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].

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]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35333 PERMIANVILLE ROYALTY TRUST (Exact name of registrant as specified in its charter) Delaware 45-6259461 (State or other jurisdicti ...

Exhibit 99.1 Permianville Royalty Trust Announces Monthly Cash Distribution HOUSTON, Texas—(BUSINESS WIRE)—September 16, 2024 Permianville Royalty Trust (NYSE: PVL, the "Trust") today announced a cash distribution to the holders of its units of beneficial interest of $0.014000 per unit, payable on October 15, 2024 to unitholders of record on September 30, 2024. The net profits interest calculation represents reported oil production for the month of June 2024 and reported natural gas production during May 20 ...

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].

Exhibit 99.1 Permianville Royalty Trust Announces Monthly Operational Update HOUSTON, Texas—(BUSINESS WIRE)—June 17, 2024 Permianville Royalty Trust (NYSE: PVL, the "Trust") today announced the net profits interest calculation for June 2024. The net profits interest calculation represents reported oil production for the month of March 2024 and reported natural gas production during February 2024. The calculation includes accrued costs incurred in April 2024. As a result of the cumulative outstanding net pro ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35333 PERMIANVILLE ROYALTY TRUST (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or o ...

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[45]. - The Trust's business activities are limited to owning the net profits interest and related activities, with no authority to acquire other oil and natural gas properties[52]. - The Trust has no employees, and administrative functions are performed by the Trustee, who is responsible for collecting cash and distributing it to unitholders[53]. - The Trust is not subject to pre-set termination provisions based on production volume or time, and will dissolve upon certain conditions being met[61]. - The Trustee has the authority to create a cash reserve for future liabilities and may borrow money to cover administrative expenses if necessary[57]. - Trust unitholders are entitled to the same limitation of personal liability as stockholders of private corporations under Delaware law[77]. - The Trust unitholders may transfer their Trust Units without a service charge, but must pay any applicable taxes or governmental charges[74]. - The Trust unitholders have no voting rights and cannot influence the operations of the Underlying Properties[193]. - The Sponsor may transfer properties without Trust unitholder consent, potentially affecting the Trust's net profits[194]. - The Trust must dissolve if annual cash proceeds from the Net Profits Interest are less than $2 million for two consecutive years[198]. - Conflicts of interest may arise between the Sponsor and the Trust, affecting decisions on development and operations[200]. Financial Performance and Distributions - As of December 31, 2023, the cash reserve held by the Trust totaled $941,386, with a targeted cash reserve of approximately $2.3 million being built gradually[58]. - The Trust's income from net profits interest for 2023 included significant contributions from major purchasers, with Phillips 66 accounting for 23%, Pioneer Natural Resources USA for 18%, and Occidental Petroleum for 11%[64]. - Monthly distributions to Trust unitholders are determined based on available funds, which are the excess cash received from net profits and other sources after liabilities are accounted for[71]. - 80% of the aggregate net profits from oil and natural gas production are paid to the Trust monthly, with payments made on or before the end of the following month[84]. - The Trust uses a modified cash basis of accounting, with cash distributions based on the amount received for the corresponding production month[90]. - Trust distributions are directly impacted by future oil and natural gas prices, with lower prices leading to lower distributions and net revenues[67]. - The Trust's cash distributions are highly dependent on oil and natural gas prices, which can fluctuate widely due to various uncontrollable factors[150]. - The Trust's distributions could be reduced by uninsured claims, as the Sponsor's insurance may not cover all liabilities[186]. - The Trust may be treated as an unsecured creditor in the event of the Sponsor's bankruptcy, risking the loss of the Net Profits Interest[192]. - The Trust's distributions may not equal or exceed the purchase price paid by unitholders due to the depleting nature of its assets[208]. Regulatory and Environmental Considerations - The Sponsor believes it is in substantial compliance with all existing environmental laws and regulations, which will not materially affect cash distributions to Trust unitholders[111]. - The regulatory burden on the oil and natural gas industry increases operational costs, potentially affecting profitability[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 under litigation, affecting the Sponsor's regulatory obligations and permitting costs[119]. - The EPA has established new standards for volatile organic compound and methane emissions, requiring reductions from oil and gas sources constructed or modified after December 2022[126]. - The EPA's recent rule lowers the annual standard for fine particulate matter from 12 micrograms per cubic meter to 9 micrograms per cubic meter, impacting the Sponsor's operations[128]. - The Sponsor has developed SPCC plans to prevent and respond to oil spills as required under the Oil Pollution Act[121]. - The Sponsor's operations may face increased costs due to potential restrictions on hydraulic fracturing waste disposal under the Clean Water Act[116]. - The Sponsor's ability to obtain permits may be delayed or prohibited due to stricter implementation of National Ambient Air Quality Standards[129]. - The EPA's proposed Waste Emissions Charge under the Inflation Reduction Act will impose fees based on methane emissions starting in 2024[130]. - The Sponsor's operations may incur additional capital expenditures for air pollution control equipment due to new regulations[129]. - The EPA's new rule adopted in December 2023 will regulate volatile organic compound and methane emissions from new oil and gas sources, requiring further reductions in emissions through various operational controls[131]. - The Waste Emissions Charge will apply to methane emissions exceeding allowable limits, starting at $900 per ton in 2024 and increasing to $1,500 per ton in subsequent years[132]. - More than one-third of states are developing GHG emission inventories and regional cap and trade programs, which could impact smaller sources of emissions in the future[133]. - New regulations may increase operating costs and adversely affect financial conditions for companies involved in oil and natural gas exploration[219]. 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 maintain production levels significantly impacts oil and natural gas prices, affecting cash available for distribution[142]. - The economic disruption from the COVID-19 pandemic has led to lingering supply chain issues and higher inflation, affecting oil and natural gas demand[154]. - A prolonged decline in oil or natural gas prices could lead to reduced production viability and cash distributions to Trust unitholders[155]. - The Trust's financial performance is sensitive to operational risks associated with third-party operators managing the Underlying Properties[165]. - Future maintenance projects on the Underlying Properties may impact the quantity of economically producible reserves[177]. - The concentration of operations in Texas, Louisiana, and New Mexico exposes the Trust to regional operational and regulatory risks[174]. - The accuracy of reserve estimates is inherently uncertain, and actual production may vary significantly from estimates[159]. - The Trust's reserves are depleting assets, and production will diminish over time, impacting future cash distributions[145]. - The absence of hedge contracts for oil and natural gas production exposes the Trust to greater fluctuations in cash available for distribution[157]. - The Trust's operations may incur significant costs due to climate change regulations restricting greenhouse gas emissions[151]. - The bankruptcy of the Sponsor or third-party operators could impede the operation of wells and development of reserves, affecting cash distributions[145]. Taxation and Financial Reporting - The Trust is classified as a grantor trust for U.S. federal income tax purposes, meaning it is not subject to tax at the trust level[100]. - The highest marginal U.S. federal income tax rate applicable to ordinary income is 37%, while the rate for long-term capital gains is generally 20%[103]. - The Trust files annual information returns reporting all items of income, gain, loss, deduction, and credit to Trust unitholders based on record ownership[102]. - Trust unitholders are required to pay taxes on their share of the Trust's income, even if no cash distributions are received[241]. - A substantial portion of any recognized gain may be taxed as ordinary income due to potential recapture items, including depletion recapture[243]. - The Trust's financial statements are prepared on a modified cash basis, differing from GAAP, which may affect the comparability of financial results[203]. - The Trust has not requested a ruling from the IRS regarding its tax treatment, which could lead to complex tax reporting requirements if not classified as a "grantor trust"[236]. Cybersecurity and Legislative Risks - Cybersecurity risks pose a significant threat to the Sponsor's operations, potentially leading to data theft and operational disruptions[232]. - Legislative initiatives related to hydraulic fracturing could increase costs and operational restrictions for the Sponsor[228]. - The SEC's new climate-related disclosure rule mandates extensive reporting on climate-related risks and opportunities for certain public companies[226]. - The physical effects of climate change could disrupt production and increase costs for operators in the oil and gas sector[220].