Permianville Royalty Trust Reports Q2 2025 Financial Results with Significant Income Increase

Permianville Royalty Trust reported its financial results for the second quarter of 2025, revealing a distributable income of $282,084, a significant increase from the $0 reported in the same period last year. The Trust's income from net profits interest reached $419,589, compared to no income in the prior year, while interest and investment income also rose to $23,097 from $18,332. The Trust's total assets decreased to $41.67 million as of June 30, 2025, down from $44.09 million at the end of 2024, primarily due to a reduction in the net profits interest in oil and natural gas properties.

In terms of operational performance, the Trust experienced a 39% decline in total gross profits, which fell to $11.22 million from $18.45 million year-over-year. This decrease was largely attributed to a 49% drop in oil sales, which fell to $7.98 million, while natural gas sales increased by 20% to $3.24 million. The Trust's direct operating expenses also saw a significant reduction, decreasing by 60% to $9.27 million, which contributed to a net profit of $1.95 million for the quarter, a stark contrast to the net loss of $4.88 million reported in the same quarter of 2024.

The Trust's operational metrics indicated a decrease in oil production, with volumes falling by 47% to 108,972 barrels, while natural gas production increased by 25% to 1.31 million cubic feet. The average realized oil price decreased by 5% to $73.21 per barrel, while natural gas prices saw a slight decline of 3% to $2.48 per thousand cubic feet. The Trust's total liabilities increased to $550,323 from $150,000, reflecting advances from the Sponsor for administrative expenses.

Looking ahead, the Trust's Sponsor, COERT Holdings 1 LLC, indicated that development activity on the Underlying Properties remains elevated, although it has declined compared to the previous year. The Sponsor expects to see continued capital expenditures focused on the Haynesville region, with plans for additional wells in 2026. Despite the volatility in commodity prices, the Sponsor anticipates that the net profits interest will return to positive monthly payments in 2025, supported by recent revenues from new wells. However, the outlook remains cautious due to ongoing geopolitical uncertainties and fluctuating market conditions.