MV Oil Trust(MVO) - 2020 Q4 - Annual Report

Financial Performance - Total assets decreased from $12,487,586 in 2019 to $10,583,308 in 2020, a decline of approximately 15.2%[297] - Distributable income fell from $12,075,000 in 2019 to $5,635,000 in 2020, representing a decrease of about 53.2%[299] - Income from net profits interest decreased from $12,994,052 in 2019 to $6,790,443 in 2020, a decline of about 47.7%[299] - Cash distributions to unitholders dropped from $12,075,000 in 2019 to $5,635,000 in 2020, a decrease of about 53.2%[301] - Distributable income for the year 2020 was $5,636, compared to $11,883 in 2019, indicating a decline of approximately 52%[338] Cash and Liquidity - Cash and cash equivalents increased significantly from $201,736 in 2019 to $504,571 in 2020, an increase of approximately 149.5%[297] - General and administrative expenses for 2020 were $852,608, compared to $973,187 in 2019, indicating a decrease of about 12.4%[299] - The Trust did not borrow any money for expenses during 2018, 2019, and 2020, maintaining a stable financial position[321] Production and Reserves - The Trust's proved reserves as of December 31, 2020 were 1,800,942 Bbls of oil, 18,396 Mcf of gas, and 654 Bbls of NGL, totaling 1,804,434 Boe[328] - The Trust recognized net reductions to reserves of 523,031 Boe in 2020 due to production and negative revisions from lower commodity prices[333] - The Trust's proved developed reserves decreased from 2,702,451 Boe in 2019 to 1,644,886 Boe in 2020[331] - The Trust's total production for 2020 was 523,031 Boe, contributing to the overall reduction in reserves[333] Future Cash Flows - Future cash inflows from proved reserves were $63,107,344 in 2020, with future net cash flows of $15,962,613 after costs[335] - The standardized measure of discounted future net cash flows was $12,821,162 for 2020, reflecting a significant decrease from previous years[335] - The standardized measure of discounted future net cash flows from proved oil and gas reserves decreased from $79,924,544 in 2019 to $12,821,162 in 2020, reflecting a significant decline of approximately 84%[336] Pricing and Costs - The average oil price per barrel dropped from $51.14 in 2019 to $35.02 in 2020, a decrease of about 31%[337] - The average gas price per Mcf decreased from $2.12 in 2019 to $1.64 in 2020, a decline of approximately 23%[337] - Development costs incurred during 2020 were significantly lower at $284,000 compared to $2,022,434 in 2019, indicating a reduction of about 86%[336] Administrative and Service Fees - The administrative services fee paid to MV Partners increased from $96,062 in 2018 to $103,901 in 2020, with a 4% annual increase[319] - The Trust's accounting is based on a modified cash basis, which is considered most meaningful for reporting income and distributions[308] Distribution Changes - The Trust's first quarterly distribution for 2021 was $1,265,000, or $0.110 per Trust unit, made on January 25, 2021[323] - The distributions per unit in Q4 2020 were $0.095, down from $0.215 in Q4 2019, a reduction of about 56%[338] Revisions and Adjustments - The revisions of quantity estimates resulted in a negative impact of $5,317,854 in 2020, compared to a positive impact of $6,232,157 in 2018[336] - Changes in estimated future development costs showed a positive adjustment of $1,385,798 in 2020, contrasting with negative adjustments in previous years[336] - The accretion of discount for 2020 was $4,839,912, down from $7,992,454 in 2019, reflecting a decrease of approximately 39%[336]