What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2022-03-25 compared with 2021-03-23 · 476 added, 437 removed, 91 unchanged (91% of the section changed)

Statements and Supplementary Data.

of Independent Registered Public Accounting Firm

the Trustee and Unitholders of Permianville Royalty Trust:

on the Financial Statements

have audited the accompanying statements of assets, liabilities, and trust corpus of Permianville Royalty Trust (the Trust) as

of December 31, 2020 and 2019, the related statements of distributable income and changes in trust corpus for each of the two

years ended December 31, 2020, and the related notes (collectively referred to as the “financial statements”).

our opinion, the financial statements present fairly, in all material respects, the financial position of the Trust at December

31, 2020 and 2019, and its distributable income for each of the two years in the period ended December 31, 2020, in conformity

with the modified cash basis of accounting, as described in Note 2, which is a comprehensive basis of accounting other than U.S.

Financial Statements and Supplementary Data.

Report of Independent Registered Public Accounting

To the Trustee and Unitholders of Permianville

Royalty Trust:

Opinion on the Financial Statements

We have audited the accompanying statement of

assets, liabilities, and trust corpus of Permianville Royalty Trust (the Trust) as of December 31, 2021, and the related statements of

distributable income and changes in trust corpus for the year then ended, and the related notes (collectively referred to as the “financial

statements”).

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Trust

at December 31, 2021, and its distributable income and changes in trust corpus for the year then ended, in conformity with the modified

cash basis of accounting, as described in Note 2, which is a comprehensive basis of accounting other than U.S.

generally accepted accounting

Basis of Accounting

As described in Note 2 to the financial statements,

these financial statements were prepared on a modified cash basis of accounting, which is a comprehensive basis of accounting other than

generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility

of the Trustee.

Our responsibility is to express an opinion on these financial statements based on our audit.

We are a public accounting

firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent

with respect to the Trust in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the Securities

and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the

standards of the PCAOB.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial

statements are free of material misstatement, whether due to error or fraud.

The Trust is not required to have, nor were we engaged to

perform, an audit of its internal control over financial reporting.

As part of our audit we are required to obtain an understanding of

internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal

control over financial reporting.

Accordingly, we express no such opinion.

Our audit included performing procedures to assess

the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond

to those risks.

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating

the overall presentation of the financial statements.

We believe that our audit provide a reasonable basis for our opinion.

Critical Audit Matters

Critical audit matters are matters arising from

the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and

(1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging,

subjective, or complex judgments.

We determined that there are no critical audit matters.

/s/ Weaver and Tidwell, L.L.P.

We have served as the Trust’s auditor since

Houston, Texas

March 25, 2022

REPORT OF INDEPENDENT REGISTERED PUBLIC

ACCOUNTING FIRM

To the Trustee and Unitholders of Permianville Royalty Trust:

Opinion on the Financial Statements

We have audited the accompanying statement of assets,

liabilities, and trust corpus of Permianville Royalty Trust (the Trust) as of December 31, 2020, the related statement of distributable

income and changes in trust corpus for the year ended December 31, 2020, and the related notes (collectively referred to as the “financial

statements”).

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Trust

at December 31, 2020, and its distributable income for the year ended December 31, 2020, in conformity with the modified cash basis of

accounting, as described in Note 2, which is a comprehensive basis of accounting other than U.S.

generally accepted accounting principles.

of Accounting

described in Note 2 to the financial statements, these financial statements were prepared on the modified cash basis of accounting,

which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America.

financial statements are the responsibility of the Trustee.

Our responsibility is to express an opinion on the Trust’s financial

statements based on our audits.

We are a public accounting firm registered with the PCAOB and are required to be independent with

respect to the Trust in accordance with the U.S.

Basis of Accounting

As described in Note 2 to the financial statements,

these financial statements were prepared on the modified cash basis of accounting, which is a comprehensive basis of accounting other

than accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility

of the Trustee.

Our responsibility is to express an opinion on the Trust’s financial statements based on our audit.

We are a public

accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent

with respect to the Trust in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the Securities

and Exchange Commission and the PCAOB.

conducted our audits in accordance with the standards of the PCAOB.

Those standards require that we plan and perform the audit

to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error

The Trust is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.

As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the

purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting.

we express no such opinion.

audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to

error or fraud, and performing procedures that respond to those risks.

Such procedures included examining, on a test basis, evidence

regarding the amounts and disclosures in the financial statements.

Our audits also included evaluating the accounting principles

used and significant estimates made by the Trustee, as well as evaluating the overall presentation of the financial statements.

We believe that our audits provide a reasonable basis for our opinion.

critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was

communicated or required to be communicated to the Trustee and that:

(1) relates to accounts or disclosures that are material

to the financial statements and (2) involved our especially challenging, subjective or complex judgments.

The communication of

the critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not,

by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the account

or disclosure to which it relates.

Amortization of Net Profits

Interest in oil and natural gas properties

Description of the Matter

December 31, 2020, the net book value of the Trust’s Net Profits Interest in oil and natural gas properties was $71,265,032,

and amortization was $5,900,923 for the year then ended.

As described in Note 2, amortization of Net Profits Interest in oil and

natural gas properties is calculated using the unit-of-production method based on the oil and natural gas reserves of the Underlying

Properties, as estimated by the Trust’s independent petroleum engineers.

Oil and natural gas reserves are those quantities

of natural gas, crude oil, and natural gas liquids, which by analysis of geoscience and engineering data, can be estimated with

reasonable certainty to be economically producible from a given date forward, from known reservoirs, and under existing economic

conditions, operating methods, and government regulations.

Significant judgment is required by the Trust’s independent petroleum

engineers in evaluating geological and engineering data when estimating oil and natural gas reserves.

Estimating reserves also

requires the selection of inputs, including oil and gas price assumptions, future operating and capital costs assumptions, among

the Trust’s amortization of Net Profits Interest is complex because of the use of the work of the independent petroleum

engineers and the evaluation of Trustee’s determination of the inputs described above used by the engineers in estimating

oil and natural gas reserves.

How We Addressed the Matter in Our Audit

Our audit procedures included, among others,

evaluating the professional qualifications and objectivity of the Trust’s independent petroleum engineers used to prepare

the reserve estimates.

In addition, in assessing whether we can use the work of the independent petroleum engineers we evaluated

the completeness and accuracy of the financial data and inputs described above used by the engineers in estimating oil and

natural gas reserves by agreeing them to source documentation, and we identified and evaluated corroborative and contrary

For proved undeveloped reserves, we evaluated the Sponsor’s development plan for compliance with the SEC rule

that undrilled locations are scheduled to be drilled within five years and by assessing consistency of the development projections

with the Sponsor’s development plan.

We also tested the mathematical accuracy of the amortization calculation, including

comparing the oil and natural gas reserve amounts used in the calculations to the Trust’s reserve reports.

We conducted our audit in accordance with the standards

of the PCAOB.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements

are free of material misstatement, whether due to error or fraud.

The Trust is not required to have, nor were we engaged to perform, an

audit of its internal control over financial reporting.

As part of our audit we are required to obtain an understanding of internal control

over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over

financial reporting.

Accordingly, we express no such opinion.

Our audit included performing procedures to assess

the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond

to those risks.

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Our audit also included evaluating the accounting principles used and significant estimates made by the Trustee, as well as evaluating

the overall presentation of the financial statements.

We believe that our audit provide a reasonable basis for our opinion.

/s/ Ernst & Young LLP

have served as the Trust’s auditor since 2011.

ROYALTY TRUST

of Assets, Liabilities and Trust Corpus

We served as the Trust’s

auditor from 2011 to 2021

Houston, Texas

March 23, 2021

PERMIANVILLE ROYALTY TRUST

Statements of Assets, Liabilities and Trust Corpus

Cash and cash equivalents

5 unchanged sentences

Total liabilities and Trust corpus

accompanying notes to financial statements are an integral part of these statements.

ROYALTY TRUST

of Distributable Income

The accompanying notes to financial statements

are an integral part of these statements.

PERMIANVILLE ROYALTY TRUST

Statements of Distributable Income

Year Ended December 31,

Income from net profits interest

Income from sale of net profits interest on undeveloped acreage

Income from sale/lease of assets

Interest and investment income

3 unchanged sentences

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

accompanying notes to financial statements are an integral part of these statements.

ROYALTY TRUST

of Changes in Trust Corpus

The accompanying notes to financial statements

are an integral part of these statements.

PERMIANVILLE ROYALTY TRUST

Statements of Changes in Trust Corpus

Year Ended December 31,

5 unchanged sentences

Trust corpus, end of period

accompanying notes to financial statements are an integral part of these statements.

ROYALTY TRUST

TO FINANCIAL STATEMENTS

ORGANIZATION AND PROVISIONS

Royalty Trust (the “Trust”), previously known as Enduro Royalty Trust, is a Delaware statutory trust formed in May 2011

pursuant to a trust agreement (the “Trust Agreement”) among Enduro Resource Partners LLC (“Enduro”), as

trustor, The Bank of New York Mellon Trust Company, N.A.

(the “Trustee”), as trustee, and Wilmington Trust Company

(the “Delaware Trustee”), as Delaware Trustee.

Trust was created to acquire and hold for the benefit of the Trust unitholders a net profits interest representing the right to

receive 80% of the net profits from the sale of oil and natural gas production from certain properties in the states of Texas,

Louisiana and New Mexico held by Enduro as of the date of the conveyance of the net profits interest to the Trust (the “Net

Profits Interest”).

The properties in which the Trust holds the Net Profits Interest are referred to as the “Underlying

Properties.”

connection with the closing of the initial public offering in November 2011, Enduro contributed the Net Profits Interest

to the Trust in exchange for 33,000,000 units of beneficial interest in the Trust (the “Trust Units”).

initial public offering in 2011 and a secondary offering in 2013, Enduro sold a total of 24,400,000 Trust Units.

As of December

31, 2017, Enduro owned 8,600,000 Trust Units, or 26% of the issued and outstanding Trust Units.

a special meeting of Trust unitholders held on August 30, 2017, unitholders approved several proposals, including amendments to

the Trust Agreement.

In September 2017, Enduro, the Trustee and the Delaware Trustee entered into the First Amendment to Amended

and Restated Trust Agreement, which amended certain provisions of the Trust Agreement to, among other things, allow Enduro to

sell interests in the Underlying Properties free and clear of the Net Profits Interest with the approval of Trust unitholders

holding at least 50% of the then outstanding units of the Trust at a meeting held in accordance with the requirements of the Trust

This amendment reduced the required threshold for approval of such sales from 75% to 50% of the outstanding units of

July 2018 Enduro entered into a purchase and sale agreement with COERT Holdings 1 LLC (“COERT”

or the “Sponsor”)

for the Underlying Properties and all of the outstanding Trust Units owned by Enduro (the “Sale Transaction”), and

on August 31, 2018, the parties closed the Sale Transaction.

In connection with the Sale Transaction, COERT assumed all of Enduro’s

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

As of December 31, 2019,

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

Net Profits Interest is passive in nature and neither the Trust nor the Trustee has any management control over or responsibility

for costs relating to the operation of the Underlying Properties.

The accompanying notes to financial statements

are an integral part of these statements.

PERMIANVILLE ROYALTY

NOTES TO FINANCIAL STATEMENTS

TRUST ORGANIZATION AND PROVISIONS

Permianville Royalty Trust (the “Trust”),

previously known as Enduro Royalty Trust, is a Delaware statutory trust formed in May 2011 pursuant to a trust agreement (the “Trust

Agreement”) among Enduro Resource Partners LLC (“Enduro”), as trustor, The Bank of New York Mellon Trust Company, N.A.

(the “Trustee”), as trustee, and Wilmington Trust Company (the “Delaware Trustee”), as Delaware Trustee.

The Trust was created to acquire and hold for the

benefit of the Trust unitholders a net profits interest representing the right to receive 80% of the net profits from the sale of oil

and natural gas production from certain properties in the states of Texas, Louisiana and New Mexico held by Enduro as of the date of the

conveyance of the net profits interest to the Trust (the “Net Profits Interest”).

The properties in which the Trust holds

the Net Profits Interest are referred to as the “Underlying Properties.”

In connection with the closing of the initial public

offering in November 2011, Enduro contributed the Net Profits Interest to the Trust in exchange for 33,000,000 units of beneficial

interest in the Trust (the “Trust Units”).

Through the initial public offering in 2011 and a secondary offering in 2013, Enduro

sold a total of 24,400,000 Trust Units.

As of December 31, 2017, Enduro owned 8,600,000 Trust Units, or 26% of the issued and outstanding

At a special meeting of Trust unitholders held

on August 30, 2017, unitholders approved several proposals, including amendments to the Trust Agreement.

In September 2017, Enduro, the

Trustee and the Delaware Trustee entered into the First Amendment to Amended and Restated Trust Agreement, which amended certain provisions

of the Trust Agreement to, among other things, allow Enduro to sell interests in the Underlying Properties free and clear of the Net Profits

Interest with the approval of Trust unitholders holding at least 50% of the then outstanding units of the Trust at a meeting held in accordance

with the requirements of the Trust Agreement.

This amendment reduced the required threshold for approval of such sales from 75% to 50%

of the outstanding units of the Trust.

In July 2018 Enduro entered

into a purchase and sale agreement with COERT Holdings 1 LLC (“COERT”

or the “Sponsor”) for the Underlying Properties

and all of the outstanding Trust Units owned by Enduro (the “Sale Transaction”), and on August 31, 2018, the parties closed

the Sale Transaction.

In connection with the Sale Transaction, COERT assumed all of Enduro’s obligations under the Trust Agreement

and other instruments to which Enduro and the Trustee were parties.

As of December 31, 2021, the Sponsor owned 8,600,000 Trust Units,

or 26% of the issued and outstanding Trust Units.

The Net Profits Interest is passive in nature and

neither the Trust nor the Trustee has any management control over or responsibility for costs relating to the operation of the Underlying

The Trust Agreement provides, among other provisions, that:

Trust’s business activities are limited to owning the Net Profits Interest and

any activity reasonably related to such ownership, including activities required or permitted

by the terms of the Conveyance of Net Profits Interest, dated effective as of July 1,

the Trust’s business activities are limited to owning the Net Profits Interest and any activity reasonably related to such ownership,

including activities required or permitted by the terms of the Conveyance of Net Profits Interest, dated effective as of July 1, 2011

(as supplemented and amended to date, the “Conveyance”).

the Trust is not permitted to acquire other oil and natural gas properties or net profits

interests or otherwise to engage in activities beyond those necessary for the conservation

and protection of the Net Profits Interest;

Trust may dispose of all or any material part of the assets of the Trust (including the

sale of the Net Profits Interests) if approved by at least 75% of the outstanding Trust

Sponsor may sell a divided or undivided portion of its interests in the Underlying Properties,

free from and unburdened by the Net Profits Interest, if approved by at least 50% of

the outstanding Trust Units at a meeting of Trust unitholders;

Trustee will make monthly cash distributions to unitholders (Note 5);

ROYALTY TRUST

As a result, the Trust is not permitted to acquire other oil and

natural gas properties or net profits interests or otherwise to engage in activities beyond those necessary for the conservation and protection

of the Net Profits Interest;

the Trust may dispose of all or any material part of the assets of the Trust (including the sale of the Net Profits Interests) if

approved by at least 75% of the outstanding Trust Units;

the Sponsor may sell a divided or undivided portion of its interests in the Underlying Properties, free from and unburdened by the

Net Profits Interest, if approved by at least 50% of the outstanding Trust Units at a meeting of Trust unitholders;

the Trustee will make monthly cash distributions to Trust unitholders (Note 5);

PERMIANVILLE ROYALTY

NOTES TO FINANCIAL STATEMENTS—Continued

Trustee may create a cash reserve to pay for future liabilities of the Trust;

Trustee may authorize the Trust to borrow money to pay administrative or incidental expenses

of the Trust that exceed its cash on hand and available reserves.

No further distributions

will be made to Trust unitholders until such amounts borrowed are repaid;

Trust is not subject to any pre-set termination provisions based on a maximum volume

of oil or natural gas to be produced or the passage of time.

The Trust will dissolve

upon the earliest to occur of the following:

Trust, upon approval of the holders of at least 75% of the outstanding Trust Units, sells

the Net Profits Interest;

annual cash proceeds received by the Trust attributable to the Net Profits Interest are

less than $2 million for each of any two consecutive years;

holders of at least 75% of the outstanding Trust Units vote in favor of dissolution;

Trust is judicially dissolved.

OF SIGNIFICANT ACCOUNTING POLICIES

of Accounting

Trust uses the modified cash basis of accounting to report Trust receipts of income from the Net Profits Interest and payments

of expenses incurred.

The Net Profits Interest represents the right to receive revenues (oil and natural gas sales), less direct

operating expenses (including lease operating expenses and production and property taxes) and development expenses of the Underlying

Properties, multiplied by 80%.

Cash distributions of the Trust are made based on the amount of cash received by the Trust from

the Sponsor pursuant to terms of the Conveyance creating the Net Profits Interest.

the terms of the Conveyance, the monthly Net Profits Interest calculation includes oil and natural gas revenues received by the

Sponsor during the relevant month.

Monthly operating expenses and capital expenditures represent estimated incurred expenses,

and as a result, represent accrued expenses as well as expenses paid during the period.

financial statements of the Trust are prepared on the following basis:

from Net Profits Interest is recorded when distributions are received by the Trust;

(b) Distributions

to Trust unitholders are recorded when paid by the Trust;

general and administrative expenses (which includes the Trustee’s fees as well

as accounting, engineering, legal, and other professional fees) are recorded when paid;

reserves for Trust expenses may be established by the Trustee for certain future expenditures

that would not be recorded as contingent liabilities under accounting principles generally

accepted in the United States of America (“GAAP”);

(e) Amortization

of the Net Profits Interest in oil and natural gas properties is calculated on a unit-of-production

basis and is charged directly to the Trust corpus;

ROYALTY TRUST

TO FINANCIAL STATEMENTS—Continued

Net Profits Interest in oil and natural gas properties is periodically assessed whenever

events or circumstances indicate that the aggregate value may have been impaired below

its total capitalized cost based on the Underlying Properties.

the Trustee may create a cash reserve to pay for future liabilities of the Trust;

the Trustee may authorize the Trust to borrow money to pay administrative or incidental expenses of the Trust that exceed its cash

on hand and available reserves.

No further distributions will be made to Trust unitholders until such amounts borrowed are repaid;

the Trust is not subject to any pre-set termination provisions based on a maximum volume of oil or natural gas to be produced or the

passage of time.

The Trust will dissolve upon the earliest to occur of the following:

the Trust, upon approval of the holders of at least 75% of the outstanding Trust Units, sells the Net Profits Interest;

the annual cash proceeds received by the Trust attributable to the Net Profits Interest are less than $2 million for each of any two

consecutive years;

the holders of at least 75% of the outstanding Trust Units vote in favor of dissolution;

the Trust is judicially dissolved.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting

The Trust uses the modified cash basis of accounting

to report Trust receipts of income from the Net Profits Interest and payments of expenses incurred.

The Net Profits Interest represents

the right to receive revenues (oil and natural gas sales), less direct operating expenses (including lease operating expenses and production

and property taxes) and development expenses of the Underlying Properties, multiplied by 80%.

Cash distributions of the Trust are made

based on the amount of cash received by the Trust from the Sponsor pursuant to terms of the Conveyance creating the Net Profits Interest.

Under the terms of the Conveyance, the monthly

Net Profits Interest calculation includes oil and natural gas revenues received by the Sponsor during the relevant month.

Monthly operating

expenses and capital expenditures represent estimated incurred expenses, and as a result, represent accrued expenses as well as expenses

paid during the period.

The financial statements of the Trust are prepared

on the following basis:

(a) Income from Net Profits Interest is recorded when distributions are received by the Trust;

(b) Distributions to Trust unitholders are recorded when paid by the Trust;

(c) Trust general and administrative expenses (which includes the Trustee’s fees as well as accounting, engineering, legal, and

other professional fees) are recorded when paid;

(d) Cash reserves for Trust expenses may be established by the Trustee for certain future expenditures that would not be recorded as contingent

liabilities under accounting principles generally accepted in the United States of America (“GAAP”);

(e) Amortization of the Net Profits Interest in oil and natural gas properties is calculated on a unit-of-production basis and is charged

directly to the Trust corpus;

PERMIANVILLE ROYALTY

NOTES TO FINANCIAL STATEMENTS—Continued

(f) The Net Profits Interest in oil and natural gas properties is periodically assessed whenever events or circumstances indicate that

the aggregate value may have been impaired below its total capitalized cost based on the Underlying Properties.

If an impairment loss

is indicated by the carrying amount of the assets exceeding the sum of the undiscounted

expected future net cash flows of the Net Profits Interest, then an impairment loss is

recognized for the amount by which the carrying amount of the asset exceeds its estimated

fair value determined using discounted cash flows.

financial statements of the Trust differ from financial statements prepared in accordance with GAAP because revenues are not accrued

in the month of production;

certain cash reserves may be established for contingencies which would not be accrued in financial

statements prepared in accordance with GAAP;

general and administrative expenses are recorded when paid instead of when incurred;

and amortization of the net profits interest calculated on a unit-of-production basis is charged directly to trust corpus instead

of as an expense.

While these statements differ from financial statements prepared in accordance with GAAP, the modified cash

basis of reporting revenues, expenses, and distributions is considered to be the most meaningful because monthly distributions

to the Trust unitholders are based on net cash receipts.

comprehensive basis of accounting other than GAAP corresponds to the accounting permitted for royalty trusts by the U.S.

and Exchange Commission (“SEC”) as specified by Staff Accounting Bulletin Topic 12:E, Financial Statements of Royalty

preparation of financial statements in conformity with the basis of accounting described above requires the Trust to make estimates

and assumptions that affect reported amounts of assets and liabilities and the reported amounts of revenues and expenses during

the reporting period.

Significant estimates affecting these financial statements include estimates of proved oil and natural gas

reserves, which are used to compute the Trust’s amortization of net profits interest and its impairment assessments.

the Trustee believes that these estimates are reasonable, actual results could differ from those estimates.

and Cash Equivalents

and cash equivalents include cash in banks, money market accounts, and all highly liquid investments with an original maturity

of three months or less.

Net Profits Interest in oil and natural gas properties is periodically assessed for impairment whenever events or circumstances

indicate that the current fair value based on expected future cash flows of the Underlying Properties may be less than the carrying

value of the Net Profits Interest.

While the Trust did not record an impairment during the years ended December 31, 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 in recognition of impairment in future periods.

Accounting Pronouncements

the Trust’s financial statements are prepared on the modified cash basis, most accounting pronouncements are not applicable

to the Trust’s financial statements.

No new accounting pronouncements have been adopted or issued that would impact the

financial statements of the Trust.

ROYALTY TRUST

TO FINANCIAL STATEMENTS—Continued

PROFITS INTEREST IN OIL AND NATURAL GAS PROPERTIES

Net Profits Interest in oil and natural gas properties was recorded at its fair value on the date of conveyance.

of the Net Profits Interest in oil and natural gas properties is calculated on a unit-of-production basis based on the Underlying

Properties’

is indicated by the carrying amount of the assets exceeding the sum of the undiscounted expected future net cash flows of the Net Profits

Interest, then an impairment loss is recognized for the amount by which the carrying amount of the asset exceeds its estimated fair value

determined using discounted cash flows.

The financial statements of the Trust differ from

financial statements prepared in accordance with GAAP because revenues are not accrued in the month of production;

certain cash reserves

may be established for contingencies which would not be accrued in financial statements prepared in accordance with GAAP;

administrative expenses are recorded when paid instead of when incurred;

and amortization of the net profits interest calculated on a

unit-of-production basis and any impairment recorded is charged directly to trust corpus instead of as an expense.

While these statements

differ from financial statements prepared in accordance with GAAP, the modified cash basis of reporting revenues, expenses, and distributions

is considered to be the most meaningful because monthly distributions to the Trust unitholders are based on net cash receipts.

This comprehensive basis of accounting other than

GAAP corresponds to the accounting permitted for royalty trusts by the U.S.

Securities and Exchange Commission (“SEC”) as

specified by Staff Accounting Bulletin Topic 12:E, Financial Statements of Royalty Trusts .

Use of Estimates

The preparation of financial statements in conformity

with the basis of accounting described above requires the Trust to make estimates and assumptions that affect reported amounts of assets

and liabilities and the reported amounts of revenues and expenses during the reporting period.

Significant estimates affecting these financial

statements include estimates of proved oil and natural gas reserves, which are used to compute the Trust’s amortization of net profits

interest and its impairment assessments.

Although the Trustee believes that these estimates are reasonable, actual results could differ

from those estimates.

Cash and Cash Equivalents

Cash and cash equivalents include cash in banks,

money market accounts, and all highly liquid investments with an original maturity of three months or less.

The Net Profits Interest in oil and natural gas

properties is periodically assessed for impairment whenever events or circumstances indicate that the current fair value based on expected

future cash flows of the Underlying Properties may be less than the carrying value of the Net Profits Interest.

While the Trust did not

record an impairment during the years ended December 31, 2021 or 2020, future downward revisions in actual production volumes relative

to current forecasts, higher than expected operating costs, or lower than anticipated commodity prices could result in recognition of

impairment in future periods.

New Accounting Pronouncements

As the Trust’s financial statements are prepared

on the modified cash basis, most accounting pronouncements are not applicable to the Trust’s financial statements.

No new accounting

pronouncements have been adopted or issued that would impact the financial statements of the Trust.

PERMIANVILLE ROYALTY

NOTES TO FINANCIAL STATEMENTS—Continued

NET PROFITS INTEREST IN OIL AND NATURAL GAS PROPERTIES

The Net Profits Interest in oil and natural gas

properties was recorded at its fair value on the date of conveyance.

Amortization of the Net Profits Interest in oil and natural gas properties

is calculated on a unit-of-production basis based on the Underlying Properties’

production and reserves.

The reserves upon which the amortization rate is based are quantity estimates which

are subject to numerous uncertainties inherent in the estimation of proved reserves.

The volumes considered to be commercially

recoverable fluctuate with changes in commodity prices and operating costs.

These estimates are expected to change as additional

information becomes available in the future.

Downward revisions in proved reserves may result in an increased rate of amortization.

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

amortization as of December 31, 2020 and 2019 was $285,826,125 and $279,925,202, respectively.

Net Profits Interest is periodically assessed for impairment whenever events or circumstances indicate that the current fair value

based on expected future cash flows of the Underlying Properties may be less than the carrying value of the Net Profits Interest.

While the Trust did not record an impairment during the years ended December 31, 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 in recognition of impairment in future periods.

of Net Profits Interest

value accounting guidance includes a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level

1 inputs) and the lowest priority to unobservable inputs (Level 3).

When indicators of impairment are present and it is determined

that the carrying value of the Net Profits Interest exceeds the estimated undiscounted cash flows of the subject interest, fair

value estimates utilized in the impairment assessment are determined based on inputs not observable in the market and thus represent

Level 3 measurements.

federal income tax purposes, the Trust is a grantor trust and therefore is not subject to tax at the trust level.

Trust unitholders

are treated as owning a direct interest in the assets of the Trust, and each Trust unitholder is taxed directly on his or her

pro rata share of the income and gain attributable to the assets of the Trust and entitled to claim his or her pro rata share

of the deductions and expenses attributable to the assets of the Trust.

The income of the Trust is deemed to have been received

or accrued by each unitholder at the time such income is received or accrued by the Trust rather than when distributed by the

deductions of the Trust consist of severance taxes and administrative expenses.

In addition, each unitholder is entitled to depletion

deductions because the Net Profits Interest constitutes “economic interests”

in oil and natural gas properties for

federal income tax purposes.

Each unitholder is entitled to amortize the cost of the Trust Units through cost depletion over the

life of the Net Profits Interest or, if greater, through percentage depletion.

Unlike cost depletion, percentage depletion is

not limited to a unitholder’s depletable tax basis in the Trust Units.

Rather, a unitholder could be entitled to percentage

depletion as long as the applicable Underlying Properties generate net income.

Trust Units are held by a middleman, as such term is broadly defined in U.S.

Treasury Regulations (and includes custodians, nominees,

certain joint owners, and brokers holding an interest for a custodian in street name).

Therefore, the Trustee considers the Trust

to be a non-mortgage widely held fixed investment trust (“WHFIT”) for U.S.

The reserves upon which

the amortization rate is based are quantity estimates which are subject to numerous uncertainties inherent in the estimation of proved

The volumes considered to be commercially recoverable fluctuate with changes in commodity prices and operating costs.

estimates are expected to change as additional information becomes available in the future.

Downward revisions in proved reserves may

result in an increased rate of amortization.

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

income of the Trust.

Accumulated amortization as of December 31, 2021 and 2020 was $291,965,506 and $285,826,125, respectively.

The Net Profits Interest is periodically assessed

for impairment whenever events or circumstances indicate that the current fair value based on expected future cash flows of the Underlying

Properties may be less than the carrying value of the Net Profits Interest.

While the Trust did not record an impairment during the years

ended December 31, 2021 or 2020, future downward revisions in actual production volumes relative to current forecasts, higher than expected

operating costs, or lower than anticipated commodity prices could result in recognition of impairment in future periods.

Impairment of Net Profits Interest

Fair value accounting guidance includes a hierarchy that prioritizes

the inputs to valuation techniques used to measure fair value.

The hierarchy gives the highest priority to unadjusted quoted prices in

active markets for identical assets or liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (Level 3).

When indicators

of impairment are present and it is determined that the carrying value of the Net Profits Interest exceeds the estimated undiscounted

cash flows of the subject interest, fair value estimates utilized in the impairment assessment are determined based on inputs not observable

in the market and thus represent Level 3 measurements.

Federal Income Taxes

For federal income tax purposes, the Trust is a

grantor trust and therefore is not subject to tax at the trust level.

Trust unitholders are treated as owning a direct interest in the

assets of the Trust, and each Trust unitholder is taxed directly on his or her pro rata share of the income and gain attributable to the

assets of the Trust and entitled to claim his or her pro rata share of the deductions and expenses attributable to the assets of the Trust.

The income of the Trust is deemed to have been received or accrued by each unitholder at the time such income is received or accrued by

the Trust rather than when distributed by the Trust.

The deductions of the Trust consist of severance

taxes and administrative expenses.

In addition, each unitholder is entitled to depletion deductions because the Net Profits Interest constitutes

“economic interests”

in oil and natural gas properties for federal income tax purposes.

Each unitholder is entitled to amortize

the cost of the Trust Units through cost depletion over the life of the Net Profits Interest or, if greater, through percentage depletion.

Unlike cost depletion, percentage depletion is not limited to a unitholder’s depletable tax basis in the Trust Units.

unitholder could be entitled to percentage depletion as long as the applicable Underlying Properties generate net income.

PERMIANVILLE ROYALTY TRUST

NOTES TO FINANCIAL STATEMENTS—Continued

Some Trust Units are held by a middleman, as

such term is broadly defined in U.S.

Treasury Regulations (and includes custodians, nominees, certain joint owners, and brokers

holding an interest for a custodian in street name).

Therefore, the Trustee considers the Trust to be a non-mortgage widely held

fixed investment trust (“WHFIT”) for U.S.

federal income tax purposes.

New York Mellon Trust Company, N.A., 601 Travis, 16 th Floor, Houston, Texas 77002, telephone number (512) 236-6545,

is the representative of the Trust that will provide tax information in accordance with applicable U.S.

Treasury Regulations governing

the information reporting requirements of the Trust as a WHFIT.

The Bank of New York Mellon Trust Company, N.A.,

601 Travis, 16 th Floor, Houston, Texas 77002, telephone number (512) 236-6545, is the representative of the Trust that

will provide tax information in accordance with applicable U.S.

Treasury Regulations governing the information reporting

requirements of the Trust as a WHFIT.

Tax information is also posted by the Trustee at www.permianvilleroyaltytrust.com .

3 unchanged sentences

units, including the issuance of IRS Forms 1099 and certain written tax statements.

Unitholders whose units are held by middlemen

should consult with such middlemen regarding the information that will be reported to them by the middlemen with respect to the

ROYALTY TRUST

TO FINANCIAL STATEMENTS—Continued

tax consequences to a unitholder of ownership of Trust Units will depend in part on the unitholder’s tax circumstances.

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

Trust’s revenues are from sources in the states of Louisiana, New Mexico and Texas.

Because it distributes all of its net

income to unitholders, the Trust is not taxed at the trust level in Louisiana or New Mexico.

Although the Trust does not owe tax,

the Trustee is required to file a return with Louisiana reflecting the income and deductions of the Trust attributable to properties

located in that state.

Louisiana and New Mexico presently have income taxes which tax income of nonresidents from real property

located within that state.

Louisiana and New Mexico also impose a corporate income tax which may apply to unitholders organized

as corporations.

imposes a franchise tax at a rate of 0.75% on gross revenues less certain deductions for returns originally due on or after January

1, 2016, as specifically set forth in the Texas franchise tax statutes.

Entities subject to tax generally include trusts unless

otherwise exempt.

Trusts that receive at least 90% of their federal gross income from designated passive sources, including royalties

from mineral properties and other income from other non-operating mineral interests, and do not receive more than 10% of their

income from operating an active trade or business, generally are exempt from the Texas franchise tax as “passive entities.”

Although the Trust is intended to be exempt from Texas franchise tax at the trust level as a passive entity, each unitholder that

is considered a taxable entity under the Texas franchise tax would generally be required to include its portion of Trust net income

in its own Texas franchise tax computation.

unitholder should consult his or her own tax advisor regarding state tax requirements, if any, applicable to such person’s

ownership of Trust Units.

ROYALTY TRUST

Trust unitholders whose units are held by

middlemen should consult with such middlemen regarding the information that will be reported to them by the middlemen with respect

to the Trust Units.

The tax consequences to a unitholder of ownership

of Trust Units will depend in part on the unitholder’s tax circumstances.

Trust unitholders should consult their tax advisors about

the federal tax consequences relating to owning the Trust Units.

The Trust’s revenues are from sources in

the states of Louisiana, New Mexico and Texas.

Because it distributes all of its net income to unitholders, the Trust is not taxed at

the trust level in Louisiana or New Mexico.

Although the Trust does not owe tax, the Trustee is required to file a return with Louisiana

reflecting the income and deductions of the Trust attributable to properties located in that state.

Louisiana and New Mexico presently

have income taxes which tax income of nonresidents from real property located within that state.

Louisiana and New Mexico also impose

a corporate income tax which may apply to unitholders organized as corporations.

Texas imposes a franchise tax at a rate of 0.75%

on gross revenues less certain deductions for returns originally due on or after January 1, 2016, as specifically set forth in the Texas

franchise tax statutes.

Entities subject to tax generally include trusts unless otherwise exempt.

Trusts that receive at least 90% of

their federal gross income from designated passive sources, including royalties from mineral properties and other income from other non-operating

mineral interests, and do not receive more than 10% of their income from operating an active trade or business, generally are exempt from

the Texas franchise tax as “passive entities.”

Although the Trust is intended to be exempt from Texas franchise tax at the

trust level as a passive entity, each unitholder that is considered a taxable entity under the Texas franchise tax would generally be

required to include its portion of Trust net income in its own Texas franchise tax computation.

Each unitholder should consult his or her own tax

advisor regarding state tax requirements, if any, applicable to such person’s ownership of Trust Units.

PERMIANVILLE ROYALTY

NOTES TO FINANCIAL STATEMENTS—Continued

DISTRIBUTIONS

TO UNITHOLDERS

month, the Trustee determines the amount of funds available for distribution to the Trust unitholders.

Available funds are the

excess cash, if any, received by the Trust from the Net Profits Interest and other sources (such as interest earned on any amounts

reserved by the Trustee) that month, over the Trust’s liabilities for that month, subject to adjustments for changes made

by the Trustee during the month in any cash reserves established for future liabilities of the Trust.

Distributions are made to

the holders of Trust Units as of the applicable record date (generally the last business day of each calendar month) and are payable

on or before the tenth business day after the record date.

following table provides information regarding the Trust’s distributions paid during the periods indicated:

DISTRIBUTIONS TO UNITHOLDERS

Each month, the Trustee determines the amount of

funds available for distribution to the Trust unitholders.

Available funds are the excess cash, if any, received by the Trust from the

Net Profits Interest and other sources (such as interest earned on any amounts reserved by the Trustee) that month, over the Trust’s

liabilities for that month, subject to adjustments for changes made by the Trustee during the month in any cash reserves established for

future liabilities of the Trust.

Distributions are made to the holders of Trust Units as of the applicable record date (generally the

last business day of each calendar month) and are payable on or before the tenth business day after the record date.

The following table provides information regarding

the Trust’s distributions paid during the periods indicated:

Declaration Date

Distribution per Unit

August 16, 2021

August 31, 2021

September 15, 2021

September 17, 2021

September 30, 2021

October 15, 2021

October 18, 2021

October 29, 2021

November 15, 2021

November 17, 2021

November 30, 2021

December 15, 2021

Total—2021

December 16, 2019

December 31, 2019

January 15, 2020

15 unchanged sentences

Total—2020

TRUSTEE FEES AND RELATED PARTY TRANSACTIONS

Trustee Administrative Fee.

Under the terms

of the Trust Agreement, the Trust pays an annual administrative fee of $200,000 to the Trustee and $2,000 to the Delaware Trustee.

the years ended December 31, 2021 and 2020, the Trust paid $200,000 to the Trustee and $2,000 to the Delaware Trustee, respectively, pursuant

to the terms of the Trust Agreement.

Letter of Credit .

Under the terms of the

Trust Agreement, COERT has provided the Trust with a $1,200,000 million letter of credit to be used by the Trust in the event that its

cash on hand (including available cash reserves) is not sufficient to pay ordinary course administrative expenses.

The letter of credit

is issued to the benefit of the Trustee.

The standby letter of credit was issued by West Texas National Bank and matures February 11,

The letter of credit to the Trustee is unfunded as of December 31, 2021.

Advances from COERT .

From time to time,

if the Trust’s cash on hand (including available cash reserves, if any) is not sufficient to pay the Trust’s ordinary course

administrative expenses that are due prior to the monthly payment to the Trust of proceeds from the Net Profits Interest, COERT may advance

funds to the Trust to pay such expenses.

Such advances are recorded as a liability on the Statements of Assets, Liabilities and Trust

Corpus until repaid.

As of December 31, 2021 and 2020, Advances to the Trust were $0 and $348,821, respectively.

Registration Rights Agreement.

Trust and COERT (as the assignee of Enduro, in connection with the Sale Transaction) are parties to a Registration Rights Agreement,

as amended, whereby COERT, its affiliates and certain permitted transferees holding registrable Trust Units are entitled, upon

receipt by the Trustee of written notice from holders of a majority of the then outstanding registrable Trust Units, to demand that

the Trust effect the registration of the registrable Trust Units.

The holders of the registrable Trust Units are entitled to demand

a maximum of five such registrations.

In connection with the preparation and filing of any registration statement, COERT will bear

all costs and expenses incidental to any registration statement, excluding certain internal expenses of the Trust, which will be

borne by the Trust.

Any underwriting discounts and commissions will be borne by the seller of the Trust Units.

PERMIANVILLE ROYALTY

NOTES TO FINANCIAL STATEMENTS—Continued

SUBSEQUENT EVENTS

Distributions Paid or Declared

Subsequent to December 31, 2021, the Trust

declared the following distributions:

Declaration Date

December 17, 2021

December 31, 2021

January 14, 2022

January 18, 2022

January 31, 2022

February 14, 2022

5 unchanged sentences

April 14, 2022

April 18, 2019

April 30, 2019

June 14, 2019

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

September 30, 2019

October 15, 2019

October 18, 2019

October 31, 2019

November 14, 2019

November 15, 2019

November 29, 2019

December 13, 2019

Total—2019

FEES AND RELATED PARTY TRANSACTIONS

Administrative Fee.

Under the terms of the Trust Agreement, the Trust pays an annual administrative fee of $200,000 to the

Trustee and $2,000 to the Delaware Trustee.

During the years ended December 31, 2020 and 2019, the Trust paid $200,000 to the

Trustee and $2,000 to the Delaware Trustee, respectively, pursuant to the terms of the Trust Agreement.

Under the terms of the Trust Agreement, COERT has provided the Trust with a $1.2 million letter of credit to be

used by the Trust in the event that its cash on hand (including available cash reserves) is not sufficient to pay ordinary course

administrative expenses.

The letter of credit is issued to the benefit of the Trustee.

The standby letter of credit was issued

by West Texas National Bank and matures February 10, 2021.

On February 11, 2021, COERT provided the Trust with a new letter of

credit for $1.2 million which matures on February 11, 2022.

This letter is set to automatically renew for 1 year from the date

of maturity unless otherwise notified by the lender 30 days prior to its maturity.

The letter of credit to the Trustee is unfunded

as of December 31, 2020.

From time to time, if the Trust’s cash on hand (including available cash reserves, if any) is not sufficient

to pay the Trust’s ordinary course administrative expenses that are due prior to the monthly payment to the Trust of proceeds

from the Net Profits Interest, COERT may advance funds to the Trust to pay such expenses.

Such advances are recorded as a liability

on the Statements of Assets, Liabilities and Trust Corpus until repaid.

As of December 31, 2020 and 2019, Advances to the Trust

were $348,821 and $34,818, respectively.

ROYALTY TRUST

TO FINANCIAL STATEMENTS—Continued

Rights Agreement.

The Trust and COERT (as the assignee of Enduro, in connection with the Sale Transaction) are parties to

a Registration Rights Agreement, as amended, whereby COERT, its affiliates and certain permitted transferees holding registrable

Trust Units are entitled, upon receipt by the Trustee of written notice from holders of a majority of the then outstanding registrable

Trust Units, to demand that the Trust effect the registration of the registrable Trust Units.

The holders of the registrable Trust

Units are entitled to demand a maximum of five such registrations.

In connection with the preparation and filing of any registration

statement, COERT will bear all costs and expenses incidental to any registration statement, excluding certain internal expenses

of the Trust, which will be borne by the Trust.

Any underwriting discounts and commissions will be borne by the seller of the

Distributions

Paid or Declared

Trust did not declare any distributions subsequent to December 31, 2020 and up to the date of the financial statements.

PERMIANVILLE ROYALTY

1 unchanged sentence

Supplementary Oil and Natural Gas Information (Unaudited)

and Natural Gas Reserve Quantities

of proved reserves attributable to the Trust and the related valuations were based 100% on reports prepared by the Trust’s

independent petroleum engineers, Cawley, Gillespie & Associates, Inc.

Estimates were prepared in accordance with guidelines

prescribed by the SEC and the Financial Accounting Standards Board, which require that reserve estimates be prepared under existing

economic and operating conditions based upon an average of the first-day-of-the-month commodity price during the 12-month period

ending on the balance sheet date with no provision for price and cost escalations except by contractual arrangements.

in estimating reserves were as follows:

Oil and Natural Gas Reserve Quantities

Estimates of proved reserves attributable to the

Trust and the related valuations were based 100% on reports prepared by the Trust’s independent petroleum engineers, Cawley, Gillespie &

Associates, Inc.

Estimates were prepared in accordance with guidelines prescribed by the SEC and the Financial Accounting Standards Board,

which require that reserve estimates be prepared under existing economic and operating conditions based upon an average of the first-day-of-the-month

commodity price during the 12-month period ending on the balance sheet date with no provision for price and cost escalations except by

contractual arrangements.

Prices used in estimating reserves were as follows:

Oil (per Bbl)

Natural gas (per MMBTU)

reserve quantity estimates are subject to numerous uncertainties inherent in the estimation of proved reserves and in the projection

of future rates of production and the timing of development expenditures.

The accuracy of such estimates is a function of the

quality of available data and of engineering and geological interpretation and judgment.

Results of subsequent drilling, testing

and production may cause either upward or downward revisions of previous estimates.

Further, the volumes considered to be commercially

recoverable fluctuate with changes in prices and operating costs.

The process of estimating quantities of oil and natural gas

reserves is very complex, requiring significant subjective decisions in the evaluation of all available geological, engineering

and economic data for each reserve.

Consequently, these estimates are expected to change as additional information becomes available

in the future.

of December 31, 2020 and 2019, all of the Underlying Properties’

oil and natural gas reserves were attributable to

properties within the United States.

Proved reserves attributable to the Trust and related standardized measure valuations are

prepared on an accrual basis, which is the basis on which Enduro and, following the Sale Transaction, the Sponsor, and the Underlying

Properties maintain their production records and is different from the basis on which the Trust production records are computed.

The following is a summary of the changes in quantities of proved oil and natural gas reserves attributable to the Trust for the

periods indicated:

Net Profits Interest

Proved reserve quantity estimates are subject to numerous uncertainties

inherent in the estimation of proved reserves and in the projection of future rates of production and the timing of development expenditures.

The accuracy of such estimates is a function of the quality of available data and of engineering and geological interpretation and judgment.

Results of subsequent drilling, testing and production may cause either upward or downward revisions of previous estimates.

the volumes considered to be commercially recoverable fluctuate with changes in prices and operating costs.

The process of estimating

quantities of oil and natural gas reserves is very complex, requiring significant subjective decisions in the evaluation of all available

geological, engineering and economic data for each reserve.

Consequently, these estimates are expected to change as additional information

becomes available in the future.

As of December 31, 2021 and 2020, all of

the Underlying Properties’

oil and natural gas reserves were attributable to properties within the United States.

Proved reserves

attributable to the Trust and related standardized measure valuations are prepared on an accrual basis, which is the basis on which Enduro

and, following the Sale Transaction, the Sponsor, and the Underlying Properties maintain their production records and is different from

the basis on which the Trust production records are computed.

The following is a summary of the changes in quantities of proved oil and

natural gas reserves attributable to the Trust for the periods indicated:

Trust Net Profits

Balance—January 1, 2020

of previous estimates

from Net Profits Interest

Extensions and discoveries

Revisions of previous estimates

Income from Net Profits

Balance—December 31, 2020

and discoveries

of previous estimates

from Net Profits Interest

Extensions and discoveries

Revisions of previous estimates

Income from Net Profits

Balance—December

developed reserves:

December 31, 2020

December 31, 2021

undeveloped reserves:

December 31, 2020

December 31, 2021

for natural gas liquids are immaterial and included as a component of oil reserves.

PERMIANVILLE ROYALTY TRUST

UNAUDITED SUPPLEMENTARY INFORMATION—Continued

of previous estimates .

During the year ended December 31, 2020, revisions of previous estimates decreased oil reserves by

20%, primarily due to a decrease in the average oil price used to estimate future net reserves.

The NYMEX average oil price of

$39.57 per Bbl used to determine reserves as of December 31, 2020 was 29% lower than the $55.69 per Bbl average NYMEX oil price

as of December 31, 2019.

the year ended December 31, 2019, revisions of previous estimates decreased oil reserves by 22%, primarily due to a decrease in

the average oil price used to estimate future net reserves.

The NYMEX average oil price of $55.69 per Bbl used to determine reserves

as of December 31, 2019 was 15% lower than the $65.56 per Bbl average NYMEX oil price as of December 31, 2018.

Measure of Discounted Future Net Cash Flows

standardized measure of discounted future net cash flows relating to proved oil and natural gas reserves is computed by applying

commodity prices used in determining proved reserves (with consideration of price changes only to the extent provided by contractual

arrangements) to the estimated future production of proved reserves less estimated future expenditures (based on year-end costs)

to be incurred in developing and producing the proved reserves, discounted using a rate of 10% per year to reflect the estimated

timing of the future cash flows.

Future cash inflows were computed by applying the commodity prices utilized in determining proved

reserves to estimated future production.

Future production and development costs are computed by estimating the expenditures to

be incurred in developing and producing the proved oil and gas reserves at year-end, based on year-end costs and assuming continuation

of existing economic conditions.

As the Trust is not subject to federal income taxes, future income taxes have been excluded.

PERMIANVILLE ROYALTY

UNAUDITED SUPPLEMENTARY

INFORMATION—Continued

Revisions of previous estimates .

the year ended December 31, 2021, revisions of previous estimates increased oil reserves by 54%, primarily due to an increase in the

average oil price used to estimate future net reserves.

The NYMEX average oil price of $66.56 per Bbl used to determine reserves as of

December 31, 2021 was 68% higher than the $39.57 per Bbl average NYMEX oil price as of December 31, 2020.

During the year ended December 31, 2020, revisions

of previous estimates decreased oil reserves by 20%, primarily due to a decrease in the average oil price used to estimate future net

The NYMEX average oil price of $39.57 per Bbl used to determine reserves as of December 31, 2020 was 29% lower than the $55.69

per Bbl average NYMEX oil price as of December 31, 2019.

Standardized Measure of Discounted Future Net Cash Flows

The standardized measure of discounted future

net cash flows relating to proved oil and natural gas reserves is computed by applying commodity prices used in determining proved reserves

(with consideration of price changes only to the extent provided by contractual arrangements) to the estimated future production of proved

reserves less estimated future expenditures (based on year-end costs) to be incurred in developing and producing the proved reserves,

discounted using a rate of 10% per year to reflect the estimated timing of the future cash flows.

Future cash inflows were computed

by applying the commodity prices utilized in determining proved reserves to estimated future production.

Future production and development

costs are computed by estimating the expenditures to be incurred in developing and producing the proved oil and gas reserves at year-end,

based on year-end costs and assuming continuation of existing economic conditions.

As the Trust is not subject to federal income taxes,

future income taxes have been excluded.

PERMIANVILLE ROYALTY

UNAUDITED SUPPLEMENTARY INFORMATION—Continued

standardized measure of discounted future net cash flows relating to proved oil and natural gas reserves attributable to the Trust

was as follows as of the dates indicated:

The standardized measure of discounted future

net cash flows relating to proved oil and natural gas reserves attributable to the Trust was as follows as of the dates indicated:

(in thousands)

Future cash inflows

Future production taxes

Future production

Future net cash flows

10% annual discount for estimated timing of cash flows

Standardized measure of discounted future net cash flows

changes in standardized measure of discounted future net cash flows relating to proved oil and natural gas reserves attributable

to the Trust for the periods indicated were as follows (in thousands):

10% annual discount

for estimated timing of cash flows

Standardized measure

of discounted future net cash flows

The changes in standardized measure of discounted

future net cash flows relating to proved oil and natural gas reserves attributable to the Trust for the periods indicated were as follows

(in thousands):

Year Ended December

6 unchanged sentences

Balance, end of year

in and Disagreements with Accountants on Accounting and Financial Disclosure.

Changes in and Disagreements with Accountants

on Accounting and Financial Disclosure.

Not applicable.

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-K

Item 8. Financial Statements and Supplementary Data