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MV Oil Trust(MVO) - 2024 Q4 - Annual Report
MVOMV Oil Trust(MVO)2025-03-20 20:11

Financial Performance - Distributable income for 2024 was reported at 17,652,500,adecreaseof5.817,652,500, a decrease of 5.8% compared to 18,068,559 in 2023[320] - General and administrative expenses for 2024 were reported at 905,445,adecreasefrom905,445, a decrease from 1,050,841 in 2023[320] - The Trust's quarterly distribution per unit for the period ending July 1, 2023, was 0.380,reflectingadecreasefrom0.380, reflecting a decrease from 0.700 for the previous year[348] - The first quarterly distribution for 2025 was 2,760,000,or2,760,000, or 0.240 per Trust Unit, reflecting production collected from October 1, 2024, through December 31, 2024[355] Asset and Reserve Changes - Total assets decreased from 5,456,085in2023to5,456,085 in 2023 to 3,865,849 in 2024, representing a decline of approximately 29%[318] - The Trust's corpus decreased from 5,456,085in2023to5,456,085 in 2023 to 3,865,849 in 2024, a decline of approximately 29%[318] - Proved reserves as of December 31, 2023, are 1,089,430 Boe, a decrease of 472,747 Boe from production during the year[361] - The Trust recognized net reductions to reserves of 21,859 Boe in 2023 due to changes in the development plan[365] - Positive revisions added 38,078 Boe to reserves in 2023, attributed to effective workovers and development[365] Production and Revenue - The Trust's income from net profits interest is based on cash receipts from MV Partners for oil and gas production, with revenues typically received one month after production[342] - Production for 2023 was 488,444 Boe, reflecting ongoing operational adjustments[365] - Future net cash flows for 2023 are estimated at 39,927,770afteraccountingforproductionanddevelopmentcosts[368]−Futurecashinflowsfor2024areprojectedat39,927,770 after accounting for production and development costs[368] - Future cash inflows for 2024 are projected at 43,857,466, indicating a recovery trend[368] Costs and Expenses - The Trust incurred development costs of 188,000in2023,downfrom188,000 in 2023, down from 454,500 in 2022[369] - The annual administrative services fee paid to MV Partners increased by 4% each year, totaling 116,874for2023,upfrom116,874 for 2023, up from 112,379 in 2022[350] Market Conditions - The average oil price for 2023 is 73.72perBbl,adecreasefrom73.72 per Bbl, a decrease from 89.17 per Bbl in 2022[370] - The average gas price for 2023 is 2.41perMcf,significantlylowerthan2.41 per Mcf, significantly lower than 6.10 per Mcf in 2022[370] Trust Operations - The Trust's investment in net profits interest remained stable at 50,383,675forboth2023and2024[318]−TheTrusthasacashreserveofapproximately50,383,675 for both 2023 and 2024[318] - The Trust has a cash reserve of approximately 1.265 million built from withheld proceeds for future expenses, in addition to a 1.8millionletterofcreditprovidedbyMVPartners[354]−TheTrust′sadministrativeservicesagreementwithMVPartnerswillterminateupontheterminationofthenetprofitsinterest,ensuringongoingoperationalsupport[350]−MVPurchasing,LLCpurchased731.8 million letter of credit provided by MV Partners[354] - The Trust's administrative services agreement with MV Partners will terminate upon the termination of the net profits interest, ensuring ongoing operational support[350] - MV Purchasing, LLC purchased 73% of the production sold from the underlying properties in 2023, maintaining a similar percentage compared to 74% in 2022[344] Regulatory and Reporting Changes - The Trust adopted ASU 2023-07 during the year ended December 31, 2024, enhancing segment reporting disclosures[335] - The Trust did not borrow any money during 2022, 2023, and 2024, maintaining a stable financial position[352] - The Trust's net profits interest will terminate on June 30, 2026, after reaching the minimum production threshold of 14.4 MMBoe[327] - Cumulatively, the Trust has received payment for 80% of the net proceeds from the sale of 14.7 MMBoe of production since inception[327] - For the year ended December 31, 2023, the income from net profits interest before reserve adjustments was 18,068,559, a decrease of 33.8% from 27,204,590in2022[341]−Thestandardizedmeasureofdiscountedfuturenetcashflowsfor2023is27,204,590 in 2022[341] - The standardized measure of discounted future net cash flows for 2023 is 35,750,941, down from $69,211,827 in 2022[369]