What changed in this filing

/stocks — the workspaceLOADING

Item 5. Market for Registrant’s Common Equity

2026-03-23 compared with 2025-03-19 · 249 added, 253 removed, 223 unchanged (69% of the section changed)

Market for Registrant’s Common Equity, Related Unitholder Matters and Issuer Purchases of Equity Securities.

Trust Units trade on the New York Stock Exchange under the symbol “PVL.”

At December 31, 2024, there were 33,000,000

Trust Units outstanding.

On March 19, 2025, there were five unitholders of record.

This number does not include owners for

whom Trust Units may be held in “street”

The Trust Units trade on the

New York Stock Exchange under the symbol “PVL.”

At December 31, 2025, there were 33,000,000 Trust Units outstanding.

On March 20, 2026, there were six unitholders of record.

This number does not include owners for whom Trust Units may be held in

“street”

Distributions

9 unchanged sentences

on distributions to Trust unitholders, see Note 5 of the Notes to Financial Statements in Part II, Item 8 of this Form 10-K.

Equity Compensation Plans

The Trust does not have any employees and does

not maintain any equity compensation plans.

Recent Sales of Unregistered Securities

8 unchanged sentences

for an explanation of these types of statements.

Royalty Trust, previously known as Enduro Royalty Trust, a statutory trust created in May 2011, completed its initial public offering

in November 2011.

The Trust’s only asset and source of income is the Net Profits Interest, which entitles the Trust to receive

80% of the net profits from oil and natural gas production from the Underlying Properties.

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 Properties.

Additionally, third parties operate substantially all of the wells on the Underlying Properties and, therefore,

the Sponsor is not in a position to control the timing of development efforts, associated costs, or the rate of production of the reserves.

Permianville Royalty Trust, previously known as

Enduro Royalty Trust, a statutory trust created in May 2011, completed its initial public offering in November 2011.

The Trust’s

only asset and source of income is the Net Profits Interest, which entitles the Trust to receive 80% of the net profits from oil and natural

gas production from the Underlying Properties.

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 Properties.

Additionally, third parties

operate substantially all of the wells on the Underlying Properties and, therefore, the Sponsor is not in a position to control the timing

of development efforts, associated costs, or the rate of production of the reserves.

The Trust is required to make monthly cash distributions

5 unchanged sentences

oil and natural gas sales prices;

· volumes of oil and natural gas produced and sold attributable to the Underlying Properties;

volumes of oil and natural gas produced and sold attributable to the Underlying

production and development costs;

2 unchanged sentences

the amount and timing of Trust administrative expenses;

· the establishment, increase, or decrease of reserves for approved development expenses or future liabilities of the Trust.

the establishment, increase, or decrease of reserves for approved development

expenses or future liabilities of the Trust.

Generally, the Sponsor receives cash payment for

1 unchanged sentence

2025 Recap and 2026 Outlook

The average NYMEX oil and natural gas prices experienced

continued volatility in 2024, with average oil prices relatively unchanged year-over-year but seeing lower highs than the prior year.

The average NYMEX oil price declined from $77.61 per Bbl in calendar year 2023 to $75.79 per Bbl in calendar year 2024, a decline of 2%.

Meanwhile, the price range varied from high of $86.91 per Bbl in April 2024 to a low of $65.75 per Bbl in September 2024.

second half of 2024 saw more muted prices as the U.S.

general election approached and macroeconomic concerns remained.

Natural gas prices

faced continued volatility as well, but ended the year higher compared to crude oil’s lower trajectory over the same period.

average NYMEX natural gas price declined from $2.66 per MMBtu in calendar year 2023 to $2.41 per MMBtu in calendar year 2024, a decline

Prices for natural gas saw some of the lowest levels ever on an inflation-adjusted basis in 2024, ranging from a low of $1.56

per MMBtu in March 2024 to a high of $3.95 per MMBtu in late December 2024, near the high for the year and among the highest

levels since December 2022.

Although average commodity prices declined for the year amid continued volatility, recorded third-party

operator drilling activity on the Underlying Properties increased materially, which contributed to a 202% increase in development expenses

for the production months of 2024 compared to 2023.

The increase in activity despite lower average prices s due in part to the nature

of the operators of the Underlying Properties, with a substantial majority of the capital expenditures being directed by large, public

operators, most of which are investment grade rated with longer-term capital planning cycles.

COERT believes that the outlook for the oil and

gas industry remains mixed, with oil prices having ended 2024 at the low end of the $65-90 per Bbl range experienced since August 2022

and with geopolitical and tariff concerns weighing further on the outlook for global demand.

However, the price of natural gas, which

is more regional given historical export constraints, rallied at the end of 2024 given a colder winter compared to recent years and an

expected expanding U.S.

LNG export capacity in the coming years.

In addition, mergers and acquisitions have continued to change the makeup

of the companies deploying capital in the sector over the last several years.

As larger public companies continue to acquire smaller public

companies and private operators, COERT believes that these larger companies are likely to react differently to commodity price volatility

than smaller operators have in historical cycles, as evidenced by the material increase in capital expenditures on the Underlying Properties

in 2024 despite lower year-over-year average prices.

Nevertheless, the capital spending activity or operating performance for the Underlying

Properties under new third-party operatorship in the future may not be consistent with such activity or performance experienced under

previous third-party operators in prior years.

Although the estimated 2025 capital spending budgets for operators of the Underlying Properties

are still to be determined, COERT has advised the Trustee that early indications suggest 2025 will see lower total spending than the elevated

levels of 2024.

Given forward commodity prices, changing ownership

between some of the operators of the Underlying Properties as well as an uncertain macroeconomic outlook, planned capital expenditures

during 2025 remain somewhat uncertain.

Based on currently available information, COERT anticipates 2025 capital expenditures on the Underlying

Properties to range from $7.0 million to $13.0 million, or $5.6 million to $10.4 million net to the Trust’s 80% Net Profits

This would represent a decrease from 2024 levels, partly due to lower projected oil prices, somewhat offset by possibly sustained

activity levels in the Haynesville area of the Underlying Properties given higher relative natural gas prices.

COERT indicates that it

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

addition to continued capital expenditure participation, COERT believes there could be further opportunity in 2025 for prospective divestitures

of some or all of the Underlying Properties, as operators of some of the Underlying Properties look to consolidate non-operated interests

and acreage given recent merger and acquisition activity in the industry.

COERT believes that the outlook for oil and gas

industry remains mixed, particularly in light of the recent commencement of hostilities in the Persian Gulf and the resulting increase

in oil prices.

COERT believes that natural gas-weighted capital expenditures will remain elevated compared to prior years as the continued

development of U.S.

liquified natural gas (“LNG”) export capacity provides a tailwind for operators of the Underlying Properties

and other U.S.

energy assets.

Specifically, the Haynesville shale region, where the Underlying Properties have seen increased activity

in recent years, is nearest to the LNG export terminals on the U.S.

COERT expects Haynesville shale activity to remain elevated.

COERT also expects oil-directed capital expenditures to decline from prior years but to be even more volatile given the rise in oil prices

in the first quarter of 2026.

Meanwhile, the continuing trend of consolidation

within the oil and gas industry may alter the level and targeted area of capital expenditures.

In recent years, several of the largest

operators on the Underlying Properties have sold assets to other large operators or have been acquired by larger super majors, which can

affect the pace of capital expenditures.

COERT indicates that the operators who have taken over operations of several of the largest Underlying

Properties generally are larger, better-capitalized entities with higher credit ratings.

The average NYMEX oil and natural gas prices

experienced continued volatility in 2025, with average oil prices continuing their trend of average annual declines.

NYMEX oil price of $64.73 per Bbl in calendar year 2025 was down from $75.79 per Bbl in calendar year 2024, a decline of 15%.

price range varied from high of $80.04 per Bbl in January 2025 to a low of $55.27 per Bbl in December 2025.

Similar to the

prior year, the second half of 2025 saw more muted prices, which could potentially weigh on the outlook for capital activity by

operators in 2026.

Oil prices generally declined in the second half of 2025, as the Trump Administration’s global trade and

economic policies led to greater market uncertainty.

Natural gas prices, while volatile, nevertheless experienced a meaningful

improvement year-over-year, reflecting continued demand growth from U.S.

LNG exports and increasing power usage for digital

infrastructure and other sectors.

The average NYMEX natural gas price increased from $2.41 per MMBtu in calendar year 2024 to $3.62

per MMBtu in calendar year 2025, an increase of 50%.

Despite this increase, the range of natural gas prices during the year remained

wide, with a low of $2.70 per MMBtu in August 2025 and a high of $5.29 per MMBtu in December 2025.

The increase in natural

gas prices has outpaced overall capital expenditures in the industry, however, as the Baker Hughes average weekly U.S.

rig count increased from 105 in calendar year 2024 to 113 in calendar year 2025, an increase of less than 8%.

COERT believes that

the outperformance of the natural gas commodity to the natural gas rig count is representative of the shift in industry sentiment to

prioritize free cash flow over production growth compared to prior cycles.

This industry behavior, coupled with the mixed outlook

for oil prices compared to natural gas prices, was also reflected in the Underlying Properties during 2025.

Capital expenditures on

the Underlying Properties declined 35% from the record spending in calendar year 2024.

Although revenue from the Underlying

Properties in 2025 declined 24% due primarily to the decline in oil prices, the Income from Net Profits Interest to the Trust only

declined 8% year-over-year, as the reduction in capital expenditures helped to offset the decline in revenues.

Given increasing geopolitical uncertainty and its

impact on forward commodity prices, as well as continued turnover in the ownership of some of the operators of the Underlying Properties,

COERT believes that planned capital expenditures during 2026 remain somewhat uncertain.

Based on currently available information, COERT

anticipates 2026 capital expenditures on the Underlying Properties to range from $9.0 million to $15.0 million, or $7.2 million to

$12.0 million net to the Trust’s 80% Net Profits Interest.

This would represent a modest decrease at the midpoint from the

COERT indicates that the majority of the expected capital expenditures remain directed in the Haynesville area of the Underlying

Properties given higher relative natural gas prices and accelerated drilling activity by a certain super major oil company that operates

a portion of those properties.

COERT indicates that it continues to have access to adequate capital and liquidity to fund such capital

expenditures as they come due.

COERT believes there could be further opportunity

in 2026 for prospective divestitures of some or all of the Underlying Properties, as operators of some of the Underlying Properties look

to consolidate non-operated interests and acreage given recent merger and acquisition activity in the industry.

Capex Drilling Activity Update

5 unchanged sentences

to the time of production and cash flows attributable to the Underlying Properties, especially given the non-operated nature of the Underlying

(in thousands)

Large Cap E&P 1

Conventional Permian

New Drills / Workovers

In-process/ Continual Program

Large Private E&P 1

D&C New Drills

6 Producing Awaiting Revenues

PE-Backed Private 1

D&C New Drills

4 Drilling In-Process

Large Cap E&P 2

4 unchanged sentences

19 Pre Drills

Large Major Cap E&P 1

Large Super Major 1

D&C New Drills

3 Drilling in Process

Sponsor expects that a majority of the projects above that are still in process or awaiting first revenues will be completed and

will begin producing during 2025.

Sale of 2023 Divestiture Properties

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.

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 Properties.

The total proceeds received by the Sponsor from the sale of 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

October 13, 2023 to Trust unitholders of record on October 2, 2023, reflecting 50% of the Trust’s share of the net proceeds,

after accounting for the Indemnification Escrow Amount.

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.

On November 6, 2023, the Trust announced

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

record on November 16, 2023, reflecting the remaining 50% of the Trust’s share of the net proceeds (net of the Indemnification

Escrow Amount).

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, together with interest, for a total of $282,072.

PE-Backed Private 1

D&C New Drills

2 Producing awaiting first revenue

PE-Backed Private 2

D&C New Drills

4 Drilling in Process

The Sponsor expects that a majority of the projects

above that are still in process or awaiting first revenues will be completed and will begin producing during 2026.

Results of Operations

7 unchanged sentences

Total—2024 (2)

(1) The table for the year ended December 31, 2024 does not separately display sales volumes for January, March, April and July because

(1) The table for the year ended December 31, 2025 does not separately display sales volumes for January through August because

the Trust did not pay a distribution with respect to those months, as the net profits interest calculation for each such period was negative.

(2) The year ended December 31, 2023 does not include sales volumes for December as the Trust did not make a distribution in

that month, as the Net Profits Interest calculation for the corresponding production period was negative.

(2) The table for the year ended December 31, 2024 does not separately display sales volumes for January, March, July and August because

the Trust did not pay a distribution with respect to those months, as the net profits interest calculation for each such period was negative.

Computation of Income from Net Profits Interest Received by the

22 unchanged sentences

Trust general and administrative expenses and cash withheld for expenses

Distributable income generated by properties prior to divestiture

Income from sale of Net Profits Interest

Release of Escrow (2)

Distributable income

As reflected in the Net Profits Interest calculation

for November 2023, direct operating and development expenses exceeded revenues, thereby causing net profits attributable to the Underlying

Properties to be negative and resulting in a Net Profits Interest shortfall of approximately $1.2 million.

As a result, there was

no distribution to Trust unitholders in the month of December 2023.

The shortfall of $1.2 million was carried forward to be deducted

from future net profits to be generated by the Underlying Properties, and the corresponding revenues and associated direct operating and

development expenses are excluded from the calculation of distributable income for the year ended December 31, 2023 detailed in the

table above as well as the related sales volumes detailed below.

As a result, only eleven months of results are included in the results

for the year ended December 31, 2023.

In 2024, net profits from

the Underlying Properties were positive, which eliminated the cumulative Net Profits Interest shortfall of $1.2 million and the cumulative

outstanding Sponsor advances to the Trust of $0.5 million.

Since the Net Profits Interest shortfall was eliminated in 2024, revenues

and the associated direct operating and development expenses for the last month of 2023 are included in the calculation of distributable

income detailed in the table above for the year ended December 31, 2024 and the related sales volumes are reflected in the table

(1) See discussion under “—Years Ended December 31, 2025 and 2024”

(2) Represents the release by the Sponsor of the $250,000 withheld from the net proceeds allocable to the Trust from the Sponsor’s

sale in August 2023 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, this amount equated to

In 2024, net profits from the Underlying Properties

were positive, which eliminated the cumulative Net Profits Interest shortfall of $1.2 million and the cumulative outstanding Sponsor advances

to the Trust of $0.5 million.

Because the Net Profits Interest shortfall that existed as of December 31, 2023 was eliminated

in 2024, revenues and the associated direct operating and development expenses for the last month of 2023 are included in the calculation

of distributable income detailed in the table above for the year ended December 31, 2024, and the related sales volumes are detailed

in the table below.

The following table displays oil and natural gas

14 unchanged sentences

for the year ended December 31, 2025 are calculated from the following:

· oil sales related to oil produced from the Underlying Properties primarily from August 2023 through August 2024;

· natural gas sales related to natural gas produced from the Underlying Properties primarily from July 2023 through July 2024;

· direct operating and development expenses related to expenses and capital incurred primarily from September 2023 to September 2024.

profits attributable to the Underlying Properties for the year ended December 31, 2024 were $6.7 million compared to $12.0 million

for the year ended December 31, 2023.

As discussed in “—Computation of Income from Net Profits Interest Received

by the Trust”

above, no distribution was made to Trust unitholders in December 2023 due to the Net Profits Interest shortfall.

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

attributable to the corresponding production period were excluded from the calculation of distributable income for the year ended December 31,

2023 and instead were included in the Trust’s results for the year ended December 31, 2024, once the shortfall was recouped.

Therefore, several variances between the periods are due to the inclusion of thirteen months of results in the year ended December 31,

2024 compared to eleven months in the year ended December 31, 2023.

The $5.3 million decrease in net profits attributable to the

Underlying Properties from the 2023 period to the 2024 period was primarily due to the following items:

· Oil sales increased $15.6 million, primarily due to an increase in produced volumes, which increased revenues by $15.4 million.

increase was primarily due to the several new Permian wells that either turned to sales or completed title work and thereby allowed production

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

Realized oil sales prices increased by less

than 1% in the 2024 period compared to the 2023 period, which increased revenues by $0.2 million.

· Natural gas sales increased $0.8 million due to higher produced sales volumes, which increased natural gas sales by $10.6 million.

The 46% decrease in realized prices resulted in a $9.6 million decrease in natural gas sales for the year ended December 31, 2024

compared to 2023.

· Lease operating expenses during the year ended December 31, 2024 were $26.8 million compared to $22.1 million during the year

ended December 31, 2023, an increase of $4.7 million.

Approximately $1.4 million of the 2023 expenses and approximately $1.4 million

oil sales related to oil produced from the Underlying Properties primarily

from September 2024 through August 2025;

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

primarily from August 2024 through July 2025;

direct operating and development expenses related to expenses and capital

incurred primarily from October 2024 to September 2025.

Net profits attributable to the Underlying Properties

for the year ended December 31, 2025 were $6.2 million compared to $6.7 million for the year ended December 31, 2024.

discussed in “—Computation of Income from Net Profits Interest Received by the Trust”

above, no distribution was made

to Trust unitholders in December 2023 due to the Net Profits Interest shortfall.

Accordingly, under the modified cash basis of accounting,

the oil and natural gas sales, direct operating expenses and development expenses attributable to the corresponding production period

were excluded from the calculation of distributable income for the year ended December 31, 2023 and instead were included in the

Trust’s results for the year ended December 31, 2024, once the shortfall was recouped.

Therefore, several variances between

the periods are due to the inclusion of thirteen months of results in the year ended December 31, 2024 compared to twelve months

in the year ended December 31, 2025.

The $0.5 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:

Oil sales decreased $20.2 million, primarily due to a decrease in produced

volumes, which decreased revenues by $15.7 million.

This decrease was primarily due to the several new Permian wells that either turned

to sales or completed title work and thereby allowed production attributable to prior periods to be released by the operators of the Underlying

Properties in 2024.

Realized oil sales prices decreased by 13% in 2025 compared to 2024, which decreased revenues by $4.5 million.

Natural gas sales increased $5.6 million compared to 2024, reflecting a $1.8

million increase due to higher produced volumes and a $3.8 million increase due to higher realized prices.

The average natural gas price

received increased 29% primarily due to the increase in the average realized natural gas price for the relevant production months.

Lease operating expenses during the year ended December 31, 2025 were

$19.4 million compared to $26.8 million during the year ended December 31, 2024, a decrease of $7.4 million.

Approximately $1.4 million

of the 2024 expenses were attributable to a settlement between COERT and one of the operators of the Underlying Properties relating to

3 unchanged sentences

amounts relating to the disputed expenses will be owed to the operator.

The remaining increase in lease operating expenses in 2024 was

primarily due to several new drilled wells that came online during the year.

· Compression, gathering and transportation expenses increased from $1.7 million in 2023 to $3.8 million in 2024 due to higher

sales volumes and the inclusion of thirteen months of expenses in the year ended December 31, 2024.

· Production, ad valorem and other taxes increased $1.2 million in 2024 compared to 2023, primarily due to the increased produced volumes.

· Development expenses increased $13.6 million due to several drilling and completion costs for drilling multiple new wells in

the Permian and Haynesville areas during 2024.

During the year ended December 31, 2023, COERT

fully released the total cash reserve of $1.0 million that it had previously established for approved, future development expenses.

the year ended December 31, 2024, the Sponsor withheld from the net profits otherwise payable to the Trust a net aggregate total

of $1.0 million for the establishment of a cash reserve for approved, future development expenses.

This reserve was intended to fund an

expected increase in development expenses;

however, if those expenses are ultimately delayed or are less than expected, or if the outlook

changes, amounts reserved but unspent would be released as an incremental cash distribution in a future period.

This cash reserve for

future development was fully released to the Trust in early 2025.

The remaining decrease in lease operating expenses was primarily

due to several new drilled wells that came online in 2024 compared to 2025.

Compression, gathering and transportation expenses increased from $3.8 million

in 2024 to $5.8 million in 2025 primarily due to higher sales volumes from three new Haynesville wells that came online in 2025.

Production, ad valorem and other taxes decreased $1.1 million in 2025 compared

to 2024, primarily due to the decreased produced oil volumes.

Development expenses decreased $7.2 million due to higher drilling and

completion costs related to multiple new wells in the Permian and Haynesville areas during 2024 compared to 2025.

During the year ended December 31, 2024, the

Sponsor withheld from the net profits otherwise payable to the Trust a net aggregate total of $1.0 million for the establishment of a

cash reserve for approved, future development expenses.

This reserve was intended to fund an expected increase in development expenses;

however, if those expenses are ultimately delayed or are less than expected, or if the outlook changes, amounts reserved but unspent would

be released as an incremental cash distribution in a future period.

This cash reserve for future development was fully released to the

Trust in early 2025.

In late 2025, the Sponsor withheld $1.3 million for the establishment of a new cash reserve for future development

The Trust withheld $0.7 million and paid $0.8 million

16 unchanged sentences

Available funds are reduced by any cash the Trustee determines to hold as a reserve against future expenses.

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

In November 2021, the Trustee notified COERT

of the Trustee’s intent to build a cash reserve for the payment of future known, anticipated or contingent expenses or liabilities

of the Trust.

From February 2022 through March 2023, the Trustee withheld $37,833, and commencing with the distribution to Trust

unitholders paid in April 2023 has been withholding and, in the future, intends to withhold $50,000, from the funds otherwise available

for distribution each month to gradually build a cash reserve of approximately $2.3 million.

The Trustee may increase or decrease

the targeted cash reserve amount at any time and may increase or decrease the rate at which it is withholding funds to build the cash

reserve at any time, without advance notice to the Trust unitholders.

The Trustee may create a cash reserve to pay for

future liabilities of the Trust.

In November 2021, the Trustee notified COERT of the Trustee’s intent to build a cash reserve

for the payment of future known, anticipated or contingent expenses or liabilities of the Trust.

From February 2022 through March 2023,

the Trustee withheld $37,833, and commencing with the distribution to Trust unitholders paid in April 2023 has been withholding and,

in the future, intends to withhold $50,000, from the funds otherwise available for distribution each month to gradually build a cash reserve

of approximately $2.3 million.

The Trustee may increase or decrease the targeted cash reserve amount at any time and may increase

or decrease the rate at which it is withholding funds to build the cash reserve at any time, without advance notice to the Trust unitholders.

Cash held in reserve will be invested as required by the Trust Agreement.

Any cash reserved in excess of the amount necessary to pay or provide for the payment of future known, anticipated or contingent expenses

or liabilities eventually will be distributed to Trust unitholders, together with interest earned on the funds.

As of December 31,

2024, this cash reserve totaled $1,241,386.

the Trustee determines that the cash on hand and the cash to be received are, or will be, insufficient to cover the Trust’s liabilities,

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

The Trustee may authorize the Trust to borrow from any person, including the Trustee or the Delaware Trustee or an affiliate

thereof, although none of the Trustee, the Delaware Trustee or any affiliate thereof intends to lend funds to the Trust.

The Trustee may

also cause the Trust to mortgage its assets to secure payment of the indebtedness.

The terms of such indebtedness and security interest,

if funds were to be loaned by the entity serving as Trustee or Delaware Trustee or an affiliate thereof, would be similar to the terms

which such entity would grant to a similarly situated commercial customer with whom it did not have a fiduciary relationship.

COERT has provided the Trust with a $1.2 million letter of credit to be used by the Trust if its cash on hand (including available

cash reserves) is insufficient to pay ordinary course administrative expenses.

Further, if the Trust requires more than the $1.2 million

under the letter of credit to pay administrative expenses, COERT has agreed to loan funds to the Trust necessary to pay such expenses.

Any loan made by COERT to the Trust would be evidenced by a written promissory note, be on an unsecured basis, and have terms that are

no less favorable to COERT than those that would be obtained in an arm’s length transaction between COERT and an unaffiliated third

If the Trust borrows funds or draws on the letter of credit, no further distributions will be made to Trust unitholders until such

amounts borrowed or drawn are repaid.

Any cash reserved in excess of the amount necessary to pay or

provide for the payment of future known, anticipated or contingent expenses or liabilities eventually will be distributed to Trust unitholders,

together with interest earned on the funds.

As of December 31, 2025, this cash reserve totaled $1,441,386.

If the Trustee determines that the cash on hand

and the cash to be received are, or will be, insufficient to cover the Trust’s liabilities, the Trustee may authorize the Trust

to borrow money to pay administrative or incidental expenses of the Trust that exceed cash held by the Trust.

The Trustee may authorize

the Trust to borrow from any person, including the Trustee or the Delaware Trustee or an affiliate thereof, although none of the Trustee,

the Delaware Trustee or any affiliate thereof intends to lend funds to the Trust.

The Trustee may also cause the Trust to mortgage its

assets to secure payment of the indebtedness.

The terms of such indebtedness and security interest, if funds were to be loaned by the

entity serving as Trustee or Delaware Trustee or an affiliate thereof, would be similar to the terms which such entity would grant to

a similarly situated commercial customer with whom it did not have a fiduciary relationship.

In addition, COERT has provided the Trust

with a $1.2 million letter of credit to be used by the Trust if its cash on hand (including available cash reserves) is insufficient to

pay ordinary course administrative expenses.

Further, if the Trust requires more than the $1.2 million under the letter of credit to pay

administrative expenses, COERT has agreed to loan funds to the Trust necessary to pay such expenses.

Any loan made by COERT to the Trust

would be evidenced by a written promissory note, be on an unsecured basis, and have terms that are no less favorable to COERT than those

that would be obtained in an arm’s length transaction between COERT and an unaffiliated third party.

If the Trust borrows funds

or draws on the letter of credit, no further distributions will be made to Trust unitholders until such amounts borrowed or drawn are

Except for the foregoing, the Trust has no source of liquidity or capital resources.

has no current plans to authorize the Trust to borrow money other than Sponsor advances to pay the Trust’s monthly operating expenses.

At December 31, 2024 and 2023, the Trust held cash reserves of $2,193,787 and $1,394,697, respectively, for future Trust expenses.

Since its formation, the Trust has not borrowed any funds other than Sponsor advances to pay the Trust’s monthly operating expenses

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

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

ordinary course administrative expenses that are due prior to the monthly payment to the Trust of proceeds from the Net Profits Interest,

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

Such advances are recorded as a liability on the Statements of

Assets, Liabilities and Trust Corpus until repaid.

The Trustee has no current plans to authorize

the Trust to borrow money other than Sponsor advances to pay the Trust’s monthly operating expenses.

At December 31, 2025 and

2024, the Trust held cash reserves of $2,733,791 and $2,193,787, respectively, for future Trust expenses.

Since its formation, the Trust

has not borrowed any funds other than Sponsor advances to pay the Trust’s monthly operating expenses and no amounts have been drawn

on the letter of credit.

From time to time, if the Trust’s cash on

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

are due prior to the monthly payment to the Trust of proceeds from the Net Profits Interest, the Sponsor may advance funds to the Trust

to pay such expenses.

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

Cash held by the Trustee as a reserve against future

2 unchanged sentences

money market funds that invest only in United States government securities;

· repurchase agreements secured by interest-bearing obligations of the United States government;

repurchase agreements secured by interest-bearing obligations of the United

States government;

bank certificates of deposit.

Sponsor has not entered into any hedge contracts relating to oil and natural gas volumes produced from the Underlying Properties,

attributable to the Net Profits Interest for the years ended December 31, 2024 or 2023, and the terms of the Conveyance prohibit

COERT from entering into new hedging arrangements burdening the Trust.

The Sponsor has not entered into any hedge contracts

relating to oil and natural gas volumes produced from the Underlying Properties, attributable to the Net Profits Interest for the years

ended December 31, 2025 or 2024, and the terms of the Conveyance prohibit COERT from entering into new hedging arrangements burdening

The Trust pays the Trustee an administrative fee

67 unchanged sentences

Actual results could differ from those estimates.

and Natural Gas Reserves.

The proved oil and natural gas reserves for the Underlying Properties are estimated by independent

petroleum engineers.

Reserve engineering is a subjective process that is dependent upon the quality of available data and the interpretation

Estimates by different engineers often vary, sometimes significantly.

In addition, physical factors such as the results of drilling,

testing and production subsequent to the date of an estimate, as well as economic factors such as changes in product prices, may justify

revision of such estimates.

Because proved reserves are required to be estimated using prices at the date of the evaluation, estimated

reserve quantities can be significantly impacted by changes in product prices.

Accordingly, oil and natural gas quantities ultimately

recovered and the timing of production may be substantially different from original estimates.

Oil and Natural Gas Reserves.

oil and natural gas reserves for the Underlying Properties are estimated by independent petroleum engineers.

Reserve engineering is a

subjective process that is dependent upon the quality of available data and the interpretation thereof.

Estimates by different engineers

often vary, sometimes significantly.

In addition, physical factors such as the results of drilling, testing and production subsequent

to the date of an estimate, as well as economic factors such as changes in product prices, may justify revision of such estimates.

proved reserves are required to be estimated using prices at the date of the evaluation, estimated reserve quantities can be significantly

impacted by changes in product prices.

Accordingly, oil and natural gas quantities ultimately recovered and the timing of production may

be substantially different from original estimates.

The Financial Accounting Standards Board requires

12 unchanged sentences

fair market value of proved reserves.

of Net Profits Interest.

The Trust calculates amortization of the Net Profits Interest in oil and natural gas properties on

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

Amortization of Net Profits Interest.

Trust calculates amortization of the Net Profits Interest in oil and natural gas properties on a unit-of-production basis based on the

Underlying Properties’

production and reserves.

The reserves upon which the amortization

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

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

These estimates are expected to change

as additional information becomes available in the future.

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

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

The volumes considered to be commercially recoverable

fluctuate with changes in 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 recorded on sales volumes paid by the Trust during the relevant period and is charged directly to the Trust corpus balance.

As a result, amortization does not affect the cash earnings of the Trust.

of Net Profits Interest.

The Net Profits Interest in oil and natural gas properties is periodically assessed for impairment

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

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

The Trust did not realize any impairment during the years ended December 31,

2024 or 2023.

Future downward revisions in actual production volumes relative to current forecasts, higher than expected operating costs,

or lower than anticipated market pricing could result in recognition of impairment in future periods.

Any impairment of the Net Profits

Interest will result in a non-cash charge to Trust corpus and will not affect distributable income.

Amortization is recorded on sales

volumes paid by the Trust during the relevant period and is charged directly to the Trust corpus balance.

As a result, amortization does

not affect the cash earnings of the Trust.

Impairment of Net Profits Interest.

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

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

Net Profits Interest.

The Trust did not realize any impairment during the years ended December 31, 2025 or 2024.

Future downward

revisions in actual production volumes relative to current forecasts, higher than expected operating costs, or lower than anticipated

market pricing could result in recognition of impairment in future periods.

Any impairment of the Net Profits Interest will result in

a non-cash charge to Trust corpus and will not affect distributable income.

For further information, see “Note 3.

Net Profits Interest in Oil and Gas Properties”

of the Notes to Financial Statements in Part II, Item 8 of this

Net Profits Interest

in Oil and Gas Properties”

of the Notes to Financial Statements in Part II, Item 8 of this Form 10-K.

Quantitative and Qualitative Disclosures About Market Risk.

2 unchanged sentences

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

What changed 10-K

Item 5. Market for Registrant’s Common Equity