PermRock Royalty Trust is a passive Delaware statutory trust that holds a Net Profits Interest (NPI) in oil and natural gas producing properties in the Permian Basin. The Trust owns an NPI entitling it to 80% of net profits from production on roughly 22,394 net acres across four operating areas in West Texas. The Trust does not operate wells, employ staff, or make any operational decisions — T2S Permian Acquisitions (which acquired the properties from Boaz Energy in March 2025) handles all drilling, production, and marketing. The Trust's sole function is to receive its share of net profits and distribute cash monthly to unitholders. Distributable cash is driven by oil and gas prices, production volumes, and operating costs — since the NPI is calculated on net profits, cost increases directly reduce Trust distributions. If net profits turn negative, the Trust receives nothing and the deficit carries forward with interest against future distributions. The Trust has no hedging, retains no earnings, and makes no capital investments. It will dissolve if annual distributable cash falls below $2M for two consecutive years, or if 75% of unitholders vote to dissolve. The Underlying Properties are conventional Permian assets — mature, decline-prone formations rather than the unconventional shale plays that attract most capital in the basin today.