MV Oil Trust(MVO) - 2023 Q4 - Annual Report

Financial Performance - Distributable income for 2023 was $16,790,000, down from $25,530,000 in 2022, representing a decrease of 34.3%[307] - Income from net profits interest for 2023 was $18,068,559, compared to $27,204,590 in 2022, reflecting a decline of 33.7%[307] - Cash distributions per Trust Unit decreased from $2.220 in 2022 to $1.460 in 2023, a reduction of 34.3%[307] - Net proceeds to the Trust in 2023 were $18,068,560, compared to $27,204,589 in 2022, reflecting a decrease of 33.5%[350] - Future net cash flows from proved reserves decreased to $39,927,770 in 2023, down from $80,630,347 in 2022, reflecting a decline of approximately 50.5%[349] - The Trust's total future cash inflows for 2023 were $79,962,266, a decline of 42.3% from $138,608,602 in 2022[349] Asset and Reserve Changes - Total assets decreased from $6,883,554 in 2022 to $5,456,085 in 2023, a decline of approximately 20.7%[305] - The Trust's corpus at the end of 2023 was $5,456,085, down from $6,883,554 at the end of 2022, a decrease of 20.7%[305] - The Trust's total proved reserves decreased from 1,962,108 Boe in 2021 to 1,089,430 Boe in 2023[342] - The estimated proved oil reserves as of December 31, 2023, were 1,083,453 barrels, while proved gas reserves were 35,173 Mcf[342] - The Trust recognized net reductions to reserves of 488,444 Boe due to production during 2023[346] - The Trust recognized net reductions to reserves of 21,859 Boe due to changes in the development plan, while positive revisions added 38,078 Boe from effective workovers and development in 2023[347] Cash and Expenses - Cash and cash equivalents increased from $1,036,214 in 2022 to $1,263,932 in 2023, an increase of 21.9%[305] - General and administrative expenses for 2023 were $1,050,841, up from $935,522 in 2022, indicating an increase of 12.3%[307] - The administrative services fee paid to MV Partners increased by 4% annually, totaling $116,874 for 2023[330] - The Trust did not borrow any money for expenses during 2021, 2022, and 2023[332] - The Trust incurred development costs of $188,000 in 2023, down from $454,500 in 2022, indicating a reduction of 58.7%[350] Distribution and Future Plans - The Trust's quarterly distributions to unitholders for Q1 2024 amounted to $5,347,500, or $0.465 per Trust Unit[335] - The Trust's distribution per unit for Q2 2023 was $0.325, reflecting ongoing cash flow management[329] - The Trust will terminate upon the earlier of June 30, 2026, or when 14.4 million barrels of oil equivalent have been produced and sold[313] Market Conditions - The average price of oil per barrel in 2023 was $73.72, a decrease of 17.4% from $89.17 in 2022[351] - The average price of gas per Mcf in 2023 was $2.41, a significant drop of 60.5% compared to $6.10 in 2022[351] - The standardized measure of discounted future net cash flows at the end of 2023 was $35,750,941, a decrease of 48.3% from $69,211,827 at the end of 2022[350]