PVL
- Permianville Royalty Trust
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Overview
Company Summary
Permianville Royalty Trust (PVL) is a company that operates as a trust formed by Permianville Oil Corp (the sponsor) to own and acquire net overriding royalty interests in oil and natural gas properties located in the Permian Basin in Texas.
In simple terms, PVL does not engage in direct exploration, production, or refining of oil and natural gas. Instead, it essentially functions as a passive investment vehicle that allows individuals to invest in the revenue generated from oil and gas production activities in the Permian Basin.
Here's how it works: PVL acquires overriding royalty interests, which entitle the company to a portion of the revenue generated from the sale of oil and natural gas on the properties it is associated with. These properties are operated by various exploration and production companies.
These interests are considered "overriding" because they enable PVL to receive a percentage of the revenue generated from the production of oil and natural gas, without taking on any of the operational or financial risks associated with exploration and production activities. The trust agreement determines the terms and conditions of this arrangement.
As the oil and natural gas production continues on the properties, PVL receives its share of the revenue, and the remaining amount is distributed to the individual unit holders (investors) in the trust. The distribution of revenue occurs on a regular basis, typically quarterly.
Overall, the main purpose of PVL is to provide investors with an opportunity to passively invest in the production and sale of oil and natural gas in the Permian Basin and earn a return through the distribution of royalty income.