Business Context and Reporting Period
This Form 8-K Current Report was filed by Permianville Royalty Trust on September 14, 2021. The Trust is a Delaware entity with units of beneficial interest (PVL) traded on the New York Stock Exchange. The report addresses a change in the Trust's independent registered public accounting firm.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The document notes that prior financial statements were prepared on a modified cash basis of accounting.
Material Changes
- Dismissal of Previous Auditor: On September 14, 2021, the Trustee dismissed Ernst & Young LLP (E&Y) as the independent registered public accounting firm.
- Engagement of New Auditor: On the same date, the Trustee appointed Weaver and Tidwell, L.L.P. as the new independent registered public accounting firm, effective immediately for the fiscal year ending December 31, 2021.
- Audit History: E&Y's reports for fiscal years 2020 and 2019 contained no adverse opinions, disclaimers, or qualifications. There were no disagreements regarding accounting principles or reportable events during the relevant periods.
Guidance, Outlook, and Risks
The filing contains no financial guidance, outlook, or management commentary regarding future performance. The primary risk disclosed relates to the transition of audit responsibilities. The Trust confirmed that E&Y was authorized to respond to successor auditor inquiries and provided a letter to the SEC agreeing with the statements made in the report.
Investor Verification Checklist
- Verify the effective date of the new engagement letter with Weaver and Tidwell, L.L.P.
- Review the attached Exhibit 16.1 (E&Y's letter to the SEC) for any additional context regarding the dismissal.
- Confirm the Trust's transition plan for the modified cash basis of accounting under the new auditor.
- Monitor future filings for the first financial statements audited by the new firm.