What changed in this filing

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Item 1. Financial Statements

2025-11-14 compared with 2025-08-14 · 234 added, 224 removed, 534 unchanged (46% of the section changed)

2 unchanged sentences

Statements of Assets, Liabilities and Trust

September 30,

Cash and cash equivalents

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these financial statements.

PERMIANVILLE ROYALTY TRUST

PERMIANVILLE ROYALTY

Statements of Distributable

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

Income from net profits interest

1 unchanged sentence

General and administrative expenses

Cash reserves used for Trust expenses

Cash reserves withheld for Trust expenses

Distributable income

4 unchanged sentences

Statements of Changes in Trust Corpus

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

Trust corpus, beginning of period

Cash reserves used for Trust expenses

Cash reserves withheld for Trust expenses

Distributable income

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NOTES TO FINANCIAL STATEMENTS

TRUST ORGANIZATION

AND PROVISIONS

ORGANIZATION AND PROVISIONS

Permianville Royalty Trust (the “Trust”),

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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”).

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to which Enduro and the Trustee were parties.

As of June 30, 2025, the Sponsor owned 7,363,961 Trust Units, or 22% of the issued

As of September 30, 2025, the Sponsor owned 7,363,961 Trust Units, or 22% of the issued

and outstanding Trust Units.

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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 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

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the Trust is judicially dissolved.

BASIS OF PRESENTATION

OF PRESENTATION

The Statement of Assets, Liabilities and Trust

Corpus as of December 31, 2024, which has been derived from audited financial statements, and the unaudited interim financial statements

as of June 30, 2025 and for the three and six months ended June 30, 2025 and 2024 have been prepared pursuant to the rules and

regulations of the Securities and Exchange Commission (“SEC”).

Accordingly, certain information and disclosures normally included

in annual financial statements have been condensed or omitted pursuant to those rules and regulations.

Therefore, these financial

statements should be read in conjunction with the financial statements and notes thereto included in the Trust’s Annual Report on

Form 10-K for the fiscal year ended December 31, 2024 (the “2024 Annual Report on Form 10-K”).

as of September 30, 2025 and for the three and nine months ended September 30, 2025 and 2024 have been prepared pursuant to

the rules and regulations of the Securities and Exchange Commission (“SEC”).

Accordingly, certain information and disclosures

normally included in annual financial statements have been condensed or omitted pursuant to those rules and regulations.

these financial statements should be read in conjunction with the financial statements and notes thereto included in the Trust’s

Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the “2024 Annual Report on Form 10-K”).

In the opinion of the Trustee, the accompanying

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

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;

(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;

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

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Statements of Royalty Trusts .

NET PROFITS INTEREST IN OIL AND NATURAL GAS PROPERTIES

PROFITS INTEREST IN OIL AND NATURAL GAS PROPERTIES

The Net Profits Interest in oil and natural gas

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income of the Trust.

Accumulated amortization as of June 30, 2025 and December 31, 2024 was $313,498,129 and $311,034,905, respectively.

Accumulated amortization as of September 30, 2025 and December 31, 2024 was $314,976,575 and $311,034,905,

respectively.

The Net Profits Interest is periodically assessed

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While the Trust did not record an impairment during the three

and six months ended June 30, 2025 or 2024, future downward revisions in actual production volumes relative to current forecasts,

and nine months ended September 30, 2025 or 2024, 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.

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

DISTRIBUTIONS TO UNITHOLDERS

DISTRIBUTIONS

TO UNITHOLDERS

Each month, the Trustee determines the amount of

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Declaration Date

Six Months Ended June 30, 2025:

Nine Months Ended September 30, 2025:

March 17, 2025 (Special Distribution)

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April 14, 2025

August 18, 2025

August 29, 2025

September 15, 2025

Year to Date –

Six Months Ended June 30, 2024:

Nine Months Ended September 30, 2024:

July 18, 2024

July 31, 2024

August 14, 2024

August 16, 2024

August 30, 2024

September 16, 2024

Year to Date –

During the three months ended June 30, 2025,

the Net Profits Interest generated positive income, which eliminated the cumulative Net Profits Interest shortfall of $1.4 million that

existed as of March 31, 2025;

however, no distributions were made to Trust unitholders because of outstanding advances from the Sponsor

to the Trust for the payment of administrative expenses, which totaled $0.6 million as of June 30, 2025.

The Trust is not permitted

to make distributions to Trust unitholders until any Net Profits Interest shortfall has been recouped and outstanding advances from the

Sponsor have been repaid.

During the six months ended June 30, 2024,

the Net Profits Interest generated positive income for several of the months in the period, which reduced the cumulative Net Profits Interest

shortfall of $1.2 million that existed as of December 31, 2023.

In March and April 2024, however, direct operating and

development expenses exceeded revenues, thereby causing net profits attributable to the Underlying Properties to be negative and resulting

in an approximately $3.9 million Net Profits Interest shortfall as of June 30, 2024, which was carried forward to be deducted from

future net profits generated by the Underlying Properties.

As a result, there were no net profits reported or distributed in the first

six months of 2024.

During the first six months of 2025, the Net Profits

Interest generated positive income, which eliminated the cumulative Net Profits Interest shortfall of $1.4 million that existed as of

March 31, 2025;

however, no distributions were made to Trust unitholders during the first half of the year because of outstanding

advances from the Sponsor to the Trust for the payment of administrative expenses, which totaled $0.6 million as of June 30, 2025.

In August 2025, the remaining amount of the shortfall and advances to the Trust were fully repaid, resulting in a distribution to

the unitholders in September 2025.

There was no Net Profits Interest shortfall as of September 30, 2025.

During the first six months of 2024, the Net Profits

Interest generated positive income for several of the months in the period, which reduced the cumulative Net Profits Interest shortfall

of $1.2 million that existed as of December 31, 2023;

however, because direct operating and development expenses exceeded revenues

in March and April 2024, the Net Profits Interest shortfall was $3.9 million as of June 30, 2024.

During the three months

ended September 30, 2024, the Net Profits Interest generated positive income, and in July 2024, the remaining amount of the

shortfall and advances to the Trust were fully repaid, resulting in distributions to the unitholders in August 2024 and September 2024.

There was no Net Profits Interest shortfall as of September 30, 2024.

On March 17, 2025, the Trustee declared a

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During the three-

and six-month periods ended June 30, 2025 and 2024, the Trust paid $50,000 and $100,000, respectively, to the Trustee and $0 and

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

and nine-month periods ended September 30, 2025 and 2024, the Trust paid $50,000 and $150,000, respectively, to the Trustee and $0

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

Distributions Paid or Declared

On October 15, 2025,

a distribution of $0.023000 per unit, which was declared on September 18, 2025, was paid to Trust unitholders of record as of September 30,

On October 17, 2025,

the Trust declared a distribution of $0.030000 per unit to unitholders of record as of October 31, 2025.

The distribution is expected

to be paid to unitholders on November 14, 2025.

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

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that could cause actual results to differ materially from expectations of the Sponsor and the Trust.

All forward-looking statements in

this report and all subsequent written and oral forward-looking statements attributable to the Sponsor or the Trust or persons acting

on behalf of the Sponsor or the Trust are expressly qualified in their entirety by such factors.

The Trust assumes no obligation, and

disclaims any duty, to update these forward-looking statements.

Initial production rates may not

be indicative of future production rates and are not indicative of the amounts of oil and gas that a well may produce.

All forward-looking

statements in this report and all subsequent written and oral forward-looking statements attributable to the Sponsor or the Trust or persons

acting on behalf of the Sponsor or the Trust are expressly qualified in their entirety by such factors.

The Trust assumes no obligation,

and disclaims any duty, to update these forward-looking statements.

Permianville Royalty Trust, a statutory trust created

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oil production 30 to 60 days after it is produced and for natural gas production 60 to 90 days after it is produced.

The Sponsor has indicated to the Trustee that development

activity on the Underlying Properties remained elevated through the first six months of 2025 compared to prior years, although activity

in the first half of 2025 declined from the comparable period in 2024, which included a material amount of prior period production from

certain Permian wells that had been delayed due to pending title work completed during the 2024 period.

The Sponsor reports that most

of the continued capital expenditures were associated with work undertaken by a super major oil conglomerate and the completion of three

wells in the Haynesville region.

Subsequent to June 30, 2025, the Sponsor indicates that it has received from the operator the initial

revenues from these wells, which will be reflected in the net profits interest calculations in the third quarter.

Otherwise, the Sponsor

believes the remaining capital expenditure outlook for the operators of the Underlying Properties remains highly uncertain given current

macroeconomic conditions.

Nevertheless, although commodity prices remain volatile, the majority of the capital expenditures for the Underlying

Properties are associated with large cap, investment-grade oil and gas operators that tend to spend through periods of volatility.

Directionally,

the Sponsor continues to expect oil-directed capital expenditures in the Permian basin to decline and gas-directed capital expenditures

in the Haynesville region to remain stable or perhaps even slightly increase, consistent with the first six months of 2025.

Specifically,

the same operator that recently completed the three Haynesville wells described above has recently proposed three more Haynesville wells

for 2026, fairly similar in size and profile to the prior three wells.

Future capital expenditure expectations remain subject to revision

from the operators of the Underlying Properties.

With the revenue recently received from the new Haynesville wells, the Sponsor expects

the net profits interest to return to positive monthly payments in calendar year 2025.

The Sponsor has indicated to the Trustee that although

development activity on the Underlying Properties through the first nine months of 2025 decreased compared to the same period in 2024,

it remained above the historical average for the Underlying Properties.

Year-to-year activity declined primarily because the first nine

months of 2024 reflected the inclusion of a material amount of prior period production from certain Permian wells that had been delayed

due to pending title work completed during the 2024 period, resulting in higher levels of spending attributed to the 2024 period compared

to the 2025 period.

The Sponsor reports that most of the continued capital expenditures on the Underlying Properties during 2025 have

been associated with work undertaken by a super major oil conglomerate and the completion of three wells in the Haynesville region.

three wells were turned to revenue collection during the third quarter of 2025, which contributed to the full repayment of the Net Profits

Interest shortfall that existed at June 30, 2025.

These wells are currently performing above the Sponsor’s original expectations;

meanwhile, the Sponsor reports that the same super major operator has indicated that it intends to drill three additional wells in the

Haynesville region.

Given this expected increase in capital expenditures for natural gas wells, the Sponsor has elected to establish a

cash reserve for near-term capital expenditures, consistent with prior periods in which material future capital expenditure obligations

were expected.

As of September 30, 2025, the cash reserve balance was $0.3 million.

Otherwise, the Sponsor believes the remaining

capital expenditure outlook for the operators of the Underlying Properties remains uncertain, and likely below prior period spending levels

for oil-weighted properties, given current macroeconomic conditions.

As in prior periods, future capital expenditure expectations remain

subject to revision from the operators of the Underlying Properties.

The Sponsor believes that the outlook for the oil

and gas industry remains increasingly complicated since the start of 2025, albeit somewhat relatively more stable at the end of the quarter

ended June 30, 2025 compared to the beginning of the quarter.

OPEC continues to indicate increasing oil production and supply, which

has weighed on oil prices, although these price impacts are somewhat offset by elevated geopolitical uncertainty.

Oil prices have ranged

from just over $80 per Bbl to as low as $57 per Bbl between December 2024 and August 2025, with several public oil and gas companies

indicating that the volatility has affected their budget planning for the remainder of 2025.

Natural gas prices have experienced similar

volatility, ranging from a low of $2.93 per MMBtu to a high of $4.49 per MMBtu over the same period, as previous forecasts of increasing

demand for U.S.

liquified natural gas exports have been called into question given the uncertain global trade environment.

mergers and acquisitions continue to change the makeup of companies in the sector, including one of the operators on the Underlying Properties.

The Sponsor continues to believe that consolidation within the oil and gas sector could lead to lower operating costs given economies

of scale, but could also lead to more binary swings in capital spending, as more assets and capital budgets are set by fewer operators

than in years past.

and gas industry remains mixed, given the volatility experienced since April 2025, although industry conditions during the third

quarter of 2025 were relatively more stable compared to the second quarter.

Subsequent to quarter end, OPEC recently guided to a pause

in further production increases in 2026, somewhat stabilizing forward oil prices.

Oil prices have ranged from just over $80 per Bbl to

as low as $57 per Bbl between December 2024 and October 2025, with several public oil and gas companies indicating that the

volatility has affected their budget planning for the remainder of 2025.

Natural gas prices have experienced similar volatility, ranging

from a low of $2.70 per MMBtu to a high of $4.49 per MMBtu over the same period, as forward prices have recently increased along with

forecasts of increasing energy demand from data centers and other technology-driven electric power users, a significant portion of which

is forecasted to be provided by natural gas-powered generation in the coming years.

Meanwhile, mergers and acquisitions continue to change

the makeup of companies in the sector, with another operator on the Underlying Properties having completed an acquisition during 2025,

potentially altering the future capital spending on the Underlying Properties.

The Sponsor continues to believe that consolidation within

the oil and gas sector could lead to lower operating costs given economies of scale, but could also lead to more binary swings in capital

spending, as more assets and capital budgets are set by fewer operators than in years past.

Despite this volatility, given the continued elevated

capital expenditures during the first six months of 2025, the Sponsor is now guiding to the high end of its previously revised 2025 capital

spending outlook of $10.0 million to $15.0 million, or $8.0 million to $12.0 million net to the Trust’s Net Profits Interest, as

detailed in the prior Form 10-Q for the quarter ended March 31, 2025.

capital expenditures during the first nine months of 2025, the Sponsor is revising its previous 2025 capital spending outlook of $10.0

million to $15.0 million, or $8.0 million to $12.0 million net to the Trust’s Net Profits Interest, to $12.0 million to $17.0 million,

or $9.6 million to $13.6 million net to the Trust’s Net Profits Interest.

The Sponsor expects a majority of the remaining anticipated

capital expenditures in 2025 to be focused in the Haynesville area, given relatively higher industry rig counts compared to last year,

versus the declining Permian rig count thus far in 2025.

As in prior periods, the outlook for capital expenditures remains subject to

change, as operators are expected to continue to reevaluate their planned capital expenditures, particularly given volatile capital markets

and an uncertain geopolitical situation.

Over the first six months of 2025, the Sponsor

continued to see a reduction in operating costs that had been affecting the Underlying Properties in prior periods on an aggregate basis,

as seen in the continued decline in lease operating expenditures per barrel of oil equivalent for the six months ended June 30, 2025

capital expenditures in 2025 to be focused on the Haynesville area, given relatively higher industry rig counts in that region compared

to last year and the declining Permian rig count thus far in 2025.

As in prior periods, the outlook for capital expenditures remains subject

to change, as operators are expected to continue to reevaluate their planned capital expenditures, particularly given volatile capital

markets and an uncertain geopolitical situation.

Over the first nine months of 2025, the Sponsor

continued to see a reduction in operating costs, on an aggregate basis, for the Underlying Properties compared to prior periods, as seen

in the continued decline in lease operating expenditures per barrel of oil equivalent for the nine months ended September 30, 2025

compared to the same period in 2024.

The Sponsor indicates that this decline continues to reflect the increased production from newer

wells that feature lower operating costs than some of the legacy wells on the Underlying Properties.

Nevertheless, the Sponsor indicates

that some legacy producing properties of the Underlying Properties continue to experience operating cost and production issues consistent

with late-life oil and gas properties, and currently it is unclear if some of these properties will be able to realize a return to prior

period operating costs and cash flow profile .

While the markets remain volatile and there remains

an inherent delay in cash flows given the non-operated nature of the Underlying Properties, the Sponsor indicates that it continues to

have access to adequate capital and liquidity to fund such operating and capital expenditures as they come due.

The Sponsor believes there could be further opportunity

in the coming quarters for potential divestitures and/or leasing of some or all of the Underlying Properties, subject to the Trust’s

The Sponsor indicates that the recent observed decline in per unit operating expenses on the Underlying

Properties has been driven by a new operator that acquired a large, legacy property in 2024.

The Sponsor indicates that this operator

has a reputation for prudent operating at a lower cost compared to other, larger public companies.

the commodity markets remain volatile, and there remains an inherent delay in cash flows given the non-operated nature of the Underlying

Properties, the Sponsor indicates that it continues to have access to adequate capital and liquidity to fund such operating and capital

expenditures as they come due.

The Sponsor believes further opportunities could

arise in the coming quarters for potential divestitures and/or leasing of some or all of the Underlying Properties, subject to the Trust’s

Net Profits Interest, as certain operators of the Underlying Properties look to acquire assets, particularly in the Permian and Haynesville

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D&C New Drills

4 Drilling In-Process

Large Cap E&P 3

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19 Pre Drills

Large Major Cap E&P 1

Large Super Major 1

D&C New Drills

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D&C New Drills

4 Drilling in-Process

The projects identified above are still in process

or awaiting first revenues, and the Sponsor expects a majority of those projects to be completed and to begin producing during 2025.

or awaiting first revenues, and the Sponsor expects a majority of those projects to be completed and to begin producing during the first

half of 2026.

Small Asset Sale

In September 2025, as permitted under Section 3.02(c) of

the Trust Agreement, the Sponsor sold a non-producing, partial Permian acreage stake, free from and unburdened by the Trust’s Net

Profits Interest, to a private equity-funded buyer for total cash proceeds of $0.4 million, or approximately $20,000 per undeveloped acre.

The sale proceeds attributable to the Net Profits Interest will be included in the November 2025 Net Profits Interest calculation

reflecting the proceeds from production received in September 2025.

Results of Operations

Three Months Ended June 30, 2025 Compared to Three Months Ended

June 30, 2024

Three Months Ended September 30, 2025 Compared to Three Months

Ended September 30, 2024

The Trust’s net profits income consists of

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

Three Months Ended June 30,

Three Months Ended

September 30,

Gross profits:

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Development expenses

Gross proceeds from sale of assets

Percentage allocable to Net Profits Interest

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Negative Net Profits Carryforward

Trust general and administrative expenses and cash withheld for expenses net of interest income

Repayment of Sponsor Loan

Release of Escrow

Net profits allocable to Net Profits Interest shortfall

Distributable income

During the three months ended June 30, 2025,

the Net Profits Interest generated positive income, which eliminated the cumulative Net Profits Interest shortfall of $1.4 million that

existed as of March 31, 2025;

however, no distributions were made to Trust unitholders because of outstanding advances from the Sponsor

to the Trust for the payment of administrative expenses, which totaled $0.6 million as of June 30, 2025.

The Trust is not permitted

to make distributions to Trust unitholders until any Net Profits Interest shortfall has been recouped and outstanding advances from the

Sponsor have been repaid.

During the three months ended June 30, 2024,

direct operating and development expenses exceeded revenues, thereby causing net profits attributable to the Underlying Properties to

be negative and resulting in an approximately $3.9 million Net Profits Interest shortfall as of June 30, 2024, which was carried

forward to be deducted from future net profits generated by the Underlying Properties.

As a result, there were no net profits reported

or distributed in the second quarter of 2024.

On March 17, 2025, the Trustee declared a

special cash distribution of $0.008548 per Trust Unit, which was paid on April 14, 2025 to Trust unitholders of record on March 31,

The special cash distribution reflected the release of the $250,000 withheld from the net proceeds allocable to the Trust from the

August 2023 sale by the Sponsor of certain oil and gas properties in the Permian Basin, which amount was intended to cover possible

indemnification obligations arising during the indemnification period following the closing of the sale.

Together with interest, the amount

distributed equated to $282,072.

For the three months ended September 30, 2025,

the Net Profits Interest generated positive income, which eliminated the cumulative outstanding Sponsor advances to the Trust of $0.6

million that existed as of June 30, 2025.

For the three months ended September 30, 2024,

the Net Profits Interest generated positive income for each month in the period, which eliminated the cumulative Net Profits Interest

shortfall of $3.9 million and the cumulative outstanding Sponsor advances to the Trust of $0.5 million that existed as of June 30,

The following table displays reported oil and natural

gas sales volumes and average prices from the Underlying Properties, representing the amounts included in the net profits calculation

for distributions paid or payable during the three months ended June 30, 2025 and 2024:

Three Months Ended June 30,

for distributions paid or payable during the three months ended September 30, 2025 and 2024:

Three Months Ended September 30,

Underlying Properties Production Volumes:

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Net profits attributable to the Underlying Properties

for the three months ended June 30, 2025 were $1.9 million compared to $(4.9) million for the three months ended June 30,

The $6.8 million increase in net profits attributable to the Underlying Properties from the 2024 period to the 2025 period

for the three months ended September 30, 2025 were $1.6 million compared to $7.9 million for the three months ended September 30,

The $6.2 million decrease in net profits attributable to the Underlying Properties from the 2024 period to the 2025 period

was primarily due to the following items:

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The 44% reduction in produced volumes decreased revenues by $6.3 million.

This decrease was primarily due to the 15 new

Permian wells that either turned to sales or completed title work in the 2024 period, thereby allowing production attributable to prior

periods to be released by the operators of the Underlying Properties.

Realized oil sales prices decreased 5% in the 2025 period compared

to the 2024 period, which decreased revenues by $0.4 million.

This decrease was primarily due to the effect

of the 15 new Permian wells that either turned to sales or completed title work in the 2024 period, thereby allowing production attributable

to prior periods to be released by the operators of the Underlying Properties.

Realized oil sales prices decreased 20% in the 2025 period

compared to the 2024 period, which decreased revenues by $1.7 million.

Natural gas sales increased $2.0 million compared to the 2024 period, reflecting

a $0.6 million increase due to higher produced volumes, partially offset by a $0.1 million decrease due to lower realized prices.

average natural gas price received decreased 3% primarily due to the decrease in the average realized natural gas price for the relevant

a $2.4 million increase due to higher realized prices, partially offset by a $0.4 million decrease due to lower produced volumes.

average natural gas price received increased 16% primarily due to the increase in the average realized natural gas price for the relevant

production months.

Lease operating expenses during the three months ended June 30, 2025

decreased $3.6 million compared to the three months ended June 30, 2024.

Lease operating expenses during the three months ended September 30,

2025 decreased $0.2 million compared to the three months ended September 30, 2024.

Compression, gathering and transportation costs increased $0.4 million, primarily

due to the increase in natural gas production during the three months ended June 30, 2025.

due to the increase in natural gas realized prices during the three months ended September 30, 2025.

Production, ad valorem and other taxes decreased $0.4 million during the

three months ended June 30, 2025 compared to the three months ended June 30, 2024.

Development expenses decreased $10.1 million during the three months ended

June 30, 2025 compared to the same period in 2024, due to a decrease in drilling and completion costs incurred.

For the three months ended June 30, 2025,

three months ended September 30, 2025 compared to the three months ended September 30, 2024.

Development expenses increased $0.5 million during the three months ended

September 30, 2025 compared to the same period in 2024.

For the three months ended September 30, 2025,

the Trust withheld $0.2 million and paid $0.2 million for general and administrative expenses.

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Exchange listing fees.

For the three months ended June 30, 2024, the Trust withheld $0.0 million and paid $0.4 million for general

For the three months ended September 30, 2024, the Trust withheld $0.4 million and paid $0.1 million for general

and administrative expenses.

Six Months Ended June 30, 2025 Compared to Six Months Ended

June 30, 2024

Nine Months Ended September 30, 2025 Compared to Nine Months

Ended September 30, 2024

The Trust’s net profits income consists of

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

Six Months Ended June 30,

Nine Months Ended September 30,

Increase (Decrease)

Gross profits:

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Sponsor reserve release for capital expenditures

Repayment of Sponsor Loan

Release of Escrow

Net profits allocable to Net Profits Interest shortfall

Income from Net Profits Interest

Repayment of Sponsor Loan

Trust general and administrative expenses and cash withheld for expenses net of interest income

Distributable income

During the six months ended June 30, 2025,

although the Net Profits Interest shortfall that existed throughout the first five months of the period was eliminated by the end of the

period, no distributions were made to Trust unitholders because of outstanding advances from the Sponsor to the Trust for the payment

of administrative expenses, which totaled $0.6 million as of June 30, 2025.

The Trust is not permitted to make distributions to Trust

unitholders until any Net Profits Interest shortfall has been recouped and outstanding advances from the Sponsor have been repaid.

During the six months ended June 30, 2024,

the Net Profits Interest generated positive income for the first two months in the period, which eliminated the cumulative Net Profits

Interest shortfall of $1.2 million that existed as of December 31, 2023.

In March 2024, however, direct operating and development

expenses exceeded revenues, thereby causing net profits attributable to the Underlying Properties to be negative and resulting in an approximately

$3.9 million Net Profits Interest shortfall as of June 30, 2024, which was carried forward to be deducted from future net profits

generated by the Underlying Properties.

As a result, there were no net profits reported or distributed in the first six months of 2024.

During the first six months of 2025, the Net Profits

Interest generated positive income, which eliminated the cumulative Net Profits Interest shortfall of $1.4 million that existed as of

March 31, 2025;

however, no distributions were made to Trust unitholders during the first half of the year because of outstanding

advances from the Sponsor to the Trust for the payment of administrative expenses, which totaled $0.6 million as of June 30, 2025.

In August 2025, the remaining amount of the shortfall and advances to the Trust were fully repaid, resulting in a distribution to

the unitholders in September 2025.

There was no Net Profits Interest shortfall as of September 30, 2025.

During the first six months of 2024, the Net Profits

Interest generated positive income for several of the months in the period, which reduced the cumulative Net Profits Interest shortfall

of $1.2 million that existed as of December 31, 2023;

however, because direct operating and development expenses exceeded revenues

in March and April 2024, the Net Profits Interest shortfall was $3.9 million as of June 30, 2024.

During the three months

ended September 30, 2024, the Net Profits Interest generated positive income, and in July 2024, the remaining amount of the

shortfall and advances to the Trust were fully repaid, resulting in distributions to the unitholders in August 2024 and September 2024.

There was no Net Profits Interest shortfall as of September 30, 2024.

On March 17, 2025, the Trustee declared a

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gas sales volumes and average prices from the Underlying Properties, representing the amounts included in the net profits calculation

for distributions paid or payable during the six months ended June 30, 2025 and 2024:

Six Months Ended June 30,

for distributions paid or payable during the nine months ended September 30, 2025 and 2024:

Nine Months Ended September 30,

Underlying Properties Production Volumes:

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Net profits attributable to the Underlying Properties

for the six months ended June 30, 2025 were $(1.1) million compared to $(4.7) million for the six months ended June 30,

The $3.6 million increase in net profits attributable to the Underlying Properties from the 2024 period to the 2025 period

for the nine months ended September 30, 2025 were $0.6 million compared to $3.2 million for the nine months ended September 30,

The $2.6 million decrease in net profits attributable to the Underlying Properties from the 2024 period to the 2025 period

was primarily due to the following items:

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The 35% decrease in produced volumes decreased revenues by $14.1 million.

This decrease was primarily due to the 15 new

Permian wells that either turned to sales or completed title work in the 2024 period, thereby allowing production attributable to prior

periods to be released by the operators of the Underlying Properties.

Realized oil sales prices decreased 7% in the 2025 period compared

to the 2024 period, which increased revenues by $1.2 million.

This decrease was primarily due to the effect

of the 15 new Permian wells that either turned to sales or completed title work in the 2024 period, thereby allowing production attributable

to prior periods to be released by the operators of the Underlying Properties.

Realized oil sales prices decreased 11% in the 2025 period

compared to the 2024 period, which increased revenues by $2.9 million.

Natural gas sales increased $3.0 million compared to the 2024 period, reflecting

a $1.8 million increase due to higher produced volumes, offset by a $0.9 million decrease due to lower realized prices.

a $0.9 million increase due to higher produced volumes, and a $2.1 million increase due to higher realized prices.

The average natural

gas price received decreased 15% primarily due to the decrease in the average realized natural gas price for the relevant production months.

Lease operating expenses during the six months ended June 30, 2025 decreased

$5.5 million compared to the six months ended June 30, 2024.

gas price received increased 25% primarily due to the decrease in the average realized natural gas price for the relevant production months.

Lease operating expenses during the nine months ended September 30,

2025 decreased $5.7 million compared to the nine months ended September 30, 2024.

Compression, gathering and transportation costs increased $0.9 million, primarily

due to the increase in natural gas production during the six months ended June 30, 2025.

due to the increase in natural gas production during the nine months ended September 30, 2025.

Production, ad valorem and other taxes decreased $1.2 million during the

six months ended June 30, 2025 compared to the six months ended June 30, 2024.

Development expenses decreased $6.0 million during the six months ended June 30,

2025 compared to the same period in 2024, due to a decrease in drilling and completion costs incurred.

For the six months ended June 30, 2025, the

Trust withheld $0.0 million and paid $0.5 million for general and administrative expenses.

Expenses paid during the period primarily consisted

of fees for the preparation of the Trust’s monthly press releases, insurance expense, Trustee fees, and New York Stock Exchange

listing fees.

For the six months ended June 30, 2024, the Trust withheld $0.2 million and paid $0.6 million for general and administrative

nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

Development expenses decreased $5.5 million during the nine months ended

September 30, 2025 compared to the same period in 2024, due to a decrease in drilling and completion costs incurred.

For the nine months ended September 30, 2025,

the Trust withheld $0.2 million and paid $0.7 million for general and administrative expenses.

Expenses paid during the period primarily

consisted of fees for the preparation of the Trust’s monthly press releases, insurance expense, Trustee fees, and New York Stock

Exchange listing fees.

For the nine months ended September 30, 2024, the Trust withheld $0.5 million and paid $0.7 million for general

and administrative expenses.

Liquidity and Capital Resources

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together with interest earned on the funds.

As of June 30, 2025, the Trustee has withheld $1,241,386 toward this cash reserve.

to the cumulative Net Profits Interest shortfall, no amounts were withheld toward this cash reserve during the six months ended June 30,

As of September 30, 2025, the Trustee has withheld $1,392,534 toward this cash reserve.

If the Trustee determines that the cash on hand

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the Trust to borrow any funds.

As of June 30, 2025 and December 31, 2024, including the aggregate amounts withheld as of such

dates toward the approximately $2.3 million cash reserve discussed above, the Trust had cash of $2,239,884 and $2,193,787, respectively,

As of September 30, 2025 and December 31, 2024, including the aggregate amounts withheld as of

such dates toward the approximately $2.3 million cash reserve discussed above, the Trust had cash of $2,343,809 and $2,193,787, respectively,

to be used towards future Trust expenses.

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such expenses.

At June 30, 2025 and December 31, 2024, there were outstanding advances of $550,323 and $150,000, respectively.

At September 30, 2025 and December 31, 2024, there were outstanding advances of $0 and $150,000, respectively.

Any advances to the Trust will be carried forward to be repaid out of future net profits generated by the Underlying Properties.

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2024 Annual Report on Form 10-K for additional information regarding the Trust’s critical accounting policies and estimates.

There were no material changes to the Trust’s critical accounting policies or estimates during the three months ended June 30,

There were no material changes to the Trust’s critical accounting policies or estimates during the three months ended September 30,

Quantitative and Qualitative Disclosures About Market Risk.

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

What changed 10-Q

Item 1. Financial Statements