Permianville Royalty Trust (PVL): Business Model Canvas [Dec-2025 Updated]

You're digging into Permianville Royalty Trust (PVL) because you know these royalty plays can be cash cows, but you need to see the real mechanics behind the ticker. Honestly, what you're looking at in late 2025 is a fascinating tug-of-war: passive ownership of prime Permian and new Haynesville gas assets-some wells hitting 60 MMcf/d-juxtaposed against the reality of monthly distributions that can swing wildly, like that recent $0.029000 per unit payment. Before you decide if this debt-free structure is a pure income play or a volatility trap, let's break down exactly how the 80% Net Profits Interest translates into your bank account by dissecting its entire Business Model Canvas below.

Permianville Royalty Trust (PVL) - Canvas Business Model: Key Partnerships

The structure of Permianville Royalty Trust (PVL) relies on several external entities to manage the Underlying Properties and administer the Trust, as the Trust itself holds only a net profits interest (NPI), representing the right to receive 80% of the net profits.

COERT Holdings 1 LLC (The Sponsor) is central to operations, advising the Trustee and managing development activities. The Sponsor is responsible for deducting operating and capital expenditures before calculating the NPI share flowing to the Trust. As of November 2025, the Sponsor has been actively managing future development, establishing a total cash reserve of $1.3 million for approved, future development expenses, primarily associated with incremental Haynesville wells. This reserve was increased by $0.6 million from the current month's net profits in the November 2025 announcement. Furthermore, in September 2025, the Sponsor sold a non-producing, partial Permian acreage stake for total cash proceeds of $0.4 million.

The Trust's administrative function is handled by The Bank of New York Mellon Trust Company, N.A., which serves as the Trustee. This entity receives direction from the Sponsor and processes the net profits interest calculation for distribution to unitholders.

Production is heavily influenced by third-party operators. Specifically, a public super major oil company operates key Haynesville wells. These three new Haynesville wells, which began producing in April 2025, reported initial production rates of approximately 60 million cubic feet per day for each well. Other operators involved with the Underlying Properties include Pioneer, Ovintiv, Franklin Mountain, BP, Aethon, and Comstock.

Midstream companies are critical for handling the output from the Haynesville production. The costs associated with these partners are significant; for instance, total accrued operating expenses increased by $0.4 million in one month due to an increase in midstream expenses related to the three new Haynesville wells.

Here's a look at the recent financial impact tied to these operational partners:

The dependency on the operator and the NPI structure means unitholders are exposed to cost decisions beyond their direct control. The structure dictates that distributions are binary-revenue minus expenses equals net profits, and the Trust gets 80% of that remainder.

Key operational and administrative relationships include:

• COERT Holdings 1 LLC (Sponsor): Manages development and expense deductions.
• The Bank of New York Mellon Trust Company, N.A. (Trustee): Administers the Trust and distributions.
• Public Super Major Oil Company: Operator of the new Haynesville wells.
• Other Operators: Pioneer, Ovintiv, Franklin Mountain, BP, Aethon, and Comstock.
• Midstream Partners: Incurred expenses leading to a $0.4 million increase in one month.

The Sponsor anticipates that the Underlying Properties will return to generating positive net profits in 2025 based on current commodity prices. Finance: draft 13-week cash view by Friday.

Permianville Royalty Trust (PVL) - Canvas Business Model: Key Activities

The core of Permianville Royalty Trust (PVL) key activities revolves around its passive ownership structure and the subsequent administrative steps required to translate production revenue into unitholder distributions. You're essentially a passive owner of a stream of income, not an active producer.

Passively owning an 80% Net Profits Interest (NPI) in oil and gas properties.

Permianville Royalty Trust (PVL) is structured to own a net profits interest (NPI) representing the right to receive 80% of the net profits from the sale of oil and natural gas production from underlying properties located in Texas, Louisiana, and New Mexico. This passive role means the Trust has no control over the operator's decisions on production rates or operating costs. The Trust's Q3 2025 revenue was reported as $\$11.6$ million, while the net income for the same period was $\$528,000. This highlights the significant impact of costs deducted before the NPI calculation.

Collecting NPI cash receipts from the Sponsor/Operator.

The Trust collects cash receipts generated from the sale of hydrocarbons produced by the underlying properties, which are managed by the Sponsor/Operator. For the month underlying the August 2025 distribution announcement, recorded oil cash receipts totaled $\$2.2$ million, based on a realized wellhead price of $\$60.62$ /Bbl. Natural gas cash receipts for that same period totaled $\$2.7$ million, with a realized wellhead price of $\$3.22$ /Mcf. Total accrued operating expenses for that period increased to $\$2.8$ million.

Calculating distributable net profits monthly, after all costs and shortfalls.

Distributable net profits are calculated monthly after deducting all operational costs, capital expenditures, and any prior period net profits interest shortfalls. The Trust suspended distributions for the first seven months of 2025 due to these factors. For the Q3 2025 period, the distributable income was $\$0.528$M, equating to $\$0.0160$ per unit. This followed a Q2 2025 distributable income of $\$282,084 ($\$0.008548$ per unit). The calculation for the August 2025 distribution included recouping a prior net profits interest shortfall of $\$0.3$ million.

Repaying Sponsor advances for administrative expenses (e.g., $\$550,323$ outstanding at Q2 2025).

A critical step before distributions can resume is the repayment of administrative expense advances made by the Sponsor to cover Trust operations. At the end of Q2 2025, the outstanding balance for these advances was $\$550,323. The calculation for the August 2025 distribution included repaying prior period administrative expense advances to the Trust totaling $\$0.6$ million. Once shortfalls and advances are cleared, monthly distributions can resume. The November 2025 distribution was $\$0.029000$ per unit.

Here is a snapshot of the financial mechanics tied to these key activities:

The Trust's activity is heavily influenced by commodity prices and operator spending, which directly affect the cash receipts and subsequent distributable net profits. You see this clearly when comparing the Q3 2025 net income of $\$528,000$ to the Q3 2024 net income of $\$1.518$M.

• Oil sales declined 55% Year-over-Year in Q3 2025.
• Oil volumes were down 44% in Q3 2025 compared to Q3 2024.
• Realized oil prices were down 20% in Q3 2025 compared to Q3 2024, at $\$63.71$ /Bbl.
• Development expenses rose 28% Year-over-Year in Q3 2025.

Finance: draft the Q4 2025 cash flow projection by next Tuesday.

Permianville Royalty Trust (PVL) - Canvas Business Model: Key Resources

You're looking at the core assets Permianville Royalty Trust (PVL) relies on to generate its distributions. For a royalty trust, the Key Resources aren't factories or employees; they are the legal rights to the hydrocarbons and the physical reserves themselves. Here's the breakdown of what drives the cash flow.

The Rights and the Reserves

The fundamental resource is the legal structure granting access to production revenue. Permianville Royalty Trust is a Delaware statutory trust holding a 80% Net Profits Interest (NPI) in the underlying assets. This means the Trust is entitled to 80% of the net profits after the operator deducts specified costs. This interest covers production from properties located across Texas, Louisiana, and New Mexico. The asset base includes both conventional properties and unconventional assets situated in the Permian and Haynesville basins.

The Trust's financial structure is a key resource in itself, as it operates without the burden of traditional financing. The balance sheet structure is characterized by $0.0 in total debt as of Q2 2025.

The operational performance of the underlying assets directly translates to the Trust's distributable income. For instance, the distributable income for Q2 2025 was $282,084, or $0.008548 per unit. The Trust's quarterly net margin stood at 5.79%, with a Return on Equity (ROE) of 7.18%. As of late 2025, the market capitalization was approximately $60.9 million.

High-Rate Gas Development

A significant near-term resource driver is the development activity in the Haynesville Shale. The operator has successfully brought new wells online, which are a critical component of the current revenue outlook. Specifically, new, high-rate Haynesville gas wells are yielding initial production rates of approximately 60 MMcf/d each. This gas-focused production is expected to be a major contributor to future cash flows, as evidenced by the August 2025 monthly distribution calculation reflecting July 2025 natural gas production.

The Sponsor is actively managing capital for future development, establishing a cash reserve for approved, future development expenses, primarily for incremental Haynesville wells. As of the November 2025 announcement, the Sponsor had established a total reserve of $1.3 million for these expenses.

Underlying Production Metrics

You can see the recent revenue generation from the underlying assets in the table below, based on the August 2025 cash receipts calculation, which included August oil production and July gas production. Note the realized wellhead prices for the period.

The cash receipts from these sales were substantial, though costs are a direct deduction from the NPI calculation.

The key elements that define the Trust's resource base can be summarized like this:

• 80% NPI entitlement across all underlying properties.
• Asset base spanning Texas, Louisiana, and New Mexico.
• Exposure to high-potential Haynesville Shale gas production.
• Unburdened capital structure with $0.0 long-term debt as of Q2 2025.
• Recent underlying oil cash receipts totaled $2.3 million for the current month.
• Recent underlying natural gas cash receipts totaled $2.3 million for the current month.

The Trust also benefited from a non-recurring event in September 2025, where the Sponsor sold a non-producing Permian acreage stake, with $0.4 million in sale proceeds attributable to the net profits interest included in that month's calculation. This highlights that asset sales, even partial ones, can be a source of cash flow to the Trust, separate from ongoing production.

Permianville Royalty Trust (PVL) - Canvas Business Model: Value Propositions

You're looking at Permianville Royalty Trust (PVL) as a way to tap into energy production without taking on the headaches of drilling and operating. The core value here is direct, passive exposure to commodity prices without operational risk. You own a piece of the net profits interest, which is the right to receive 80% of the net profits from the sale of oil and natural gas production from properties primarily in Texas, Louisiana, and New Mexico.

The mechanism for return is monthly cash distributions, though you must understand they are inherently inconsistent. For the payment due December 15, 2025, the distribution was set at $0.029000 per unit, based on August 2025 oil production and July 2025 gas production figures. To give you a sense of the variability, the distributable income for Q2 2025 was only $0.008548 per unit, which was enough to eliminate a $1.4M carryforward shortfall at the underlying properties.

This structure makes Permianville Royalty Trust (PVL) a pure-play royalty vehicle. It's focused on established Permian assets but is increasingly tied to new development, specifically Haynesville gas production. For instance, the operator reported initial production rates of ~60 MMcf/d per new Haynesville well, which directly impacts the Trust's cash flow potential. This focus on key basins is a major part of the proposition.

The final piece is the high potential yield when commodity prices and production volumes align. When the underlying economics are strong, the yield can look very attractive. For example, one recent calculation showed a dividend yield of 19.9%, based on an annual amount of $0.360 per unit. Still, you need to watch the inputs closely, as the payout coverage can be tight; the payout ratio was recently reported at 100.7%.

Here's a quick look at the recent operational snapshot that drove the December 2025 payment:

The value proposition is built on these structural advantages and the underlying asset quality. You are buying a stream of cash flow, not an operating company. Think about what that means for your risk profile.

• Right to 80% of net profits from underlying properties.
• Exposure to both Permian and Haynesville basins.
• Cash flow tied directly to realized wellhead prices.
• Distributions are paid monthly, if net profits are positive.
• Recent capital expenditures were $0.3 million for the period.

Also, remember the Sponsor's activity can affect the calculation; for instance, the Sponsor sold a partial Permian acreage stake in September 2025 for total cash proceeds of $0.4 million, which was included in that month's net profits interest calculation. It's defintely a structure that requires you to monitor commodity markets and the operator's cost control.

Finance: draft 13-week cash view by Friday.

Permianville Royalty Trust (PVL) - Canvas Business Model: Customer Relationships

You're looking at how Permianville Royalty Trust (PVL) interacts with its unitholders. For a statutory trust like this, the relationship is primarily passive and financial, not one of ongoing service or support. It's about timely delivery of what you own.

Automated, transactional relationship via monthly distribution payments

The core relationship is the automated transfer of cash flow. Permianville Royalty Trust (PVL) is structured to pass through 80% of the net profits from its underlying oil and gas properties directly to you, the unitholder, on a monthly basis. This is highly transactional; the relationship exists to facilitate these payments.

Here's a look at the recent distribution cadence as of late 2025, showing the variability you should expect:

The Year-To-Date total distribution for 2025, through the November declaration, reached $0.098000 per unit. Honestly, these numbers swing based on commodity prices, which is the main risk you take on as an investor here. The current dividend yield, based on the latest figures, is cited around 19.46%, tied to an annualized dividend of $0.36 per share.

Investor Relations (IR) updates via press releases and SEC filings

Since the relationship is purely financial, the primary non-transactional touchpoints are formal disclosures. Permianville Royalty Trust (PVL) uses press releases to communicate the monthly distribution amounts and operational updates, keeping you informed about the inputs affecting your cash flow.

You can expect regular communication:

• Monthly Cash Distribution announcements, such as the one on November 17, 2025.
• Monthly Operational Updates, like the release on July 18, 2025.
• SEC filings, including the Annual Report on Form 10-K for the year ended December 31, 2024, filed on March 19, 2025.

These releases detail the underlying sales volumes and average realized wellhead prices, for example, the November 17, 2025 release showed oil at $64.30/Bbl and natural gas at $2.96/Mcf for the current month's calculation.

Unitholder voting on major structural changes, like the 2023 asset sale

While rare, the most significant direct interaction with unitholders involves voting on structural changes proposed by the Sponsor, COERT Holdings 1 LLC. This is where you move from passive recipient to active governance participant.

The key example is the special meeting held on July 19, 2023, which addressed the sale of certain oil and gas properties. Here are the specifics of that relationship event:

• Meeting Date: July 19, 2023.
• Record Date for Voting Eligibility: June 6, 2023.
• Sponsor Ownership: Over 20% of outstanding Trust units.
• Estimated Distribution Per Unit from Sale Proceeds: $0.15000.
• Asset Scope: Divestiture Properties represented less than 5% of the total PV-10 value as of December 31, 2022.

Proxy advisory firms, like Institutional Shareholder Services Inc. and Glass, Lewis & Co., weighed in, recommending unitholders vote "FOR" all proposals on July 5 and July 6, 2023, respectively. The approval allowed the release of the Net Profits Interest associated with those Divestiture Properties, which closed on August 9, 2023. Also, proposals were voted on to raise future threshold requirements for similar transactions, directly impacting future governance.

Finance: review the impact of the September 2025 partial acreage stake sale proceeds ($0.4 million attributable to the net profits interest) on the December 2025 distribution by next Tuesday.

Permianville Royalty Trust (PVL) - Canvas Business Model: Channels

You're looking at how Permianville Royalty Trust (PVL) gets its value proposition-the right to 80% of net profits from specific oil and gas properties-out to its unitholders. It's a direct, exchange-based, and administrative channel structure.

New York Stock Exchange (NYSE) for trading of PVL units

The primary market channel for PVL units is the New York Stock Exchange (NYSE). This is where liquidity is established for unitholders looking to buy or sell their interest in the Trust's future cash flows.

Here are some recent market metrics as of late 2025:

The trading channel is supported by the Trust's consistent monthly payout history, though recent months show variability in the per-unit amount.

The Trustee (BNY Mellon) for processing and paying cash distributions

The Bank of New York Mellon Trust Company, N.A. acts as the Trustee, handling the mechanics of getting the distributable income to the unitholders. This is the critical administrative channel for realizing the Trust's revenue stream.

Recent distribution data shows the direct outcome of this channel:

For the distribution announced in November 2025, the distributable income from the net profits interest was approximately $0.5 million after recouping a prior net profits interest shortfall of $0.3 million and repaying administrative expense advances of $0.6 million.

Key financial metrics tied to the distribution channel as of late 2025 include:

• Annual Dividend: $0.36 per share.
• Dividend Yield Today: 5.3% (based on a prior payment).
• Payout Frequency: Monthly.
• Payout Ratio: 166.36%.
• One-Year Dividend Growth: 24.62%.

If you need to send a written request for a printed copy of the Annual Report on Form 10-K, the Trustee's address is The Bank of New York Mellon Trust Company, N.A., 601 Travis Street, 16th Floor, Houston, TX 77002.

Investor Relations website for official announcements and financial data

The Permianville Royalty Trust Investor Relations website serves as the digital channel for official communication, providing transparency to stockholders and analysts. The main site is www.permianvilleroyaltytrust.com.

The website organizes information into distinct, accessible sections:

• Stock Information, including the current stock quote (e.g., $1.87 on Dec 5, 2025).
• Cash Distributions history and announcements.
• Tax Information.
• News Releases, which are posted monthly, such as the November 17, 2025 announcement of the December 2025 distribution.
• SEC Filings, including the Annual Report on Form 10-K for the year ended December 31, 2024, filed on March 19, 2025.
• Email Alerts sign-up functionality.

The site is the source for the latest operational updates, such as the July 18, 2025, Monthly Operational Update.

Permianville Royalty Trust (PVL) - Canvas Business Model: Customer Segments

You're looking at the specific groups of people and entities that Permianville Royalty Trust (PVL) serves with its structure as a Delaware statutory trust, which is designed primarily to pass through net profits from oil and gas properties.

Individual retail investors seeking high-yield, income-focused energy exposure.

This segment is drawn to the monthly cash distributions, which represent the primary value proposition for retail holders of PVL units. The historical consistency, though subject to commodity price fluctuations, is a key attraction for income-seekers. For instance, the Trust announced a cash distribution of $0.029000 per unit for December 2025, payable on December 15, 2025, to unitholders of record on November 28, 2025. The year-to-date total distribution for 2025 was reported as $0.098000 per unit. Some data points suggest an annual dividend of $0.36 per share with a yield of 19.46%, while another source notes a dividend yield of 5.92% based on the latest distribution amount. This group is focused on the direct cash return from the underlying assets in Texas, Louisiana, and New Mexico.

• Payout Frequency: Monthly
• Latest Distribution Amount (Nov 2025 declaration): $0.029000 per unit
• Reported Oil Cash Receipts (Current Month): $2.3 million
• Reported Natural Gas Cash Receipts (Current Month): $2.3 million

Institutional investors and funds looking for passive energy cash flow.

This group includes specialized funds and wealth managers that allocate capital to royalty trusts for passive exposure to the energy sector without direct operational risk. Institutional ownership accounts for 6.78% of Permianville Royalty Trust stock. As of late 2025 filings, there were 25 institutional owners filing 13D/G or 13F forms, holding a total of 2,924,301 shares. The nature of the investment for these entities is often passive, aligning with Schedule 13G filings for investments over 5%. Major holders mentioned include Ashton Thomas Private Wealth LLC with holdings valued at $2.86M and Pingora Partners LLC with $1.63M.

Here's a quick look at the institutional footprint:

Financial analysts and portfolio managers tracking royalty trust performance.

This segment uses the Trust's public filings to model future cash flows and assess the impact of commodity prices and operational costs on the net profits interest. They focus on the underlying production and pricing metrics reported quarterly. For example, Permianville Royalty Trust reported Q3 2025 earnings on November 14, 2025, with an EPS of $0.02 and quarterly revenue of $11.57 million. The net profits interest calculation for the November 2025 distribution was based on August 2025 oil production and July 2025 natural gas production. Analysts track the realized wellhead prices, such as the reported $64.30/Bbl for oil and $2.96/Mcf for natural gas in the current month's calculation.

• Q3 2025 Reported Revenue: $11.57 million
• Q3 2025 Reported EPS: $0.02
• Current Month Oil Price: $64.30 per Bbl
• Current Month Natural Gas Price: $2.96 per Mcf

Permianville Royalty Trust (PVL) - Canvas Business Model: Cost Structure

You're looking at the cost side of the Permianville Royalty Trust (PVL) structure as of late 2025. For a royalty trust, the costs are primarily the operating expenses borne by the underlying properties before the net profits interest is calculated, plus the trust's own administrative overhead. The key is that these costs directly reduce the cash available for distribution to you, the unitholder.

The Trust's structure means that the most significant costs are the Lease Operating Expenses (LOE) and development costs, which are deducted from gross revenue before the Trust receives its 80% net profits share. These costs have seen significant fluctuation driven by capital projects.

Here are the key cost components and associated recent figures:

• Trust Administrative Expenses: Specific monthly figures for Trustee and legal fees aren't explicitly broken out in the latest announcements, but the impact of past advances for these expenses is visible.
• Repayment of prior period administrative expense advances to the Trust totaled $0.6 million in the August 2025 announcement period.
• Administrative shortfalls/advances were noted as eliminated as of September 30, 2025.

Lease Operating Expenses (LOE) and development costs are bundled into the total accrued operating expenses, which fluctuate based on activity, particularly the Haynesville well completions.

Here's a look at the monthly expense figures we have:

Development costs, a component of the overall operating/development expenses, have been a major driver of cost pressure. For instance, in the first quarter of 2025, development expenses surged 133% Year-over-Year to $7.16 million.

Capital expenditures (CapEx) are a separate, but related, cost consideration, often being withheld from distributions. The elevated CapEx is tied to the drilling and completion of Haynesville wells operated by a super-major.

You can see the elevated CapEx in the July 2025 reporting period:

• Elevated Capital Expenditures (July 2025): $1.2 million.
• This was an increase of $0.2 million from the prior month.
• CapEx for the month referenced in the November 2025 announcement was $0.3 million.

The Sponsor has also established and expanded a cash reserve for future development expenses, showing forward-looking cost commitment. As of the November 2025 announcement, the total reserve for approved, future development expenses stood at $1.3 million, with an additional $0.6 million withheld that month.

The full-year capital expenditure guidance reflects this focus on development activity:

To be fair, the LOE component itself has shown some positive trends, with management citing a continued decline in lease operating expenditures per barrel of oil equivalent on an aggregate basis compared to prior periods.

Finance: draft 13-week cash view by Friday.

Permianville Royalty Trust (PVL) - Canvas Business Model: Revenue Streams

The revenue streams for Permianville Royalty Trust (PVL) are derived almost entirely from its 80% net profits interest (NPI) in oil and natural gas properties across Texas, Louisiana, and New Mexico. The cash flow is highly dependent on commodity prices and operational volumes, which directly impact the distributable net profits.

For a recent reporting period, the core operating cash receipts looked like this:

• Oil cash receipts totaled $2.3 million, based on realized wellhead prices of $64.30/Bbl for August 2025 production.
• Natural gas cash receipts totaled $2.3 million, based on realized wellhead prices of $2.96/Mcf for July 2025 production.

The Trust also benefits from non-core asset activity, which can provide lump-sum cash injections. For instance, in September 2025, the Sponsor sold a non-producing, partial Permian acreage stake, and the resulting proceeds attributable to the net profits interest amounted to $0.4 million.

The ultimate measure of profitability for the Trust, before any distributions are made, is the distributable net profits. For the second quarter of 2025, the Trust achieved $282,084 in distributable net profits, which was significant because it successfully eliminated a $1.4 million carryforward shortfall from prior periods.

Here is a comparison of recent monthly cash receipts and pricing data to show the revenue dynamics:

You should also note the impact of capital management decisions on distributable income, as these affect the final amount available to unitholders. For the distribution declared in August 2025 (based on May oil/April gas production), the distributable income from the net profits interest was approximately $0.5 million after recouping a $0.3 million prior shortfall and repaying $0.6 million in administrative expense advances. Also, the Sponsor has been actively setting aside funds for future development; in the October 2025 announcement, the Sponsor withheld an additional $0.4 million to add to an existing $0.3 million cash reserve, establishing a total reserve of $0.7 million for approved, future Haynesville well development expenses.

The NPI model means that revenue is the residual after all operating and development costs are covered. The Trust's ability to generate revenue streams is directly tied to the underlying properties' performance, which saw a material uplift from three new Haynesville wells coming online, with initial rates around ~60 MMcf/d per well.