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].

Financial Performance - For the three months ended June 30, 2023, total gross profits decreased by 20% to $11.33 million compared to $14.18 million in the same period of 2022 [90]. - Oil sales decreased by 14% to $8.64 million, while natural gas sales decreased by 36% to $2.69 million, leading to a total net profit decrease of 44% to $2.95 million [90]. - For the six months ended June 30, 2023, total gross profits decreased by 6% to $25.53 million compared to $27.27 million in the same period of 2022 [93]. - Net profits for the six months ended June 30, 2023 were $7.82 million, a decrease of 17% from $9.46 million in the same period of 2022 [94]. - The Trust's distributable income for the six months ended June 30, 2023 increased by 16% to $6.47 million compared to $5.56 million in the same period of 2022 [93]. Production and Sales - Oil production volumes decreased by 11% to 225,538 barrels, and natural gas production volumes decreased by 22% to 1,327,294 Mcf for the six months ended June 30, 2023 [93]. - The average realized oil price decreased to $76.28 per barrel, down from $78.03 per barrel, while the average realized natural gas price decreased to $4.23 per Mcf from $4.72 per Mcf [91]. Capital Expenditures and Liquidity - The Trust's capital spending outlook has been updated to a range of $8.0 million to $12.0 million, up from the previous range of $6.0 million to $9.0 million, reflecting increased activity in the Permian basin [80]. - The Trust's principal sources of liquidity are cash flow from the Net Profits Interest and borrowing capacity under a letter of credit [96]. - As of June 30, 2023, the Trust had cash of $1,240,033, an increase from $922,913 as of December 31, 2022 [99]. - The Trust has a $1.2 million letter of credit provided by COERT to cover administrative expenses if cash on hand is insufficient [99]. - The Trustee has established a cash reserve of approximately $2.3 million for future liabilities, with $666,053 withheld as of June 30, 2023 [98]. Distributions - The Trust is required to make monthly cash distributions of substantially all its monthly cash receipts after deducting administrative expenses [76]. - On July 14, 2023, the Trust paid a distribution of $0.012500 per unit to unitholders of record as of June 30, 2023 [106]. - A subsequent distribution of $0.053500 per unit was declared on July 17, 2023, for unitholders of record as of July 31, 2023 [106]. Market Conditions - The West Texas Intermediate spot price of crude oil increased from $80.26 per barrel on December 30, 2022, to $82.82 per barrel on August 10, 2023, while natural gas prices decreased from $3.52 per MMBtu to $2.83 per MMBtu in the same period [79]. - The overall outlook for development activity on the Underlying Properties remained stable during the first half of 2023 despite commodity price volatility [79]. - The Sponsor has begun to see moderation in inflationary pressures and supply chain bottlenecks affecting the Underlying Properties [81]. Asset and Ownership Structure - 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 the Underlying Properties [74]. - The Trust's revenues and cash distributions depend on oil and natural gas sales prices, production volumes, and associated costs [78]. Other Financial Information - A cash revenue catch-up of approximately $3.7 million, or about $2.9 million net to the Trust's Net Profits Interest, was recognized from three wells that began generating revenues in 2022 but were finalized in 2023 [85]. - The Sponsor sold non-producing acreage for approximately $0.3 million, with the Trust's share amounting to about $240,000, to be included in the distribution on August 14, 2023 [88]. - The divestiture of certain acreage in the Permian Basin was completed for a total purchase price of approximately $6.7 million, with net proceeds expected to be distributed to Trust unitholders by September 22, 2023 [89]. - Development expenses increased by 28% to $4.21 million due to drilling and completion costs for new wells in the Permian area [93]. - 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 [102]. - There are no off-balance sheet arrangements or guarantees of debt for the Trust [104]. - The Trust has no transactions or relationships with unconsolidated entities that could affect liquidity or capital resources [103]. - There were no material changes to the Trust's critical accounting policies or estimates during the three months ended June 30, 2023 [105]. - COERT may advance funds to the Trust for administrative expenses if cash on hand is insufficient, with no outstanding balance as of the reporting dates [100].

[Glossary of Certain Oil and Natural Gas Terms](index=4&type=section&id=Glossary%20of%20Certain%20Oil%20and%20Natural%20Gas%20Terms) This glossary defines key oil and natural gas terms, units of measurement, accounting principles, and operational concepts - The glossary defines significant terms used in the report, including units of measurement for oil and natural gas (**Bbl**, **Boe**, **Mcf**, **MBbl**, **MBoe**, **MMcf**, **MMBoe**), accounting principles (**GAAP**), and operational terms (**Completion**, **Differential**, **Field**, **Net profits interest**, **Plugging and abandonment**, **Reservoir**, **Working interest**)[10](index=10&type=chunk)[11](index=11&type=chunk)[21](index=21&type=chunk) [PART I — FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section provides the Trust's unaudited financial statements and comprehensive notes for the three months ended March 31, 2023 and 2022 [Statements of Assets, Liabilities and Trust Corpus](index=5&type=section&id=Statements%20of%20Assets%2C%20Liabilities%20and%20Trust%20Corpus) | ASSETS / LIABILITIES AND TRUST CORPUS | March 31, 2023 (unaudited) | December 31, 2022 | | :------------------------------------ | :------------------------- | :------------------ | | Cash and cash equivalents | **$958,007** | **$922,913** | | Net profits interest in oil and natural gas properties, net | **$58,483,473** | **$59,641,632** | | Total assets | **$59,441,480** | **$60,564,545** | | Trust corpus | **$59,441,480** | **$60,564,545** | | Total liabilities and Trust corpus | **$59,441,480** | **$60,564,545** | [Statements of Distributable Income](index=6&type=section&id=Statements%20of%20Distributable%20Income) | Income/Expense Item | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :---------------------------------- | :-------------------------------- | :-------------------------------- | | Income from net profits interest | **$4,796,805** | **$3,224,801** | | Income from sale of assets | – | **$130,030** | | Interest and investment income | **$12,428** | **$5** | | General and administrative expenses | (**$209,719**) | (**$378,538**) | | Cash reserves used (withheld) for Trust expenses | (**$35,095**) | (**$208,117**) | | Distributable income | **$4,395,600** | **$2,937,000** | | Distributable income per unit | **$0.133200** | **$0.089000** | [Statements of Changes in Trust Corpus](index=7&type=section&id=Statements%20of%20Changes%20in%20Trust%20Corpus) | Item | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :---------------------------------------- | :-------------------------------- | :-------------------------------- | | Trust corpus, beginning of period | **$60,564,545** | **$65,192,767** | | Cash reserves withheld for Trust expenses | **$35,095** | **$208,117** | | Distributable income | **$4,395,600** | **$2,937,000** | | Distributions to unitholders | (**$4,395,600**) | (**$2,937,000**) | | Amortization of net profits interest | (**$1,158,160**) | (**$1,371,100**) | | Trust corpus, end of period | **$59,441,480** | **$64,029,784** | [Notes to Financial Statements](index=8&type=section&id=Notes%20to%20Financial%20Statements) [1. Trust Organization and Provisions](index=8&type=section&id=1.%20TRUST%20ORGANIZATION%20AND%20PROVISIONS) - Permianville Royalty Trust (formerly Enduro Royalty Trust) is a Delaware statutory trust formed in May 2011 to acquire and hold a Net Profits Interest, representing the right to receive **80% of net profits** from oil and natural gas production from certain properties in Texas, Louisiana, and New Mexico[37](index=37&type=chunk)[38](index=38&type=chunk) - The Trust's business activities are limited to owning the Net Profits Interest and related activities; it cannot acquire other properties or engage in activities beyond conservation and protection of the Net Profits Interest[39](index=39&type=chunk) - The Trust will dissolve if annual cash proceeds from the Net Profits Interest are **less than $2 million** for two consecutive years, or upon unitholder approval (**75%** for asset sale, **50%** for Sponsor property sale), or judicial dissolution[39](index=39&type=chunk)[46](index=46&type=chunk) [2. Basis of Presentation](index=9&type=section&id=2.%20BASIS%20OF%20PRESENTATION) - The unaudited interim financial statements are prepared pursuant to SEC rules and regulations, using a modified cash basis of accounting, which differs from GAAP primarily because revenues and certain expenses are recorded when cash is received or paid, and amortization/impairment are charged directly to Trust corpus[41](index=41&type=chunk)[44](index=44&type=chunk)[49](index=49&type=chunk) - This modified cash basis is considered most meaningful for royalty trusts as monthly distributions to unitholders are based on net cash receipts, aligning with SEC Staff Accounting Bulletin Topic 12:E[49](index=49&type=chunk)[50](index=50&type=chunk) [3. Net Profits Interest in Oil and Natural Gas Properties](index=10&type=section&id=3.%20NET%20PROFITS%20INTEREST%20IN%20OIL%20AND%20NATURAL%20GAS%20PROPERTIES) - The Net Profits Interest is amortized on a unit-of-production basis, charged directly to the Trust corpus, and does not affect distributable income. Accumulated amortization was **$298,607,686** as of March 31, 2023, and **$297,449,526** as of December 31, 2022[51](index=51&type=chunk) - The Net Profits Interest is periodically assessed for impairment, though no impairment was recorded in Q1 2023 or Q1 2022. Future downward revisions in production, higher operating costs, or lower commodity prices could trigger impairment recognition[52](index=52&type=chunk) [4. Income Taxes](index=10&type=section&id=4.%20INCOME%20TAXES) - For federal income tax purposes, the Trust is a grantor trust, meaning it is not taxed at the trust level; unitholders are taxed directly on their pro rata share of income and gains and can claim deductions, including depletion[53](index=53&type=chunk)[54](index=54&type=chunk) - The Trust's income from Louisiana and New Mexico sources may be subject to state corporate income tax for unitholders organized as corporations, while Texas imposes a franchise tax on taxable entities, though the Trust itself is intended to be exempt as a 'passive entity'[58](index=58&type=chunk)[59](index=59&type=chunk) [5. Distributions to Unitholders](index=11&type=section&id=5.%20DISTRIBUTIONS%20TO%20UNITHOLDERS) - The Trustee determines monthly distributions based on excess cash received from the Net Profits Interest and other sources, minus liabilities and adjustments for cash reserves. Distributions are made to unitholders of record by the 10th business day after the record date[61](index=61&type=chunk) | Period | Distribution per Unit | | :-------------------------- | :-------------------- | | Year to Date – 2023 | **$0.133200** | | Year to Date – 2022 | **$0.089000** | [6. Trustee Fees](index=12&type=section&id=6.%20TRUSTEE%20FEES) - The Trust pays an annual administrative fee of **$200,000** to the Trustee and **$2,000** to the Delaware Trustee. For the three months ended March 31, 2023 and 2022, **$50,000** was paid to the Trustee[64](index=64&type=chunk) [7. Subsequent Events](index=12&type=section&id=7.%20SUBSEQUENT%20EVENTS) - Post-quarter distributions: **$0.019350 per unit** paid on April 14, 2023, and **$0.030000 per unit** declared on April 17, 2023, paid on May 12, 2023[65](index=65&type=chunk) - Proposed Property Divestitures: The Sponsor entered an agreement to divest certain Permian Basin acreage for approximately **$6.7 million**, which constitutes part of the Underlying Properties. A special unitholder meeting will be held to approve the release of the Net Profits Interest related to these properties, with unitholders receiving **80%** of the net proceeds[66](index=66&type=chunk)[67](index=67&type=chunk) - The Divestiture Properties historically represented **less than 6%** of total proved reserves and **less than 5%** of the PV-10 of the Underlying Properties at December 31, 2022[66](index=66&type=chunk) [Item 2. Trustee's Discussion and Analysis of Financial Condition and Results of Operations](index=14&type=section&id=Item%202.%20Trustee%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The Trustee analyzes the Trust's financial condition, operational results, and liquidity, including factors affecting distributions and future outlook [Forward-Looking Statements](index=14&type=section&id=Forward-Looking%20Statements) - The report contains forward-looking statements subject to risks that could cause actual outcomes to differ materially, including drilling and operational risks, commodity price changes, regulatory actions, and global economic factors like the Russia-Ukraine conflict and the COVID-19 pandemic[72](index=72&type=chunk)[73](index=73&type=chunk) - The Trust does not undertake to publicly revise forward-looking statements unless required by securities laws[74](index=74&type=chunk)[75](index=75&type=chunk) [Overview](index=15&type=section&id=Overview) - Permianville Royalty Trust's sole asset and income source is the Net Profits Interest, entitling it to **80% of net profits** from oil and natural gas production from Underlying Properties. The Trust is passive and has no management control over operations[76](index=76&type=chunk) - Monthly cash distributions are made to unitholders after deducting administrative expenses. The amount of Trust revenues and distributions depends on oil/natural gas sales prices, production volumes, costs, price differentials, and administrative expenses[78](index=78&type=chunk)[80](index=80&type=chunk) [Outlook](index=16&type=section&id=Outlook) - The outlook for development activity on the Underlying Properties remained stable in Q1 2023 despite a quarter-over-quarter decline in commodity prices, with the Sponsor not expecting a material impact on 2023 development activity[81](index=81&type=chunk) | Commodity | Price on Dec 30, 2022 | Price on May 11, 2023 | Change | | :-------- | :-------------------- | :-------------------- | :----- | | WTI Crude | **$80.26/barrel** | **$70.78/barrel** | **-11.7%** | | Henry Hub | **$3.52/MMBTU** | **$2.12/MMBTU** | **-39.8%** | - The Sponsor expects capital spending to remain within **$6.0 million** to **$9.0 million** (**$4.8 million** to **$7.2 million** net to the Trust's **80% Net Profits Interest**) and anticipates moderation in inflationary pressures and supply chain bottlenecks[82](index=82&type=chunk) [Capex Drilling Activity Update](index=16&type=section&id=Capex%20Drilling%20Activity%20Update) | Operator | Region | Number of Wells | Underlying Properties Working Interest | Cumulative Project (in thousands) | Status | | :-------------- | :---------- | :-------------- | :----------------------------------- | :-------------------------------- | :----------------------------------- | | Large Cap Major | Haynesville | 2 | **2.5%** D&C New Drills | **$37** | 1 Drilled, Awaiting First Revenues; 1 Pre Drill | | Large Cap E&P 1 | Midland | 10 | **6.9%** D&C New Drills | **$3,911** | 5 Producing, Awaiting First Revenues; 5 Drilling In-Process/Pre Drill | | Large Cap E&P 2 | Permian | N/A (Field) | **0.8%** New Drills / Workovers | **$69** | In-process/Continual Program | | PE-Backed Private 1 | Delaware | 4 | **5.4%** D&C New Drills | **$515** | 4 Drilling In-Process | | PE-Backed Private 2 | Delaware | 9 | **0.9%** D&C New Drills | **$251** | 3 Producing, Awaiting First Revenues; 6 Pre-Drill | | Large Cap E&P 3 | Midland | 4 | **3.4%** D&C New Drills | - | Pre-Drill | | Private E&P 2 | Haynesville | 3 | **3.6%** Refrac | **$640** | 3 In-Process | - A majority of the identified capital projects that are still in process or awaiting first revenues are expected to be completed and begin producing during 2023[87](index=87&type=chunk) [Special Meeting of Unitholders to Consider Property Divestitures](index=17&type=section&id=Special%20Meeting%20of%20Unitholders%20to%20Consider%20Property%20Divestitures) - A special meeting of unitholders will be held in 2023 to approve the Sponsor's sale of Divestiture Properties, the Trust's release of related Net Profits Interest, and the distribution of net proceeds to unitholders. Amendments to the Trust Agreement and Conveyance to raise voting thresholds for similar future transactions will also be considered[88](index=88&type=chunk) - The Trustee makes no recommendation on these proposals and advises unitholders to review the definitive proxy statement[88](index=88&type=chunk)[69](index=69&type=chunk) [Results of Operations](index=17&type=section&id=Results%20of%20Operations) [Three Months Ended March 31, 2023 Compared to Three Months Ended March 31, 2022](index=17&type=section&id=Three%20Months%20Ended%20March%2031%2C%202023%20Compared%20to%20Three%20Months%20Ended%20March%2031%2C%202022) | Item | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | Increase (Decrease) | | :---------------------------------------------- | :-------------------------------- | :-------------------------------- | :------------------ | | Gross profits: | | | | | Oil sales | **$9,729,219** | **$9,387,220** | **4%** | | Natural gas sales | **$4,466,787** | **$3,707,288** | **20%** | | Total Gross Profits | **$14,196,006** | **$13,094,508** | **8%** | | Costs: | | | | | Lease operating expenses | **$5,694,000** | **$5,158,000** | **10%** | | Compression, gathering and transportation | **$238,000** | **$809,000** | (**71%**) | | Production, ad valorem and other taxes | **$789,000** | **$1,173,000** | (**33%**) | | Development expenses | **$2,604,000** | **$1,891,000** | **38%** | | Total Costs | **$9,325,000** | **$9,031,000** | **3%** | | Gross proceeds from sale of assets | – | **$130,030** | (**100%**) | | Net profits | **$4,871,006** | **$4,193,538** | **16%** | | Net profits allocable to Net Profits Interest | **$3,896,805** | **$3,354,831** | **16%** | | Plus: Sponsor reserve release for capital expenditures | **$900,000** | – | **100%** | | Less: Trust general and administrative expenses and cash withheld for expenses | (**$401,205**) | (**$417,831**) | (**4%**) | | Distributable income | **$4,395,600** | **$2,937,000** | **50%** | | Production Volumes / Average Prices | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | Increase (Decrease) | | :-------------------------------------------- | :-------------------------------- | :-------------------------------- | :------------------ | | Underlying Properties Production Volumes: | | | | | Oil (Bbls) | **112,271** | **125,837** | (**11%**) | | Natural Gas (Mcf) | **690,533** | **820,646** | (**16%**) | | Combined (Boe) | **227,360** | **262,611** | (**13%**) | | Average Prices: | | | | | Oil - NYMEX (applicable NPI period) ($/Bbl) | **$85.07** | **$77.14** | **10%** | | Differential | **$1.59** | (**$2.54**) | (**162%**) | | Oil prices realized ($/Bbl) | **$86.66** | **$74.60** | **16%** | | Natural gas - NYMEX (applicable NPI period) ($/Mcf) | **$8.30** | **$4.75** | **75%** | | Differential | (**$1.83**) | (**$0.23**) | **683%** | | Natural gas prices realized ($/Mcf) | **$6.47** | **$4.52** | **43%** | - Net profits attributable to the Underlying Properties increased by **$0.5 million** (**16%**) from Q1 2022 to Q1 2023, primarily due to higher realized oil and natural gas prices, despite decreased production volumes. Oil sales increased **4%** due to higher prices (**+16%**) offsetting lower volumes (**-11%**). Natural gas sales increased **20%** due to higher prices (**+43%**) offsetting lower volumes (**-16%**)[90](index=90&type=chunk)[91](index=91&type=chunk) - Lease operating expenses increased by **$0.5 million** (**10%**) due to more producing wells, while compression, gathering, and transportation costs decreased by **$0.6 million** (**71%**) due to lower natural gas volumes. Development expenses increased by **$0.7 million** (**38%**) for new drilling and completion costs[91](index=91&type=chunk) [Liquidity and Capital Resources](index=19&type=section&id=Liquidity%20and%20Capital%20Resources) - The Trust's primary liquidity sources are cash flow from the Net Profits Interest and a **$1.2 million** letter of credit from COERT. Cash on hand was **$958,007** as of March 31, 2023, and **$922,913** as of December 31, 2022[94](index=94&type=chunk)[96](index=96&type=chunk) - The Trustee is building a cash reserve for future liabilities, withholding **$50,000 monthly** from distributions starting April 2023, aiming for approximately **$2.3 million**. As of March 31, 2023, **$516,053** had been withheld[95](index=95&type=chunk) - If cash is insufficient, the Trustee may authorize borrowing, or COERT has agreed to loan funds. No funds have been borrowed or drawn on the letter of credit since the Trust's formation[96](index=96&type=chunk) [Off-Balance Sheet Arrangements](index=20&type=section&id=Off-Balance%20Sheet%20Arrangements) - The Trust has no off-balance sheet arrangements, has not guaranteed any debt, and has no relationships that could result in unconsolidated debt, losses, or contingent obligations[100](index=100&type=chunk) [Critical Accounting Policies and Estimates](index=20&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) - There were no material changes to the Trust's critical accounting policies or estimates during the three months ended March 31, 2023[101](index=101&type=chunk) [Subsequent Events](index=20&type=section&id=Subsequent%20Events) - Distributions paid or declared after March 31, 2023: **$0.019350 per unit** paid on April 14, 2023, and **$0.030000 per unit** declared on April 17, 2023, paid on May 12, 2023[102](index=102&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=20&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Permianville Royalty Trust is exempt from providing the quantitative and qualitative disclosures about market risk typically required by this Item - The Trust is not required to provide information on quantitative and qualitative disclosures about market risk as it qualifies as a "smaller reporting company" under SEC regulations[103](index=103&type=chunk) [Item 4. Controls and Procedures](index=21&type=section&id=Item%204.%20Controls%20and%20Procedures) The Trustee affirmed the effectiveness of disclosure controls and procedures, noting no material changes to internal control over financial reporting [Evaluation of Disclosure Controls and Procedures](index=21&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) - The Trustee concluded that the Trust's disclosure controls and procedures were effective as of March 31, 2023, for ensuring timely and accurate information disclosure[105](index=105&type=chunk) - Due to the Trust's passive nature, the Trustee's disclosure controls rely on information provided by the Sponsor (e.g., operational results, costs, development plans, reserve info) and conclusions from independent reserve engineers[106](index=106&type=chunk) [Changes in Internal Control over Financial Reporting](index=21&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) - There were no changes in the Trust's internal control over financial reporting that materially affected, or are reasonably likely to materially affect, its internal control over financial reporting during the period[107](index=107&type=chunk) [PART II — OTHER INFORMATION](index=22&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Item 1A. Risk Factors](index=22&type=section&id=Item%201A.%20Risk%20Factors) This section states that there have been no material changes to the risk factors previously disclosed in the Trust's 2022 Annual Report on Form 10-K - No material changes to the risk factors contained in Item 1A of the Trust's 2022 Annual Report on Form 10-K were reported[110](index=110&type=chunk) [Item 6. Exhibits](index=22&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed or furnished as part of this Form 10-Q, including various agreements, certificates, and certifications - The report includes an index to exhibits, listing documents such as the Agreement and Plan of Merger, Certificate of Trust, Amended and Restated Trust Agreement, and certifications pursuant to the Sarbanes-Oxley Act[111](index=111&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk) [Signature](index=23&type=section&id=Signature) - The report was signed on May 15, 2023, by Sarah Newell, Vice President and Trust Officer of The Bank of New York Mellon Trust Company, N.A., as Trustee for Permianville Royalty Trust[115](index=115&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk) - The Registrant, Permianville Royalty Trust, has no principal executive officer, principal financial officer, board of directors, or persons performing similar functions[117](index=117&type=chunk)

PART I [Business](index=8&type=section&id=Item%201.%20Business) The Trust is a passive entity holding an 80% net profits interest in oil and gas properties, with income tied to profitability and subject to market volatility - The Trust's primary asset is the right to receive **80% of the net profits** from the sale of oil and natural gas production from the Underlying Properties held by the Sponsor, COERT Holdings 1 LLC[42](index=42&type=chunk)[47](index=47&type=chunk)[49](index=49&type=chunk) - The Trust is a passive entity with no employees; administrative functions are performed by The Bank of New York Mellon Trust Company, N.A., as Trustee, including collecting cash, paying expenses, and distributing funds to unitholders[50](index=50&type=chunk)[51](index=51&type=chunk) - The Trust will dissolve if annual cash proceeds from the Net Profits Interest are less than **$2 million** for two consecutive years, or by a vote of **75% of unitholders**[61](index=61&type=chunk) Top Purchasers of Production from Underlying Properties (Year Ended Dec 31) | Purchaser | 2022 | 2021 | | :--- | :--- | :--- | | Phillips 66 | 23% | 29% | | Occidental Petroleum | 18% | 18% | | HollyFrontier | 13% | 14% | - The Trust's operations are subject to extensive environmental regulations, including laws related to hazardous substances (CERCLA, RCRA), water discharges (CWA), air emissions (CAA), and climate change, which increase operating costs for the Sponsor and affect the Trust's net profits[105](index=105&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk) [Risk Factors](index=25&type=section&id=Item%201A.%20Risk%20Factors) The Trust faces significant risks from volatile oil and gas prices, depleting reserves, reliance on third-party operators, financial issues, and extensive environmental and regulatory challenges - The Trust's cash distributions are highly dependent on fluctuating oil and natural gas prices, which are influenced by global supply/demand, geopolitical events like the Russia-Ukraine conflict, and OPEC actions[136](index=136&type=chunk)[138](index=138&type=chunk) - The reserves are depleting assets, and the Trust is prohibited from acquiring new properties, meaning production and distributions will inevitably decline over time[160](index=160&type=chunk)[162](index=162&type=chunk) - All wells on the Underlying Properties are operated by third parties, giving the Sponsor and the Trust limited control over the timing of development, associated costs, and production rates[147](index=147&type=chunk) - The Trust has established a cash reserve for future liabilities, which reduces distributions; as of December 31, 2022, the reserve balance was **$390,497**, with a target of approximately **$2.3 million**[167](index=167&type=chunk)[168](index=168&type=chunk) - Extensive environmental and climate change regulations (e.g., regarding greenhouse gases and hydraulic fracturing) could increase operating costs, restrict operations, and reduce demand for oil and gas, thereby lowering the Trust's net profits[191](index=191&type=chunk)[200](index=200&type=chunk)[210](index=210&type=chunk) [Unresolved Staff Comments](index=45&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The Trust reports no unresolved staff comments - There are no unresolved staff comments[229](index=229&type=chunk) [Properties](index=45&type=section&id=Item%202.%20Properties) The Trust's Net Profits Interest is derived from oil and gas properties in the Permian Basin and East Texas/North Louisiana, with **11.7 MMBoe** total proved reserves as of December 31, 2022 - The Underlying Properties are located in two main regions: the Permian Basin (Texas/New Mexico) and East Texas/North Louisiana[230](index=230&type=chunk) Estimated Proved Reserves and PV-10 (as of Dec 31, 2022) | Category | Trust Net Profits Interest | Underlying Properties | | :--- | :--- | :--- | | **Total Proved Reserves (MBoe)** | 5,392 | 11,708 | | **PV-10 (in thousands)** | $163,160 | $203,718 | Underlying Properties Acreage and Well Count (as of Dec 31, 2022) | Region | Gross Acres | Net Acres | Gross Oil Wells | Gross Gas Wells | | :--- | :--- | :--- | :--- | :--- | | Permian Basin | 123,637 | 36,580 | 2,539 | 67 | | East Texas/North Louisiana | 10,424 | 2,840 | — | 280 | | **Total** | **134,061** | **39,420** | **2,539** | **347** | Total Sales Volumes from Underlying Properties (Year Ended Dec 31) | Metric | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Oil Sales (Bbls) | 496,566 | 732,927 | 390,796 | | Natural Gas Sales (Mcf) | 3,357,233 | 4,930,529 | 2,021,759 | | Total Sales (Boe) | 1,056,105 | 1,554,682 | 727,756 | [Legal Proceedings](index=52&type=section&id=Item%203.%20Legal%20Proceedings) The Trust is not a party to any pending legal proceedings - There are no legal proceedings pending to which the Trust is a party[261](index=261&type=chunk) [Mine Safety Disclosures](index=52&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the Trust - Not applicable[262](index=262&type=chunk) PART II [Market for Registrant's Common Equity, Related Unitholder Matters and Issuer Purchases of Equity Securities](index=53&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Unitholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Trust Units trade on NYSE under 'PVL', with **33 million units outstanding** as of December 31, 2022, and monthly cash distributions made from available funds - The Trust Units are traded on the New York Stock Exchange under the ticker symbol **"PVL"**[264](index=264&type=chunk) - As of December 31, 2022, there were **33,000,000 Trust Units outstanding**[264](index=264&type=chunk) - The Trust makes monthly distributions to unitholders from available funds, which are excess cash receipts from the Net Profits Interest after deducting Trust expenses and any reserves[265](index=265&type=chunk) [Trustee's Discussion and Analysis of Financial Condition and Results of Operations](index=54&type=section&id=Item%207.%20Trustee's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2022, net profits significantly increased to **$20.2 million** due to higher oil and gas prices, though development expenses also rose, with 2023 capital expenditures anticipated between **$6.0 and $9.0 million** Results of Operations Comparison (Year Ended Dec 31) | Metric (in millions) | 2022 | 2021 | | :--- | :--- | :--- | | **Gross Profits** | $62.1 | $43.5 | | Oil Sales | $44.7 | $33.5 | | Natural Gas Sales | $17.5 | $10.0 | | **Total Costs** | $42.1 | $38.2 | | Lease Operating Expenses | $21.9 | $26.6 | | Development Expenses | $12.1 | $3.5 | | **Net Profits (Underlying Properties)** | $20.2 | $5.4 | | **Income from NPI (Trust)** | $16.2 | $4.4 | | **Distributable Income** | $13.5 | $3.1 | - The increase in net profits in 2022 was driven by a **97% increase** in average realized oil prices and a **157% increase** in realized natural gas prices compared to the prior year's relevant production periods[274](index=274&type=chunk)[289](index=289&type=chunk) - Development expenses increased by **$8.6 million (242%)** in 2022 due to increased drilling and completion activity in the Permian and Haynesville areas, spurred by higher commodity prices[274](index=274&type=chunk)[289](index=289&type=chunk) - For 2023, the Sponsor anticipates capital expenditures on the Underlying Properties to range from **$6.0 million to $9.0 million** (**$4.8 million to $7.2 million** net to the Trust)[277](index=277&type=chunk) - The Trust uses a modified cash basis of accounting, where income is recorded when received and distributions are recorded when paid, a method permitted for royalty trusts by the SEC[300](index=300&type=chunk)[304](index=304&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=62&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, the Trust is not required to provide this information - The Trust is not required to provide information for this item as it qualifies as a "smaller reporting company"[310](index=310&type=chunk) [Financial Statements and Supplementary Data](index=63&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the Trust's audited financial statements for 2022 and 2021, prepared on a modified cash basis, including key financial statements and supplementary oil and gas reserve data Financial Highlights (as of or for the Year Ended Dec 31) | Metric (in thousands) | 2022 | 2021 | | :--- | :--- | :--- | | Total Assets | $60,565 | $65,193 | | Trust Corpus | $60,565 | $65,193 | | Distributable Income | $13,481 | $3,119 | | Distributable Income per Unit | $0.408500 | $0.094500 | - The financial statements are prepared on a modified cash basis of accounting, which is a comprehensive basis of accounting other than U.S. GAAP, as permitted for royalty trusts[314](index=314&type=chunk)[335](index=335&type=chunk) Changes in Proved Reserves Attributable to Trust (MBOE) | Description | 2022 | 2021 | | :--- | :--- | :--- | | **Balance, beginning of period** | **4,909** | **4,015** | | Extensions and discoveries | 451 | 523 | | Revisions of previous estimates | 1,088 | 1,615 | | Income from Net Profits Interest | (1,056) | (1,244) | | **Balance, end of period** | **5,392** | **4,909** | Standardized Measure of Discounted Future Net Cash Flows (in thousands) | Metric | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Future cash inflows | $383,240 | $209,248 | | Future production taxes | ($31,913) | ($17,326) | | **Standardized measure** | **$163,160** | **$91,599** | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=76&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) This item is not applicable - Not applicable[379](index=379&type=chunk) [Controls and Procedures](index=76&type=section&id=Item%209A.%20Controls%20and%20Procedures) The Trustee concluded that the Trust's disclosure controls and internal control over financial reporting were effective as of December 31, 2022, with no material changes - The Trustee concluded that the Trust's disclosure controls and procedures were effective as of the end of the reporting period[380](index=380&type=chunk) - The Trustee concluded that the Trust's internal control over financial reporting was effective as of December 31, 2022, based on the COSO 2013 framework[383](index=383&type=chunk) - There were no changes in the Trust's internal control over financial reporting during the fourth quarter of 2022 that materially affected, or are reasonably likely to materially affect, such controls[382](index=382&type=chunk) [Other Information](index=76&type=section&id=Item%209B.%20Other%20Information) This item is not applicable - Not applicable[384](index=384&type=chunk) [Disclosures Regarding Foreign Jurisdictions that Prevent Inspections](index=76&type=section&id=Item%209C.%20Disclosures%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable - Not applicable[385](index=385&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=77&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) The Trust operates without directors or executive officers, with The Bank of New York Mellon Trust Company, N.A. serving as the corporate Trustee - The Trust has no directors or executive officers; it is managed by a corporate Trustee[388](index=388&type=chunk) - The Trust does not have an audit committee, nominating committee, or a code of ethics, as it lacks a board of directors and executive officers[389](index=389&type=chunk)[390](index=390&type=chunk) [Executive Compensation](index=77&type=section&id=Item%2011.%20Executive%20Compensation) The Trust has no executive officers or employees, thus no executive compensation; the Trustee receives an annual administrative fee of **$200,000** - The Trust has no executive officers, directors, or employees and thus no compensation committee or related policies[391](index=391&type=chunk) - The Trustee received an administrative fee of **$200,000** for each of the years ended December 31, 2022 and 2021[391](index=391&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Unitholder Matters](index=77&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Unitholder%20Matters) As of March 23, 2023, Permianville Holdings LLC (**22.8%**) and Jerry Roger Kent (**5.7%**) were identified as beneficial owners of **5% or more** of the Trust's units Beneficial Owners of 5% or More (as of March 23, 2023) | Beneficial Owner | Trust Units Beneficially Owned | Percent of Class | | :--- | :--- | :--- | | Permianville Holdings LLC | 7,517,942 | 22.8% | | Jerry Roger Kent | 1,892,238 | 5.7% | [Certain Relationships and Related Transactions, and Director Independence](index=78&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Related party transactions include annual administrative fees to Trustees and a Registration Rights Agreement with Sponsor COERT for unit registration, with director independence not applicable - The Trust pays an annual administrative fee of **$200,000** to the Trustee and **$2,000** to the Delaware Trustee[396](index=396&type=chunk) - The Trust and Sponsor COERT are parties to a Registration Rights Agreement, allowing COERT to have its Trust Units registered for sale; a registration statement for **8,600,000 units** was filed on June 22, 2022[397](index=397&type=chunk)[398](index=398&type=chunk) [Principal Accountant Fees and Services](index=78&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) The Trustee approves all auditor services; Weaver and Tidwell, LLP served as the independent auditor for 2022, with total audit fees billed at **$98,365** Accountant Fees Billed to the Trust | Fee Type | 2022 | 2021 | | :--- | :--- | :--- | | Audit fees | $98,365 | $189,440 | | Audit-related fees | — | — | | Tax fees | — | — | | All other fees | — | — | | **Total fees** | **$98,365** | **$189,440** | - On September 14, 2021, the Trustee dismissed Ernst & Young, LLP and appointed Weaver and Tidwell, L.L.P. as the Trust's independent registered public accounting firm[401](index=401&type=chunk) PART IV [Exhibit and Financial Statement Schedules](index=79&type=section&id=Item%2015.%20Exhibit%20and%20Financial%20Statement%20Schedules) This section indexes financial statements from Item 8 and lists exhibits filed with the Form 10-K - This section lists the financial statements, notes, and supplementary information filed within the report, as well as all exhibits filed with the Form 10-K[403](index=403&type=chunk)[405](index=405&type=chunk) [Form 10-K Summary](index=79&type=section&id=Item%2016.%20Form%2010-K%20Summary) No Form 10-K summary is provided - None[406](index=406&type=chunk)

Financial Performance - The Trust's net profits income for Q3 2022 was $3,722,863, a 58% increase from $2,358,728 in Q3 2021[81] - Total gross profits for Q3 2022 reached $17,117,863, an 82% increase compared to $9,423,728 in Q3 2021[81] - The Trust's distributable income for Q3 2022 was $3,003,000, a 600% increase from $429,000 in Q3 2021[81] - Net profits attributable to the Underlying Properties for Q3 2022 were $3.0 million, up from $1.9 million in Q3 2021, representing a 58% increase[83] - For the nine months ended September 30, 2022, total gross profits reached $44.4 million, an 84% increase from $24.2 million in the same period of 2021[86] - The Trust's distributable income for the nine months ended September 30, 2022, was $8.6 million, a significant increase of 1,896% from $429,000 in the same period of 2021[86] Revenue Growth - Oil sales revenue increased by 71% to $12,315,980 in Q3 2022 from $7,212,993 in Q3 2021, while natural gas sales revenue surged by 117% to $4,801,883 from $2,210,735[81] - Oil sales increased by $5.1 million in Q3 2022, driven by a 69% increase in realized oil prices compared to Q3 2021[85] - Natural gas sales rose by $2.6 million in Q3 2022, attributed to a 93% increase in realized gas prices and a 13% increase in gas sales volumes[85] Production and Prices - The average realized oil price increased by 69% to $103.87 per barrel in Q3 2022 from $61.60 per barrel in Q3 2021[82] - Natural gas prices realized rose by 93% to $4.90 per Mcf in Q3 2022 from $2.54 per Mcf in Q3 2021[82] - Production volumes for oil increased by 1% to 118,574 Bbls in Q3 2022, while natural gas production rose by 13% to 979,552 Mcf[82] - Average realized oil prices increased by 76% to $85.10 per barrel for the nine months ended September 30, 2022, compared to $48.39 per barrel in 2021[88] - Average realized natural gas prices increased by 122% to $4.72 per Mcf for the nine months ended September 30, 2022, compared to $2.13 per Mcf in 2021[88] Capital Expenditure and Reserves - The Trust's capital expenditure program for 2022 is now expected to be between $10 million and $15 million, up from the previous estimate of $6 million to $8 million[76] - The Sponsor has established a cash reserve for future development expenses to support increased activity levels[76] - The Trust withheld $0.7 million for future development expenses, which may be released as cash distribution if not spent[90] - As of September 30, 2022, the Trust had cash of $720,501 available for future expenses, up from $67,116 as of December 31, 2021[94] Outlook and Strategy - The Trust's outlook remains positive despite global economic volatility, with expectations of continued development activity in 2022[75] - Development expenses surged by 380% to $9.5 million for the nine months ended September 30, 2022, due to drilling and completion costs for new wells[86] Financial Instruments and Risk - The Trust is classified as a "smaller reporting company" and is not required to provide detailed market risk disclosures[102] - The Trust's interest-bearing obligations include those of the United States government[102] - The Trust invests in money market funds that focus solely on United States government securities[102] - The Trust engages in repurchase agreements secured by interest-bearing obligations of the United States government[102] - The Trust holds bank certificates of deposit as part of its financial strategy[102]

[Glossary of Certain Oil and Natural Gas Terms](index=4&type=section&id=Glossary%20of%20Certain%20Oil%20and%20Natural%20Gas%20Terms) This section defines key oil and natural gas terms used throughout the report, including Bbl, Boe, Mcf, and Net profits interest - This section provides definitions for significant oil and natural gas terms used throughout the report, such as **Bbl (barrel)**, **Boe (barrel of oil equivalent)**, **Mcf (thousand cubic feet)**, and **Net profits interest**[9](index=9&type=chunk)[10](index=10&type=chunk)[17](index=17&type=chunk)[20](index=20&type=chunk) [PART I — FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) The unaudited financial statements for Q2 2022 show a significant increase in distributable income to $5.56 million, driven by higher commodity prices [Statements of Assets, Liabilities and Trust Corpus](index=5&type=section&id=Statements%20of%20Assets%2C%20Liabilities%20and%20Trust%20Corpus) The Trust's total assets slightly decreased to $62.8 million as of June 30, 2022, primarily due to net profits interest amortization Assets, Liabilities and Trust Corpus (unaudited) | | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and cash equivalents | $532,308 | $67,116 | | Net profits interest in oil and natural gas properties, net | $62,313,239 | $65,125,651 | | **Total assets** | **$62,845,547** | **$65,192,767** | | **LIABILITIES AND TRUST CORPUS** | | | | Trust corpus (33,000,000 units) | $62,845,547 | $65,192,767 | | **Total liabilities and Trust corpus** | **$62,845,547** | **$65,192,767** | [Statements of Distributable Income](index=6&type=section&id=Statements%20of%20Distributable%20Income) The Trust reported distributable income of $2.6 million for Q2 2022 and $5.6 million for the first six months, a significant turnaround from 2021 Distributable Income Comparison (unaudited) | | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | | | **2022** | **2021** | **2022** | **2021** | | Income from net profits interest | $3,064,680 | $– | $6,289,481 | $– | | Distributable income | $2,623,500 | $– | $5,560,500 | $– | | Distributable income per unit | $0.079500 | $– | $0.168500 | $– | [Statements of Changes in Trust Corpus](index=7&type=section&id=Statements%20of%20Changes%20in%20Trust%20Corpus) Trust Corpus decreased from $65.2 million to $62.8 million by Q2 2022, mainly due to amortization of the net profits interest Changes in Trust Corpus for Six Months Ended June 30, 2022 (unaudited) | | Six Months Ended June 30, 2022 | | :--- | :--- | | Trust corpus, beginning of period | $65,192,767 | | Distributable income | $5,560,500 | | Distributions to unitholders | ($5,560,500) | | Amortization of net profits interest | ($2,812,412) | | Trust corpus, end of period | $62,845,547 | [Notes to Financial Statements](index=8&type=section&id=Notes%20to%20Financial%20Statements) The notes detail the Trust's structure, accounting policies, tax status, and the resumption of distributions after a 2021 shortfall - The Trust's primary asset is an **80% net profits interest** from oil and natural gas properties previously held by Enduro and now by COERT Holdings 1 LLC (the "Sponsor")[37](index=37&type=chunk)[38](index=38&type=chunk) - The financial statements are prepared on a **modified cash basis**, which differs from GAAP, considered more meaningful for royalty trusts as distributions are based on net cash receipts[42](index=42&type=chunk)[47](index=47&type=chunk) - For federal income tax purposes, the Trust is a **grantor trust** and is not subject to tax at the trust level, with unitholders taxed directly on their pro rata share of income and deductions[51](index=51&type=chunk) - Distributions to the Trust resumed in September 2021 after a cumulative net profits interest shortfall and administrative advances were fully repaid in August 2021, with **no distributions made in the first six months of 2021**[60](index=60&type=chunk) [Trustee's Discussion and Analysis of Financial Condition and Results of Operations](index=13&type=section&id=Item%202.%20Trustee%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The Trustee's analysis highlights a significant increase in financial performance driven by rising oil and natural gas prices despite production declines and increased costs [Outlook](index=15&type=section&id=Outlook) The outlook for development activity improved in Q2 2022 due to strong commodity prices, though market volatility persists - Commodity prices have increased materially from Dec 31, 2021, to Aug 9, 2022: **WTI crude oil rose from $76.99 to $92.51 per barrel**, and **Henry Hub natural gas rose from $3.66 to $7.76 per MMBTU**[74](index=74&type=chunk) - The Sponsor anticipates 2022 capital expenditures for the Underlying Properties to be at the high end of, or possibly exceed, the **$6 million to $8 million range** ($4.8 million to $6.4 million net to the Trust)[75](index=75&type=chunk) [Results of Operations](index=16&type=section&id=Results%20of%20Operations) Net profits for Q2 2022 surged 450% to $5.3 million, driven by significantly higher realized prices for oil and natural gas Net Profits Comparison - Three Months Ended June 30 | | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | Total Gross Profits | $14,180,350 | $8,389,635 | 69% | | Total Costs | $8,912,000 | $7,431,000 | 20% | | **Net Profits** | **$5,268,350** | **$958,635** | **450%** | Production and Price Comparison - Three Months Ended June 30 | | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | Oil Volume (Bbls) | 128,057 | 132,618 | (3)% | | Realized Oil Price ($/Bbl) | $78.03 | $48.25 | 62% | | Gas Volume (Mcf) | 888,014 | 917,480 | (3)% | | Realized Gas Price ($/Mcf) | $4.72 | $2.17 | 117% | Net Profits Comparison - Six Months Ended June 30 | | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | Total Gross Profits | $27,274,858 | $14,748,083 | 85% | | Total Costs | $17,943,000 | $13,216,000 | 36% | | **Net Profits** | **$9,461,888** | **$1,532,083** | **518%** | [Liquidity and Capital Resources](index=20&type=section&id=Liquidity%20and%20Capital%20Resources) The Trust's liquidity primarily stems from its Net Profits Interest, supplemented by a cash reserve and a Sponsor-provided letter of credit - Commencing in February 2022, the Trust began withholding **$37,833 per month** to build a cash reserve targeted at approximately **$2.3 million** for future expenses[88](index=88&type=chunk) - The Sponsor (COERT) has provided a **$1.2 million letter of credit** to be used by the Trust if cash on hand is insufficient to pay ordinary course administrative expenses, with no amounts drawn as of the report date[89](index=89&type=chunk) - As of June 30, 2022, the Trust had cash of **$532,308** for future expenses, up from **$67,116** at the end of 2021[89](index=89&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=22&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The Trust is exempt from providing market risk disclosures as it qualifies as a "smaller reporting company" under SEC regulations - As a **"smaller reporting company,"** the Trust is exempt from providing quantitative and qualitative disclosures about market risk[98](index=98&type=chunk) [Controls and Procedures](index=22&type=section&id=Item%204.%20Controls%20and%20Procedures) The Trustee confirmed the effectiveness of the Trust's disclosure controls and procedures with no material changes in internal control over financial reporting - The Trustee concluded that the Trust's disclosure controls and procedures were **effective** as of the end of the reporting period[99](index=99&type=chunk) - There were **no changes** in the Trust's internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, its internal controls[101](index=101&type=chunk) [PART II — OTHER INFORMATION](index=23&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Risk Factors](index=23&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the Trust's 2021 Annual Report on Form 10-K - **No material changes** have been made to the risk factors disclosed in the Trust's 2021 Annual Report on Form 10-K[104](index=104&type=chunk) [Exhibits](index=23&type=section&id=Item%206.%20Exhibits) This section indexes exhibits filed with the Form 10-Q, including certifications required by the Sarbanes-Oxley Act of 2002 - The exhibits filed with this report include certifications pursuant to **Section 302** and **Section 906** of the Sarbanes-Oxley Act of 2002[107](index=107&type=chunk)

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 ...

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, 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 (State or other jurisdiction of ...