Permianville Royalty Trust

What they do

The Trust holds a net profits interest representing the right to receive 80% of the net profits from the sale of oil and natural gas production from the Underlying Properties, which are held by the Sponsor, COERT Holdings 1 LLC. The properties are predominantly non-operated, meaning third-party operators conduct all drilling and production activities. The Trust does not operate wells or employ staff; The Bank of New York Mellon Trust Company, N.A. serves as Trustee, and the Sponsor calculates and remits net profits to the Trust.

Revenue drivers

• Oil sales — Oil is the dominant revenue source; in the latest monthly calculation, underlying oil sales were 34,255 Bbl (1,105 Bbl/D) at an average price of $95.23/Bbl, generating about $3.3 million in cash receipts.
• Natural gas sales — Natural gas contributed about $1.1 million in the latest month on 468,658 Mcf (15,612 Mcf/D) at an average price of $2.37/Mcf, materially smaller than oil revenue.
• Net profits interest mechanics — The Trust receives 80% of net profits after deducting operating expenses and capital expenditures incurred on the Underlying Properties; accrued operating expenses were $2.7 million and capital expenditures were $0.3 million in the latest month.

Recent performance

For the month reported in the August 17, 2026 earnings release, the Trust declared a cash distribution of $0.027000 per unit payable September 15, 2026 to unitholders of record August 31, 2026. The calculation reflects reported oil production for May 2026 and natural gas production for April 2026, with accrued costs incurred in June 2026. Underlying oil sales were 34,255 Bbl at $95.23/Bbl, up from 33,265 Bbl at $95.55/Bbl the prior month, and oil cash receipts rose $0.1 million to $3.3 million. Natural gas sales fell to 468,658 Mcf at $2.37/Mcf from 560,369 Mcf at $2.65/Mcf, cutting gas cash receipts by $0.4 million to $1.1 million. Accrued operating expenses increased $0.2 million to $2.7 million, while capital expenditures decreased $0.7 million to $0.3 million.

Strategy

The Trust's stated approach is to hold the net profits interest and distribute cash received from the Sponsor to unitholders on a monthly basis. The Sponsor has indicated that recent higher oil prices increase the potential for drilling by operators of the Underlying Properties. In response to expected higher billed development expenses, the Sponsor continues to maintain a previously disclosed $2.0 million cash reserve, which, if unspent, would be released as an incremental cash distribution in a future period. The Trust does not control development timing or costs, as all wells are operated by third parties.

Risks

• Commodity price volatility — Lower oil and natural gas prices reduce proceeds to the Trust and could reduce or eliminate cash distributions to unitholders.
• No operational control — Third-party operators control the timing of development, associated costs and production rates on the Underlying Properties, so the Sponsor cannot direct these activities.
• Reserve and production uncertainty — Actual reserves and future production may be less than current estimates, which could reduce cash distributions and the value of Trust Units.
• Geographic concentration — Adverse developments in Texas, Louisiana or New Mexico could harm results of operations and cash flows of the Underlying Properties.

Outlook

The Sponsor has indicated that recent higher oil prices increase the potential for drilling by certain operators of the Underlying Properties. To fund expected higher billed development expenses, the Sponsor continues to maintain a $2.0 million cash reserve; if those expenses are delayed or less than expected, or the outlook changes, unspent amounts will be released as an incremental cash distribution in a future period. The amount and timing of future distributions remain subject to production volumes, commodity prices, capital expenditures and Trust administrative expenses.