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MV Oil Trust(MVO) - 2024 Q2 - Quarterly Report
MVOMV Oil Trust(MVO)2024-08-09 20:15

Financial Performance - The Trust's income from net profits interest decreased by 370,137to370,137 to 4,019,362 for the quarter ended June 30, 2024, compared to 4,389,499forthesamequarterin2023[27]−DistributableincomeforthequarterendedJune30,2024was4,389,499 for the same quarter in 2023[27] - Distributable income for the quarter ended June 30, 2024 was 3,795,000, a decrease of 172,500from172,500 from 3,967,500 for the same quarter in 2023[27] - The Trust's income from net profits interest increased by 2,617to2,617 to 9,578,418 for the six months ended June 30, 2024, compared to 9,575,800forthesameperiodin2023[30]−DistributableincomeforthesixmonthsendedJune30,2024was9,575,800 for the same period in 2023[30] - Distributable income for the six months ended June 30, 2024 was 9,142,500, an increase of 460,000from460,000 from 8,682,500 for the same period in 2023[30] Oil Production and Pricing - The average price received for crude oil sold was 70.25perBblfortheperiodfromJanuary1,2024throughMarch31,2024,comparedto70.25 per Bbl for the period from January 1, 2024 through March 31, 2024, compared to 73.03 per Bbl for the same period in 2023[29] - Total production sales volumes for the period from January 1, 2024 through March 31, 2024 were 117,289 barrels of oil equivalent, a slight decrease from 118,377 barrels of oil equivalent for the same period in 2023[29] - The average price received for crude oil sold was 75.29perBblfortheperiodfromOctober1,2023throughMarch31,2024,comparedto75.29 per Bbl for the period from October 1, 2023 through March 31, 2024, compared to 76.95 per Bbl for the same period in 2023[31] - Total production sales volumes for the period from October 1, 2023 through March 31, 2024 were 240,838 barrels of oil equivalent, down from 243,801 barrels of oil equivalent for the same period in 2023[32] Trust Operations and Future Outlook - As of June 30, 2024, the Trustee held 1,258,935incashandcashequivalentsasareserveforfutureexpenses[34]−TheTrustissettoterminateitsnetprofitsinterestonJune30,2026,afterwhichitisanticipatedtomakeafinalcashdistributiontounitholders[43]−TheTrustmaysellthenetprofitsinterestifannualcashproceedsfromunderlyingpropertiesarelessthan1,258,935 in cash and cash equivalents as a reserve for future expenses[34] - The Trust is set to terminate its net profits interest on June 30, 2026, after which it is anticipated to make a final cash distribution to unitholders[43] - The Trust may sell the net profits interest if annual cash proceeds from underlying properties are less than 1.0 million for two consecutive years[45] - The Trust is expected to wind up its affairs and terminate shortly after June 30, 2026, with a final quarterly cash distribution anticipated shortly after this date[46] - Following the termination of the net profits interest, Trust unitholders will not receive any net proceeds from the sale of production from underlying properties, leading to a market price approaching zero[46] Governance and Compliance - No officers or employees of the Trustee adopted or modified any Rule 10b5-1 trading arrangements during the three months ended June 30, 2024[47] - The Trust has no principal executive officer or board of directors, and the Trustee does not imply any such functions exist under the Trust Agreement[51]