Permianville Royalty Trust (PVL)·Q2 2025 Earnings Summary

Executive Summary

• Q2 2025 returned to positive net profits at the underlying properties, eliminating a $1.4M carryforward shortfall, but the Trust still deferred distributions until Sponsor advances were repaid; distributable income for the quarter was $282,084 ($0.008548 per unit) .
• The Sponsor raised visibility on Haynesville-driven gas, indicating initial production of ~60 MMcf/d per new well and guiding to the high end of its 2025 capex outlook ($10–$15M; $8–$12M net to the Trust); subsequent monthly cash distribution of $0.016000 per unit was declared on August 18, 2025 .
• Versus prior year, oil revenues fell sharply due to the absence of 2024’s delayed Permian volumes release, while natural gas sales rose on higher volumes; LOE and development costs were materially lower YoY, driving the swing to positive net profits .
• Near-term stock catalysts: resumed monthly distributions (September payment) after recouping shortfalls/advances and visible Haynesville contribution; risks include commodity-price volatility and elevated midstream expenses tied to new wells .

What Went Well and What Went Wrong

What Went Well

• Positive net profits in Q2 eliminated the $1.4M shortfall; distributable income for Q2 was $282,084 ($0.008548 per unit) .
• Gas volumes and revenues increased QoQ and YoY; operator reported initial rates of ~60 MMcf/d for each of the three Haynesville wells, with first revenues reflected and further working-interest proceeds expected .
• Cost discipline: lease operating expenses (-43% YoY) and development expenses (-78% YoY) dropped materially, helping the swing to positive net profits .

What Went Wrong

• Oil sales fell 49% YoY on 47% lower volumes and lower realized prices; 2024 had non-recurring release of delayed Permian production, which did not recur in 2025 .
• Elevated midstream expenses tied to Haynesville ramp increased operating costs by $0.4M MoM in the August calculation (reflecting Q2 production period) .
• Q2 distributions remained deferred until Sponsor advances (administrative expense funding) were repaid; advances outstanding were $550,323 at quarter-end .

Financial Results

Trust-level metrics

Underlying properties – gross profits, costs, and net profits

Underlying production and realized prices

S&P Global – Wall Street consensus (availability)

Values retrieved from S&P Global.
Note: EPS consensus and target price estimates were unavailable for PVL; the S&P feed provided actuals only for revenue in Q1 and Q2 2025.

Guidance Changes

Earnings Call Themes & Trends

Note: PVL does not hold earnings calls; its filings highlight the Trust’s passive structure without executive officers/board, aligning with the absence of a conference call Q&A .

Management Commentary

• “Subsequent to June 30, 2025, the Sponsor indicates that it has received from the operator the initial revenues from these [Haynesville] wells, which will be reflected in the net profits interest calculations in the third quarter. … With the revenue recently received from the new Haynesville wells, the Sponsor expects the net profits interest to return to positive monthly payments in calendar year 2025.”
• “The Sponsor is now guiding to the high end of its previously revised 2025 capital spending outlook of $10.0 million to $15.0 million, or $8.0 million to $12.0 million net to the Trust’s Net Profits Interest.”
• “The operator reported initial production rates of approximately 60 million cubic feet per day for each of these wells.”

Q&A Highlights

• No quarterly earnings call or Q&A session; the Trust is a passive entity without executive officers/board and communicates via monthly 8-Ks and 10-Q/10-K filings .

Estimates Context

• Revenue: S&P Global shows actual revenue of $442,686* in Q2 2025 (comprising $419,589 income from net profits interest and $23,097 interest) and $23,000* in Q1 2025; no Wall Street consensus forecasts were available to assess beat/miss.*
• EPS: No consensus EPS available; PVL reports distributable income per unit rather than GAAP EPS.
  Values retrieved from S&P Global.

Key Takeaways for Investors

• Distribution inflection: After eliminating shortfalls and repaying advances, PVL declared a $0.016000/unit September distribution; monthly distributions should be supported by Haynesville gas receipts, subject to commodity volatility .
• Gas-led uplift: Three Haynesville wells with ~60 MMcf/d initial rates each materially increased gas revenue/volumes; more locations may be developed, offering medium-term distribution support .
• Cost relief: Significant YoY reductions in LOE and development costs improved net profits resiliency; monitor midstream expense increases tied to Haynesville .
• Capex trajectory: Sponsor’s guidance to the high end of $10–$15M (gross) / $8–$12M (net) implies continued elevated spend, predominantly in Haynesville; expect near-term distribution variability tied to capex timing and operator schedules .
• Oil vs gas mix: Oil volumes/prices remained weaker vs 2024’s unusual Permian release; the narrative is shifting toward gas volume growth as Haynesville ramps .
• Liquidity mechanics: Any future shortfalls/advances halt distributions until repaid; investors should track monthly 8-Ks for net profits and reserve/advance status .
• Risk monitor: Commodity-price volatility (OPEC supply/macro), midstream costs, operator capex timing, and potential sector consolidation continue to drive variability in net profits and distributions .