PermRock Royalty Trust

Climate Impact & Sustainability Data (2022, 2023)

Compliance with environmental laws and regulations, including those related to hazardous substances, waste handling, water discharges, air emissions, climate change, hydraulic fracturing, and endangered species.
Risks associated with operating in a single geographic area (Permian Basin).
Potential for title deficiencies.
Cybersecurity threats.
Volatility of oil and natural gas prices.
Depletion of reserves.

Boaz Energy maintains insurance coverage.
Boaz Energy participates in waterflooding and workovers to maintain production.
Boaz Energy plans to drill new wells and stimulate existing wells to improve production.
The Trust maintains cash reserves.

Compliance with stringent environmental laws and regulations governing the discharge of materials into the environment.
Potential for hydraulic fracturing to adversely affect drinking water supplies and induce seismic events.
Adoption and implementation of international, federal, or state climate change legislation or regulations.
Potential physical effects of climate change that could disrupt production.
Additional restrictions on drilling activities intended to protect certain species of wildlife.
Cybersecurity threats.

Boaz Energy participates in non-operated drilling and recompletion projects, water flood conformance and reactivations.
Boaz Energy maintains water flood operations where prudent and does necessary repairs to bring wells back to production.
Boaz Energy plans to continue reactivating inactive wells by either returning them to production or recompleting them to new formations.
The Trustee maintains robust cybersecurity protocols, including technological capabilities that prevent and detect disruptions; computer workstations and programs protected with passwords and passphrases; employee training; and securing of documents and work areas.