What changed in this filing

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Item 1. Financial Statements

2020-11-06 compared with 2020-08-07 · 238 added, 169 removed, 543 unchanged (43% of the section changed)

2 unchanged sentences

Statements of Assets, Liabilities and

September 30,

Cash and cash equivalents

9 unchanged sentences

Statements of Distributable Income

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

Income from net profits interest

5 unchanged sentences

Distributable income per unit (33,000,000 units)

The accompanying notes are an integral

part of these financial statements.

The accompanying notes are an integral part

of these financial statements.

PERMIANVILLE ROYALTY TRUST

Statements of Changes in Trust Corpus

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

Trust corpus, beginning of period

30 unchanged sentences

Enduro’s obligations under the Trust Agreement and other instruments to which Enduro and the Trustee were parties.

June 30, 2020, the Sponsor owned 8,600,000 Trust Units, or 26% of the issued and outstanding Trust Units.

September 30, 2020, the Sponsor owned 8,600,000 Trust Units, or 26% of the issued and outstanding Trust Units.

The Net Profits Interest

17 unchanged sentences

PERMIANVILLE ROYALTY TRUST

NOTES TO FINANCIAL STATEMENTS - Continued

NOTES TO FINANCIAL STATEMENTS

BASIS OF PRESENTATION

1 unchanged sentence

Assets, Liabilities and Trust Corpus as of December 31, 2019, which has been derived from audited financial statements, and

the unaudited interim financial statements as of June 30, 2020 and for the three and six months ended June 30, 2020 and 2019 have

been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).

certain information and disclosures normally included in annual financial statements have been condensed or omitted pursuant to

those rules and regulations.

Therefore, these financial statements should be read in conjunction with the financial statements

and notes thereto included in the Trust’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 (the “2019

Annual Report on Form 10-K”).

the unaudited interim financial statements as of September 30, 2020 and for the three and nine months ended September 30, 2020

and 2019 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).

Accordingly, certain information and disclosures normally included in annual financial statements have been condensed or omitted

pursuant to those rules and regulations.

Therefore, these financial statements should be read in conjunction with the financial

statements and notes thereto included in the Trust’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019

(the “2019 Annual Report on Form 10-K”).

In the opinion of

73 unchanged sentences

Amortization is charged directly to the Trust corpus balance and does not affect the distributable income of the

Accumulated amortization as of June 30, 2020 and December 31, 2019 was $282,727,370 and $279,925,202, respectively.

Accumulated amortization as of September 30, 2020 and December 31, 2019 was $283,986,545 and $279,925,202, respectively.

The Net Profits Interest

2 unchanged sentences

While the Trust

did not record an impairment during the six months ended June 30, 2020 or 2019, future downward revisions in actual production

did not record an impairment during the nine months ended September 30, 2020 or 2019, future downward revisions in actual production

volumes relative to current forecasts, higher than expected operating costs, or lower than anticipated commodity prices could result

44 unchanged sentences

consult their tax advisors about the federal tax consequences relating to owning the Trust Units.

PERMIANVILLE ROYALTY TRUST

NOTES TO FINANCIAL STATEMENTS - Continued

The Trust’s

35 unchanged sentences

Declaration Date

Six Months Ended June 30, 2020:

Nine Months Ended September 30, 2020:

December 16, 2019

13 unchanged sentences

June 15, 2020

Year to Date –

Six Months Ended June 30, 2019:

June 15, 2020

June 30, 2020

July 15, 2020

to Date –

Nine Months Ended September 30, 2019:

January 18, 2019

10 unchanged sentences

June 14, 2019

Year to Date - 2019

In December 2018, the direct operating

and development expenses exceeded the revenues causing the net profits to be negative.

This was primarily due to the delay in

transitioning operator reporting for the Underlying Properties to the Sponsor, thus reducing the cash receipts to the Trust for

As a result, there was no distribution to the Trust unitholders reported in December 2018 to be distributed in January

In January 2019, net profits from the Underlying Properties were positive, and the aggregate shortfall in net profits of

$667,227 from December 2018 was deducted from such net profits when calculating distributions paid in February 2019.

PERMIANVILLE ROYALTY TRUST

NOTES TO FINANCIAL STATEMENTS - Continued

June 17, 2019

June 28, 2019

July 15, 2019

July 19, 2019

July 31, 2019

August 14, 2019

August 16, 2019

August 30, 2019

September 16, 2019

to Date - 2019

In July and August 2020, the direct operating

and development expenses exceeded revenues, causing the net profits to be negative.

As a result, there were no distributions to

the Trust unitholders in August and September 2020, respectively.

In December 2018, the direct

operating and development expenses exceeded revenues, causing the net profits to be negative.

This was primarily due to the

delay in transitioning operator reporting for the Underlying Properties to the Sponsor, thus reducing the cash receipts to

the Trust for this period.

As a result, there were no net profits reported in December 2018 to be distributed to the Trust

unitholders in January 2019.

In January 2019, net profits from the Underlying Properties were positive, and the aggregate

shortfall in net profits of $667,227 from December 2018 was deducted from such net profits when calculating the distribution

paid in February 2019.

ADVANCES TO THE TRUST

5 unchanged sentences

Liabilities and Trust Corpus until repaid.

As of June 30, 2020 and December 31, 2019, advances to the Trust were $19,100 and

$34,818, respectively.

As of September 30, 2020 and December 31, 2019, advances to the Trust were $159,071

and $34,818, respectively.

Under the terms of

1 unchanged sentence

Delaware Trustee.

During the three- and six-month periods ended June 30, 2020 and 2019, the Trust paid $50,000 and $100,000, respectively,

to the Trustee pursuant to the terms of the Trust Agreement.

The Trust paid $0 and $2,000 to the Delaware Trustee during the three-month

and six-month periods ended June 30, 2020, respectively.

The Trust paid a total of $0 and $2,000 to the Delaware Trustee during

the three-month and six-month periods ended June 30, 2019, respectively.

During the three- and nine-month periods ended September 30, 2020 and 2019, the Trust paid $50,000 and $150,000,

respectively, to the Trustee pursuant to the terms of the Trust Agreement.

During the three- and nine-month periods ended September

30, 2020 and 2019, the Trust paid $0 and $2,000, respectively, to the Delaware Trustee pursuant to the terms of the Trust Agreement.

2017 DIVESTITURE

11 unchanged sentences

$752,000, including interest, as part of the Trust distribution to unitholders payable in October 2019.

Distributions

Paid or Declared

On July 15, 2020,

a distribution of $0.003800 per unit, which was declared on June 15, 2020, was paid to Trust unitholders of record as of June 30,

On July 17, 2020,

the Trust announced a reduction in sales volumes when comparing the July distribution period to prior periods This reduction was

due, in part, to shut ins by operators of certain Underlying Properties coupled with lower commodity prices as a result of the

COVID-19 pandemic.

The result of this reduction is that direct operating expenses and development expenditures exceeded cash receipts

for the calculation period and, as a result, a distribution will not be paid in August 2020.

The shortfall of $892,782 will

be deducted from any net profits allocable to the Trust from the August distribution period.

On October 15, 2020,

the Trust announced that there would be no distribution to the Trust unitholders in November

2020 as a result of the cumulative outstanding net profits shortfall.

Trustee’s Discussion and Analysis of Financial Condition and Results of Operations.

37 unchanged sentences

the amount of future direct operating expenses and development expenses;

the effect, impact, potential duration or other implications of the outbreak of a novel strain of coronavirus (“COVID-19”)

which the World Health Organization declared a pandemic in March 2020;

the actions of the Organization of Petroleum Exporting Countries (“OPEC”);

the effect of existing and future laws and regulatory actions;

49 unchanged sentences

it is produced.

New York Stock Exchange Listing Status.

As previously disclosed,

on September 25, 2020, the Trust received written notification from the New York Stock Exchange (“NYSE”) that the Trust

no longer satisfied the continued listing compliance standards set forth under Section 802.01C of the NYSE Listed Company Manual

because the average closing price of the Trust’s units of beneficial interest fell below $1.00 over a 30 consecutive trading-day

period that ended September 24, 2020.

If the Trust is unable to regain compliance with the applicable standards within a six-month

cure period, the NYSE will commence suspension and delisting procedures.

by the NYSE, the Trust units may be transferred to the over-the-counter market.

During the cure period, the Trust units will continue

to trade on the NYSE, subject to compliance with other continued listing requirements.

The outlook for development

2 unchanged sentences

The West Texas Intermediate spot price of crude oil has dropped sharply

from $61.17 per barrel on January 2, 2020 to $41.95 per barrel on August 6, 2020 but in the interim ranged widely and even

briefly traded negative in April 2020 in response to the economic effects of the COVID-19 pandemic and the dispute over production

levels between Russia and the members of the Organization of Petroleum Exporting Countries.

COVID-19 has resulted in widespread

and localized health crises that adversely affect general commercial activity, the economies and financial markets of many countries

and localities, as well as global demand for oil and natural gas.

COVID-19 also has resulted in significant business and operational

disruptions, including business closures, disruptions to supply chains, travel restrictions and limitations on the availability

of workforces.

The full impact of COVID-19 is unknown and is rapidly evolving, and it is not possible to reliably estimate the

impact that these developments will have on future periods.

While oil prices have recently stabilized and the demand for oil and

refined products has improved from the lows experienced earlier this year, a prolonged period of low crude oil and natural gas

prices will adversely affect the operators of the Underlying Properties.

If commodity prices for crude oil and natural gas

remain volitle and below historical levels, monthly cash distributions to unitholders will be substantially lower than historical

distributions, and in certain periods there may be no distribution to unitholders.

from $61.17 per barrel on January 2, 2020 to $35.79 per barrel on October 30, 2020, but in the interim ranged widely in response

to the economic effects of the COVID-19 pandemic and the dispute over production levels between Russia and the members of OPEC.

COVID-19 has resulted in widespread and localized health crises that adversely affect general commercial activity, the economies

and financial markets of many countries and localities, as well as global demand for oil and natural gas.

COVID-19 also has resulted

in significant business and operational disruptions, including business closures, disruptions to supply chains, travel restrictions

and limitations on the availability of workforces.

The full impact of COVID-19 is unknown and is rapidly evolving, and it is not

possible to reliably estimate the impact that these developments will have on future periods.

While oil prices have recently stabilized

and the demand for oil and refined products has improved from the lows experienced earlier this year, a prolonged period of low

crude oil and natural gas prices will adversely affect the operators of the Underlying Properties.

If commodity prices for

crude oil and natural gas remain volatile and below historical levels, monthly cash distributions to unitholders will be substantially

lower than historical distributions, and in certain periods there may be no distribution to unitholders.

In response to the

drop in commodity prices, a number of the operators on the Underlying Properties elected to defer production sales or temporarily

shut-in some of the producing wells on the Underlying Properties, which negatively affected recent reported production.

the Sponsor has reported to the Trustee that various operators of the Underlying Properties have indicated plans to return production

to prior, pre-shut-in levels.

As previously disclosed,

3 unchanged sentences

announced reduced capital spending plans by a number of the operators of the Underlying Properties in response to current crude

oil prices, the Sponsor now expects the previously ancitipated capital expenditures to be at the low end or below the projected

oil prices, the Sponsor now expects the previously anticipated capital expenditures to be at the low end or below the projected

The Sponsor maintains significant liquidity and financial flexibility to respond to the operational and capital spending

5 unchanged sentences

Results of Operations

Three Months Ended June 30, 2020 Compared

to Three Months Ended June 30, 2019

Three Months Ended September 30, 2020

Compared to Three Months Ended September 30, 2019

The Trust’s

2 unchanged sentences

Three Months Ended

Increase (Decrease)

September 30,

Gross profits:

11 unchanged sentences

Distributable income

During the three months

ended September 30, 2020, there were two months in which direct operating and development expenses exceeded revenues, thereby causing

net profits attributable to the Underlying Properties to be negative.

As a result, there were no distributions to Trust unitholders

in August and September 2020, respectively.

This resulted in an aggregate net profits shortfall of $2.7 million, prior to repayment

of Sponsor advances, as of August 30, 2020.

For September 2020, excluding prior net profits interest shortfalls, income from the

distributable net profits interest was approximately $0.5 million which would have been distributed in October 2020.

The $0.5 million

reduced the aggregate shortfall to approximately $2.2 million, prior to repayment of Sponsor advances, as of September 30, 2020.

This aggregate shortfall will be carried forward to be deducted from future net profits generated by the Underlying Properites.

As net profits for the two months were negative and therefore no distributions were paid to unitholders with respect to these two

months, the corresponding revenues and associated direct operating and development expenses are excluded from the calculation of

distributable income for the three months ended September 30, 2020 detailed in the table above as well as the related sales volumes

detailed below.

The following table

displays reported oil and natural gas sales volumes and average prices from the Underlying Properties, representing the amounts

included in the net profits calculation for distributions paid during the three months ended June 30, 2020 and 2019:

Three Months Ended June 30,

included in the net profits calculation for distributions paid during the three months ended September 30, 2020 and 2019:

Three Months Ended September 30,

Underlying Properties Production Volumes:

2 unchanged sentences

Average Prices:

Oil - NYMEX (December - February) ($/Bbl)

Oil - NYMEX (applicable NPI period) ($/Bbl)

Oil prices realized ($/Bbl)

Natural gas - NYMEX (November - January) ($/Mcf)

Natural gas - NYMEX (applicable NPI period) ($/Mcf)

Natural gas prices realized ($/Mcf)

Income from Net Profits

Interest for the three months ended June 30, 2020 is calculated from the following:

oil sales primarily related to oil produced from the Underlying Properties from December 2019 through

February 2020;

Interest for the three months ended September 30, 2020 is calculated from the following:

oil sales primarily related to oil produced from the Underlying Properties from March 2020;

natural gas sales primarily related to natural gas produced from the Underlying Properties from

November 2019 through January 2020;

direct operating and development expenses primarily related to expenses incurred from January 2020

to March 2020.

February 2020;

direct operating and development expenses primarily related to expenses incurred from April 2020.

Net profits attributable

to the Underlying Properties for the three months ended June 30, 2020 were $3.9 million compared to $4.4 million for the three

months ended June 30, 2019.

The $0.5 million decrease was primarily due to the following items:

Oil sales increased $0.6 million, primarily due to higher realized prices.

The 22% increase in

realized oil sales prices in the 2020 period compared to the 2019 period increased revenues by $1.6 million;

however, lower produced

volumes decreased revenues by $1.0 million.

Natural gas sales decreased $2.2 million due to lower produced volumes and lower realized prices.

The 26% decrease in gas sales volumes in the 2020 period compared to the 2019 period decreased revenues by $1.0 million, and lower

realized gas prices decreased revenues by $1.2 million.

Lease operating expenses increased $0.6 million during the three months ended June 30, 2020 compared

to the three months ended June 30, 2019 due to an increase in routine maintenance activity.

to the Underlying Properties for the three months ended September 30, 2020 were $0.2 million compared to $3.7 million for the three

months ended September 30, 2019.

As a result of direct operating expenses and development expenses exceeding oil and natural gas

sales for two months during the period, the Trust did not pay a distribution to unitholders in August and September 2020.

under the modified cash basis of accounting, the oil and natural gas sales, direct operating expenses and development expenses

for such periods were not included in the three months ended September 30, 2020 and instead will be included in a future period

once the shortfall has been recouped.

Therefore, several variances between the periods are due to the inclusion of only one month

of results in the three months ended September 30, 2020 compared to three months during the quarter ended September 30, 2019.

$3.5 million decrease in net profits attributable to the Underlying Properties from the 2019 period to the 2020 period was

primarily due to the following items:

Oil sales decreased $8.0 million, primarily due to the inclusion of only one month of oil sales

in the quarter ended September 30, 2020 compared to three months in the quarter ended September 30, 2019.

The 66% decrease in oil

production volumes decreased revenues by $6.5 million, and the 44% decrease in realized oil sales prices in the 2020 period compared

to the 2019 period decreased revenues by $1.5 million.

Natural gas sales decreased $1.8 million, primarily due to the inclusion of only one month of natural

gas sales in the quarter ended September 30, 2020 compared to three months in the quarter ended September 30, 2019.

The 65% decrease

in natural gas production volumes decreased revenues by $1.4 million, and the 45% reduction in realized natural gas prices decreased

revenues by $0.4 million.

Lease operating expenses decreased $3.9 million, primarily attributable to the difference in the

number of months included in the respective periods.

Compression, gathering and transportation costs decreased $0.3 million, primarily due to the 65%

decrease in natural gas production.

Production, ad valorem and other taxes decreased $0.3 million during the three months ended June

30, 2020 compared to the three months ended June 30, 2019, primarily due to the 56% decrease in natural gas sales.

Development expenses decreased $1.5 million primarily due to a decrease in capital projects in

the Permian Basin.

For the three months

ended June 30, 2020, the Trust withheld $0.2 million, and paid $0.2 million for general and administrative expenses.

Expenses paid

during the period primarily consisted of fees for the preparation of the Trust’s monthly press releases, financial statement

audit fees, and Trustee fees.

For the three months ended June 30, 2019, the Trust withheld $0.2 million, and paid $0.2 million

for general and administrative expenses.

Six Months Ended June 30, 2020 Compared

to Six Months Ended June 30, 2019

The Trust’s net profits income

consists of monthly net profits attributable to the Net Profits Interest, which was determined as shown in the following table:

Six Months Ended

Increase (Decrease)

Production, ad valorem and other taxes decreased $0.9 million during the three months ended September

30, 2020 compared to the three months ended September 30, 2019, due to the decrease in oil and natural gas sales.

Development expenses decreased $1.1 million primarily due to the decrease in capital workover activity

in the Permian Basin Area.

For the three

months ended September 30, 2020, the Trust withheld $0.1 million, and paid $0.1 million for general and administrative

Expenses paid during the period primarily consisted of fees for the preparation of the Trust’s monthly press

releases, financial statement audit fees, and Trustee fees.

For the three months ended September 30, 2019, the Trust withheld

$0.2 million, and paid $0.2 million for general and administrative expenses.

Nine Months Ended September 30, 2020

Compared to Nine Months Ended September 30, 2019

The Trust’s

net profits income consists of monthly net profits attributable to the Net Profits Interest, which was determined as shown in the

following table:

Nine Months Ended

September 30,

Gross profits:

11 unchanged sentences

Distributable income

During the six months

ended June 30, 2019, some third party operators of the Underlying Properties encountered delays in transitioning their reporting

During the nine months

ended September 30, 2020, there were two months in which direct operating and development expenses exceeded revenues, thereby causing

net profits attributable to the Underlying Properties to be negative.

As a result, there were no distributions to Trust unitholders

in August and September 2020, respectively.

This resulted in an aggregate net profits shortfall of $2.7 million, prior to repayment

of Sponsor advances, as of August 30, 2020.

For September 2020, excluding prior net profits interest shortfalls, income from the

distributable net profits interest was approximately $0.5 million which would have been distributed in October 2020.

The $0.5 million

reduced the aggregate shortfall to approximately $2.2 million, prior to repayment of Sponsor advances, as of September 30, 2020.

This aggregate shortfall will be carried forward to be deducted from future net profits generated by the Underlying Properites.

As net profits for the two months were negative and therefore no distributions were paid to unitholders with respect to these two

months, the corresponding revenues and associated direct operating and development expenses are excluded from the calculation of

distributable income for the nine months ended September 30, 2020 detailed in the table above as well as the related sales volumes

detailed below.

During the nine months

ended September 30, 2019, some third-party operators of the Underlying Properties encountered delays in transitioning their reporting

processes from Enduro to the Sponsor, which reduced the reported cash receipts to the Trust for this period when compared to the

six months ended June 30, 2020.

A majority of these reporting issues were addressed, with a majority of the revenues held in suspense

as a result of these delays having been distributed to the Trust as part of the March 2019 distribution of $0.076357 per unit,

which was paid on April 15, 2019.

nine months ended September 30, 2020.

A majority of these reporting issues were addressed, with a majority of the revenues held

in suspense as a result of these delays having been distributed to the Trust as part of the March 2019 distribution of $0.076357

per unit, which was paid on April 15, 2019.

The following table

displays reported oil and natural gas sales volumes and average prices from the Underlying Properties, representing the amounts

included in the net profits calculation for distributions paid during the six months ended June 30, 2020 and 2019:

Six Months Ended

included in the net profits calculation for distributions paid during the nine months ended September 30, 2020 and 2019:

Nine Months Ended September 30,

Underlying Properties Production Volumes:

2 unchanged sentences

Average Prices:

Oil - NYMEX (September - February) ($/Bbl)

Oil - NYMEX (applicable NPI period ($/Bbl)

Oil prices realized ($/Bbl)

Natural gas - NYMEX (August - January) ($/Mcf)

Natural gas - NYMEX (applicable NPI period ($/Mcf)

Natural gas prices realized ($/Mcf)

Income from Net Profits

Interest for the six months ended June 30, 2020 is calculated from the following:

Interest for the nine months ended September 30, 2020 is calculated from the following:

oil sales primarily related to oil produced from the Underlying Properties from September 2019

through February 2020;

through March 2020;

natural gas sales primarily related to natural gas produced from the Underlying Properties from

August 2019 through January 2020;

August 2019 through February 2020;

direct operating and development expenses primarily related to expenses incurred from October 2019

to March 2020.

to April 2020.

Net profits attributable

to the Underlying Properties for the six months ended June 30, 2020 were $6.7 million compared to $5.9 million for the six months

ended June 30, 2019.

The $0.8 million increase was primarily due to the following items:

Oil sales increased $1.7 million, primarily due to higher realized prices.

The slight decrease

in oil sales volumes of 2% in the 2020 period compared to the 2019 period decreased revenues by $0.4 million;

however, higher realized

oil prices caused an increase in revenues by $2.1 million.

Natural gas sales decreased $3.1 million due to lower produced volumes and lower realized prices.

The 21% decrease in gas sales volumes in the 2020 period compared to the 2019 period decreased revenues by $1.3 million, and lower

realized gas prices caused an additional decrease in revenues by $1.8 million.

Lease operating expenses increased by $0.5 million during the six months ended June 30, 2020 compared

to the six months ended June 30, 2019 primarily due to an increase in routine maintenance activity.

to the Underlying Properties for the nine months ended September 30, 2020 were $7.0 million compared to $9.6 million for the nine

months ended September 30, 2019.

As a result of direct operating expenses and development expenses exceeding oil and natural gas

sales for two months during the period, the Trust did not pay a distribution to unitholders in August and September 2020.

under the modified cash basis of accounting, the oil and natural gas sales, direct operating expenses and development expenses

for such periods were not included in the nine months ended September 30, 2020 and instead will be included in a future period

once the net profits shortfall has been recouped.

Therefore, several variances between the periods are due to the inclusion of

only seven months of results in the nine months ended September 30, 2020 compared to nine months during the nine-month period ended

September 30, 2019.

The $2.7 million decrease in net profits attributable to the Underlying Properties from the 2019 period

to the 2020 period was primarily due to the following items:

Oil sales decreased $6.3 million, primarily due to the inclusion of only seven months of oil sales

volumes in the nine-month period ended September 30, 2020 compared to nine months in the nine-month period ended September 30,

The decrease in oil sales volumes of 24% decreased revenues by $6.3 million, while realized oil sales prices remained consistent

with the prior year.

Natural gas sales decreased $4.9 million, primarily due to the inclusion of only seven months of

natural gas sales volumes in the nine-month period ended September 30, 2020 compared to nine months in the nine-month period ended

September 30, 2019.

The 34% decrease in gas sales volumes decreased revenues by $2.9 million, and lower realized gas prices caused

an additional decrease in revenues of $2.0 million.

Lease operating expenses decreased $3.3 million, primarily due to the inclusion of only seven months

of natural gas sales volumes in the nine-month period ended September 30, 2020 compared to nine months in the nine-month period

ended September 30, 2019.

Compression, gathering and transportation costs decreased $0.7 million, primarily due to the 24%

decrease in natural gas production.

Production, ad valorem and other taxes decreased $0.6 million during the three months ended June

30, 2020 compared to the six months ended June 30, 2019, primarily due to the 50% decrease in natural gas sales.

decrease in oil production and a 34% decrease natural gas production.

Production, ad valorem and other taxes decreased $1.5 million, primarily due to the decrease in

oil and natural gas sales.

Development expenses decreased $3.1 million primarily due to a decrease in capital projects in

the Permian Basin.

For the six months

ended June 30, 2020, the Trust withheld $0.4 million, and paid $0.6 million for general and administrative expenses.

paid during the period primarily consisted of fees for the preparation of the Trust’s monthly press releases, financial

statement audit fees, and Trustee fees.

For the six months ended June 30, 2019, the Trust withheld $0.4 million, and paid $0.6

million for general and administrative expenses.

As previously disclosed,

in January 2019, the Sponsor completed the sale of certain of the Underlying Properties located in Glasscock County, Texas for

a total purchase price of approximately $62,000 (approximately $49,000 net to the Trust’s 80% net profits interest).

in January 2019, the Sponsor entered into a lease arrangement with a private equity backed operator with respect to a portion of

the mineral rights relating to certain of the Underlying Properties located in Gaines County, Texas (no current production is associated

with these mineral acres), for total proceeds of $160,000 ($128,000 net to the Trust’s 80% net profits interest).

months ended September 30, 2020, the Trust withheld $0.5 million, and paid $0.7 million for general and administrative

Expenses paid during the period primarily consisted of fees for the preparation of the Trust’s monthly press

releases, financial statement audit fees, and Trustee fees.

For the nine months ended September 30, 2019, the Trust withheld

$0.6 million, and paid $0.8 million for general and administrative expenses.

Liquidity and Capital Resources

33 unchanged sentences

The Trustee has no current plans to authorize the Trust to borrow any funds.

At June 30, 2020 and December 31, 2019, the Trust

At September 30, 2020 and December 31, 2019, the Trust

held cash of $63,598 and $90,665, respectively, for future Trust expenses.

Since its formation, the Trust has not borrowed any funds

and no amounts have been drawn on the letter of credit.

Since its formation, the Trust has not borrowed any

funds and no amounts have been drawn on the letter of credit.

From time to time,

2 unchanged sentences

COERT may advance funds to the Trust to pay such expenses.

At June 30, 2020 and December 31, 2019, there was an outstanding advance

of $19,100 and $34,818, respectively.

The full amount of the advance to the Trust will be repaid out of the funds payable to the

Trust relating to the monthly operational update announced on July 15, 2020.

At September 30, 2020 and December 31, 2019, there was an outstanding

advance of $159,071 and $34,818, respectively.

The full amount of the advance to the Trust will be repaid out of the funds payable

to the Trust relating to the monthly operational update announced on September 18, 2020.

In connection with

40 unchanged sentences

There were no material changes to the Trust’s critical accounting policies or

estimates during the three months ended June 30, 2020.

estimates during the nine months ended September 30, 2020.

Subsequent Events

Distributions

Paid or Declared

On July 15, 2020,

a distribution of $0.003800 per unit, which was declared on June 15, 2020, was paid to Trust unitholders of record as of June 30,

On July 17, 2020,

the Trust announced a reduction in sales volumes when comparing the July distribution period to prior periods This reduction was

due, in part, to shut ins by operators of certain Underlying Properties coupled with lower commodity prices as a result of the

COVID-19 pandemic.

The result of this reduction is that direct operating expenses and development expenditures exceeded cash receipts

for the calculation period and, as a result, a distribution will not be paid in August 2020.

The shortfall of $892,782 will

be deducted from any net profits allocable to the Trust from the August distribution period.

On October 15, 2020,

the Trust announced that there would be no distribution to the Trust unitholders in November

2020 as a result of the cumulative outstanding net profits shortfall.

Quantitative and Qualitative Disclosures About Market Risk.

4 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements