VOC Energy Trust(VOC) - 2024 Q3 - Quarterly Report

Financial Performance - For the quarter ended September 30, 2024, total gross proceeds from oil and natural gas sales were $9,270,907, an increase of $30,322 or 0.3% from $9,240,585 in the same quarter of 2023[37] - The excess of revenues over direct operating expenses and lease equipment and development costs was $4,248,273 for Q3 2024, a decrease of $485,666 or 10.3% from $4,733,939 in Q3 2023[39] - For the nine months ended September 30, 2024, total gross proceeds from oil and natural gas sales were $27,041,669, a decrease of $2,751,509 or 9.2% from $29,793,178 in the same period of 2023[42] - The excess of revenues over direct operating expenses and lease equipment and development costs was $12,975,244 for the nine months ended September 30, 2024, a decrease of $2,447,187 or 15.9% from $15,422,431 in the same period of 2023[44] - Distributable income for the nine months ended September 30, 2024 was $9,350,000, a decrease from $11,390,000 in the same period of 2023[44] Sales Volumes and Prices - Oil sales volumes decreased by 10,367 Bbls or 8.2% to 116,006 Bbls in Q3 2024 compared to 126,373 Bbls in Q3 2023, while natural gas sales volumes decreased by 5,149 Mcf or 7.3% to 65,815 Mcf[37] - Oil sales volumes for the nine months ended September 30, 2024 were 342,945 Bbls, a decrease of 31,799 Bbls or 8.5% from 374,744 Bbls in the same period of 2023[42] - The average price for oil increased by 9.6% to $78.36 per Bbl in Q3 2024, while the average price for natural gas decreased by 5.8% to $2.74 per Mcf[37] - The average price for oil increased by 1.2% to $77.10 per Bbl for the nine months ended September 30, 2024, while the average price for natural gas decreased by 44.3% to $3.03 per Mcf[42] Cash and Reserves - As of September 30, 2024, the Trustee held $1,779,712 in cash and cash equivalents, which includes a cash reserve of $1.175 million[45] - The Trust has established a cash reserve of approximately $1.175 million to cover future known, anticipated, or contingent expenses, in addition to a $1.7 million letter of credit[47] - The cash reserve balance was maintained at $1,000,000 as of September 30, 2024 and 2023, to mitigate the impact of uneven capital expenditure timing[49] Borrowings and Financial Controls - There were no borrowings made by the Trust during the three and nine months ended September 30, 2024 and 2023[46] - The Trustee has not made any changes to the internal control over financial reporting that materially affect the Trust during the quarter ended September 30, 2024[55] - The Trust's disclosure controls and procedures have been evaluated and deemed effective by a Trust Officer[53] Risk Factors and Future Expectations - The Trust does not expect significant changes in future costs for underlying properties, except for fluctuations in general oilfield service costs[49] - The Trust has not experienced any material changes in risk factors as previously disclosed in the Form 10-K[58] - The Trustee may adjust the targeted cash reserve amount and the rate at which funds are withheld without prior notice to unitholders[47] Trading Arrangements - No Rule 10b5-1 trading arrangements were adopted, modified, or terminated by any officer or employee of the Trustee during the three months ended September 30, 2024[59]