VOC Energy Trust(VOC) - 2023 Q1 - Quarterly Report

Financial Performance - For the three months ended March 31, 2023, distributable income was $3,910,000, a decrease of 8% from $4,250,000 in the same period of 2022[8] - Income from net profits interest for Q1 2023 was $4,328,752, down 8% from $4,712,186 in Q1 2022[26] - Cash distribution per Trust unit for Q1 2023 was $0.23, compared to $0.25 in Q1 2022, reflecting a decrease of 8%[8] - Total assets as of March 31, 2023, were $14,619,274, a decline from $15,048,316 as of December 31, 2022[10] - Trust corpus at the end of Q1 2023 was $14,619,274, down from $15,594,738 at the end of Q1 2022[12] - The first quarterly distribution in 2023 was $3,910,000, which included net proceeds from production collected from October 1, 2022, to December 31, 2022[33] - For the quarter ended March 31, 2023, gross proceeds from oil and natural gas sales were $11,195,578, an increase of $688,512 or 6.6% from $10,507,066 for the same period in 2022[40] - Total costs for the quarter were $5,784,638, an increase of $1,167,805 or 25.3% from $4,616,833 in Q1 2022[41] - The excess of revenues over direct operating expenses decreased by $479,293 or 8.1% to $5,410,940 in Q1 2023 from $5,890,233 in Q1 2022[42] - Distributable income for the quarter was $3,910,000, a decrease of $340,000 from $4,250,000 in Q1 2022[42] Cash and Reserves - The cash and cash equivalents as of March 31, 2023, were $1,292,066, an increase from $1,248,877 as of December 31, 2022[10] - As of March 31, 2023, the Trust held a cash reserve of $1,292,066 for future expenses[43] - The Trustee has established a targeted cash reserve of $1.175 million, which was fully funded as of January 30, 2023[45] - VOC Brazos provided a letter of credit of $1,700,000 to protect the Trust against insufficient cash for future expenses[35] - VOC Brazos did not withhold or release any amounts from the reserve during Q1 2023, maintaining a reserve balance of $1.0 million[28] Sales and Production - Oil sales volumes decreased by 8,162 Bbls or 6.0% to 127,600 Bbls in Q1 2023 from 135,762 Bbls in Q1 2022, while natural gas sales volumes decreased by 1,131 Mcf or 1.3% to 83,501 Mcf[40] - The average price for oil increased by 12.1% to $82.73 per Bbl, and the average price for natural gas increased by 32.4% to $7.65 per Mcf in Q1 2023 compared to Q1 2022[40] - The Trust has cumulatively received payments for 80% of the net proceeds from the sale of 8.3 million barrels of oil equivalent (MMBoe) since inception[17] - The Trust's net profits interest remained at 80% for both Q1 2023 and Q1 2022[38] Company Growth and Strategy - The company reported a revenue of $10 billion for Q3 2023, representing a 15% year-over-year increase[10] - User base grew to 50 million active users, a 20% increase compared to the previous quarter[10] - The company expects revenue guidance for Q4 2023 to be between $11 billion and $12 billion, indicating a potential growth of 10% to 20%[10] - New product launches contributed to a 25% increase in sales in the last quarter[10] - The company invested $500 million in R&D for new technologies, aiming to enhance product offerings[10] - Market expansion efforts in Asia resulted in a 30% increase in market share[10] - The company completed a strategic acquisition for $1 billion, expected to enhance its competitive position[10] - Gross margin improved to 45%, up from 40% in the previous quarter[10] - Customer retention rate reached 85%, reflecting strong user satisfaction[10] - The company plans to enter two new international markets by the end of 2024[10]