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].

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 [79]. - The Trust's revenues and cash distributions depend on oil and natural gas sales prices, production volumes, and associated costs [82]. Commodity Prices - The West Texas Intermediate spot price of crude oil decreased from $80.26 per barrel on December 30, 2022, to $77.17 per barrel on November 10, 2023, while the Henry Hub spot price for natural gas fell from $3.52 per MMBtu to $2.71 per MMBtu during the same period [83]. - The average oil price realized decreased by 25% to $78.38 per barrel, while the average natural gas price realized decreased by 49% to $2.48 per Mcf [95]. Financial Performance - For the three months ended September 30, 2023, total gross profits decreased by 18% to $13.99 million compared to $17.12 million in 2022 [94]. - Oil sales for the same period decreased by 7% to $11.50 million, while natural gas sales dropped by 48% to $2.49 million [94]. - Net profits for the three months ended September 30, 2023, were $3.56 million, a decrease of 4% from $3.72 million in 2022 [94]. - For the nine months ended September 30, 2023, total gross profits decreased by 11% to $39.52 million compared to $44.39 million in 2022 [98]. - Natural gas sales for the nine months ended September 30, 2023, decreased by 24% to $9.65 million, while oil sales decreased by 6% to $29.87 million [98]. - Distributable income for the nine months ended September 30, 2023, increased by 4% to $8.94 million compared to $8.56 million in 2022 [98]. Expenses and Liabilities - Lease operating expenses increased by 36% to $6.75 million, primarily due to a settlement related to prior lease operating expenses [94][96]. - The Trust incurs an annual administrative fee of $200,000 to the Trustee and $2,000 to the Delaware Trustee, along with various other operational expenses [107]. - As of September 30, 2023, the Trustee has withheld $841,386 toward a cash reserve for future liabilities [104]. - The Trust has not borrowed any funds since its formation and has not drawn on the $1.2 million letter of credit provided by COERT [105]. - The Trust has no off-balance sheet arrangements or guarantees of debt for other parties [109]. Cash Distributions - The Trust is required to make monthly cash distributions of substantially all its monthly cash receipts after deducting administrative expenses [81]. - The Trust declared a distribution of $0.003700 per unit on October 13, 2023, and a special cash distribution of $0.069670 per unit on the same date [112][113]. - A subsequent distribution of $0.006000 per unit was declared on October 16, 2023, to be paid on November 13, 2023 [113]. - On November 6, 2023, the Trust declared a special cash distribution of $0.077250 per unit, reflecting the remaining 50% of the Trust's share from the sale of Divestiture Properties [114]. Capital Expenditures and Liquidity - Expected capital expenditures for 2023 are projected to be between $8.0 million and $12.0 million, with $6.4 million to $9.6 million net to the Trust's Net Profits Interest [84]. - The Sponsor continues to have access to adequate capital and liquidity to fund capital expenditures as they arise [85]. - The Trust's liquidity is solely dependent on cash reserves and distributions, with no current plans to borrow funds [105]. - The Trust released $1.0 million from the cash reserve for future development expenses during the nine months ended September 30, 2023 [101]. - As of September 30, 2023, the Trust had cash of $1,332,263, an increase from $922,913 as of December 31, 2022 [105]. Market Conditions and Future Outlook - The Sponsor has observed a return of inflationary pressures and operating costs affecting the Underlying Properties, particularly in legacy producing properties in the Permian [85]. - The development activity on the Underlying Properties remained stable during the first nine months of 2023 despite commodity price volatility [83]. - The Sponsor expects further opportunities for prospective divestitures in 2023 and 2024 as operators seek to acquire assets at favorable valuations [86].

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 June 30, 2023 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 jurisdiction of ...

(Exact name of registrant as specified in its charter) 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, 2023 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to PERMIANVILLE ROYALTY TRUST (Registrant's telephone number, including area code) Securities registered pursuant ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 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 jurisdict ...

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, 2022 16 Floor Houston, Texas 77002 (Address of principal executive offices) (Zip Code) 1-512-236-6555 (Registrant's telephone number, including area code) OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission F ...

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 June 30, 2022 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 jurisdiction of ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (I.R.S. Employer Identification No.) 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, 2022 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 oth ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 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 | | --- | --- | | (St ...

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 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 jurisdiction of incorporation or organization) (I.R.S. Emplo ...