VOC Energy Trust(VOC) - 2025 Q1 - Quarterly Report

Financial Performance - Distributable income for Q1 2025 was $1,445,000, a decrease of 55.3% from $3,230,000 in Q1 2024[7] - Income from net profits interest for Q1 2025 was $1,898,820, down 47.3% from $3,604,114 in Q1 2024[26] - Cash distributions per Trust unit decreased to $0.085 in Q1 2025 from $0.190 in Q1 2024, representing a decline of 55.3%[7] - The Trust's gross proceeds from oil and natural gas sales for the three months ended March 31, 2025, were $7,561,618, a decrease of $2,132,917 or 22.0% from $9,694,535 for the same period in 2024[38] - Oil sales volumes decreased by 7,247 Bbls or 6.2% to 109,158 Bbls in Q1 2025 from 116,405 Bbls in Q1 2024, while natural gas sales volumes decreased by 1,323 Mcf or 1.9% to 66,598 Mcf[38] - The average price for oil decreased by 16.8% to $67.71 per Bbl, and the average price for natural gas decreased by 20.7% to $2.57 per Mcf in Q1 2025 compared to Q1 2024[38] - Total costs for the three months ended March 31, 2025, were $5,188,093, slightly decreased from $5,189,393 in Q1 2024[39] - The excess of revenues over direct operating expenses decreased by $2,131,617 or 47.3% to $2,373,525 in Q1 2025 from $4,505,142 in Q1 2024[40] - Distributable income for the three months ended March 31, 2025, was $1,445,000, a decrease of $1,785,000 from $3,230,000 in Q1 2024[40] Asset and Cash Management - Total assets as of March 31, 2025, were $11,471,407, down from $11,871,877 as of December 31, 2024, a decrease of 3.4%[9] - Trust corpus at the end of Q1 2025 was $11,471,407, down from $12,928,840 at the end of Q1 2024, a decline of 11.3%[11] - Cash and cash equivalents increased to $1,785,976 as of March 31, 2025, compared to $1,744,677 as of December 31, 2024, an increase of 2.4%[9] - As of March 31, 2025, the Trustee held $1,785,976 in cash and cash equivalents, including a cash reserve of $1.175 million[41] - VOC Brazos provided a letter of credit amounting to $1,700,000 to protect the Trust against insufficient cash for future expenses[33] Governance and Structure - VOC Energy Trust has no principal executive officer or board of directors, indicating a unique governance structure[61] - The Trustee, The Bank of New York Mellon Trust Company, N.A., does not imply any executive functions are performed[61] - No additional signatures are available for the financial report, reflecting the trust's operational framework[61] - The Trust Agreement under which the Trustee serves does not establish traditional corporate governance roles[61] - The absence of a principal financial officer may impact financial reporting and oversight[61] - The structure may limit investor insights into operational performance and strategic direction[61] Operational Insights - Cumulatively, the Trust has received payments for 80% of the net proceeds from the sale of 9.3 million barrels of oil equivalent (MMBoe) since inception[16] - The first quarterly distribution in 2025 was made on February 13, 2025, totaling $1,445,000, which included net proceeds from production collected from October 1, 2024, to December 31, 2024[30] - No impairment of the investment in net profits interest was recorded during the quarters ended March 31, 2025, or 2024[22] - The Trust is not required to pay federal or state income taxes, thus no provision for income taxes has been made[28] - The Trust's net profits interest remains at 80% over the term of the Trust[37] Reporting and Future Outlook - The report is dated May 8, 2025, suggesting the timing of financial disclosures[61] - There are no performance metrics or financial data provided in the document[61] - The document does not provide any user data or market expansion strategies[61] - Future outlook and performance guidance are not addressed in the report[61]