VOC Energy Trust(VOC) - 2024 Q2 - Quarterly Report

Financial Performance - For the three months ended June 30, 2024, total gross proceeds from oil and natural gas sales were $8,076,227, a decrease of 13.7% from $9,357,015 in the same period of 2023[30]. - For the six months ended June 30, 2024, total gross proceeds were $17,770,762, a decrease of 13.5% from $20,552,593 in the same period of 2023[34]. - The excess of revenues over direct operating expenses for the six months ended June 30, 2024, was $8,726,971, a decrease of 18.4% from $10,688,492 in the same period of 2023[36]. - The Trust's income from net profits interest for the six months ended June 30, 2024, was $6,981,577, down from $8,550,794 in the same period of 2023[36]. - Distributable income for the three months ended June 30, 2024, was $3,060,000, a decrease of $850,000 from $3,910,000 in the same period of 2023[32]. Sales Volumes and Prices - Oil sales volumes decreased by 8.5% to 110,534 Bbls in Q2 2024 from 120,771 Bbls in Q2 2023, while natural gas sales volumes decreased by 13.2% to 64,808 Mcf from 74,644 Mcf[30]. - The average price for oil decreased by 3.9% to $71.25 per Bbl in Q2 2024, and the average price for natural gas decreased by 42.3% to $3.10 per Mcf[30]. - Oil sales volumes for the six months ended June 30, 2024, were 226,939 Bbls, down 8.6% from 248,371 Bbls in the same period of 2023[34]. Expenses - Lease operating expenses for the six months ended June 30, 2024, were $7,220,002, a decrease of 5.7% from $7,660,187 in the same period of 2023[35]. - Development expenses increased by 121.1% to $358,318 in Q2 2024 compared to $162,095 in Q2 2023, indicating increased development activity[31]. Cash and Reserves - As of June 30, 2024, the Trust held $1,643,582 in cash and cash equivalents, including a cash reserve of $1.175 million[37]. - The Trust has not borrowed funds during the three and six months ended June 30, 2024 and 2023, and has a letter of credit of $1.7 million to cover future expenses[38]. - The Trustee has gradually built a cash reserve of $1.175 million from proceeds available for distribution to cover future expenses since Q1 2022[39]. - The cash reserve balance was $1,000,000 as of June 30, 2024, aimed at reducing the impact of uneven capital expenditure timing[40]. Risk Factors - The Trust's forward-looking statements are subject to risks that could cause actual results to differ materially from expectations[41]. - There have been no material changes in risk factors since the last disclosure in the Trust's Form 10-K[48]. Governance - No officers or employees of the Trustee adopted or modified any trading arrangements during the three months ended June 30, 2024[49].