Energy 11, L.P. 8-K

What Happened
Energy 11, L.P. announced an estimated fair value per common unit of $11.28 as of December 31, 2025 (developed range: $9.92–$12.57). The estimate is based on a third‑party valuation of the Partnership’s oil and gas properties (performed by Pinnacle Energy Services) plus management’s estimates of other assets and liabilities as of 12/31/2025. At that date the Partnership reported an approximate 24% non‑operated working interest in 309 producing wells and potential development sites in the Sanish field (Mountrail County, North Dakota); the average producing well age is ~10.2 years. The estimate was provided to help IRA trustees/custodians and broker‑dealers with account reporting but the Partnership cautions it may not satisfy FINRA or trustee requirements.

Key Details

• Estimated value per common unit: $11.28 (value range used: $9.92–$12.57).
• Total estimated fair value of equity: $213,983,000; estimated fair value of oil & gas properties: $206,141,000.
• Common units outstanding: 18,973. Valuation date: December 31, 2025.
• Valuation method: income approach (discounted cash flow) using consolidated reserve cash flows; discount rate used: 10%; market‑based probability adjustments applied by reserve category.
• Key price assumptions: NYMEX oil strip ~$56.82–$60.77/bbl (2026–2030, +3% thereafter, cap $85); NYMEX gas strip ~$3.61/Mcf (flat to 2030, +3% thereafter, cap $4.50).
• Important limits: not a GAAP appraisal, no public market exists for units, and the Partnership may not update this estimate; it may not represent a sale/liquidation price or meet FINRA/trustee valuation rules.

Why It Matters
This 8‑K gives investors and custodians a firm snapshot used for IRA/account reporting and provides a baseline valuation of Energy 11’s units and oil & gas assets as of 12/31/2025. However, it is an estimate built on material assumptions (commodity prices, discount rate, development probabilities) and is not a market trading price or guaranteed liquidation value. Changes in those assumptions — or in oil and gas markets — could materially change the per‑unit value, and the Partnership does not intend to update the estimate after the stated date.