UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549










FORM 10-Q










| | x | QUARTERLY REPORT PURSUANT
                                            TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
| | - | -----------------------------------------------------------------------------------------------------------------------------------



For the quarterly period ended March 31,
2023



OR



| |  ̈ | TRANSITION
                                            REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
| | - | ------------------------------------------------------------------------------------------------------------------------------------



For the transition period from                     
to



Commission File Number: 001-35333










PERMIANVILLE
ROYALTY TRUST

(Exact name of registrant as specified in its
charter)










|Delaware                                                                                                                                             | 45-6259461                              
|---------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------
|(State or other jurisdiction of
    incorporation or organization)                                                                                   | (I.R.S. Employer
    Identification No.)
|                                                                                                                                                     |                                         
|The Bank
                                    of New York Mellon Trust Company, N.A., Trustee
    601 Travis Street
    16th Floor
    Houston, Texas | 77002                                   
|(Address
    of principal executive offices)                                                                                                         | (Zip Code)                              



1-512-236-6555

(Registrant’s telephone number, including
area code)










Securities registered pursuant to Section 12(b) of the Act:



|Title
    of each class          | Trading
    Symbol(s) | Name
    of each exchange on which registered
|-------------------------------- | --------------------- | ---------------------------------------------
|Units
    of Beneficial Interest | PVL                   | The
    New York Stock Exchange              



Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.    YesxNo ̈



Indicate
by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405
of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant
was required to submit such files).    Yes ̈    No   ̈



Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions
of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging
growth company” in Rule 12b-2 of the Exchange Act.



|Large accelerated filer |  ̈ | Accelerated filer         |  ̈
|----------------------- | - | ------------------------- | -
|                        |   |                           |  
|Non-accelerated filer   | x | Smaller reporting company | x
|                        |   |                           |  
|                        |   | Emerging growth company   |  ̈



If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ̈



Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes ̈    No  x



As of May 15, 2023, 33,000,000 units of beneficial interest in
Permianville Royalty Trust were outstanding.




















TABLE OF CONTENTS



|         | Glossary of Certain Oil and Natural Gas Terms                                                             | 1 
|-------- | --------------------------------------------------------------------------------------------------------- | --
|         |                                                                                                           |   
|         | PART I — FINANCIAL INFORMATION                                                                            |   
|Item 1.  | Financial Statements                                                                                      |   
|         | Statements of Assets, Liabilities and Trust Corpus as of March 31, 2023 (unaudited) and December 31, 2022 | 2 
|         | Statements of Distributable Income for the three months ended March 31, 2023 and 2022 (unaudited)         | 3 
|         | Statements of Changes in Trust Corpus for the three months ended March 31, 2023 and 2022 (unaudited)      | 4 
|         | Notes to Financial Statements                                                                             | 5 
|Item 2.  | Trustee’s Discussion and Analysis of Financial Condition and Results of Operations                        | 11
|Item 3.  | Quantitative and Qualitative Disclosures About Market Risk                                                | 17
|Item 4.  | Controls and Procedures                                                                                   | 18
|         |                                                                                                           |   
|         | PART II — OTHER INFORMATION                                                                               |   
|Item 1A. | Risk Factors                                                                                              | 19
|Item 6.  | Exhibits                                                                                                  | 19
|         | Signature                                                                                                 | 20













GLOSSARY OF CERTAIN OIL AND NATURAL GAS TERMS



The following are definitions of significant
terms used in this report.



Bbl—One
barrel of 42 U.S. gallons liquid volume, used herein in reference to crude oil and other liquid hydrocarbons.



Boe—One
barrel of oil equivalent, computed on an approximate energy equivalent basis that one Bbl of crude oil equals approximately six Mcf of
natural gas.



Btu—A
British Thermal Unit, a common unit of energy measurement.



Completion—The
installation of permanent equipment for the production of oil or natural gas, or in the case of a dry hole, the reporting of abandonment
to the appropriate agency.



Differential—The
difference between a benchmark price of oil and natural gas, such as the NYMEX crude oil spot, and the wellhead price received.



Field—An
area consisting of either a single reservoir or multiple reservoirs, all grouped on or related to the same individual geological structural
feature and/or stratigraphic condition.



GAAP—Accounting
principles generally accepted in the United States of America.



Gross
acres or gross wells—The total acres or wells, as the case may be, in which a working interest is owned.



MBbl—One
thousand barrels of crude oil or condensate.



MBoe—One
thousand barrels of oil equivalent.



Mcf—One
thousand cubic feet of natural gas.



MMBoe—One
million barrels of oil equivalent.



MMcf—One
million cubic feet of natural gas.



Net
acres or net wells—The sum of the fractional working interests owned in gross acres or wells, as the case may be.



Net
profits interest—A nonoperating interest that creates a share in gross production from an operating or working interest
in oil and natural gas properties. The share is measured by net profits from the sale of production after deducting costs associated
with that production.



NYMEX—New
York Mercantile Exchange.



NYSE—New
York Stock Exchange.



Plugging
and abandonment—Activities to remove production equipment and seal off a well at the end of a well’s economic
life.



Reservoir—A
porous and permeable underground formation containing a natural accumulation of producible oil and/or natural gas that is confined by
impermeable rock or water barriers and is individual and separate from other reservoirs.



Working
interest—The right granted to the lessee of a property to explore for and to produce and own oil, natural gas, or other
minerals. The working interest owners bear the exploration, development, and operating costs on either a cash, penalty, or carried basis.





1







PART I—FINANCIAL INFORMATION



| | Item  1. | Financial Statements.
| | -------- | ---------------------



PERMIANVILLE ROYALTY TRUST

Statements of Assets, Liabilities and Trust
Corpus



|                                                                |  | March 31,   |            |  | December 31, |  
|--------------------------------------------------------------- |  | ----------- | ---------- |  | ------------ | -
|                                                                |  | 2023        |            |  | 2022         |  
|                                                                |  | (unaudited) |            |  |              |  
|ASSETS                                                          |  |             |            |  |              |  
|Cash and cash equivalents                                       |  | $           | 958,007    |  |              | $
|Net profits interest in oil and natural
    gas properties, net |  |             | 58,483,473 |  |              |  
|Total assets                                                    |  | $           | 59,441,480 |  |              | $
|LIABILITIES AND TRUST CORPUS                                    |  |             |            |  |              |  
|Trust corpus (33,000,000 units issued
    and outstanding)      |  |             | 59,441,480 |  |              |  
|Total liabilities
    and Trust corpus                          |  | $           | 59,441,480 |  |              | $



The accompanying notes are an integral part of
these financial statements.





2







PERMIANVILLE ROYALTY
TRUST

Statements of Distributable
Income

(unaudited)



|                                                     |  | Three Months
    Ended March 31, |          
|---------------------------------------------------- |  | -------------------------------- | ---------
|                                                     |  | 2023                             |          
|Income from net profits interest                     |  | $                                | 4,796,805
|Income from sale of assets                           |  |                                  | –        
|Interest and investment income                       |  |                                  | 12,428   
|General and administrative expenses                  |  |                                  | (378,538 
|Cash reserves used (withheld) for Trust
    expenses |  |                                  | (35,095  
|Distributable income                                 |  | $                                | 4,395,600
|                                                     |  |                                  |          
|Distributable income per unit (33,000,000
    units) |  | $                                | 0.133200 



The accompanying notes are an integral part of
these financial statements.





3







PERMIANVILLE ROYALTY TRUST

Statements of Changes in Trust Corpus

(unaudited)



|                                                           |  | Three Months Ended March 31, |           
|---------------------------------------------------------- |  | ---------------------------- | ----------
|                                                           |  | 2023                         |           
|Trust corpus, beginning of period                          |  | $                            | 60,564,545
|Cash reserves withheld for Trust expenses                  |  |                              | 35,095    
|Distributable income                                       |  |                              | 4,395,600 
|Distributions to unitholders ($0.1332 and $0.089 per unit) |  |                              | (4,395,600
|Amortization of net profits interest                       |  |                              | (1,158,160
|Trust corpus, end of period                                |  | $                            | 59,441,480



The accompanying notes are
an integral part of these financial statements.





4







PERMIANVILLE ROYALTY TRUST

NOTES TO FINANCIAL STATEMENTS

(unaudited)



| | 1. | TRUST ORGANIZATION AND PROVISIONS
| | -- | ---------------------------------



Permianville Royalty Trust
(the “Trust”), previously known as Enduro Royalty Trust, is a Delaware statutory trust formed in May 2011 pursuant to
a trust agreement (the “Trust Agreement”) among Enduro Resource Partners LLC (“Enduro”), as trustor, The Bank
of New York Mellon Trust Company, N.A. (the “Trustee”), as trustee, and Wilmington Trust Company (the “Delaware Trustee”),
as Delaware Trustee.



The Trust was created to
acquire and hold for the benefit of the Trust unitholders a net profits interest representing the right to receive 80% of the net profits
from the sale of oil and natural gas production from certain properties in the states of Texas, Louisiana and New Mexico held by Enduro
as of the date of the conveyance of the net profits interest to the Trust (the “Net Profits Interest”). The properties in
which the Trust holds the Net Profits Interest are referred to as the “Underlying Properties.”



In connection with the closing
of the initial public offering in November 2011, Enduro contributed the Net Profits Interest to the Trust in exchange for 33,000,000
units of beneficial interest in the Trust (the “Trust Units”). On August 31, 2018, COERT Holdings 1 LLC (“COERT”
or the “Sponsor”) acquired from Enduro the Underlying Properties and all of the outstanding Trust Units owned by Enduro (the
 “Sale Transaction”). In connection with the Sale Transaction, COERT assumed all of Enduro’s obligations under the Trust
Agreement and other instruments to which Enduro and the Trustee were parties. As of March 31, 2023, the Sponsor owned 7,517,942
Trust Units, or 23% of the issued and outstanding Trust Units.



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. The Amended and Restated Trust Agreement provides, among other provisions, that:



| | · | the
                                            Trust’s business activities are limited to owning the Net Profits Interest and any
                                            activity reasonably related to such ownership, including activities required or permitted
                                            by the terms of the Conveyance of Net Profits Interest, dated effective as of July 1,
                                            2011 (as supplemented and amended to date, the “Conveyance”). As a result, the
                                            Trust is not permitted to acquire other oil and natural gas properties or net profits interests
                                            or otherwise to engage in activities beyond those necessary for the conservation and protection
                                            of the Net Profits Interest;
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | the
                                            Trust may dispose of all or any material part of the assets of the Trust (including the sale
                                            of the Net Profits Interest) if approved by at least 75% of the outstanding Trust Units;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | the
                                            Sponsor may sell a divided or undivided portion of its interests in the Underlying Properties,
                                            free from and unburdened by the Net Profits Interest, if approved by at least 50% of the
                                            outstanding Trust Units at a meeting of Trust unitholders;
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | the
                                            Trustee will make monthly cash distributions to unitholders (Note 5);
| | - | ---------------------------------------------------------------------------------------------------------------------



| | · | the
                                            Trustee may create a cash reserve to pay for future liabilities of the Trust;
| | - | -----------------------------------------------------------------------------------------------------------------------------



| | · | the
                                            Trustee may authorize the Trust to borrow money to pay administrative or incidental expenses
                                            of the Trust that exceed its cash on hand and available reserves. No further distributions
                                            will be made to Trust unitholders until such amounts borrowed are repaid; and
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | the
                                            Trust is not subject to any pre-set termination provisions based on a maximum volume of oil
                                            or natural gas to be produced or the passage of time. The Trust will dissolve upon the earliest
                                            to occur of the following:
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | the
                                            Trust, upon approval of the holders of at least 75% of the outstanding Trust Units, sells
                                            the Net Profits Interest;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | the
                                            annual cash proceeds received by the Trust attributable to the Net Profits Interest are less
                                            than $2 million for each of any two consecutive years;
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





5







PERMIANVILLE ROYALTY TRUST

NOTES TO FINANCIAL STATEMENTS

(unaudited)



| | · | the
                                            holders of at least 75% of the outstanding Trust Units vote in favor of dissolution; or
| | - | ---------------------------------------------------------------------------------------------------------------------------------------



| | · | the
                                            Trust is judicially dissolved.
| | - | ------------------------------------------------------------------------------



| | 2. | BASIS OF PRESENTATION
| | -- | ---------------------



The Statement of Assets,
Liabilities and Trust Corpus as of December 31, 2022, which has been derived from audited financial statements, and the unaudited
interim financial statements as of March 31, 2023 and for the three months ended March 31, 2023 and 2022 have been prepared
pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information
and disclosures normally included in annual financial statements have been condensed or omitted pursuant to those rules and regulations.
Therefore, these financial statements should be read in conjunction with the financial statements and notes thereto included in the Trust’s
Annual Report on Form 10-K for the fiscal year ended December 31, 2022 (the “2022 Annual Report on Form 10-K”).



In the opinion of the Trustee,
the accompanying unaudited financial statements reflect all adjustments, consisting only of normal, recurring, that are necessary for
a fair presentation of the interim periods presented and include all the disclosures necessary to make the information presented not
misleading. These interim results are not necessarily indicative of results for a full year.



The preparation of financial
statements requires the Trustee to make estimates and assumptions that affect reported amounts of assets and liabilities and the reported
amounts of revenues and expenses during the reporting period. Although the Trustee believes that these estimates are reasonable, actual
results could differ from those estimates.



The Trust uses the modified
cash basis of accounting to report Trust receipts of income from the Net Profits Interest and payments of expenses incurred. The Net
Profits Interest represents the right to receive revenues (oil and natural gas sales), less direct operating expenses (lease operating
expenses and production and property taxes) and development expenses of the Underlying Properties, multiplied by 80%. Cash distributions
of the Trust are made based on the amount of cash received by the Trust pursuant to terms of the Conveyance creating the Net Profits
Interest.



Under the terms of the Conveyance,
the monthly Net Profits Interest calculation includes oil and natural gas revenues received during the relevant month. Monthly operating
expenses and capital expenditures represent estimated incurred expenses and, as a result, represent accrued expenses as well as expenses
paid during the period.



The financial statements
of the Trust are prepared on the following basis:



(a) Income from Net
Profits Interest is recorded when distributions are received by the Trust;



(b) Distributions to
Trust unitholders are recorded when paid by the Trust;



(c) Trust general and
administrative expenses (which includes the Trustee’s fees as well as accounting, engineering, legal, and other professional fees)
are recorded when paid;



(d) Cash reserves for
Trust expenses may be established by the Trustee for certain future expenditures that would not be recorded as contingent liabilities
under accounting principles generally accepted in the United States of America (“GAAP”);



(e) Amortization of
the Net Profits Interest in oil and natural gas properties is calculated on a unit-of-production basis and is charged directly to the
Trust corpus; and





6







PERMIANVILLE ROYALTY TRUST

NOTES TO FINANCIAL STATEMENTS

(unaudited)



(f) The Net Profits
Interest in oil and natural gas properties is periodically assessed whenever events or circumstances indicate that the aggregate value
may have been impaired below its total capitalized cost based on the Underlying Properties. If an impairment loss is indicated by the
carrying amount of the assets exceeding the sum of the undiscounted expected future net cash flows of the Net Profits Interest, then
an impairment loss is recognized for the amount by which the carrying amount of the asset exceeds its estimated fair value determined
using discounted cash flows. Any impairment is a direct charge to the Trust Corpus.



The
financial statements of the Trust differ from financial statements prepared in accordance with GAAP because revenues are not accrued;
certain cash reserves may be established for contingencies which would not be accrued in financial statements prepared in accordance
with GAAP; general and administrative expenses are recorded when paid instead of when incurred; amortization of the net profits interest
calculated on a unit-of-production basis is charged directly to trust corpus instead of as an expense; the Trust does not record a liability
or repay any overpayment received as these will be deducted from future payments; and impairment is charged directly to the trust corpus.
While these statements differ from financial statements prepared in accordance with GAAP, the modified cash basis of reporting is considered
to be the most meaningful because monthly distributions to the Trust unitholders are based on net cash receipts.



This comprehensive basis
of accounting other than GAAP corresponds to the accounting permitted for royalty trusts by the SEC as specified by Staff Accounting
Bulletin Topic 12:E, Financial Statements of Royalty Trusts.



| | 3. | NET PROFITS INTEREST IN OIL AND NATURAL GAS PROPERTIES
| | -- | ------------------------------------------------------



The Net Profits Interest
in oil and natural gas properties was recorded at its fair value on the date of conveyance. Amortization of the Net Profits Interest
in oil and natural gas properties is calculated 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 that are subject to numerous uncertainties inherent
in the estimation of proved reserves. The volumes considered to be commercially recoverable fluctuate with changes in commodity 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 charged directly to the Trust corpus balance and
does not affect the distributable income of the Trust. Accumulated amortization as of March 31, 2023 and December 31, 2022
was $298,607,686 and $297,449,526, respectively.



The Net Profits Interest
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. While the Trust did not record
an impairment during the three months ended March 31, 2023 or 2022, future downward revisions in actual production volumes relative
to current forecasts, higher than expected operating costs, or lower than anticipated commodity prices could result in recognition of
impairment in future periods.



| | 4. | INCOME TAXES
| | -- | ------------



Federal Income Taxes



For federal income tax purposes,
the Trust is a grantor trust and therefore is not subject to tax at the trust level. Trust unitholders are treated as owning a direct
interest in the assets of the Trust, and each Trust unitholder is taxed directly on his or her pro rata share of the income and gain
attributable to the assets of the Trust and entitled to claim his or her pro rata share of the deductions and expenses attributable to
the assets of the Trust. The income of the Trust is deemed to have been received or accrued by each unitholder at the time such income
is received or accrued by the Trust rather than when distributed by the Trust.



The deductions of the Trust
consist of severance taxes and administrative expenses. In addition, each unitholder is entitled to depletion deductions because the
Net Profits Interest constitutes “economic interests” in oil and natural gas properties for federal income tax purposes.
Each unitholder is entitled to amortize the cost of the Trust Units through cost depletion over the life of the Net Profits Interest
or, if greater, through percentage depletion. Unlike cost depletion, percentage depletion is not limited to a unitholder’s depletable
tax basis in the Trust Units. Rather, a unitholder could be entitled to percentage depletion as long as the applicable Underlying Properties
generate gross income.





7







PERMIANVILLE ROYALTY TRUST

NOTES TO FINANCIAL STATEMENTS

(unaudited)



Some Trust Units are held
by a middleman, as such term is broadly defined in U.S. Treasury Regulations (and includes custodians, nominees, certain joint owners,
and brokers holding an interest for a custodian in street name). Therefore, the Trustee considers the Trust to be a non-mortgage widely
held fixed investment trust (“WHFIT”) for U.S. federal income tax purposes. The Bank of New York Mellon Trust Company, N.A.,
601 Travis, 16th Floor, Houston, Texas 77002, telephone number (512) 236-6545, is the representative of the Trust that will
provide tax information in accordance with applicable U.S. Treasury Regulations governing the information reporting requirements of the
Trust as a WHFIT. Tax information is also posted by the Trustee at www.permianvilleroyaltytrust.com. Notwithstanding the foregoing,
the middlemen holding units on behalf of unitholders, and not the Trustee of the Trust, are solely responsible for complying with the
information reporting requirements under the U.S. Treasury Regulations with respect to such units, including the issuance of IRS Forms
1099 and certain written tax statements. Unitholders whose units are held by middlemen should consult with such middlemen regarding the
information that will be reported to them by the middlemen with respect to the Trust Units.



The tax consequences to
a unitholder of ownership of Trust Units will depend in part on the unitholder’s tax circumstances. Unitholders should consult
their tax advisors about the federal tax consequences relating to owning the Trust Units.



State Taxes



The Trust’s revenues
are from sources in the states of Louisiana, New Mexico, and Texas. Because it distributes all of its net income to unitholders, the
Trust is not taxed at the trust level in Louisiana or New Mexico. Although the Trust does not owe tax, the Trustee is required to
file a return with Louisiana reflecting the income and deductions of the Trust attributable to properties located in that state. Presently,
Louisiana and New Mexico tax nonresident income from real property located within that state. Louisiana and New Mexico impose a corporate
income tax which may apply to unitholders organized as corporations.



Texas does not impose a
state income tax, so the Trust’s income is not subject to income tax at the trust level in Texas. Texas imposes a franchise tax
at a rate of 0.75% on gross revenues less certain deductions for returns originally due on or after January 1, 2016, as specifically
set forth in the Texas franchise tax statutes. Entities subject to tax generally include trusts unless otherwise exempt. Trusts that
receive at least 90% of their federal gross income from designated passive sources, including royalties from mineral properties and other
income from other non-operating mineral interests, and do not receive more than 10% of their income from operating an active trade or
business, generally are exempt from the Texas franchise tax as “passive entities.” Although the Trust is intended to be exempt
from Texas franchise tax at the trust level as a passive entity, each unitholder that is considered a taxable entity under the Texas
franchise tax would generally be required to include its portion of Trust net income in its own Texas franchise tax computation.



Each unitholder should consult
his or her own tax advisor regarding state tax requirements, if any, applicable to such person’s ownership of Trust Units.



| | 5. | DISTRIBUTIONS TO UNITHOLDERS
| | -- | ----------------------------



Each
month, the Trustee determines the amount of funds available for distribution to the Trust unitholders. Available funds are the excess
cash, if any, received by the Trust from the Net Profits Interest and other sources (such as interest earned on any amounts reserved
by the Trustee) that month, over the Trust’s liabilities for that month, subject to adjustments for changes made by the Trustee
during the month in any cash reserves established for future liabilities of the Trust.No distributions will be made to Trust
unitholders until the indebtedness created by such amounts drawn or borrowed as advances to the Trust have been repaid in full. Distributions
are made to the holders of Trust Units as of the applicable record date (generally the last business day of each calendar month) and
are payable on or before the 10th business day after the record date.





8







PERMIANVILLE ROYALTY TRUST

NOTES TO FINANCIAL STATEMENTS

(unaudited)



The following table provides
information regarding the Trust’s distributions per unit paid during the periods indicated:



|                                   |  |                   |  |                   |  | Distribution |         
|---------------------------------- |  | ----------------- |  | ----------------- |  | ------------ | --------
|Declaration Date                   |  | Record Date       |  | Payment Date      |  | per Unit     |         
|                                   |  |                   |  |                   |  |              |         
|Three Months Ended March 31, 2023: |  |                   |  |                   | 
|December 16, 2022                  |  | December 30, 2022 |  | January 17, 2023  |  | $            | 0.058000
|January 18, 2023                   |  | January 31, 2023  |  | February 14, 2023 |  |              | 0.056000
|February 17, 2023                  |  | February 28, 2023 |  | March 13, 2023    |  |              | 0.019200
|Year to Date – 2023                |  |                   |  |                   |  | $            | 0.133200
|                                   |  |                   |  |                   |  |              |         
|Three Months Ended March 31, 2022: |  |                   |  |                   | 
|December 17, 2021                  |  | December 31, 2021 |  | January 14, 2022  |  | $            | 0.025000
|January 18, 2022                   |  | January 31, 2022  |  | February 14, 2022 |  |              | 0.023000
|February 18, 2022                  |  | February 28, 2022 |  | March 14, 2022    |  |              | 0.041000
|Year to Date – 2022                |  |                   |  |                   |  | $            | 0.089000



| | 6. | TRUSTEE FEES
| | -- | ------------



Under the terms of the Trust
Agreement, the Trust pays an administrative fee of $200,000 per year to the Trustee and an annual fee of $2,000 to the Delaware Trustee.
During each of the three-month periods ended March 31, 2023 and 2022, the Trust paid $50,000 to the Trustee and $0 to the Delaware
Trustee pursuant to the terms of the Trust Agreement.



| | 7. | SUBSEQUENT EVENTS
| | -- | -----------------



Distributions Paid or Declared



On April 14, 2023, a
distribution of $0.019350 per unit, which was declared on March 16, 2023, was paid to Trust unitholders of record as of March 31,
2023.



On April 17, 2023, the
Trust declared a distribution of $0.030000 per unit to unitholders of record as of April 28, 2023. The distribution was paid to
unitholders on May 12, 2023.



Proposed Property Divestitures



On 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 “Divestiture Properties”) that constitute part of the Underlying Properties and are therefore burdened
by the Trust’s Net Profits Interest, for a total purchase price of approximately $6.7 million. Accordingly, the Sponsor will seek,
through a vote at a special meeting of unitholders, unitholder approval of the release of the Net Profits Interest with respect to the
Divestiture Properties. If the transactions are approved, unitholders will receive 80% of the net proceeds of the sale of the Divestiture
Properties. The income from net profits interest from the Divestiture Properties has not been significant historically and represented
less than 6% and less than 5% of total proved reserves attributable to the Trust and the PV-10 of the Underlying Properties at December 31,
2022, respectively. The Divestiture Properties are being acquired by the Operator of the Divestiture Properties, whom the Sponsor views
as the most logical acquirer.



On May 12, 2023, the
Trust filed a preliminary proxy statement with the SEC with respect to a special meeting of unitholders to be held in 2023 for the purpose
of considering and acting on proposals to approve:



| | · | A
                                            transaction pursuant to which (a) the Sponsor will sell its interests in the Divestiture
                                            Properties, (b) the Trust will release the related Net Profits Interest associated with
                                            the Divestiture Properties, and (c) the net proceeds received by the Trust with respect
                                            to such sale will be distributed to the Trust unitholders;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





9







PERMIANVILLE ROYALTY TRUST

NOTES TO FINANCIAL STATEMENTS

(unaudited)



| | · | Amendments
                                            to the Trust Agreement to raise certain threshold requirements for a vote of Trust unitholders
                                            in connection with similar future transactions;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Amendments
                                            to the Conveyance to raise certain threshold requirements for a vote of Trust unitholders
                                            in connection with similar future transactions; and
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | An
                                            adjournment of the special meeting, if necessary or appropriate, to permit solicitation of
                                            additional proxies in favor of the above proposals.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The Trustee makes no recommendation
regarding any of the foregoing proposals. Unitholders should review carefully the definitive proxy statement that will be filed with
the SEC with respect to the special meeting, when it becomes available, because it will contain important information about the release
of the Trust’s Net Profits Interest with respect to the Divestiture Properties in connection with the proposed transaction.





10







| | Item 2. | Trustee’s Discussion and Analysis of Financial Condition
                                            and Results of Operations.
| | ------- | -------------------------------------------------------------------------------------------------------------------------------



References to the “Trust”
in this document refer to Permianville Royalty Trust, previously known as Enduro Royalty Trust, while references to “COERT”
or the “Sponsor” in this document refer to COERT Holdings 1 LLC. References to “Enduro” in this document refer
to Enduro Resource Partners LLC, the original sponsor of the Trust. The following review of the Trust’s financial condition and
results of operations should be read in conjunction with the financial statements and notes thereto, as well as Management’s Discussion
and Analysis of Financial Condition and Results of Operations contained in the Trust’s 2022 Annual Report on Form 10-K. The
Trust’s annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and all other filings
with the SEC are available on the SEC’s website at www.sec.gov.



Forward-Looking Statements



This Form 10-Q includes
 “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact included in this Form 10-Q,
including without limitation the statements under this “Trustee’s Discussion and Analysis of Financial Condition and Results
of Operations” are forward-looking statements. Such statements may be influenced by factors that could cause actual outcomes and
results to differ materially from those projected. No assurance can be given that such expectations will prove to have been correct.
When used in this document, the words “believes,” “expects,” “anticipates,” “intends”
or similar expressions are intended to identify such forward-looking statements. The following important factors, in addition to those
discussed elsewhere in this Form 10-Q, in the Trust’s 2022 Annual Report on Form 10-K and the Trust’s other filings
with the SEC could affect the future results of the energy industry in general, and COERT and the Trust in particular, and could cause
actual results to differ materially from those expressed in such forward-looking statements:



| | · | risks associated with the drilling and operation of oil and natural
                                            gas wells;
| | - | --------------------------------------------------------------------------------------------------------------------------



| | · | the amount of future direct operating expenses and development
                                            expenses;
| | - | --------------------------------------------------------------------------------------------------------------------



| | · | public
                                            health concerns, including the COVID-19 pandemic;
| | - | ----------------------------------------------------------------------------------------------------



| | · | the
                                            actions of the Organization of Petroleum Exporting Countries;
| | - | -------------------------------------------------------------------------------------------------------------



| | · | the armed conflict between Russia and Ukraine and the potential
                                            destabilizing effect such conflict may pose for the global oil and gas markets;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | the effect of existing and future laws and regulatory actions;
| | - | --------------------------------------------------------------



| | · | the effect of changes in commodity prices or alternative fuel
                                            prices;
| | - | -----------------------------------------------------------------------------------------------------------------



| | · | the prohibition on the Trust’s entry into any new hedging
                                            arrangements under the terms of the Conveyance;
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------



| | · | conditions in the capital markets;
| | - | ----------------------------------



| | · | competition from others in the energy industry;
| | - | -----------------------------------------------



| | · | climate change and the potential impact on fossil fuels;
| | - | --------------------------------------------------------



| | · | uncertainty of estimates of oil and natural gas reserves and
                                            production; and
| | - | ------------------------------------------------------------------------------------------------------------------------



| | · | cost inflation.
| | - | ---------------





11







You should not place undue
reliance on these forward-looking statements. All forward-looking statements speak only as of the date of this Form 10-Q. The Trust
does not undertake any obligation to release publicly any revisions to the forward-looking statements to reflect events or circumstances
after the date of this Form 10-Q or to reflect the occurrence of unanticipated events, unless the securities laws require the Trust
to do so.



This Form 10-Q describes
other important factors that could cause actual results to differ materially from expectations of the Sponsor and the Trust. All forward-looking
statements in this report and all subsequent written and oral forward-looking statements attributable to the Sponsor or the Trust or
persons acting on behalf of the Sponsor or the Trust are expressly qualified in their entirety by such factors. The Trust assumes no
obligation, and disclaims any duty, to update these forward-looking statements.



Overview



Permianville 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.



On August 31, 2018,
COERT completed the acquisition from Enduro of the Underlying Properties and all of the outstanding Trust Units owned by Enduro (the
 “Sale Transaction”). In connection with the Sale Transaction, COERT assumed all of Enduro’s obligations under the Amended
and Restated Trust Agreement of the Trust and other instruments to which Enduro and the Trustee were parties.



The Trust is required to
make monthly cash distributions of substantially all of its monthly cash receipts, after deducting the Trust’s administrative expenses,
to the holders of Trust Units as of the applicable record date (generally the last business day of each calendar month) on or before
the 10th business day after the record date. The Net Profits Interest is entitled to a share of the profits from and after
July 1, 2011 attributable to production occurring on or after June 1, 2011. The amount of Trust revenues and cash distributions
to Trust unitholders depends on, among other things:



| | · | oil and natural gas sales prices;
| | - | ---------------------------------



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



| | · | production and development costs;
| | - | ---------------------------------



| | · | price differentials;
| | - | --------------------



| | · | potential reductions or suspensions of production;
| | - | --------------------------------------------------



| | · | the amount and timing of Trust administrative expenses; and
| | - | -----------------------------------------------------------



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



Generally, the Sponsor receives
cash payment for oil production 30 to 60 days after it is produced and for natural gas production 60 to 90 days after it is produced.





12







Outlook



The overall outlook for
development activity on the Underlying Properties remained stable during the first quarter of 2023, despite a quarter-over-quarter decline
in commodity prices. Meanwhile, the global economy remains volatile, reflecting, among other factors, the armed conflict between Russia
and Ukraine and the lingering effects of the COVID-19 pandemic. Further clouding the outlook for commodity demand is the banking sector
crisis and its potential impact on lending availability to consumers and businesses. Nevertheless, the Sponsor does not expect that these
events will have a material impact on the Underlying Properties and the 2023 development activity compared to previously estimated levels
detailed in the Trust’s 2022 Annual Report on Form 10-K, aside from the effects of volatile commodity prices. The West Texas
Intermediate spot price of crude oil has decreased materially from $80.26 per barrel on December 30, 2022 to $70.78 per barrel on
May 11, 2023. Natural gas prices have experienced greater pressure, with the Henry Hub spot price decreasing from $3.52 per MMBTU
on December 30, 2022 to $2.12 per MMBTU on May 11, 2023.



Despite
the price volatility, the Sponsor currently expects thepreviously disclosed capital spending outlook to remain within the range
of $6.0 million to $9.0 million, or $4.8 million to $7.2 million net to the Trust’s 80% Net Profits Interest. While operators continue
to evaluate their planned capital expenditures for 2023, taking into account the volatility in commodity prices, the majority of the
operators of the Underlying Properties are Permian-focused, large cap operators who have indicated to the Sponsor their intent to continue
with planned activities. The Sponsor does expect some moderation in the previously expected capital expenditure activity in the Haynesville
area of the Underlying Properties. The Sponsor also expects that some of the inflationary pressures and supply chain bottlenecks operators
of the Underlying Properties reported during 2022 will moderate this year. Given the market volatility, the Sponsor may reestablish a
cash reserve for approved, future development expenses during 2023, similar to the cash reserve that the Sponsor had established in 2022.
The Sponsor indicates that it continues to have access to adequate capital and liquidity to fund such capital expenditures as they come
due.



The Sponsor believes there
could be further opportunity in 2023 for prospective divestitures, as operators of some of the Underlying Properties look to acquire
assets at compelling valuations against the backdrop of favorable oil prices compared to prior years.



Capex Drilling Activity Update



Presented below is a summary
of the current status of certain notable capital projects recently undertaken on the Underlying Properties pursuant to the capital expenditure
program described above.



The following table is not
intended to be a comprehensive list reflecting all capital expenditures to date. In addition, there can often be a several-month delay
from the time of capital expenditures to the time of production and cash flows attributable to the Underlying Properties, especially
given the non-operated nature of the Underlying Properties.



|Operator            |  | Region               |  | Number of Wells |             |  | Underlying
Properties Working Interest |  |     | Project |  | Capex

Cumulative 
Total
(in thousands) |  |  | Status
|------------------- |  | -------------------- |  | --------------- | ----------- |  | -------------------------------------- |  | --- | ------- |  | --------------------------------------- |  |  | ------
|Large Cap Major 1   |  | Haynesville          |  |                 | 2           |  |                                        |  | 2.5 | %       |  | D&C New Drills                          |  |  | 37    
|Large Cap E&P 1     |  | Midland              |  |                 | 10          |  |                                        |  | 6.9 | %       |  | D&C New Drills                          |  |  | 3,911 
|Large Cap E&P 2     |  | Conventional Permian |  |                 | N/A (Field) |  |                                        |  | 0.8 | %       |  | New Drills / Workovers                  |  |  | 69    
|PE-Backed Private 1 |  | Delaware             |  |                 | 4           |  |                                        |  | 5.4 | %       |  | D&C New Drills                          |  |  | 515   
|PE-Backed Private 2 |  | Delaware             |  |                 | 9           |  |                                        |  | 0.9 | %       |  | D&C New Drills                          |  |  | 251   
|Large Cap E&P 3     |  | Midland              |  |                 | 4           |  |                                        |  | 3.4 | %       |  | D&C New Drills                          |  |  | -     
|Private E&P 2       |  | Haynesville          |  |                 | 3           |  |                                        |  | 3.6 | %       |  | Refrac                                  |  |  | 640   





13







Of those projects identified above that are still
in process or awaiting first revenues, the Sponsor expects a majority to be completed and to begin producing during 2023.



Special Meeting of Unitholders to Consider Property Divestitures



On
May 12, 2023, the Trust filed a preliminary proxy statement with the SEC with respect to a special meeting of unitholders to be
held in 2023 for the purpose of considering and acting on proposals to approve: (1) a transactionpursuant to which (a) the
Sponsor will sell its interests in certain oil and natural gas properties that constitute part of the oil and natural gas properties
burdened by the Net Profits Interest held by the Trust (the “Divestiture Properties”), (b) the Trust will release the
related Net Profits Interest associated with the Divestiture Properties, and (c) the net proceeds received by the Trust with respect
to such sale will be distributed to the Trust unitholders; (2) amendments to the Trust Agreement to raise certain threshold requirements
for a vote of Trust unitholders in connection with similar future transactions; (3) amendments to the Conveyance to raise certain
threshold requirements for a vote of Trust unitholders in connection with similar future transactions; and (4) an adjournment of
the special meeting, if necessary or appropriate, to permit solicitation of additional proxies in favor of the above proposals. The Trustee
makes no recommendation regarding any of the foregoing proposals. Unitholders should review carefully the definitive proxy statement
that will be filed with the SEC with respect to the special meeting, when it becomes available, because it will contain important information
about the release of the Trust’s Net Profits Interest with respect to the Divestiture Properties in connection with the proposed
transaction.



Results of Operations



Three Months Ended March 31, 2023 Compared
to Three Months Ended March 31, 2022



The Trust’s net profits
income consists of monthly net profits attributable to the Net Profits Interest, which was determined as shown in the following table:



|                                                                               |  | Three
    Months Ended 
March 31, |            |   |      |  
|------------------------------------------------------------------------------ |  | --------------------------------- | ---------- | - | ---- | -
|                                                                               |  | 2023                              |            |   | 2022 |  
|Gross profits:                                                                 |  |                                   |            |   |      |  
|Oil sales                                                                      |  | $                                 | 9,729,219  |   |      | $
|Natural gas sales                                                              |  |                                   | 4,466,787  |   |      |  
|Total                                                                          |  |                                   | 14,196,006 |   |      |  
|                                                                               |  |                                   |            |   |      |  
|Costs:                                                                         |  |                                   |            |   |      |  
|Direct operating expenses:                                                     |  |                                   |            |   |      |  
|Lease operating expenses                                                       |  |                                   | 5,694,000  |   |      |  
|Compression, gathering and transportation                                      |  |                                   | 238,000    |   |      |  
|Production, ad valorem and other taxes                                         |  |                                   | 789,000    |   |      |  
|Development expenses                                                           |  |                                   | 2,604,000  |   |      |  
|Total                                                                          |  |                                   | 9,325,000  |   |      |  
|Gross proceeds from sale of assets                                             |  |                                   | –          |   |      |  
|Net profits                                                                    |  |                                   | 4,871,006  |   |      |  
|Percentage allocable to Net Profits Interest                                   |  |                                   | 80         | % |      |  
|Net profits allocable to Net Profits Interest                                  |  |                                   | 3,896,805  |   |      |  
|Plus: Sponsor reserve release for capital expenditures                         |  |                                   | 900,000    |   |      |  
|Less: Trust general and administrative expenses and cash withheld for expenses |  |                                   | (401,205   | ) |      |  
|Distributable income                                                           |  | $                                 | 4,395,600  |   |      | $





14







The following table displays
reported oil and natural gas sales volumes and average prices from the Underlying Properties, representing the amounts included in the
net profits calculation for distributions paid during the three months ended March 31, 2023 and 2022:



|                                                    |  | Three Months Ended March 31, |         |   |      |  
|--------------------------------------------------- |  | ---------------------------- | ------- | - | ---- | -
|                                                    |  | 2023                         |         |   | 2022 |  
|Underlying Properties Production Volumes:           |  |                              |         |   |      |  
|Oil (Bbls)                                          |  |                              | 112,271 |   |      |  
|Natural Gas (Mcf)                                   |  |                              | 690,533 |   |      |  
|Combined (Boe)                                      |  |                              | 227,360 |   |      |  
|                                                    |  |                              |         |   |      |  
|Average Prices:                                     |  |                              |         |   |      |  
|Oil - NYMEX (applicable NPI period) ($/Bbl)         |  | $                            | 85.07   |   |      | $
|Differential                                        |  | $                            | 1.59    |   |      | $
|Oil prices realized ($/Bbl)                         |  | $                            | 86.66   |   |      | $
|                                                    |  |                              |         |   |      |  
|Natural gas - NYMEX (applicable NPI period) ($/Mcf) |  | $                            | 8.30    |   |      | $
|Differential                                        |  | $                            | (1.83   | ) |      | $
|Natural gas prices realized ($/Mcf)                 |  | $                            | 6.47    |   |      | $



Net profits attributable
to the Underlying Properties for the three months ended March 31, 2023 were $3.9 million compared to $3.4 million for the three
months ended March 31, 2022. The $0.5 million increase in net profits attributable to the Underlying Properties from the 2023
period to the 2022 period was primarily due to the following items:



| | · | Oil
                                            sales increased $0.3 million due to higher realized prices, which caused oil sales to increase
                                            by $1.3 million. The increase in oil sales due to higher realized prices was partially
                                            offset by a $1.0 million decrease in oil sales due to reduced sales volumes. The average
                                            oil price received increased 16% as a result of the corresponding increase in the average
                                            NYMEX oil price for the relevant production months. Oil sales volumes decreased 11% as a
                                            result of natural production declines.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Natural
                                            gas sales increased $0.8 million due to higher realized prices, which increased natural gas
                                            sales by $1.4 million, partially offset by lower produced volumes, which decreased natural
                                            gas sales by $0.6 million. The average natural gas price received in the three months ended
                                            March 31, 2023 increased 43% compared to the three months ended March 31, 2022
                                            due to a 75% increase in the average NYMEX natural gas price. Natural gas volumes decreased
                                            16% primarily as a result of payment timing differences and natural production declines.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Lease
                                            operating expenses increased $0.5 million, primarily attributable to the increased number
                                            of producing wells in the three months ended March 31, 2023 compared to the three months
                                            ended March 31, 2022.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Compression,
                                            gathering and transportation costs decreased $0.6 million, primarily due to the decrease
                                            in natural gas volumes.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Production,
                                            ad valorem and other taxes decreased $0.4 million during the three months ended March 31,
                                            2023 compared to the three months ended March 31, 2022, due to the decrease in oil and
                                            natural gas produced volumes.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Development
                                            expenses increased $0.7 million due to drilling and completion costs for drilling multiple
                                            new wells in the Permian and Haynesville areas.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





15







During the three months
ended March 31, 2023, COERT released the remaining $0.9 million from the cash reserve for future development expenses it had established
in 2022 through the withholding of net profits otherwise payable to the Trust.



For the three months ended
March 31, 2023, the Trust withheld $0.4 million and paid $0.4 million for general and administrative expenses. Expenses paid during
the period primarily consisted of fees for the preparation of the 2022 tax information for Trust unitholders, preparation of the Trust’s
2022 reserve report, financial statement audit fees, preparation of the Trust’s monthly press releases, Trustee fees, and New York
Stock Exchange listing fees. For the three months ended March 31, 2022, the Trust withheld $0.4 million and paid $0.2 million for
general and administrative expenses.



Liquidity and Capital Resources



The Trust’s principal
sources of liquidity are cash flow generated from the Net Profits Interest and borrowing capacity under the letter of credit described
below. Other than Trust administrative expenses, including any reserves established by the Trustee for future liabilities, the Trust’s
only use of cash is for distributions to Trust unitholders. Available funds are the excess cash, if any, received by the Trust from the
Net Profits Interest and other sources (such as interest earned on any amounts reserved by the Trustee) in any given month, over the
Trust’s expenses paid for that month. Available funds are reduced by any cash the Trustee determines to hold as a reserve against
future expenses.



The Trustee may create a
cash reserve to pay for future liabilities of the Trust. In February 2022, the Trustee began withholding $37,833 from the funds
otherwise available for distribution each month to gradually build a cash reserve of approximately $2.3 million for the payment of future
known, anticipated or contingent expenses or liabilities of the Trust. Commencing with the distribution to Trust unitholders payable
in April 2023, the Trustee has been withholding, and in the future intends to withhold, $50,000 from the funds otherwise available
for distribution each month to gradually build the reserve. 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 March 31, 2023, the Trustee has withheld
$516,053 toward this cash reserve.



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 repaid. Except for the foregoing, the Trust has no source of liquidity or capital resources. The Trustee has no current plans to
authorize the Trust to borrow any funds. As of March 31, 2023 and December 31, 2022, the Trust had cash of $958,007 and $922,913,
respectively, to be used towards future Trust expenses. Since its formation, the Trust has not borrowed any funds 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,
COERT may advance funds to the Trust to pay such expenses.At March 31, 2023 and December 31, 2022, there was no outstanding
balance. Any advances to the Trust will be carried forward to be repaid out of future net profits generated by the Underlying Properties.





16







Cash held by the Trustee
as a reserve against future liabilities or for distribution at the next distribution date may be held in a noninterest-bearing account
or may be invested in:



| | · | interest-bearing
    obligations of the United States government;                                    
| | - | -----------------------------------------------------------------------------------------------------
| |   |                                                                                                      
| | · | money market
    funds that invest only in United States government securities;                      
| |   |                                                                                                      
| | · | repurchase
    agreements secured by interest-bearing obligations of the United States government; or
| |   |                                                                                                      
| | · | bank certificates of deposit.                                                                        



The Trust pays the Trustee
an annual administrative fee of $200,000 and the Delaware Trustee an annual fee of $2,000. The Trust also incurs, either directly or
as a reimbursement to the Trustee, legal, accounting, tax and engineering fees, printing costs and other expenses that are deducted by
the Trust before distributions are made to Trust unitholders. The Trust also is responsible for paying other expenses incurred as a result
of being a publicly traded entity, including costs associated with annual and quarterly reports to Trust unitholders, tax return and
Form 1099 preparation and distribution, NYSE listing fees, independent auditor fees and registrar and transfer agent fees.



The Trust does not have
any transactions, arrangements or other relationships with unconsolidated entities or persons that could materially affect the Trust’s
liquidity or the availability of capital resources.



Off-Balance Sheet Arrangements



The Trust has no off-balance
sheet arrangements. The Trust has not guaranteed the debt of any other party, nor does the Trust have any other arrangements or relationships
with other entities that could potentially result in unconsolidated debt, losses or contingent obligations.



Critical Accounting Policies and Estimates



Please read “Item
7. Trustee’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates”
of the Trust’s 2022 Annual Report on Form 10-K for additional information regarding the Trust’s critical accounting
policies and estimates. There were no material changes to the Trust’s critical accounting policies or estimates during the three
months ended March 31, 2023.



Subsequent Events



Distributions Paid or Declared



On April 14, 2023, a
distribution of $0.019350 per unit, which was declared on March 16, 2023, was paid to Trust unitholders of record as of March 31,
2023.



On April 17, 2023, the
Trust declared a distribution of $0.030000 per unit to unitholders of record as of April 28, 2023. The distribution was paid to
unitholders on May 12, 2023.



| | Item 3. | Quantitative and Qualitative
                                            Disclosures About Market Risk.
| | ------- | -------------------------------------------------------------------------------------------------------



As a “smaller reporting
company” as defined in Item 10(f)(1) of Regulation S-K, the Trust is not required to provide information required by this
Item.





17







| | Item 4. | Controls and Procedures.
| | ------- | ------------------------



Evaluation of Disclosure Controls and Procedures



The Trustee conducted an
evaluation of the Trust’s disclosure controls and procedures (as defined in Rules 13a-15 and 15d-15 under the Securities Exchange
Act of 1934, as amended (the “Exchange Act”)). Based on this evaluation, the Trustee has concluded that the disclosure controls
and procedures of the Trust were effective, as of the end of the period covered by this report, in ensuring that information required
to be disclosed by the Trust in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Trustee
to allow timely decisions regarding required disclosure.



Due to the nature of the
Trust as a passive entity and in light of the contractual arrangements pursuant to which the Trust was created, including the provisions
of (i) the Trust Agreement and (ii) the Conveyance, the Trustee’s disclosure controls and procedures related to the Trust
necessarily rely on (A) information provided by the Sponsor, including information relating to results of operations, the costs
and revenues attributable to the Trust’s interest under the Conveyance and other operating and historical data, plans for future
operating and capital expenditures, reserve information, information relating to projected production, and other information relating
to the status and results of operations of the Underlying Properties and the Net Profits Interest, and (B) conclusions and reports
regarding reserves by the Trust’s independent reserve engineers.



Changes in Internal Control over Financial
Reporting



As
of the end of the period covered by this report, there were no changes in the Trust’s internal control over financial reporting
that have materially affected, or are reasonably likely to materially affect, the Trust’s internal control over financial reporting.
The Trustee notes for purposes of clarification that it has no authority over, and makes no statement concerning, the internal control
over financial reporting of the Sponsor.





18







PART II—OTHER
INFORMATION



Item 1A. Risk Factors.



There have been no material
changes to the risk factors contained in Item 1A of the Trust’s 2022 Annual Report on Form 10-K.



| | Item 6. | Exhibits.
| | ------- | ---------



The exhibits listed in the
following index to exhibits are filed or furnished as part of this Form 10-Q.



INDEX TO EXHIBITS



|Exhibit
    Number |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                           
|------------------ |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|2.1                |  | Agreement and Plan of
    Merger of Enduro Royalty Trust and Enduro Texas LLC, dated as of November 3, 2011, by and between the Bank of New York Mellon
    Trust Company, N.A., as Trustee of Enduro Royalty Trust, and Enduro Texas LLC. (Incorporated herein by reference to Exhibit 1.2
    to our Current Report on Form 8-K filed on November 8, 2011 (File No. 1-35333))                                                       
|                   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                       
|3.1                |  | Certificate of Trust of
    Enduro Royalty Trust. (Incorporated herein by reference to Exhibit 3.3 to the Registration Statement on Form S-1, filed
    on May 16, 2011 (Registration No. 333-174225))                                                                                                                                                                                                                                
|                   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                       
|3.2                |  | Certificate of Amendment
    to Certificate of Trust. (Incorporated herein by reference to Exhibit 3.1 to the Current Report on Form 8-K filed on September 5,
    2018 (File No. 1-35333))                                                                                                                                                                                                                                           
|                   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                       
|3.3                |  | Amended and Restated Trust
    Agreement of Enduro Royalty Trust, dated November 3, 2011, among Enduro Resource Partners LLC, The Bank of New York Mellon Trust
    Company, N.A., as Trustee of Enduro Royalty Trust, and Wilmington Trust Company, as Delaware Trustee of Enduro Royalty Trust. (Incorporated
    herein by reference to Exhibit 3.1 to our Current Report on Form 8-K filed on November 8, 2011 (File No. 1-35333))
|                   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                       
|3.4                |  | Second Amendment to Amended
    and Restated Trust Agreement of Enduro Royalty Trust, dated September 14, 2018, among COERT Holdings 1 LLC, Wilmington Trust
    Company, as Delaware trustee, and The Bank of New York Mellon Trust Company, N.A., as trustee. (Incorporated herein by reference
    to Exhibit 3.1 to the Current Report on Form 8-K filed on September 14, 2018 (File No. 1-35333))                                
|                   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                       
|31.1*              |  | Certification pursuant
    to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                           
|                   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                       
|32.1**             |  | Certification pursuant
    to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                           



|* | Filed herewith.
|- | ---------------



|** | Furnished herewith.
|-- | -------------------





19







SIGNATURE



Pursuant to the requirements of Section 13
or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.



| | PERMIANVILLE
    ROYALTY TRUST
| | ------------------------------
| |                               
| | By:                           
| |                               
| | By:                           
| |                               
| |                               



Date: May 15, 2023



The Registrant, Permianville
Royalty Trust, has no principal executive officer, principal financial officer, board of directors or persons performing similar functions.
Accordingly, no additional signatures are available, and none have been provided. In signing the report above, the Trustee does not imply
that it has performed any such function or that such function exists pursuant to the terms of the Trust.





20