Permianville Royalty Trust

As of December 31, 2025, the Underlying Properties had proved reserves of 10.4 MMBoe with 76% and 83% of the volumes and PV-10 value, respectively, attributable to proved developed reserves. All of the 10.4 MMBoe of proved reserves, based on PV-10 value, were operated by third-party operators.

The Sponsor’s interests in the Underlying Properties require the Sponsor to bear its proportionate share of the costs of development and operation of such properties. As of December 31, 2025, the Sponsor held average working interests of approximately 10% and 15% and average net revenue interests of approximately 8% and 11% in the Underlying Properties located in the Permian Basin and East Texas/North Louisiana regions, respectively. The Underlying Properties are also burdened by non-cost bearing interests owned by third parties consisting primarily of overriding royalty and royalty interests.

Reserves

Cawley, Gillespie & Associates, Inc. (“Cawley Gillespie”), independent petroleum and geological engineers, estimated crude oil (including natural gas liquids) and natural gas proved reserves of the Underlying Properties’ full economic life and for the Trust life as of December 31, 2025. Numerous uncertainties are inherent in estimating reserve volumes and values, and the estimates are subject to change as additional information becomes available. The reserves actually recovered and the timing of production of the reserves may vary significantly from the original estimates. In addition, the reserves and net revenues attributable to the Net Profits Interest include only 80% of the reserves attributable to the Underlying Properties that are expected to be produced within the term of the Net Profits Interest.

The independent petroleum engineer’s report as to the proved oil and natural gas reserves as of December 31, 2025, was prepared by Cawley Gillespie. Cawley Gillespie, whose firm registration number is F-693, was founded in 1961 and is a leader in the evaluation of oil and gas properties. The technical person at Cawley Gillespie primarily responsible for overseeing the reserve estimates with respect to the Underlying Properties and the Net Profits Interest attributable to the Trust is W. Todd Brooker. Mr. Brooker has been a petroleum consultant for Cawley Gillespie since 1992 and is currently the Senior Vice President. He is a registered professional engineer in the State of Texas (license no. 83462) and a graduate of the University of Texas with a Bachelor of Science in Petroleum Engineering.

Information concerning changes in net proved reserves attributable to the Trust, and the calculation of the standardized measure of the related discounted future net revenues is contained in the notes to the financial statements of the Trust included in this Form 10-K. COERT has not filed reserve estimates covering the Underlying Properties with any other federal authority or agency.

The following table summarizes the estimated proved reserve quantities and PV-10 attributable to the Trust and Underlying Properties as of December 31, 2025 and 2024:

Trust Net Profits Interest · Underlying Properties

Oil(1) · Natural Gas · Total(2) · PV-10(3) · Oil(1) · Natural Gas · Total(2) · PV-10(3)

(MBbls) · (MMcf) · (MBoe) · (in thousands) · (MBbls) · (MMcf) · (MBoe) · (in thousands)

Proved Developed Producing · 1,714 · 9,056 · 3,223 · 60,634 · 4,339 · 21,334 · 7,895 · 75,793

Proved Developed Non-Producing · 4 · 1 · 4 · 162 · 6 · 3 · 6 · 204

Proved Undeveloped · 219 · 5,014 · 1,055 · 12,449 · 432 · 12,601 · 2,532 · 15,562

Proved Developed Producing · 2,437 · 5,892 · 3,419 · 76,822 · 5,595 · 13,374 · 7,824 · 96,027

Proved Developed Non-Producing · 4 · 7,290 · 1,219 · 8,293 · 6 · 12,840 · 2,146 · 10,367

Proved Undeveloped · 298 · 962 · 458 · 6,246 · 575 · 1,846 · 883 · 3,096

(1) · Reserves for natural gas liquids are included as a component of oil reserves.

(2) · Boe represents an approximate energy equivalent basis such that one Bbl of crude oil equals approximately six Mcf of natural gas. However, the value of oil and natural gas value and the value of reserve volumes of oil and natural gas are often substantially different than the amount implied by the Boe ratio.

• Third-party operators operate all of the wells on the Underlying Properties; therefore, the Sponsor is not in a position to control the timing of development efforts, the associated costs or the rate of production of the reserves on such properties.
• Developing oil and natural gas wells and producing oil and natural gas are costly and high-risk activities with many uncertainties that could adversely affect future production from the Underlying Properties. Any delays, reductions or cancellations in development and producing activities could decrease revenues that are available for distribution to Trust unitholders.
• Shortages of equipment, services and qualified personnel could increase costs of developing and operating the Underlying Properties and reduce the amount of cash available for distribution to Trust unitholders.
• The amount of cash available for distribution by the Trust depends in part on access to and operation of gathering, transportation and processing facilities. Any limitation in the availability of those facilities could interfere with sales of oil and natural gas production from the Underlying Properties.
• Adverse developments in Texas, Louisiana or New Mexico could adversely impact the results of operations and cash flows of the Underlying Properties and reduce the amount of cash available for distribution to Trust unitholders.
• FINANCIAL RISKS
• The Trust Units may lose value as a result of title deficiencies with respect to the Underlying Properties.
• The oil and natural gas reserves attributable to the Underlying Properties are depleting assets and production from those reserves will diminish over time. Furthermore, because the Trust is precluded from acquiring other oil and natural gas properties or net profits interests to replace the depleting assets and production, proceeds to the Trust and cash distributions to Trust unitholders will decrease over time.
• An increase in the differential between the price realized by the Sponsor for oil or natural gas produced from the Underlying Properties and the NYMEX or other benchmark price of oil or natural gas could reduce the net profits payable to the Trust and, therefore, the cash distributions by the Trust and the value of the Trust Units.
• Higher production and development costs and expenses related to the Underlying Properties and other costs and expenses incurred by the Trust, without concurrent increases in revenue, will reduce the amount of cash available for distribution to Trust unitholders.
• The Trust has established a cash reserve for contingent liabilities and to pay expenses in accordance with the Trust Agreement, which would reduce net profits payable to the Trust and distributions to Trust unitholders.
• The amount of cash available for distribution by the Trust could be reduced by expenses caused by uninsured claims.
• The Sponsor’s ability to perform its obligations to the Trust could be limited by restrictions under its debt agreements.
• The bankruptcy of the Sponsor or any of the third-party operators could impede the operation of the wells and the development of the proved undeveloped reserves.
• In the event of the bankruptcy of the Sponsor, if a court were to hold that the Net Profits Interest was part of the bankruptcy estate, the Trust may be treated as an unsecured creditor with respect to the Net Profits Interest attributable to properties in Louisiana and New Mexico.
• RISKS RELATED TO THE STRUCTURE OF THE TRUST
• The Trust is passive in nature and neither the Trustee nor the Trust unitholders have any ability to influence the Sponsor or control the operations or development of the Underlying Properties.
• Subject to specified limitations, the Sponsor may transfer all or a portion of the Underlying Properties at any time without Trust unitholder consent.
• Under certain circumstances, the Trustee must sell the Net Profits Interest and dissolve the Trust prior to the expected termination of the Trust. As a result, Trust unitholders may not recover their investment.
• Conflicts of interest could arise between the Sponsor and its affiliates, on the one hand, and the Trust and the Trust unitholders, on the other hand.
• The Trust is administered by a Trustee who cannot be replaced except by a majority vote of the Trust unitholders at a special meeting, which may make it difficult for Trust unitholders to remove or replace the Trustee.
• Trust unitholders have limited ability to enforce provisions of the Conveyance, and the Sponsor’s liability to the Trust is limited.
• Financial information of the Trust is not prepared in accordance with GAAP.
• The Trust is a smaller reporting company and benefits from certain reduced governance and disclosure requirements, including that the Trust’s independent registered public accounting firm is not required to attest to the effectiveness of the Trust’s internal control over financial reporting. The Trust cannot be certain if the omission of reduced disclosure requirements applicable to smaller reporting companies will make the Trust Units less attractive to investors.
• RISKS RELATED TO OWNERSHIP OF THE TRUST UNITS
• If the Trust cannot meet the New York Stock Exchange continued listing requirements, the NYSE may delist the Trust Units.
• The Sponsor may sell Trust Units in the public or private markets, and such sales could have an adverse impact on the trading price of the Trust Units.
• The trading price for the Trust Units may not reflect the value of the Net Profits Interest held by the Trust.
• Courts outside of Delaware may not recognize the limited liability of the Trust unitholders provided under Delaware law.
• LEGAL, ENVIRONMENTAL AND REGULATORY RISKS
• The operations of the Underlying Properties are subject to environmental laws and regulations that could adversely affect the cost, manner or feasibility of conducting operations on them or result in significant costs and liabilities, which could reduce the amount of cash available for distribution to Trust unitholders.
• The operations on the Underlying Properties are subject to complex federal, state, local and other laws and regulations that could adversely affect the cost, manner or feasibility of conducting operations on them or expose the operator to significant liabilities, which could reduce the amount of cash available for distribution to Trust unitholders.
• Climate change laws and regulations restricting emissions of “greenhouse gases” could result in increased operating costs and reduced demand for the oil and natural gas that the operators produce while the physical effects of climate change could disrupt their production and cause them to incur significant costs in preparing for or responding to those effects.
• Federal and state legislative and regulatory initiatives relating to hydraulic fracturing could result in increased costs and additional operating restrictions or delays as well as adversely affect the services of the operators of the Underlying Properties.
• CYBERSECURITY RISKS
• Cyber-attacks or other failures in telecommunications or information technology systems could result in information theft, data corruption and significant disruption of the Sponsor’s business operations.
• Cyber-attacks or other failures in telecommunications or IT systems could result in information theft, data corruption and significant disruption of the Trustee’s operations.
• The Trust has not requested a ruling from the IRS regarding the tax treatment of the Trust. If the IRS were to determine (and be sustained in that determination) that the Trust is not a “grantor trust” for U.S. federal income tax purposes, the Trust could be subject to more complex and costly tax reporting requirements that could reduce the amount of cash available for distribution to Trust unitholders.
• Trust unitholders are required to pay taxes on their share of the Trust’s income even if they do not receive any cash distributions from the Trust.
• A portion of any tax gain on the disposition of the Trust Units could be taxed as ordinary income.
• The Trust allocates its items of income, gain, loss and deduction between transferors and transferees of the Trust Units each month based upon the ownership of the Trust Units on the monthly record date, instead of on the basis of the date a particular Trust Unit is transferred. The IRS may challenge this treatment, which could change the allocation of items of income, gain, loss and deduction among the Trust unitholders.
• Trust unitholders should consult their tax advisors as to the specific tax consequences of the ownership and disposition of the of the Trust Units, including the applicability and effect of U.S. federal, state, local, and foreign income and other tax laws in light of their particular circumstances.