ENDUROPERMIANVILLE ROYALTY TRUST

Statements of Distributable Income

(unaudited)

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

ENDURO

PERMIANVILLE ROYALTY TRUST

Statements of Changes in Trust Corpus

(unaudited)

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

ENDUROPERMIANVILLE ROYALTY TRUST

NOTES TO FINANCIAL STATEMENTS

(unaudited)

1.TRUST ORGANIZATION AND PROVISIONS

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

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

In connection with the closing of the initial public offering in November 2011, Enduro contributed the Net Profits Interest to the Trust in exchange for 33,000,000 units of beneficial interest in the Trust (the “Trust Units”). ThroughOn August 31, 2018, COERT Holdings 1 LLC (“COERT” or the initial public offering in 2011“Sponsor”) acquired from Enduro the Underlying Properties and a secondary offering in 2013,all of the outstanding Trust Units owned by Enduro has sold a total(the “Sale Transaction”). In connection with the Sale Transaction, COERT assumed all of 24,400,000Enduro’s obligations under the Trust Units.Agreement and other instruments to which Enduro and the Trustee were parties. As of SeptemberJune 30, 2017, Enduro2023, the Sponsor owned 8,600,0007,517,942 Trust Units, or 26%23% of the issued and outstanding Trust Units.

As further discussed in “Note 9. Subsequent Events,” at a special meeting of Trust unitholders held on August 30, 2017, unitholders approved several proposals, including amendments to the Trust Agreement. In September 2017, Enduro, the Trustee and the Delaware Trustee entered into the First Amendment to Amended and Restated Trust Agreement, which amended certain provisions of the Trust Agreement to, among other things, allow Enduro to sell interests in the Underlying Properties free and clear of the Net Profits Interest with the approval of Trust unitholders holding at least 50% of the then outstanding units of the Trust at a meeting held in accordance with the requirements of the Trust Agreement. This amendment reduced the required threshold for approval of such sales from 75% to 50% of the outstanding units of the Trust.

The Net Profits Interest is passive in nature and neither the Trust nor the Trustee has any management control over or responsibility for costs relating to the operation of the Underlying Properties. The Amended and Restated Trust Agreement provides, among other provisions, that:

PERMIANVILLE ROYALTY TRUST

NOTES TO FINANCIAL STATEMENTS

(unaudited)

ENDURO ROYALTY TRUST

NOTES TO FINANCIAL STATEMENTS - Continued

(unaudited)

2.BASIS OF PRESENTATION

The accompanying Statement of Assets, Liabilities and Trust Corpus as of December 31, 2016,2022, which has been derived from audited financial statements, and the unaudited interim financial statements as of SeptemberJune 30, 20172023 and for the three and ninesix months ended SeptemberJune 30, 20172023 and 20162022 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and disclosures normally included in annual financial statements have been condensed or omitted pursuant to those rules and regulations. Therefore, these financial statements should be read in conjunction with the financial statements and notes thereto included in the Trust’s Annual Report on Form 10-K for the fiscal year ended December 31, 20162022 (the “2016“2022 Annual Report on Form 10-K”).

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

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

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

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

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

(a) 

(a)

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

PERMIANVILLE ROYALTY TRUST

NOTES TO FINANCIAL STATEMENTS

(unaudited)

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

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

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

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

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

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

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

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.

ENDURO ROYALTY TRUST

NOTES TO FINANCIAL STATEMENTS - Continued

(unaudited)

3.NET PROFITS INTEREST IN OIL AND NATURAL GAS PROPERTIES

The Net Profits Interest in oil and natural gas properties was recorded at its fair value on the date of conveyance. Amortization of the Net Profits Interest in oil and natural gas properties is calculated on a unit-of-production basis based on the Underlying Properties’ production and reserves. The reserves upon which the amortization rate is based are quantity estimates whichthat are subject to numerous uncertainties inherent in the estimation of proved reserves. The volumes considered to be commercially recoverable fluctuate with changes in commodity prices and operating costs. These estimates are expected to change as additional information becomes available in the future. Downward revisions in proved reserves may result in an increased rate of amortization. Amortization is charged directly to the Trust corpus balance and does not affect the distributable income of the Trust. Accumulated amortization as of SeptemberJune 30, 20172023 and December 31, 20162022 was $262,595,035$299,725,266 and $251,600,947,$297,449,526, respectively.

The Net Profits Interest is periodically assessed for impairment whenever events or circumstances indicate that the current fair value based on expected future cash flows of the Underlying Properties may be less than the carrying value of the Net Profits Interest. While the Trust did not record an impairment during the ninesix months ended SeptemberJune 30, 20172023 or 2016,2022, future downward revisions in actual production volumes relative to current forecasts, higher than expected operating costs, or lower than anticipated market pricingcommodity prices could result in recognition of impairment in future periods.

In June 2017, Enduro notified the Trustee that Enduro had entered into eight separate purchase and sale agreements to divest certain acreage and associated production in the Permian Basin (the “Divestiture Properties”) that constituted part of the Underlying Properties and were therefore burdened by the Trust’s Net Profits Interest. On August 30, 2017, at a special meeting of Trust unitholders, the unitholders approved (i) the eight transactions pursuant to which Enduro would sell the Divestiture Properties, (ii) the release of the Trust’s 80% Net Profits Interest in the Divestiture Properties, and (iii) the related proposals to effect the sale transactions in exchange for the Trust receiving 80% of the net proceeds from the sale of the Divestiture Properties. In September 2017, Enduro completed the sale of the Divestiture Properties and announced that as a result of the transactions, a special distribution of $1.150005 per unit would be paid on October 20, 2017 to Trust unitholders. Although Enduro completed the transactions in September 2017, the distribution was not paid to unitholders until October 2017; accordingly, under the modified cash basis of accounting, the transaction is not reflected in the accompanying financial statements of the Trust. As the proceeds received from the sale of the Divestiture Properties were primarily attributable to undeveloped acreage, the net profits generated from the Divestiture Properties have been insignificant to the Trust historically. See “Note 9. Subsequent Events” for additional information.

4.INCOME TAXES

Federal Income Taxes

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

PERMIANVILLE ROYALTY TRUST

NOTES TO FINANCIAL STATEMENTS

(unaudited)

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

Some Trust Units are held by a middleman, as such term is broadly defined in U.S. Treasury Regulations (and includes custodians, nominees, certain joint owners, and brokers holding an interest for a custodian in street name). Therefore, the Trustee considers the Trust to be a non-mortgage widely held fixed investment trust (“WHFIT”) for U.S. federal income tax purposes. The Bank of New York Mellon Trust Company, N.A., 919 Congress Avenue, Austin,601 Travis, 16^th Floor, Houston, Texas 78701,77002, telephone number (512) 236-6555,236-6545, is the representative of the Trust that will provide tax information in accordance with applicable U.S. Treasury Regulations governing the information reporting requirements of the Trust as a WHFIT. Tax information is also posted by the Trustee at www.enduroroyaltytrust.com.www.permianvilleroyaltytrust.com. Notwithstanding the foregoing, the middlemen holding units on behalf of unitholders, and not the Trustee of the Trust, are solely responsible for complying with the information reporting requirements under the U.S. Treasury Regulations with respect to such units, including the issuance of IRS Forms 1099 and certain written tax statements. Unitholders whose units are held by middlemen should consult with such middlemen regarding the information that will be reported to them by the middlemen with respect to the Trust Units.

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

ENDURO ROYALTY TRUST

NOTES TO FINANCIAL STATEMENTS - Continued

(unaudited)

State Taxes

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

Texas does not impose a state income tax, so the Trust’s income is not subject to income tax at the trust level in Texas. Louisiana and New Mexico presently have income taxes which tax income of nonresidents from real property located within that state. Louisiana and New Mexico also impose a corporate income tax which may apply to unitholders organized as corporations.

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

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

5.DISTRIBUTIONS TO UNITHOLDERS

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

PERMIANVILLE ROYALTY TRUST

NOTES TO FINANCIAL STATEMENTS

(unaudited)

The following table provides information regarding the Trust’s distributions per unit paid during the nine months ended September 30, 2017 and 2016:periods indicated:

ENDURO ROYALTY TRUST

NOTES TO FINANCIAL STATEMENTS - Continued

(unaudited)

6.DEVELOPMENT EXPENSE RESERVE

During the first quarter of 2016, Enduro established a reserve of $750,000 from the calculated net profits interest for approved 2016 development expenses, which was held by Enduro. During the second quarter of 2016, Enduro increased the previously established reserve by $100,000, for a total of $850,000 withheld for approved 2016 development expenses. During the year ended December 31, 2016, no development expenses were applied against the reserve. However, as a result of lower than anticipated capital expenditures, Enduro released $750,000 of the reserve during the second half of 2016, which increased the income from net profits interest for that period. During the first three months of 2017, Enduro released the remaining $100,000 of the reserve. Prior to 2016, Enduro had not established a reserve for development expenses.

In addition, during the first quarter of 2016, the Trustee withheld $250,000 from the calculated net profits interest for anticipated future liabilities of the Trust, which was utilized during 2016 to pay administrative expenses. No additional amounts have been withheld by the Trust.

7.TRUSTEE FEES

Under the terms of the Trust Agreement, the Trust pays an administrative fee of $200,000 per year to the Trustee and an annual fee of $2,000 to the Delaware Trustee. During each of the threethree-and six-month periods ended June 30, 2023 and nine months ended September 30, 2017,2022, the Trust paid $50,000$100,000 to the Trustee and $150,000, respectively,$0 to the Delaware Trustee pursuant to the terms of the Trust Agreement. During the three and nine months ended September 30, 2016, the Trust paid $50,000 and $150,100, respectively, to the Trustee pursuant to the terms of the Trust Agreement. The Trust paid $2,000 to the Delaware Trustee during the nine months ended September 30, 2017. The Trust did not pay any fees to the Delaware Trustee during the nine months ended September 30, 2016.

8.PERMIAN BASIN OPERATOR ADJUSTMENT AND IMPACT ON FUTURE DISTRIBUTIONS

As previously disclosed, Enduro received a letter in July 2015 from one of its operators in the Permian Basin pertaining to 480,000 Mcf of natural gas for which the operator had paid Enduro on the properties underlying the Trust but for which Enduro had only produced 240,000 Mcf. Subsequently, the operator and Enduro agreed that the value of the overpaid production, totaling $1.1 million to the Underlying Properties, would be recouped with proceeds from future production.

During the recoupment period, which began during the second quarter of 2016, Enduro will not receive any revenue payments and future distribution calculations will not include any volumesDistributions Paid or revenues from any of the operator’s properties until the $1.1 million is fully recovered. For the three months ended September 30, 2017, these properties would have contributed approximately 1,400 Bbls, amounting to $66,000 in oil receipts, and 41,400 Mcf, amounting to $131,000 in natural gas receipts. After deducting $64,000 in revenue deductions for taxes and transportation expenses, a total of $133,000 was withheld by the operator for the three months ended September 30, 2017.

For the nine months ended September 30, 2017, these properties would have contributed approximately 4,000 Bbls, amounting to $182,000 in oil receipts, and 139,100 Mcf, amounting to $379,000 in natural gas receipts. After deducting $184,000 in revenue deductions for taxes and transportation expenses, a total of $377,000 was withheld by the operator for the nine months ended September 30, 2017.

Since the beginning of the recoupment period, these properties would have contributed approximately 8,200 Bbls, amounting to approximately $0.3 million in oil receipts, and 234,600 Mcf, amounting to approximately $0.6 million in natural gas receipts. After deducting $0.3 million in revenue deductions for taxes and transportation expenses, a total of $0.6 million has been withheld by the operator and, as a result, $0.5 million remains to be recouped in subsequent periods.

9.SUBSEQUENT EVENTSDeclared

On October 16, 2017, theJuly 14, 2023, a distribution of $0.003644$0.012500 per unit, which was declared on September 19, 2017,June 16, 2023, was paid to Trust unitholders owning unitsof record as of September 29, 2017.June 30, 2023.

On October 20, 2017,July 17, 2023, the special cashTrust declared a distribution of $1.150005$0.053500 per unit announced on September 25, 2017 wasto Trust unitholders of record as of July 31, 2023. The distribution will be paid to Trust unitholders. As discussedunitholders on August 14, 2023.

Non-producing Property Divestiture

In May 2023, the Sponsor sold approximately $0.3 million in “Note 3.non-producing, non-cash flowing acreage to a private oil company, free and clear of the Net Profits Interest, as permitted under the Trust Agreement. The proceeds from this sale attributable to the Trust’s 80% Net Profits Interest, or approximately $240,000, will be included in Oilthe distribution that will be paid to Trust unitholders on August 14, 2023.

PERMIANVILLE ROYALTY TRUST

NOTES TO FINANCIAL STATEMENTS

(unaudited)

Sale of Divestiture Properties

On May 3, 2023, the Sponsor notified the Trustee that the Sponsor had entered into an agreement to divest certain acreage and Natural Gasassociated production in the Permian Basin (the “Divestiture Properties”) that constituted part of the Underlying Properties” and were therefore burdened by the Trust’s Net Profits Interest, for a total purchase price of approximately $6.7 million. On July 19, 2023, at a special meeting of Trust unitholders, held on August 30, 2017,the unitholders approved Enduro’s salethe foregoing transaction and the release of the Divestiture Properties, unburdened by the Trust’s Net Profits Interest. The special distribution represents net proceeds allocable to Trust unitholders from Enduro’sInterest in the Divestiture Properties. On August 9, 2023, the Sponsor completed the sale of the Divestiture Properties. TotalThe total proceeds received by Endurothe Sponsor from the sale of the Divestiture Properties, after preliminary closing adjustments, were approximately $49.1 million. After deducting$6.5 million, inclusive of the escrow funded by the buyer and partial expense reimbursement associated with the proxy solicitation. The Sponsor will deduct final transaction expenses of $766,737, netfrom the sales proceeds, to Enduro were $48.4 million, of which the proceeds allocable to the Trust were $38.7 million in accordancealong with its 80% Net Profits Interest. Anan escrow amount of $750,000 was withheld from the net proceeds allocable to the Trust and is being held by Enduro$250,000 to cover possible indemnification obligations under the purchase and sale agreements. Any remaining amount held inagreement (the “Indemnification Escrow Amount”), to arrive at final net proceeds, based upon the escrow after payment for any indemnities contained inTrust’s 80% Net Profits Interest. The Sponsor will set a record date and the purchase and sale agreementsspecial distribution, reflecting 50% of the Trust’s share of the net proceeds, will be released and included in the regular monthly distributionpaid to Trust unitholders on or before September 22, 2023. The remaining 50% of the Trust’s share of the net proceeds will be temporarily retained by the Sponsor as a source of payment of the Trust’s proportionate share of any post-closing purchase price adjustments, with any amount remaining (less any amounts in dispute) after such adjustments to be paid to the Trust within 25 monthsfive business days after finalization of the settlement statement (which is expected to occur within 90 days following the closing of the transactions, or by the end of October 2019.

On October 20, 2017, the Trust announced that due to increased capital development expendituressale) and included in North Louisiana during the October distribution period, direct operating expenses and development expenditures exceeded cash receipts for the calculation period and, as a result, a distribution will not be paidto unitholders. Within 12 months after the closing of the sale, any remaining amount from the Indemnification Escrow Amount (less any amounts in November 2017. The shortfall of $15,300dispute) will be deducted from any net profits allocablereleased to the Trust from the Novemberand included in a distribution period.to unitholders.

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

References to the “Trust” in this document refer to Permianville Royalty Trust, previously known as Enduro Royalty Trust, while references to “COERT” or the “Sponsor” in this document refer to COERT Holdings 1 LLC. References to “Enduro” in this document refer to Enduro Resource Partners LLC.LLC, the original sponsor of the Trust. The following review of the Trust’s financial condition and results of operations should be read in conjunction with the financial statements and notes thereto, as well as Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in the Trust’s 20162022 Annual Report on Form 10-K. The Trust’s annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and all other filings with the SEC are available on the SEC’s website at www.sec.gov.www.sec.gov.

Forward-Looking Statements

This Form 10-Q includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact included in this Form 10-Q, including without limitation the statements under this “Trustee’s Discussion and Analysis of Financial Condition and Results of Operations” are forward-looking statements. Such statements may be influenced by factors that could cause actual outcomes and results to differ materially from those projected. No assurance can be given that such expectations will prove to have been correct. When used in this document, the words “believes,” “expects,” “anticipates,” “intends” or similar expressions are intended to identify such forward-looking statements. The following important factors, in addition to those discussed elsewhere in this Form 10-Q, in the Trust’s 20162022 Annual Report on Form 10-K and the Trust’s other filings with the SEC could affect the future results of the energy industry in general, and EnduroCOERT and the Trust in particular, and could cause actual results to differ materially from those expressed in such forward-looking statements:

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

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

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

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

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

·                           conditions in the capital markets;

·                           competition from others in the energy industry;

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

·                           cost inflation.

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

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

Overview

EnduroPermianville Royalty Trust, a statutory trust created in May 2011, completed its initial public offering in November 2011. The Trust’s only asset and source of income is the Net Profits Interest, which entitles the Trust to receive 80% of the net profits from oil and natural gas production from the Underlying Properties. The Net Profits Interest is passive in nature and neither the Trust nor the Trustee has any management control over or responsibility for costs relating to the operation of the Underlying Properties. Additionally, third parties operate substantially all of the wells on the Underlying Properties and, therefore, Endurothe Sponsor is not in a position to control the timing of development efforts, associated costs, or the rate of production of the reserves.

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

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

·                                 oil and natural gas sales prices;

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

·                                 production and development costs;

·                                 price differentials;

·                                 potential reductions or suspensions of production;

·                                 the amount and timing of Trust administrative expenses; and

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

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

Outlook

OilThe overall outlook for development activity on the Underlying Properties remained relatively stable during the first half of 2023, despite a year-over-year volatility in commodity prices. Although the global economy remains volatile, reflecting, among other factors, the armed conflict between Russia and naturalUkraine and the lingering effects of the COVID-19 pandemic, the Sponsor does not expect that these events will have a material impact on the Underlying Properties or the expected 2023 development activity as detailed in the Trust’s 2022 Annual Report on Form 10-K, aside from the effects of volatile commodity prices. The West Texas Intermediate spot price of crude oil has modestly improved from $80.26 per barrel on December 30, 2022 to $82.82 per barrel on August 10, 2023. Natural gas prices have declined significantlyyear-over-year, with the Henry Hub spot price decreasing from $3.52 per MMBtu on December 30, 2022 to $2.83 per MMBtu on August 10, 2023.

With oil prices achieving greater stability in recent periods, the Sponsor currently expects an incremental increase in the previously disclosed capital spending outlook, from the earlier range of $6.0 million to $9.0 million, or $4.8 million to $7.2 million net to the Trust’s Net Profits Interest, to an updated range of $8.0 million to $12.0 million, or $6.4 million to $9.6 million net to the Trust’s Net Profits Interest. The increase in expected capital expenditures is driven primarily by greater activity in the Permian basin by large-cap public operators, which compose the majority of the operators of the Underlying Properties. Meanwhile, the Sponsor continues to expect some moderation in the expected capital expenditure activity in the Haynesville portion of the Underlying Properties, although any declines in this area would be at least partially offset by higher, oil-weighted Permian activity. Nevertheless, the outlook for capital expenditures remains subject to change, as operators are expected to continue to reevaluate their planned capital expenditures, particularly to the extent commodity prices experience further volatility in the future.

Over the first half of 2023, the Sponsor has begun to see a moderation in some of the inflationary pressures and supply chain bottlenecks that had been affecting the Underlying Properties. Given the market volatility and recently increased capital expenditure activity levels, the Sponsor may establish a new cash reserve for approved, future development expenses during 2023, similar to the cash reserve that the Sponsor had established in 2022. The Sponsor indicates that it continues to have access to adequate capital and liquidity to fund such capital expenditures as they come due.

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

Capex Drilling Activity Update

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

The following table is not intended to be a comprehensive list reflecting all capital expenditures to date. The table provides information regarding current projects that remain in process and have not yet begun to generate revenues. Additional information regarding producing wells drilled pursuant to the capital expenditure program is provided following the table.

There can often be a several-month delay from the time of capital expenditures to the time of production and cash flows attributable to the Underlying Properties, especially given the non-operated nature of the Underlying Properties. For example, as previously disclosed, in May 2023 three wells from one of the larger, previously detailed drilling projects were finally converted to first revenues after a delay associated with the operator. These wells began generating revenues in 2022, but the amounts were only finalized for non-operating partners in 2023. The cash revenue catch-up totaled approximately $3.7 million, or approximately $2.9 million net to the Trust’s Net Profits Interest, which was reflected in the net profits interest calculation reported in July and will be included in the distribution that will be paid to Trust unitholders on August 14, 2023.

As reflected in the table above, the Sponsor indicates that since the first quarter a new Haynesville project has commenced (Large Cap E&P 4). In addition, as indicated above, three wells in the Midland began paying revenues during the second quarter, and the same operator (Large Cap E&P 1) has begun to produce from three wells that had been previously categorized as drilling in-process, in addition to adding one new pre-drill project. Meanwhile, one of the Haynesville wells drilled (Large Cap Major 1) has come online and began to generate first revenues in the second half of 2014quarter. For the other projects identified above that are still in process or awaiting first revenues, the Sponsor expects a majority to be completed and have remained low, negatively impactingto begin producing during 2023.

Non-producing Property Divestiture

In May 2023, the fair valueSponsor sold approximately $0.3 million in non-producing, non-cash flowing acreage to a private oil company, free and clear of the Net Profits Interest, as well as revenues and distributable income available to unitholders. Further, depressed commodity pricing reduced development activity in 2015 and 2016, thereby hindering the ability to abate natural production declines on the Underlying Properties. The continued depressed commodity price environment has and will continue to negatively affect the amount of cash flow available for distribution topermitted under the Trust unitholders.

Development activity was limited in 2016, leading to oil and natural gas declines as there was limited new production to offset natural declines.Agreement. The Trust’s oil and natural gas volumes have continued to decline in 2017 due to minimal capital expenditures. Additionally, continued low commodity prices or further price declines may reduce the amount of oil and natural gas that Enduro and its third party operators can economically produce.

In 2017, development activity on the Underlying Properties has been focused on the East Texas / North Louisiana area. Operators have enhanced completion technology on Haynesville wells, resulting in improved economics. Enduro estimates over 50% of 2017 capital expenditures will be focused on the East Texas / North Louisiana area, with six gross (0.5 net) wells drilled during 2017. Based on currently available information, Enduro anticipates 2017 capital expenditures to rangeproceeds from $5 million to $8 millionthis sale attributable to the properties in which the Trust owns a net profits interest, or $4 million to $6.4 million net to the Trust’s 80% Net Profits Interest.Interest, or approximately $240,000, will be included in the distribution that will be paid to Trust unitholders on August 14, 2023.

Permian Property DivestituresSale of Divestiture Properties