VOC Energy Trust(US:VOC)2022-11-10 21:10Financial Performance - For the three months ended September 30, 2022, income from net profits interest was $6,897,212, compared to $2,843,473 for the same period in 2021, representing a 142% increase[7]. - Distributable income for the three months ended September 30, 2022, was $6,460,000, up from $2,720,000 in 2021, marking an increase of 137%[7]. - The Trust's gross proceeds from oil and natural gas sales for the three months ended September 30, 2022, were $14,203,250, an increase of $6,264,894 or 78.9% from $7,938,356 for the same period in 2021[40]. - The excess of revenues over direct operating expenses was $8,621,515 for the three months ended September 30, 2022, an increase of $5,067,174 or 142.6% from $3,554,341 in 2021[42]. - Income from net profits interest for the three months ended September 30, 2022, was $6,897,212, compared to $2,843,473 for the same period in 2021[39]. - The Trust's distributable income for the three months ended September 30, 2022, was $6,460,000, an increase of $3,740,000 from $2,720,000 in 2021[42]. - Gross proceeds from oil and natural gas sales increased by $15,871,691 or 82.6% to $35,084,875 for the nine months ended September 30, 2022, compared to $19,213,184 for the same period in 2021[45]. - The excess of revenues over direct operating expenses was $20,990,724, an increase of 193.0% from $7,165,182 for the same period in 2021[47]. - Income from net profits interest before reserve adjustments was $16,792,579 for the nine months ended September 30, 2022, compared to $5,732,146 in 2021[47]. - Distributable income for the nine months ended September 30, 2022, was $15,470,000, significantly up from $5,270,000 in the same period of 2021[47]. Cash Distributions - Cash distributions per Trust unit increased to $0.38 for the three months ended September 30, 2022, from $0.16 in the same period of 2021, reflecting a 138% rise[7]. - The first quarterly distribution in 2022 was $4,250,000, or $0.25 per Trust Unit, made on February 14, 2022[29]. - The fourth quarterly distribution in 2022 was announced at $6,205,000, or $0.365 per Trust Unit, to be paid on November 14, 2022[36]. - The Trustee intends to build a cash reserve of approximately $1.175 million for future expenses, with the ability to adjust this amount at any time[7]. - As of September 30, 2022, the Trust held a cash reserve of $837,495 for future development and operating expenses[48]. - The Trustee intends to build a cash reserve to approximately $1.175 million, in addition to a $1.7 million letter of credit for future expenses[50]. Operational Metrics - Oil sales volumes increased to 131,018 Bbls for the three months ended September 30, 2022, a rise of 2,204 Bbls or 1.7% from 128,814 Bbls in 2021[40]. - Oil sales volumes were 391,719 Bbls, an increase of 1.4% from 386,416 Bbls in the same period of 2021, while natural gas sales volumes decreased by 9.3% to 239,254 Mcf[45]. - The average price for oil rose 75.5% to $104.64 per Bbl, while the average price for natural gas increased 102.1% to $6.65 per Mcf during the same period[40]. - Average oil price rose by 79.0% to $85.73 per Bbl, while average natural gas price increased by 134.0% to $6.27 per Mcf during the nine months ended September 30, 2022[45]. Expenses and Assets - Total costs for the nine months ended September 30, 2022, were $14,094,151, an increase of $2,046,149 or 17.0% from $12,048,002 in 2021[46]. - Lease operating expenses for the three months ended September 30, 2022, were $3,851,595, an increase of $782,325 or 25.5% from $3,069,270 in 2021[41]. - General and administrative expenses for the three months ended September 30, 2022, were $161,324, slightly down from $174,503 in the same period of 2021[7]. - Total assets as of September 30, 2022, were $15,118,800, down from $16,005,190 as of December 31, 2021, indicating a decrease of approximately 5.5%[9]. - The Trust corpus at the end of the period was $15,118,800, consistent with the amount at the beginning of the period, indicating stability in the Trust's capital[11]. - The Trust's investment in net profits interest remained unchanged at $140,591,606 as of September 30, 2022, reflecting no impairment during the reporting period[9][24]. Taxation and Accounting - The Trust has not adopted any new accounting pronouncements that would impact its financial statements during the quarter ended September 30, 2022[23]. - The Trust is not required to pay federal or state income taxes, resulting in no provision for income taxes being made[27]. Future Outlook - Cumulatively, as of September 30, 2022, the Trust has received payments for 80% of the net proceeds from the sale of 8.0 million barrels of oil equivalent (MMBoe) from the underlying properties[16]. - VOC Brazos does not expect significant changes in future costs for underlying properties, other than fluctuations in oilfield service costs[52].