PVL

Permianville Royalty Trust is a statutory trust that holds net profits interests in certain oil and natural gas properties located in the states of Texas, Louisiana, and New Mexico. The trust was formed in November 2017 and derives its income from royalty interests in producing wells operated by third parties, primarily focused on properties in the Permian Basin. Unlike traditional oil and gas operators, the trust does not engage in exploration, development, or production activities; instead, it receives passive income from existing producing properties through net profits interests. The trust distributes substantially all of its cash income to unitholders on a monthly basis, after deducting trust expenses and reserves. Permianville Royalty Trust's performance directly correlates with production volumes from the underlying properties, commodity prices for oil and natural gas, and operating costs incurred by the property operators. The trust does not have employees and relies on its trustee, Wilmington Trust, National Association, to administer its affairs. As a finite-life entity, the trust's duration depends on the productive life of the underlying oil and gas properties, with distributions expected to decline over time as reserves deplete. The underlying properties consist of mature wells with established production histories, providing investors with exposure to energy commodities through a pass-through structure that avoids corporate-level taxation.