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Item 8. Financial Statements and Supplementary Data

2025-03-19 compared with 2024-03-22 · 286 added, 287 removed, 302 unchanged (65% of the section changed)

Financial Statements and Supplementary

Report of Independent

Registered Public Accounting Firm

Financial Statements and Supplementary Data.

Report of Independent Registered Public Accounting

To the Trustee and Unitholders of Permianville

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Opinion on the Financial Statements

We have audited the accompanying statements of assets, liabilities

and trust corpus of Permianville Royalty Trust (the Trust) as of December 31, 2023 and 2022, and the related statements of distributable

income and changes in trust corpus for the years 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 as of December 31, 2023 and 2022, and its distributable income and changes in trust corpus for the years 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 accounting

principles generally accepted in the United States of America.

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

of December 31, 2024 and 2023, and the related statements of distributable income and changes in trust corpus for the years 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 as of December 31, 2024 and 2023, and its distributable

income and changes in trust corpus for the years 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 accounting principles generally accepted in the United States of America.

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.

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 these financial statements based on our audits.

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 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 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 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.

financial statements are the responsibility of the Trustee.

Our responsibility is to express an opinion on these financial statements

based on our audits.

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 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 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 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.

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

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

presentation of the financial statements.

Our 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 management, 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 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 that:

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

or complex judgments.

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.

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PERMIANVILLE ROYALTY TRUST

Statements of Assets,

Liabilities and Trust Corpus

Statements of Assets, Liabilities and Trust Corpus

Cash and cash equivalents

Net profits interest in oil and natural

gas properties, net

Net profits interest in oil and natural gas properties, net

LIABILITIES AND TRUST CORPUS

Trust corpus (33,000,000 units issued

and outstanding)

Advances to the Trust

Total liabilities

and Trust corpus

Trust corpus (33,000,000 units issued and outstanding)

Total liabilities and Trust corpus

The accompanying notes to financial statements

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PERMIANVILLE ROYALTY TRUST

Statements of Distributable

from net profits interest

Income from sale/lease

Income from sale

of producing properties

Interest and investment

General and administrative

reserves used (withheld) for Trust expenses

Distributable

income per unit (33,000,000 units)

Statements of Distributable Income

Year Ended December 31,

Income from net profits interest

Income from sale/lease of assets

Income from sale of producing properties

Interest and investment income

General and administrative expenses

Cash reserves withheld for Trust expenses

Distributable income

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

The accompanying notes to financial statements

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PERMIANVILLE ROYALTY TRUST

Statements of Changes

in Trust Corpus

Trust corpus, beginning

Sale of net profits

interest of producing properties

Cash reserves (used)

withheld for Trust expenses

Statements of Changes in Trust Corpus

Year Ended December 31,

Trust corpus, beginning of period

Sale of net profits interest of producing properties

Cash reserves (used) withheld for Trust expenses

Distributable income

Distributions to

(14,113,110 )

Distributions to unitholders

(14,113,110 )

of net profits interest

Trust corpus,

end of period

Amortization of net profits interest

Trust corpus, end of period

The accompanying notes to financial statements

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NOTES TO FINANCIAL STATEMENTS

ORGANIZATION AND PROVISIONS

TRUST ORGANIZATION AND PROVISIONS

Permianville Royalty Trust (the “Trust”),

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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

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 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

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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.

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.

August 31, 2018, COERT Holdings 1 LLC (“COERT”

or the “Sponsor”) acquired the Underlying Properties and

all of the outstanding Trust Units owned by Enduro (the “Sale Transaction”).

In connection with the Sale Transaction,

the Sponsor assumed all of Enduro’s obligations under the Trust Agreement and other instruments to which Enduro and the Trustee

were parties.

or the “Sponsor”) acquired the Underlying Properties and all

of the outstanding Trust Units owned by Enduro (the “Sale Transaction”).

In connection with the Sale Transaction, the

Sponsor assumed all of Enduro’s obligations under the Trust Agreement and other instruments to which Enduro and the Trustee were

As of December 31, 2024, the Sponsor owned 7,363,961 Trust Units, or 22% 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 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 has no directors, officers or employees.

The business and affairs of the Trust are administered by The Bank of New

York Mellon Trust Company, N.A., as Trustee.

The duties of the Trustee are defined by the Trust Agreement.

The Trustee does not make operating

or business decisions affecting the assets of the Trust, and the Trustee’s functions under the Trust Agreement are ministerial in

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”);

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;

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;

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 Trust unitholders (Note 5);

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;

PERMIANVILLE ROYALTY TRUST

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;

in that event, 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

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

· 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;

in that event, no further distributions will be made to Trust unitholders until such amounts borrowed

· 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

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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

fees as well as accounting, engineering, legal, and other professional fees) are recorded

(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;

(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 TRUST

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

(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.

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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.

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

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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.

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

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 TRUST

NOTES TO FINANCIAL STATEMENTS—Continued

PROFITS INTEREST IN OIL AND NATURAL GAS PROPERTIES

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’

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.

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

of proved 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

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.

Accumulated amortization as of December 31, 2023 and 2022 was $302,693,874 and $297,449,525,

respectively.

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, 2024 and 2023 was $311,034,905 and $302,693,874, respectively.

The Net Profits Interest is periodically assessed

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Sale of 2023 Divestiture Properties

On May 3, 2023, the Sponsor notified the

Trustee that the Sponsor had entered into an agreement to divest certain acreage and associated production in the Permian Basin (the

“2023 Divestiture Properties”) that constituted part of the Underlying Properties and were therefore burdened by the Trust’s

Net Profits Interest, for a total purchase price of approximately $6.7 million.

On July 19, 2023, at a special meeting of Trust

unitholders, the unitholders approved the foregoing transaction and the release of the Trust’s Net Profits Interest in the 2023

Divestiture Properties.

On August 9, 2023, the Sponsor completed the sale of the 2023 Divestiture Properties, and the Trustee, on

behalf of the Trust, reconveyed, terminated and released to the Sponsor the Net Profits Interest with respect to the 2023 Divestiture

The total proceeds received by the Sponsor from the 2023 Divestiture Properties, after preliminary closing adjustments, were

approximately $6.5 million, inclusive of the escrow funded by the buyer and partial expense reimbursement associated with the proxy

solicitation.

The Sponsor deducted the final transaction expenses from the sales proceeds, along with an escrow amount of $250,000 to

cover possible indemnification obligations under the purchase and sale agreement (the “Indemnification Escrow Amount”), to

arrive at final net proceeds, based upon the Trust’s Net Profits Interest.

May 3, 2023, the Sponsor notified the Trustee that the Sponsor had entered into an agreement to divest certain acreage and

associated production in the Permian Basin (the “2023 Divestiture Properties”) that constituted part of the Underlying Properties

and were therefore burdened by the Trust’s Net Profits Interest, for a total purchase price of approximately $6.7 million.

2023, at a special meeting of Trust unitholders, the unitholders approved the foregoing transaction and the release of the Trust’s

Net Profits Interest in the 2023 Divestiture Properties.

On August 9, 2023, the Sponsor completed the sale of the 2023 Divestiture

Properties, and the Trustee, on behalf of the Trust, reconveyed, terminated and released to the Sponsor the Net Profits Interest with

respect to the 2023 Divestiture Properties.

The total proceeds received by the Sponsor from the 2023 Divestiture Properties, after preliminary

closing adjustments, were approximately $6.5 million, inclusive of the escrow funded by the buyer and partial expense reimbursement

associated with the proxy solicitation.

the Sponsor deducted the final transaction expenses from the sales proceeds, along with an escrow

amount of $250,000 to cover possible indemnification obligations under the purchase and sale agreement (the “Indemnification Escrow

Amount”), to arrive at final net proceeds, based upon the Trust’s Net Profits Interest.

September 20, 2023, the Trust announced a special cash distribution to Trust unitholders of $0.069670 per Trust Unit, payable on

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after accounting for the Indemnification Escrow Amount.

The following table displays the aggregate net proceeds from the sale

of the 2023 Divestiture Properties and the aggregate net proceeds allocable to Trust unitholders for this distribution:

Net Proceeds from sale of 2023 Divestiture

The following table displays the aggregate net proceeds from the sale of

the 2023 Divestiture Properties and the aggregate net proceeds allocable to Trust unitholders for this distribution:

Net Proceeds from sale of 2023 Divestiture Properties

Transaction expenses

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Net proceeds from sale of 2023 Divestiture Properties

Amount allocable to the Sponsor’s

Amount allocable to the Sponsor’s 20% interest

Net proceeds allocable to the Trust’s 80% Interest

Indemnification Escrow amount

Estimated Settlement Escrow

Estimated Settlement Escrow amount

Initial Cash available for distribution by the Trust

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NOTES TO FINANCIAL STATEMENTS—Continued

The remaining 50% of the Trust’s share of

the net proceeds was temporarily retained by the Sponsor as a source of payment of the Trust’s proportionate share of any post-closing

purchase price adjustments, with any amount remaining (less any amounts in dispute) after such adjustments to be paid to the Trust within

five business days after finalization of the settlement statement and included in a distribution to Trust unitholders.

remaining 50% of the Trust’s share of the net proceeds was temporarily retained by the Sponsor as a source of payment of

the Trust’s proportionate share of any post-closing purchase price adjustments, with any amount remaining (less any amounts in dispute)

after such adjustments to be paid to the Trust within five business days after finalization of the settlement statement and included in

a distribution to Trust unitholders.

November 6, 2023, the Trust announced a special cash distribution to Trust unitholders of $0.077250 per Trust Unit, payable on November 22,

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Divestiture Properties and the aggregate net proceeds allocable to Trust unitholders for this distribution:

Net Proceeds from sale of 2023 Divestiture

Net Proceeds from sale of 2023 Divestiture Properties

Transaction expenses

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Net proceeds from sale of 2023 Divestiture Properties

Amount allocable to the Sponsor’s

Amount allocable to the Sponsor’s 20% interest

Net proceeds allocable to the Trust’s 80% Interest

Indemnification Escrow amount

October 13, 2023 Initial

Cash Distribution

October 13, 2023 Initial Cash Distribution

Remaining cash available for distribution by the Trust

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Remaining special cash distribution per unit

Within 12 months after the closing of the

sale, any remaining amount from the Indemnification Escrow Amount (less any amounts in dispute) will be released to the Trust and included

in a distribution to Trust unitholders.

See “Note 7.

Subsequent Event”

information regarding the release of the Indemnification Escrow Amount and its inclusion in a special distribution to Trust unitholders.

Impairment of Net Profits Interest

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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.

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 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

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.

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

PERMIANVILLE ROYALTY TRUST

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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.

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.

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

Notwithstanding the foregoing, the middlemen holding

units on behalf of unitholders, and not the Trustee of the Trust, are solely responsible for complying with the information reporting

requirements under the U.S.

Treasury Regulations with respect to such units, including the issuance of IRS Forms 1099 and certain written

tax statements.

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.

Tax information

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

Notwithstanding the foregoing, the middlemen holding units on

behalf of unitholders, and not the Trustee of the Trust, are solely responsible for complying with the information reporting requirements

under the U.S.

Treasury Regulations with respect to such units, including the issuance of IRS Forms 1099 and certain written tax statements.

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

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Trusts that receive at least 90%

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

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.”

2 unchanged sentences

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.

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.

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.

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.

PERMIANVILLE ROYALTY TRUST

4 unchanged sentences

Distribution per Unit

July 18, 2024

July 31, 2024

August 14, 2024

August 16, 2024

August 30, 2024

September 16, 2024

September 30, 2024

October 15, 2024

October 18, 2024

October 31, 2024

November 15, 2024

November 18, 2024

November 29, 2024

December 13, 2024

Total—2024

December 16, 2022

December 30, 2022

January 14, 2023

35 unchanged sentences

Total—2023

September 15,

September 16,

September 30,

Total—2022

FEES AND RELATED PARTY TRANSACTIONS

TRUSTEE FEES AND RELATED PARTY TRANSACTIONS

Administrative Fee.

1 unchanged sentence

Trustee and $2,000 to the Delaware Trustee.

During the years ended December 31, 2023 and 2022, 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 $1,200,000 million letter of credit

During the years ended December 31, 2024 and 2023, the Trust paid $200,000 and $200,000,

respectively, to the Trustee and $0 and $2,010, respectively, to the Delaware Trustee pursuant to the terms of the Trust Agreement.

Under the terms of the Trust Agreement, COERT has provided the Trust with a $1,200,000 letter of credit

to be used by the Trust if its cash on hand (including available cash reserves) is not sufficient to pay ordinary course administrative

8 unchanged sentences

Statements of Assets, Liabilities and Trust Corpus until repaid.

PERMIANVILLE ROYALTY TRUST

NOTES TO FINANCIAL STATEMENTS—Continued

As of December 31, 2024 and 2023, advances to the Trust were $150,000

and $0, respectively.

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.

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 Trust Units.

On June 22, 2022, pursuant to the Registration

Rights Agreement, the Trust filed a registration statement on Form S-3 registering the offering by COERT of 8,600,000 Trust Units.

Rights Agreement, the Trust filed a registration statement on Form S-3 registering the offering by COERT of up to 8,600,000 Trust

The registration statement was declared effective on July 7, 2022.

PERMIANVILLE ROYALTY TRUST

UNAUDITED SUPPLEMENTARY

Supplementary Oil and Natural Gas Information (Unaudited)

NOTES TO FINANCIAL STATEMENTS—Continued

SUBSEQUENT EVENT

On March 17, 2025, the Trust announced a special

cash distribution to Trust unitholders of $0.008548 per Trust Unit, payable on April 14, 2025 to Trust unitholders of record on March 31,

2025, reflecting the release of the Indemnification Escrow Amount withheld in connection with the sale of the 2023 Divestiture Properties

discussed in Note 3 above, together with interest, for a total of $282,072.

PERMIANVILLE ROYALTY TRUST

UNAUDITED SUPPLEMENTARY INFORMATION

Supplementary

Oil and Natural Gas Information (Unaudited)

Oil and Natural Gas Reserve Quantities

9 unchanged sentences

Natural gas (per MMBTU)

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.

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.

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.

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, 2024 and 2023, all of

7 unchanged sentences

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

Net Profits Interest

Trust Net Profits Interest

Balance—January 1, 2023

1 unchanged sentence

Revisions of previous estimates

Divestiture of Reserves

Income from Net Profits Interest

2 unchanged sentences

Revisions of previous estimates

Divestiture of Reserves

Income from Net Profits Interest

6 unchanged sentences

December 31, 2024

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

(1) Reserves for natural gas liquids are immaterial and included

as a component of oil reserves.

PERMIANVILLE ROYALTY TRUST

1 unchanged sentence

of previous estimates .

During the year ended December 31, 2023, revisions of previous estimates decreased oil reserves

by 31%, primarily due to a decrease in the average oil price used to estimate future net reserves.

The NYMEX average oil price of $78.22

per Bbl used to determine reserves as of December 31, 2023 was 16% lower than the $93.67 per Bbl average NYMEX oil price as of December 31,

During the year ended December 31, 2022,

revisions of previous estimates increased oil reserves by 36%, primarily due to an increase in the average oil price used to estimate

future net reserves.

The NYMEX average oil price of $93.67 per Bbl used to determine reserves as of December 31, 2022 was 41% higher

than the $66.56 per Bbl average NYMEX oil price as of December 31, 2021.

During the year ended December 31, 2024, revisions of previous estimates increased oil reserves

by 40%.The NYMEX average oil price of $75.48 per Bbl used to determine reserves as of December 31, 2024 was 4% lower than the $78.22

per Bbl average NYMEX oil price as of December 31, 2023.

During the year ended December 31, 2023, revisions

of previous estimates decreased oil reserves by 31%, primarily due to a decrease in the average oil price used to estimate future net

The NYMEX average oil price of $78.22 per Bbl used to determine reserves as of December 31, 2023 was 16% lower than the

$93.67 per Bbl average NYMEX oil price as of December 31, 2022.

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

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

8 unchanged sentences

future income taxes have been excluded.

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:

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)

production taxes

Future net cash

Future cash inflows

Future production taxes

Future net cash flows

10% annual discount for estimated timing of cash flows

measure of discounted future net cash flows

Standardized measure of discounted future net cash flows

The changes in standardized measure of discounted

1 unchanged sentence

(in thousands):

Ended December 31,

Extensions, discoveries, and other

Year Ended December 31,

Extensions, discoveries, and other additions

Accretion of discount

2 unchanged sentences

Income from Net Profits Interest

Change in present value

of future net revenues

Change in present value of future net revenues

Balance, beginning of period

Balance, end of year

Changes 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