increased over 300% compared to the same period in 2023[39]. - Direct operating expenses for the same period increased by 180% to $23,474,000, up from $8,385,000 in 2023[47]. - Lease operating expenses increased by $3.8 million for the six months ended June 30, 2024, compared to the same period in 2023[59]. - Compression, gathering, and transportation costs increased by $0.8 million due to new wells coming online during the six months ended June 30, 2024[59]. - Production, ad valorem, and other taxes increased by $0.6 million during the six months ended June 30, 2024, due to higher oil and natural gas production volumes[61]. Liquidity and Financial Position - The Trust had cash of $1,519,676 as of June 30, 2024, compared to $1,394,697 as of December 31, 2023, including amounts withheld for a cash reserve[64]. - The Trustee has withheld $991,386 toward a cash reserve as of June 30, 2024, to cover future liabilities[63]. - COERT has provided a $1.2 million letter of credit to the Trust for administrative expenses if cash on hand is insufficient[64]. - An outstanding advance of $527,076 was recorded as of June 30, 2024, compared to $0 at December 31, 2023[66]. - The Trust's principal sources of liquidity are cash flow from the Net Profits Interest and borrowing capacity under the letter of credit[62]. Market Conditions - The West Texas Intermediate spot price of crude oil improved from $71.89 per barrel on December 31, 2023 to $74.99 per barrel on August 2, 2024[39]. - Natural gas prices declined year-over-year, with the Henry Hub spot price decreasing from $2.58 per MMBtu on December 31, 2023 to $1.89 per MMBtu on August 2, 2024[39]. - The Sponsor observed a stabilization of inflationary pressures and operating costs, with a slight decline in lease operating expenditures per barrel of oil equivalent for the six months ended June 30, 2024 compared to the same period in 2023[42]. - The Sponsor revised its 2024 capital spend outlook to $18.0 million to $23.0 million, netting $14.4 million to $18.4 million for the Trust's Net Profits Interest[40]. - The Sponsor leased approximately $0.1 million in non-producing acreage to two private oil companies for upfront cash payments and future royalty revenues[46].

Financial Performance - The cumulative outstanding net profits shortfall decreased from approximately $3.9 million to $3.3 million, resulting in no distribution for July 2024[3]. - Recorded oil cash receipts totaled $3.4 million, up $0.5 million from the prior month, while natural gas cash receipts reached $1.0 million, an increase of $0.4 million[6]. - Total accrued operating expenses rose to $2.8 million, reflecting a $0.5 million month-over-month increase, while capital expenditures increased to $0.9 million[7]. Production Metrics - Oil production for the current month was reported at 43,568 Bbls, an increase from 38,824 Bbls in the prior month, with average wellhead prices rising to $77.57/Bbl from $74.93/Bbl[5]. - Natural gas production increased to 599,059 Mcf from 253,759 Mcf, with average prices dropping to $1.66/Mcf from $2.43/Mcf[5]. Distribution Outlook - The Trust will not receive proceeds from net profits interest until the cumulative shortfall is eliminated, with expectations of returning to positive net profits later in 2024[8]. - The Trust is structured to receive 80% of net profits from oil and gas production from properties in Texas, Louisiana, and New Mexico, with distributions expected to fluctuate based on production volumes and commodity prices[9]. - Future distributions may be impacted by volatility in commodity prices, which can significantly affect cash available for distribution to unitholders[10]. - The Trust's ability to pay distributions may be affected by increased capital expenditures exceeding average levels experienced in previous periods[10]. - The Trust's filings with the SEC detail risks associated with investments, including potential no distributions in certain periods due to low oil and natural gas prices[10].

Trust Assets and Revenue - The Trust's only asset is the net profits interest, which entitles it to receive 80% of the net profits from oil and natural gas production from specific properties in Texas, Louisiana, and New Mexico [66]. - The Trust's revenues and cash distributions depend on oil and natural gas sales prices, production volumes, and development costs [71]. - Net profits attributable to the Underlying Properties for Q1 2024 were $0.2 million, a decrease of 96% from $4.9 million in Q1 2023 [84]. - Total gross profits for Q1 2024 were $11.4 million, down 20% from $14.2 million in Q1 2023, primarily due to a 62% decrease in natural gas sales [82]. - Oil sales remained stable at $9.7 million, while natural gas sales fell to $1.7 million in Q1 2024 [85]. Market Conditions and Price Fluctuations - Development activity on the Underlying Properties declined over 50% in Q1 2024 compared to the same period in 2023 due to commodity price volatility, particularly in the Haynesville area [73]. - The West Texas Intermediate spot price of crude oil increased from $71.89 per barrel on December 31, 2023, to $80.10 per barrel on May 6, 2024, while natural gas prices decreased from $2.58 per MMBtu to $1.88 per MMBtu in the same period [73]. - The Sponsor has observed a material decline in year-over-year spending activity in the Haynesville portion of the Underlying Properties due to low natural gas prices [74]. - Average realized oil prices decreased by 3% to $84.14 per barrel, while natural gas prices realized dropped by 63% to $2.37 per Mcf [83]. Expenses and Financial Management - Lease operating expenses increased by 16% to $6.6 million in Q1 2024, influenced by a settlement related to prior lease operating expenses [85]. - Development expenses rose by $0.5 million in Q1 2024 due to costs associated with drilling new wells in the Permian area [86]. - The Trust did not make any distributions to unitholders during Q1 2024 due to cumulative net profits shortfall [84]. - The Trust is required to make monthly cash distributions of substantially all its monthly cash receipts after deducting administrative expenses [68]. - The Trust's cash reserves as of March 31, 2024, amounted to $1,533,284, compared to $1,394,697 at the end of 2023 [89]. - The Trust has a $1.2 million letter of credit available for administrative expenses, with no borrowings or draws made to date [89]. Future Outlook and Opportunities - The anticipated capital expenditure range for the Underlying Properties is $5.0 million to $9.0 million, or $4.0 million to $7.2 million net to the Trust's Net Profits Interest [74]. - The Sponsor believes there could be further opportunities for divestitures or leasing of Underlying Properties in 2024 as operators seek to acquire oil-weighted assets [76]. - Two wells in Midland and nine wells in Delaware began paying revenues during Q1 2024, with additional projects expected to complete and start producing during the year [80]. - The Sponsor has seen a moderate stabilization of inflationary pressures and operating costs affecting the Underlying Properties in early 2024 [75].