PermRock Royalty Trust Q3 distributable income falls to $778K
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
PermRock Royalty Trust (PRT) reported distributable income of $778,440 for the third quarter of 2026, versus $1,111,576 a year earlier; per-unit income was $0.063985 versus $0.091367. For the first nine months, distributable income was $1,591,557, compared with $3,778,289, and per-unit income was $0.130819 versus $0.310563. Lower production volumes, weaker natural-gas prices and net capital-reserve withholdings contributed to the nine-month decline. In the quarter, net profits income before capital-reserve activity rose to $1,344,679 from $1,153,448, as higher realized oil prices more than offset lower gas prices, lower sales volumes and higher costs.
After quarter-end, the Trust and T2S agreed to recoup $350,812.13 over six monthly installments from the November 2026 through April 2027 distribution calculations. Each installment will reduce monthly cash to the Trust by $58,468.69, lowering distributions during that period. Separately, the Trust declared a $197,140.34 distribution, or $0.016204 per unit, payable November 16, 2026, to holders of record October 30, 2026. As of September 30, 2026, T2S held $585,000 net to the Trust for future capital obligations.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointThird-quarter net profits income before capital-reserve activity was $1,344,679, up from $1,153,448.
Negative
- Moderate pointThird-quarter distributable income was $778,440, versus $1,111,576 a year earlier.
- Moderate pointNine-month distributable income was $1,591,557, versus $3,778,289 in 2025.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Six-month recoupment will reduce Trust cash by $58,468.69 monthly through April 2027.
Key Figures
Key Terms
Net Profits Interest financial
distributable income financial
modified cash basis financial
capital reserve activity financial
plugging and abandonment technical
Waha Hub technical
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much distributable income did PRT report for Q3 2026?
How will the overpayment recoupment affect PRT distributions?
What distribution did PRT declare after the September 2026 quarter?
AI-generated analysis. How Rhea-AI works. Not financial advice.
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
(Mark One)
☒ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2026
OR
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period to
Commission File Number: 001-38472
PERMROCK ROYALTY TRUST
(Exact name of registrant as specified in its charter)
Delaware |
82-6725102 |
( State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer |
Argent Trust Company Trustee 3838 Oak Lawn Ave, Suite 1720 Dallas, Texas 75219-4518 |
|
(Address of principal executive offices) (Zip Code) |
|
Registrant’s telephone number, including area code: (855) 588-7839
Securities registered pursuant to Section 12(b) of the Act:
|
Trading Symbol(s) |
|
Name of each exchange on which registered |
|
Title of each class |
|
|||
Units of Beneficial Interest |
|
PRT |
|
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. Yes ☒ No ☐
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, 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. (Check one):
Large accelerated filer |
☐ |
Accelerated filer |
☐ |
Non-accelerated filer |
☒ |
Smaller reporting company |
☒ |
|
|
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 ☒
As of November 13, 2026, 12,165,732 trust units representing beneficial interests in PermRock Royalty Trust were outstanding.
Table of Contents
TABLE OF CONTENTS
Glossary of Terms |
1 |
PART I. FINANCIAL INFORMATION |
|
ITEM 1. Financial Statements |
2 |
CONDENSED STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS |
3 |
CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME (UNAUDITED) |
4 |
CONDENSED STATEMENTS OF CHANGES IN TRUST CORPUS (UNAUDITED) |
5 |
NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED) |
6 |
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 |
17 |
PART II. OTHER INFORMATION |
|
ITEM 1. Legal Proceedings |
18 |
ITEM 1A. Risk Factors |
18 |
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds |
18 |
ITEM 3. Defaults Upon Senior Securities |
18 |
ITEM 4. Mine Safety Disclosures |
18 |
ITEM 5. Other Information |
18 |
ITEM 6. Exhibits. |
18 |
SIGNATURE |
19 |
|
|
Table of Contents
Glossary of Terms
Bbl |
Barrel (of oil). |
|
|
Boe |
One barrel of crude oil equivalent. |
|
|
differential |
The difference between a benchmark price of oil and natural gas, such as the NYMEX crude oil spot, and the wellhead price received. |
|
|
distributable income |
An amount paid to Trust unitholders equal to the net profits income received by the Trust during a given period plus interest, less the expenses and payment of liabilities of the Trust, adjusted by any changes in cash reserves. |
|
|
GAAP |
United States generally accepted accounting principles. |
|
|
MBbl |
One thousand barrels of crude oil or condensate. |
|
|
MBoe |
One thousand barrels of crude oil equivalent. |
|
|
Mcf |
One thousand cubic feet (of natural gas). |
|
|
MMcf |
One million cubic feet (of natural gas). |
|
|
natural gas liquids (NGL) |
Those hydrocarbons that are separated from the gas as liquids through the process of absorption, condensation, or other methods in gas processing or cycling plants. |
|
|
net acres |
The sum of the fractional working interests owned by a given operator in gross acres. |
|
|
net profits |
Gross profits received by T2S from the sale of production from the Underlying Properties, less applicable costs, as provided in the Conveyance. |
|
|
net profits income |
Net profits multiplied by the net profits percentage of 80%, which is paid to the Trust by T2S. “Net profits income” is referred to as “royalty income” for tax reporting purposes. |
|
|
Net Profits Interest |
An interest in an oil and natural gas property measured by net profits from the sale of production, rather than a specific portion of production. An 80% net profits interest was conveyed to the Trust entitling the Trust to receive 80% of the net profits from the Underlying Properties. |
|
|
NYMEX |
The New York Mercantile Exchange is a commodity futures exchange that quotes prices for transactions which are the prices paid for various commodities, including oil and natural gas, throughout the world. |
|
|
Trust units |
Trust units representing beneficial interests in the Trust. |
|
|
Underlying Properties |
The interest in certain oil and natural gas properties from which the Net Profits Interest was conveyed by Boaz Energy. The Underlying Properties include working interests in oil and natural gas producing properties located in the Permian Basin in Texas. |
|
|
working interest |
An operating interest in an oil and natural gas property that provides the owner a specified share of production that is subject to all production expense and development costs. |
1
Table of Contents
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements
The condensed financial statements included herein are presented without audit, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted pursuant to such rules and regulations, and Argent Trust Company, as Trustee (the “Trustee”), believes that the disclosures are adequate to make the information presented not misleading. These condensed interim financial statements and notes thereto should be read in conjunction with the audited financial statements and notes thereto included in the Trust’s 2025 Annual Report on Form 10-K (“2025 Annual Report”). In the opinion of the Trustee, all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the assets, liabilities and Trust corpus of PermRock Royalty Trust at September 30, 2026, and the distributable income and changes in Trust corpus for the three and nine month periods ended September 30, 2026, and September 30, 2025, have been included. Distributable income for such interim periods is not necessarily indicative of distributable income for the full year.
2
Table of Contents
PERMROCK ROYALTY TRUST
CONDENSED STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS
|
|
September 30, |
|
|
December 31, |
|
||
ASSETS |
|
|
|
|
|
|
||
Cash and short-term investments |
|
$ |
1,238,742 |
|
|
$ |
1,199,573 |
|
Net Profits Interest (1) |
|
|
25,762,218 |
|
|
|
26,595,875 |
|
TOTAL ASSETS |
|
$ |
27,000,960 |
|
|
$ |
27,795,448 |
|
LIABILITIES AND TRUST CORPUS |
|
|
|
|
|
|
||
Distribution payable to unitholders |
|
$ |
238,742 |
|
|
$ |
199,573 |
|
Cash reserves (2) |
|
|
1,000,000 |
|
|
|
1,000,000 |
|
Trust corpus |
|
|
25,762,218 |
|
|
|
26,595,875 |
|
TOTAL LIABILITIES AND TRUST CORPUS |
|
$ |
27,000,960 |
|
|
$ |
27,795,448 |
|
The accompanying notes to condensed financial statements are an integral part of these financial statements.
3
Table of Contents
PERMROCK ROYALTY TRUST
CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME (UNAUDITED)
|
|
Three Months |
|
Nine Months |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
2026 |
|
|
2025 |
|
||||
Net profits income |
|
$ |
909,679 |
|
|
$ |
1,246,690 |
|
$ |
2,255,016 |
|
|
$ |
4,502,918 |
|
Interest income |
|
|
9,943 |
|
|
|
12,105 |
|
|
28,246 |
|
|
|
36,782 |
|
Total revenue |
|
|
919,622 |
|
|
|
1,258,795 |
|
|
2,283,262 |
|
|
|
4,539,700 |
|
Expenditures – general and administrative |
|
|
(141,182 |
) |
|
|
(147,219 |
) |
|
(691,705 |
) |
|
|
(761,411 |
) |
Cash reserves (1) |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
Distributable income |
|
$ |
778,440 |
|
|
$ |
1,111,576 |
|
$ |
1,591,557 |
|
|
$ |
3,778,289 |
|
Distributable income per unit (2) |
|
$ |
0.063985 |
|
|
$ |
0.091367 |
|
$ |
0.130819 |
|
|
$ |
0.310563 |
|
The accompanying notes to condensed financial statements are an integral part of these financial statements.
4
Table of Contents
PERMROCK ROYALTY TRUST
CONDENSED STATEMENTS OF CHANGES IN TRUST CORPUS (UNAUDITED)
|
|
|
Three Months |
|
|
Nine Months |
|
||||||||||
|
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Trust corpus, beginning of period |
|
|
$ |
26,050,564 |
|
|
$ |
70,219,686 |
|
|
$ |
26,595,875 |
|
|
$ |
72,379,939 |
|
Amortization of Net Profits Interest |
|
|
|
(288,346 |
) |
|
|
(926,436 |
) |
|
|
(833,657 |
) |
|
|
(3,086,689 |
) |
Distributable income |
|
|
|
778,440 |
|
|
|
1,111,576 |
|
|
|
1,591,557 |
|
|
|
3,778,289 |
|
Distributions declared |
|
|
|
(778,440 |
) |
|
|
(1,111,576 |
) |
|
|
(1,591,557 |
) |
|
|
(3,778,289 |
) |
Trust corpus, end of period |
|
|
$ |
25,762,218 |
|
|
$ |
69,293,250 |
|
|
$ |
25,762,218 |
|
|
$ |
69,293,250 |
|
Distributions declared per unit (12,165,732 Units outstanding) |
|
|
$ |
0.063985 |
|
|
$ |
0.091367 |
|
|
$ |
0.130819 |
|
|
$ |
0.310563 |
|
The accompanying notes to condensed financial statements are an integral part of these financial statements.
5
Table of Contents
PERMROCK ROYALTY TRUST
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
PermRock Royalty Trust (the “Trust”) is a Delaware statutory trust formed on November 22, 2017 under the Delaware Statutory Trust Act pursuant to a trust agreement dated November 22, 2017, as amended and restated on May 4, 2018, by and among Boaz Energy II, LLC (“Boaz Energy”), as trustor, Simmons Bank, as trustee, and Wilmington Trust, National Association, as Delaware Trustee (the “Delaware Trustee”) (such amended and restated trust agreement, as amended to date, the “Trust Agreement”).
In accordance with the successor trustee provisions of the Trust Agreement, Argent Trust Company, as successor trustee of the Trust, is subject to all terms and conditions of the Trust Agreement. The defined term “Trustee” as used herein shall refer to Simmons Bank (which maintains its offices at 2200 West 7th Street, Suite 210, P.O. Box 470727, Fort Worth, Texas 76147) for periods prior to December 30, 2022, and shall refer to Argent Trust Company (which maintains its offices at 3838 Oak Lawn Ave., Suite 1720, Dallas, Texas 75219) for periods on and after December 30, 2022.
The Trust was created to acquire and hold the Net Profits Interest for the benefit of the Trust unitholders. In connection with the closing of the initial public offering of Trust units, on May 4, 2018, Boaz Energy conveyed the Net Profits Interest to the Trust in exchange for Trust units pursuant to a conveyance agreement between Boaz Energy, the Trustee and the Delaware Trustee (the “Conveyance”). The Net Profits Interest represents an interest in the Underlying Properties.
On January 13, 2025, the Trust announced that Boaz Energy, the owner and operator of the oil and gas properties underlying the Trust (the “Underlying Properties”), informed the Trust that Boaz Energy and its affiliate, Boaz Energy II Royalty, LLC (“Boaz Royalty” and, together with Boaz Energy, the “Grantors”), entered into a Purchase and Sale Agreement on January 10, 2025 (the “Purchase and Sale Agreement”) with T2S Permian Acquisition II LLC, a Delaware limited liability company (“T2S” or "Buyer"), with respect to the Underlying Properties. The Underlying Properties are subject to the Net Profits Interests conveyed to the Trust pursuant to the Conveyance. The transaction between the Grantors and T2S closed on March 31, 2025. Boaz Energy also sold and conveyed to Ustx LLC, a Delaware limited liability company, and a wholly-owned subsidiary of the Buyer, Boaz Energy’s 4,884,861 Trust units representing beneficial interests in the Trust. At closing, T2S assumed operations of the Underlying Properties. T2S assumed all obligations and privileges of Boaz Energy under each of the Conveyance and the Trust Agreement. The Trustee continues to administer the Trust in the ordinary course of business.
The Net Profits Interest entitles the Trust to receive 80% of the net profits from the sale of 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 control over, or responsibility for, costs relating to the operation of the Underlying Properties. The Trust has and will continue to make monthly cash distributions of all of its monthly cash receipts, after deduction of fees and expenses for the administration of the Trust and any cash reserves, to holders of its Trust units as of the applicable record date on or before the 10th business day after the record date. Distributions generally relate to sales from a one-month period.
The Trustee may deposit funds awaiting distribution in an account with an FDIC-insured or national bank, including the Trustee, if the interest paid to the Trust at least equals amounts paid by the Trustee on similar deposits, and make other short-term investments with the funds distributed to the Trust.
In May 2018, Boaz Energy completed an initial public offering of 6,250,000 of the 12,165,732 total Trust units outstanding, retaining ownership of 5,915,732 Trust units. As of March 31, 2025, Boaz Energy transferred 4,884,861 Trust units to Ustx LLC, a wholly-owned subsidiary of T2S. As of November 13, 2026, Ustx LLC owned 4,884,861 Trust units of the 12,165,732 Trust units issued and outstanding.
The Trust uses the modified cash basis of accounting to report Trust receipts of the Net Profits Interest and payments of expenses incurred. The Net Profits Interest represents the right to receive revenues (primarily oil and natural gas sales), less direct operating expenses, overhead expenses, lease operating expenses, severance and ad valorem 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.
6
Table of Contents
The financial statements of the Trust, as prepared on a modified cash basis, reflect the Trust’s assets, liabilities, Trust corpus, earnings and distributions as follows:
The financial statements of the Trust are prepared on a modified cash basis of accounting, which is considered to be the most meaningful basis of preparation for a royalty trust because monthly distributions to the Trust unitholders are based on net cash receipts. Although this basis of accounting is permitted for royalty trusts by the SEC, the financial statements of the Trust differ from financial statements prepared in accordance with GAAP because net profits income is not accrued in the month of production, expenses are not recognized when incurred, cash reserves may be established for certain contingencies, and overpayments received do not need to be paid back and are instead taken from future payments that would not be recorded in GAAP financial statements. 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.
The accompanying unaudited financial statements have been prepared by the Trust in accordance with the accounting policies stated in the audited financial statements and notes of the Trust thereto included in the Trust’s 2025 Annual Report and reflect all adjustments that are, in the opinion of the Trustee, necessary to state fairly the information in the Trust’s unaudited interim financial statements.
The preparation of financial statements requires the Trust to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimated future cash flows used to determine amortization and potential impairment of the investment in the Net Profits Interest are subject to change.
7
Table of Contents
The Trust’s revenue and distributions are substantially dependent upon the prevailing and future prices for oil and natural gas, each of which depends on numerous factors beyond the Trust’s control such as economic conditions, the global political environment, regulatory developments and competition from other energy sources. Oil and natural gas prices historically have been volatile and may be subject to significant fluctuations in the future.
Contingencies related to the Underlying Properties that are unfavorably resolved would generally be expected to result in reductions to cash receipts to the Trust in respect of the Net Profits Interest with corresponding reductions to cash distributions to Trust unitholders.
Tax counsel advised the Trust at the time of formation that for U.S. federal income tax purposes, the Trust is treated as a grantor trust and will not be subject to federal income tax at the trust level. Trust unitholders will be treated for such purposes as owning a direct interest in the assets of the Trust, and each Trust unitholder is taxed directly on its pro rata share of the income and any gain, if sold, attributable to the assets of the Trust and is entitled to claim its pro rata share of deductions and expenses attributable to the assets of the Trust. Each Trust unitholder should consult his or her own tax advisor regarding income tax requirements, if any, applicable to such unitholder’s ownership of Trust units.
Pursuant to the Trust Agreement, as of May 31, 2019, the Trustee began retaining cash from the distributions the Trust receives to be used by the Trust in the event that its cash on hand (including available cash reserves) is not sufficient to pay ordinary course administrative expenses as they become due. The Trustee is authorized to retain cash reserves (i) in an amount not to exceed $1,000,000 at any one time and (ii) in such amounts as the Trustee in its discretion deems appropriate to pay for future liabilities of the Trust, but not less than $25,000 per month or more than $100,000 per month. Cash reserves held by the Trustee for administrative expenses totaled $1,000,000 as of September 30, 2026.
T2S is entitled under the Conveyance to reserve up to $3.0 million from the net profits for certain future taxes and development or operating expenses. As of December 31, 2025, the balance of funds held by T2S to cover certain future capital expenses was $74,933 net to the Trust. In March 2026, a scrivener's error by the operator caused an additional $10,000 net to the Trust to be distributed to the Trust, which was reversed from the April 2026 net profits income paid to the Trust, resulting in a corresponding reduction in funds payable to the Trust in April 2026. As of September 30, 2026, $585,000 in funds net to the Trust was held by T2S to cover future capital obligations.
The Trust makes monthly cash distributions of the net amount, if any, of its monthly cash receipts, after deduction of fees and expenses for the administration of the Trust and cash reserves to holders of its Trust units as of the applicable record date on or before the 10th business day after the record date.
Based on 12,165,732 Trust units outstanding at each date listed below, the per unit distributions during the quarter ended September 30, 2026, were as follows:
Record Date |
|
Payment Date |
|
Distribution per Unit |
|
|
July 31, 2026 |
|
August 14, 2026 |
|
$ |
0.022579 |
|
August 31, 2026 |
|
September 15, 2026 |
|
|
0.021782 |
|
September 30, 2026 |
|
October 15, 2026 |
|
|
0.019624 |
|
|
|
|
|
$ |
0.063985 |
|
Trustee Administrative Fee. Under the terms of the Trust Agreement, the Trust pays an annual administrative fee to the Trustee and the Delaware Trustee. The Delaware Trustee’s annual fee is $4,000. For 2026, the Trustee’s annual administrative fee is $209,152, which is divided into twelve equal monthly payments throughout the year. The Trustee’s annual administrative fee increased at a rate of 3% per year for the first three years of the Trust’s existence, and increased at a rate of 2% in 2022 and 2023. The Trustee’s annual administrative fee increased at a rate of 1% in 2026, and will continue to increase at a rate of 1% per year until the 20th anniversary of the Trust’s formation and then will remain flat thereafter. These costs of the Trust, which are included in administration expenses, are deducted by the Trust before distributions are made to Trust unitholders.
8
Table of Contents
Agreements with T2S as successor-in-interest to Boaz Energy. On May 4, 2018, the Trust entered into a registration rights agreement for the benefit of Boaz Energy and certain of its affiliates and transferees, pursuant to which the Trust agreed to register the offering of the Trust units held by Boaz Energy and certain of its affiliates and permitted transferees upon request by Boaz Energy. The Trust filed a Registration Statement on Form S-3 on April 28, 2022 (the “Registration Statement”) seeking the registration of 5,801,675 Trust units held by Boaz Energy. The SEC confirmed the effectiveness of the Registration Statement on May 9, 2022. On March 31, 2025, Ustx, LLC, a Delaware limited liability company and a wholly-owned subsidiary of T2S, acquired from Boaz Energy 4,884,861 Trust units representing beneficial interests in the Trust. As of November 13, 2026, Ustx LLC owned 4,884,861 Trust units of the 12,165,732 Trust units issued and outstanding.
T2S has an estimated workover budget for 2026 for the Underlying Properties of approximately $0.7 million. This budget includes workovers on twenty-two (22) wells that were shut-in and includes one (1) plugging and abandonment operation. These workovers and plugging and abandonment operations were completed during the second and third quarters of 2026. T2S reports that all of the approximately $0.7 million budget has been spent as of September 30, 2026. T2S has advised the Trust that the expenditures on development are subject to change based on, among other things, changes in the price of oil and natural gas, actual capital requirements, the pace of regulatory approvals and the mix of projects, if any occur.
None.
On October 20, 2026, the Trust declared a cash distribution of $197,140.34, or $0.016204 per Trust unit, to holders of record as of October 30, 2026, payable on November 16, 2026, based upon production during the month of August 2026.
Production Month |
|
Underlying Sales Volumes |
|
|
Average Price |
|
||||||||||
|
|
Oil |
|
|
Gas |
|
|
Oil |
|
|
Gas |
|
||||
August |
|
|
12,603 |
|
|
|
18,137 |
|
|
$ |
79.75 |
|
|
$ |
1.97 |
|
9
Table of Contents
10. Net Profits Interest Overpayment and Recoupment Agreement
Subsequent to the end of the quarter, T2S advised the Trustee that seven wells located in the Welch Field in Terry County, Texas, which are not included in the Underlying Properties, had been included, in error by T2S, in the calculation of net profits for the production months of May 2025 through July 2026. In October 2026, the Trust accepted formal written notice from T2S regarding the overpayment under Section 4.7(a) of the Conveyance. The overpayment consisted of $367,765.32 in oil sales revenues, less $16,953.19 in associated production taxes, relating to 5,685.86 barrels of oil produced from the seven wells that were inadvertently attributed to the Trust's Net Profits Interest.
The Trustee, with the assistance of a third-party joint interest auditor, evaluated this overpayment and determined that the amount was immaterial, both quantitatively and qualitatively, to all prior interim and annual periods and the interim periods of 2026. Accordingly, in line with SEC Staff Accounting Bulletin Topic 1:M and the Trust's SEC-permitted modified cash basis of accounting, prior period financial statements have not been retroactively adjusted.
Pursuant to the overpayment provisions of Section 4.7(a) of the Conveyance, the Trust and T2S have agreed to a prospective recoupment totaling a net amount of $350,812.13, and T2S has formally waived all applicable interest charges. The recoupment will be reflected prospectively over a six (6) month period beginning with the November 2026 distribution calculation and ending with the April 2027 distribution calculation.
Each monthly Net Profits Interest calculation during the recoupment period will reflect a reduction of $61,294.22 in gross oil sales revenue, offset by a credit of $2,825.53 in oil production taxes, resulting in a net monthly cash reduction to the Trust of $58,468.69. Attributable oil production volumes reported to the Trust will also be reduced prospectively by 947.64 barrels of oil per month during this timeframe, with any minor rounding differences reflected in the April 2027 final installment. This prospective recoupment will reduce the Trust's net cash receipts and subsequent monthly cash distributions to unitholders through April 2027.
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ITEM 2. Trustee’s Discussion and Analysis of Financial Condition and Results of Operations
Introduction
The following discussion and analysis is intended to help the reader understand the Trust’s financial condition, results of operations, liquidity and capital resources. This discussion and analysis should be read in conjunction with the Trust’s unaudited condensed financial statements and the accompanying notes included in this Quarterly Report on Form 10-Q (“Quarterly Report”) and the Trust’s audited financial statements and the accompanying notes included in the Trust’s 2025 Annual Report.
Cautionary Statement Regarding Forward Looking Statements
Certain information included in this Quarterly Report contains, and other materials filed or to be filed by the Trust with the SEC (as well as information included in oral statements or other written statements made or to be made by the Trust) may contain or include, forward-looking statements within the meaning of Section 21E of the Exchange Act and Section 27A of the Securities Act of 1933, as amended (the “Securities Act”). Such forward-looking statements generally are accompanied by words such as “may,” “will,” “estimate,” “expect,” “predict,” “project,” “anticipate,” “goal,” “should,” “assume,” “believe,” “plan,” “intend,” or other words that convey the uncertainty of future events or outcomes. All statements other than statements of historical fact included in this Quarterly Report are forward-looking statements, including without limitation statements under this “Trustee’s Discussion and Analysis of Financial Conditions and Results of Operations” and all statements regarding T2S and Argent Trust Company’s (as Trustee of the Trust) expectations, beliefs and plans regarding the following: (i) T2S’s capital projects, timing and estimated costs, and the resulting impact of those activities on the computation of the Net Profits Interest; (ii) outside operators’ capital projects and the resulting impact of those activities on the Net Profits Interest; (iii) implementation or continued use of waterflood projects and workovers and the location of waterflood projects and workovers; (iv) T2S’s estimated capital expenditures; (v) the timing of capital expenditures and capital reserve amounts; (vi) the expected timing of litigation proceedings; (vii) the impact of current litigation matters on the Trust; (viii) T2S’s staffing levels or future reductions in staffing on the Underlying Properties; and (ix) distributions to Trust unitholders. Such statements are based on certain assumptions of the Trustee, and certain assumptions of information provided to the Trust by T2S, the owner of the Underlying Properties; are based on an assessment of, and are subject to, a variety of factors deemed relevant by the Trustee and T2S; and involve risks and uncertainties. Certain factors could affect the future results of the energy industry in general, and T2S and the Trust in particular, and could cause actual results to differ materially from those projected in such forward-looking statements. Those factors include, without limitation, the following:
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You should not place undue reliance on any forward-looking statements. All forward-looking statements speak as of the date of this Quarterly Report. 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 Quarterly Report or to reflect the occurrence of unanticipated events, unless required by applicable law.
T2S Information
As a holder of a net profits interest, the Trust relies on T2S for information regarding T2S and its affiliates; the Underlying Properties, including the operations, acreage, well and completion count, working interests, production volumes, sales revenues, capital expenditures, operating expenses, reserves, drilling plans, drilling results and leasehold terms related to the Underlying Properties; and factors and circumstances that have or may affect the foregoing.
Overview
PermRock Royalty Trust, a Delaware statutory trust formed in November 2017, completed its initial public offering in May 2018. The Trust’s main 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.
The Trust is required to make monthly cash distributions of substantially all of its monthly cash receipts, after deduction of fees and expenses for the administration of the Trust and any cash reserves, to holders of its Trust units as of the applicable record date 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 January 1, 2018 attributable to production occurring on or after such date. 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 amount of Trust revenues and cash distributions to Trust unitholders depends on, among other things:
T2S, as the operator of the Underlying Properties, typically receives 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.
Properties. The Underlying Properties consist of four operating areas in the Permian Basin in Texas, aggregating 31,354 gross (22,394 net) acres. The Permian Clearfork area consists of 2,434 net acres on the Central Basin Platform of the Permian Basin in Hockley and Terry Counties, Texas. The Permian Abo area consists of 1,667 net acres on the Central Basin Platform of the Permian Basin in Terry
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and Cochran Counties, Texas. The Permian Shelf area consists of 14,390 net acres on the Eastern Shelf of the Permian Basin in Glasscock, Schleicher, Stonewall and Coke Counties, Texas. The Permian Platform area consists of 3,903 net acres on the Central Basin Platform of the Permian Basin in Ward, Crane, Terry and Ector Counties, Texas.
Outlook
T2S has an estimated workover budget for 2026 for the Underlying Properties of approximately $0.7 million. This budget includes workovers on twenty-two (22) wells that were shut-in and includes one (1) plugging and abandonment operation. These workovers and plugging and abandonment operations were completed during the second and third quarters of 2026. T2S reports that all of the approximately $0.7 million budget has been spent as of September 30, 2026. T2S reports that the majority of the workover activities were completed late in the third quarter, including mandatory regulatory workovers that do not impact production. T2S expects that production increases associated with the workover activities will be realized during the fourth quarter of 2026. T2S has advised the Trust that the expenditures on development are subject to change based on, among other things, changes in the price of oil and natural gas, actual capital requirements, the pace of regulatory approvals and the mix of projects, if any occur.
RESULTS OF OPERATIONS
Distributable Income
Three Months Ended September 30, 2026
For the three months ended September 30, 2026, net profits income received by the Trust was $909,679 compared to $1,246,690 for the same period of the prior year. This decrease in net profits income was primarily due to capital reserve withholdings of $435,000 net to the Trust during the current period, as compared to a net release of $93,242 of previously reserved funds during the same period of the prior year. Net profits income before capital reserve activity increased to $1,344,679 from $1,153,448 for the same period of the prior year, as higher realized oil prices more than offset lower realized natural gas prices, lower oil and natural gas sales volumes and higher costs. See “Computation of Income from the Net Profits Interest Received by the Trust” below.
After considering interest income of $9,943 and general and administrative expenditures of $141,182, distributable income for the three months ended September 30, 2026, was $778,440, or $0.063985 per Trust unit.
Interest income for the quarter ended September 30, 2026, decreased $2,162 as compared to the same period in the prior year, primarily due to lower interest rates. General and administrative expenditures decreased by $6,037 for the three months ended September 30, 2026, as compared to the prior year, primarily due to the timing of payments.
Pursuant to the Trust Agreement, as of May 31, 2019, the Trustee is authorized to retain cash reserves for administrative expenses. The Trustee did not retain any cash reserves during the three months ended September 30, 2026, or September 30, 2025. Total cash reserves were $1,000,000 as of September 30, 2026, and September 30, 2025.
Based on 12,165,732 Trust units outstanding at each date listed below, the per unit distributions during the quarter ended September 30, 2026, were as follows:
Record Date |
|
Payment Date |
|
Distribution per Unit |
|
|
July 31, 2026 |
|
August 14, 2026 |
|
$ |
0.022579 |
|
August 31, 2026 |
|
September 15, 2026 |
|
|
0.021782 |
|
September 30, 2026 |
|
October 15, 2026 |
|
|
0.019624 |
|
|
|
|
|
$ |
0.063985 |
|
Nine Months Ended September 30, 2026
For the nine months ended September 30, 2026, net profits income received by the Trust was $2,255,015 compared to $4,502,918 for the same period of the prior year. This decrease in net profits income was primarily due to decreases in oil and natural gas sales volumes, lower natural gas sales prices, and capital reserve withholdings of $510,067 net to the Trust during the current period, as compared to a net release of $301,241 during the same period of the prior year, partially offset by lower costs and higher oil prices in the second and third quarters of 2026. See "Computation of Income from the Net Profits Interest Received by the Trust" below.
After considering interest income of $28,246 and general and administrative expenditures of $691,705, distributable income for the nine months ended September 30, 2026, was $1,591,557, or $0.130819 per Trust unit. For the nine months ended September 30, 2025, total distributable income was $3,778,289, or $0.310563 per Trust unit.
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Interest income decreased for the nine months ended September 30, 2026, as compared to the prior year, primarily due to lower interest rates. General and administrative expenditures decreased by $69,706 for the nine months ended September 30, 2026, as compared to the prior year, primarily due to timing of payments.
Pursuant to the terms of the Trust Agreement, the Trustee was authorized to begin retaining cash reserves for administrative expenses in May of 2019. The Trustee did not retain any cash reserves during the nine months ended September 30, 2026, or September 30, 2025. Total cash reserves were $1,000,000 as of September 30, 2026, and September 30, 2025.
Computation of Income from the Net Profits Interest Received by the Trust
The Net Profits Interest entitles the Trust to receive 80% of the net profits attributable to T2S’s interest from the sale of oil and natural gas production from the Underlying Properties. The Trust’s income from the Net Profits Interest consists of monthly net profits attributable to income from the Underlying Properties. Because of the interval between the time of production and receipt of net profits income by the Trust, the Trust recognizes production during the month in which the related net profits income is paid to the Trust. Net profits income for the three months ended September 30, 2026, was based on production during the months of May 2026 through July 2026.
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
Nine Months Ended |
|
||||
Underlying Properties sales volumes(1): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Oil (Bbl) |
|
|
46,805 |
|
|
|
59,142 |
|
|
|
137,756 |
|
|
|
193,587 |
|
Natural gas (Mcf)(2) |
|
|
59,259 |
|
|
|
89,599 |
|
|
|
167,590 |
|
|
|
254,392 |
|
Total sales (Boe) |
|
|
56,682 |
|
|
|
74,075 |
|
|
|
165,688 |
|
|
|
235,986 |
|
Average realized sales price: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Oil (per Bbl) |
|
$ |
90.75 |
|
|
$ |
63.58 |
|
|
$ |
76.64 |
|
|
$ |
66.59 |
|
Natural gas (per Mcf) |
|
$ |
0.84 |
|
|
$ |
1.88 |
|
|
$ |
1.37 |
|
|
$ |
2.74 |
|
Calculation of net profits: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross profits: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Oil sales |
|
$ |
4,247,681 |
|
|
$ |
3,760,286 |
|
|
$ |
10,557,082 |
|
|
$ |
12,891,209 |
|
Natural gas sales |
|
|
49,537 |
|
|
|
168,048 |
|
|
|
230,089 |
|
|
|
697,769 |
|
Other revenue |
|
|
105,471 |
|
|
|
— |
|
|
|
105,471 |
|
|
|
57,207 |
|
Total gross profits |
|
$ |
4,402,689 |
|
|
$ |
3,928,334 |
|
|
$ |
10,892,642 |
|
|
$ |
13,646,185 |
|
Costs: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Direct operating expenses: |
|
$ |
428,925 |
|
|
$ |
227,809 |
|
|
$ |
993,130 |
|
|
$ |
914,406 |
|
Lease operating expenses |
|
|
1,372,692 |
|
|
|
1,122,041 |
|
|
|
3,992,395 |
|
|
|
4,387,001 |
|
Severance and ad valorem taxes |
|
|
199,493 |
|
|
|
389,475 |
|
|
|
705,502 |
|
|
|
1,123,201 |
|
Development expenses |
|
|
124,834 |
|
|
|
266,552 |
|
|
|
126,702 |
|
|
|
478,910 |
|
Other expenses |
|
|
595,896 |
|
|
|
480,648 |
|
|
|
1,618,560 |
|
|
|
1,490,571 |
|
Total costs |
|
$ |
(2,721,840 |
) |
|
$ |
(2,486,525 |
) |
|
$ |
(7,436,289 |
) |
|
$ |
(8,394,089 |
) |
Net profits |
|
$ |
1,680,849 |
|
|
$ |
1,441,809 |
|
|
$ |
3,456,353 |
|
|
$ |
5,252,096 |
|
Percentage allocable to Net Profits Interest |
|
|
80 |
% |
|
|
80 |
% |
|
|
80 |
% |
|
|
80 |
% |
Net profits income (before capital reserve) |
|
$ |
1,344,679 |
|
|
$ |
1,153,448 |
|
|
$ |
2,765,083 |
|
|
$ |
4,201,677 |
|
Capital reserve activity (3) |
|
|
(435,000 |
) |
|
|
93,242 |
|
|
|
(510,067 |
) |
|
|
301,241 |
|
Net profits income received by the Trust |
|
$ |
909,679 |
|
|
$ |
1,246,690 |
|
|
$ |
2,255,016 |
|
|
$ |
4,502,918 |
|
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Table of Contents
Important factors used in calculating the Trust’s net profits income include the volumes of oil and natural gas produced from the Underlying Properties and the realized prices received for the sale of those minerals, including oil and natural gas liquids, as well as direct operating expenses, lease operating expenses, severance and ad valorem taxes, development and other expenses and capital reserves.
Sales Volumes
Oil
Oil sales volumes decreased by 12,337 Bbls (20.9%) for the three months ended September 30, 2026, as compared to the same period in 2025. T2S reports that the decline in oil sales volumes was primarily attributable to the natural decline of the producing properties, in addition to the shut-in of certain wells for an extended period of time while mandatory regulatory workover activity unrelated to production was completed.
Natural Gas
Natural gas sales volumes decreased by 30,340 Mcf (33.9%) for the three months ended September 30, 2026, as compared to the same period in 2025. T2S reports that the decrease in natural gas sales volumes was primarily attributable to the natural decline of the producing properties and a decrease in deliveries during the current period.
Sales Prices
Oil
The average realized oil price per Bbl increased for the three and nine months ended September 30, 2026, as compared to the same periods in 2025. T2S reports this increase was primarily due to an increase in the WTI benchmark oil price during the current period and improved regional pricing differentials, partially offset by the lingering effects of the January and February 2026 winter weather in Texas, which temporarily disrupted production, transportation and certain downstream operations.
Natural Gas
The average realized natural gas price per Mcf decreased for the three and nine months ended September 30, 2026, as compared to the same periods in 2025. T2S reports these decreases were primarily due to a negative pricing differential at the Waha Hub in the Permian Basin, where natural gas from the Underlying Properties is sold, as distinguished from Henry Hub pricing. The Waha Hub pricing weakness was primarily driven by decreased pipeline takeaway capacity for natural gas that resulted from periods of pipeline maintenance and weather-related shut-ins, as well as oil-directed drilling activity that exceeded available pipeline takeaway capacity. In early 2026, some operators were required to pay to transport natural gas out of the Permian Basin.
Costs
Direct Operating Expenses
Direct operating expenses increased for the three and nine months ended September 30, 2026, as compared to the prior year periods. T2S reports these increases were primarily because of higher workover activity and increased marketing costs on the Underlying Properties during the current periods.
Lease Operating Expenses
Lease operating expenses increased for the three months ended September 30, 2026, as compared to the same quarter in 2025. T2S reports this increase was primarily due to increased routine lease operating and third-party service activity on the Underlying Properties during the current period. Lease operating expenses decreased for the nine months ended September 30, 2026, as compared to the same prior year period. T2S reports this decrease was primarily due to reduced third-party service costs and the deferral of certain non-essential maintenance projects.
Severance and Ad Valorem Taxes
Severance and ad valorem taxes decreased for the three and nine months ended September 30, 2026, as compared to the prior year periods. T2S reports these decreases were primarily due to lower oil and natural gas sales volumes and lower property valuations, partially offset by higher realized oil prices during the current period.
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Table of Contents
Development Expenses Related to the Underlying Properties
Development expenses related to the Underlying Properties decreased for the three and nine months ended September 30, 2026, as compared to the prior year periods as a result of fewer capital projects.
Other Expenses
Other expenses increased for the three and nine months ended September 30, 2026, as compared to the prior year periods. T2S reports these increases were primarily due to adjustments to overhead.
Capital Reserve
As of September 30, 2026, $585,000 net to the Trust was held by T2S to cover future ad valorem taxes and workovers budgeted for the fourth quarter of 2026.
LIQUIDITY AND CAPITAL RESOURCES
The Trust’s principal sources of liquidity and capital are cash flow generated from the Net Profits Interest, the amounts held by the Trustee as cash reserves to pay future liabilities, and borrowings, if any to fund administrative expenses. The Trust’s primary uses of cash are distributions to Trust unitholders, payment of Trust administrative expenses, including, if applicable, any reserves established by the Trustee for future liabilities.
Administrative expenses include the Trustee and Delaware Trustee fees, accounting, engineering, legal, tax advisory and other professional fees, and tax reporting and distribution expenses. The Trust is also responsible for paying other expenses incurred as a result of being a publicly traded entity, including costs associated with annual, quarterly and current reports to the SEC, New York Stock Exchange listing fees, independent auditor fees and registrar and transfer agent fees. If the Trustee determines that cash on hand and cash to be received in respect of the Net Profits Interest are, or will be, insufficient to cover the Trust’s liabilities and expenses, the Trustee may cause the Trust to borrow funds to pay liabilities of the Trust.
As authorized under the Trust Agreement, the Trustee is authorized to retain cash from the distributions the Trust receives (i) in an amount not to exceed $1.0 million at any one time to be used by the Trust in the event that its cash on hand (including available cash reserves) is not sufficient to pay ordinary course administrative expenses as they become due and (ii) in such amounts as the Trustee in its discretion deems appropriate to pay for future liabilities of the Trust, but not less than $25,000 or more than $100,000 per month. Cash reserves previously retained and currently held by the Trustee for future administrative expenses total $1,000,000 as of September 30, 2026.
T2S's Capital Expenditure Budget
T2S has an estimated workover budget for 2026 for the Underlying Properties of approximately $0.7 million. This budget includes workovers on twenty-two (22) wells that were shut-in and includes one (1) plugging and abandonment operation. These workovers and plugging and abandonment operations were completed during the second and third quarters of 2026. T2S reports that all of the approximately $0.7 million budget has been spent as of September 30, 2026. T2S has advised the Trust that the expenditures on development are subject to change based on, among other things, changes in the price of oil and natural gas, actual capital requirements, the pace of regulatory approvals and the mix of projects, if any occur.
Distributions Declared After Quarter End
On October 20, 2026, the Trust declared a cash distribution of $197,140.34, or $0.016204 per Trust unit, to holders of record as of October 30, 2026, payable on November 16, 2026, based upon production during the month of August 2026.
As described in Note 9 to the condensed financial statements, T2S has advised the Trustee that, beginning with the distribution declared in November 2026 and continuing through the distribution declared in April 2027, it will recoup an overpayment of $350,812 previously made to the Trust in six monthly installments, without interest, which will reduce distributions to Trust unitholders during such period.
Production Month |
|
Underlying Sales Volumes |
|
|
Average Price |
|
||||||||||
|
|
Oil |
|
|
Gas |
|
|
Oil |
|
|
Gas |
|
||||
August |
|
|
12,603 |
|
|
|
18,137 |
|
|
$ |
79.75 |
|
|
$ |
1.97 |
|
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Table of Contents
Off-Balance Sheet Arrangements
As of September 30, 2026, the Trust had no off-balance sheet arrangements.
New Accounting Pronouncements
As the Trust’s financial statements are prepared on the modified cash basis, most accounting pronouncements are not applicable to the Trust’s financial statements. No new accounting pronouncements have been adopted or issued that would impact the financial statements of the Trust.
Critical Accounting Policies and Estimates
Refer to Note 2 to the unaudited condensed financial statements contained in this Quarterly Report and the Trust’s 2025 Annual Report on Form 10-K, including the audited financial statements of the Trust and notes thereto included therein, for a description of the Trust’s accounting policies and use of estimates.
ITEM 3. Quantitative and Qualitative Disclosures about Market Risk
The Trust is a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and is not required to provide the information required under this Item.
ITEM 4. Controls and Procedures
The Trustee conducted an evaluation of the effectiveness of the Trust’s disclosure controls and procedures pursuant to Exchange Act Rules 13a-15(a) and 15d-15(a) as of the end of the period covered by this Quarterly Report. Based on this evaluation, the Trustee has concluded that the disclosure controls and procedures of the Trust are effective as of September 30, 2026, that the information required to be disclosed by the Trust in its reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC, and such information is accumulated and communicated, as appropriate to allow timely decisions regarding required disclosure. In its evaluation of disclosure controls and procedures, the Trustee has relied, to the extent considered reasonable, on information provided by T2S.
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 the Trust Agreement and the Conveyance, the Trustee’s disclosure controls and procedures related to the Trust necessarily rely on (A) information provided by T2S, including information relating to results of operations, the costs and revenues attributable to the Trust’s interests 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 (B) conclusions and reports regarding reserves by the Trust’s independent reserve engineers.
There were no changes in the Trust's internal control over financial reporting during the quarter ended September 30, 2026, 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, has not evaluated and makes no statement concerning the internal control over financial reporting of T2S.
17
Table of Contents
PART II. OTHER INFORMATION
ITEM 1. Legal Proceedings
None.
Item 1A. Risk Factors
There have been no material changes in the risk factors disclosed under Part I, Item 1A of the Trust’s Annual Report on Form 10-K for the year ended December 31, 2025.
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds
Not applicable.
ITEM 3. Defaults Upon Senior Securities
Not applicable.
ITEM 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
The Trust does not have any directors or officers, and as a result, no such person adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K, during the most recent fiscal quarter. Because the Trust does not have officers, directors, or employees, it has not adopted insider trading policies and procedures governing the purchase, sale, or other disposition of Trust securities by such persons.
ITEM 6. Exhibits.
Exhibit No. |
Description |
3.1 |
Certificate of Trust of PermRock Royalty Trust (incorporated by reference to Exhibit 3.3 to Registration Statement on Form S-1 (SEC File No. 333-224191) filed on April 6, 2018). |
3.2
|
Amended and Restated Trust Agreement of PermRock Royalty Trust, dated May 4, 2018, among Boaz Energy II, LLC, Wilmington Trust, National Association, as Delaware Trustee of PermRock Royalty Trust, and Argent Trust Company, as Trustee of PermRock Royalty Trust (incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K (SEC File No. 001-38472) filed on May 8, 2018). |
3.3 |
Amendment No. 1 to the Amended and Restated Trust Agreement of PermRock Royalty Trust, dated May 4, 2022 (incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K (SEC File No. 001-38472) filed on May 6, 2022). |
31.1 |
Section 302 Certification.* |
32.1 |
Section 906 Certification.* |
The exhibits marked with the asterisk symbol (*) are filed or furnished with this Quarterly Report on Form 10-Q.
18
Table of Contents
SIGNATURE
Pursuant to the requirements 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.
PERMROCK ROYALTY TRUST |
||
|
|
|
By: |
|
Argent Trust Company, as Trustee |
|
|
|
|
|
|
By: |
|
/s/ Nancy Willis |
|
|
Nancy Willis |
|
|
Director of Royalty Trust Services |
Date: November 13, 2026
The registrant, PermRock 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 any such function exists pursuant to the terms of the Trust Agreement under which it serves.
19