8-K: MV Oil Trust Announces Second Quarter Distribution of $0.410 Per Unit

MV Oil Trust has declared a second quarter distribution of $0.410 per unit, totaling $4.715 million, payable to unitholders of record on July 15, 2024.

Summary

• MV Oil Trust announced a distribution of net profits for the quarter ending June 30, 2024.
• The total distribution amount is $4,715,000, which equates to $0.410 per unit.
• Unitholders of record on July 15, 2024, will receive the distribution on July 25, 2024.
• The distribution is based on net profits of $6,186,330, with 80% applicable to the Trust, resulting in $4,949,064.
• After deducting $234,064 for estimated Trust expenses, the net cash available for distribution is $4,715,000.
• The average price per barrel of oil equivalent (BOE) was $76.62, with a total volume of 151,140 BOE.
• Gross proceeds were $11,580,171, and costs totaled $5,393,841.

Sentiment

Score: 7

Explanation: The sentiment is positive due to the distribution to unitholders and the strong average price per BOE, but there are risks associated with oil and gas production and market volatility.

Positives

• The Trust is distributing $4,715,000 to unitholders.
• The distribution of $0.410 per unit provides a return to investors.
• The average price per BOE was $76.62, indicating strong pricing for the period.
• The net profits for the period were $6,186,330, demonstrating profitability.

Negatives

• Trust expenses of $234,064 reduced the net cash available for distribution.

Risks

• The distribution amount is based on cash received or expected to be received by the Trustee, and any differences in actual cash receipts could affect the distributable amount.
• The actual results of drilling operations, risks inherent in drilling and production of oil and gas properties, and the ability of commodity purchasers to make payment could cause results to differ materially.
• Actions by the members of the Organization of Petroleum Exporting Countries could impact results.
• Other risk factors are described in the Trust's Annual Report on Form 10-K for the year ended December 31, 2023.

Future Outlook

The press release contains forward-looking statements, but the Trust does not intend to update any of the statements included.

Management Comments

• MV Partners believes that the expectations contained in this press release are reasonable, but no assurances can be given that such expectations will prove to be correct.

Industry Context

This announcement is typical for oil and gas trusts, which distribute net profits to unitholders based on production and pricing. The distribution is influenced by commodity prices and production volumes.

Comparison to Industry Standards

• The distribution of $0.410 per unit is within the range of distributions seen by similar oil and gas trusts, but the specific amount varies based on production, pricing, and expenses.
• Companies such as Permian Basin Royalty Trust (PBT) and Sabine Royalty Trust (SBR) also distribute profits to unitholders based on production and pricing, and their distributions fluctuate based on market conditions.
• The average price of $76.62 per BOE is comparable to the average prices seen by other oil and gas producers during the same period, but the specific price will vary based on the quality of the oil and gas produced and the location of the wells.

Stakeholder Impact

• Unitholders will receive a distribution of $0.410 per unit.
• The distribution provides a return to investors based on the Trust's performance.

Key Dates

Keywords

Oil Trust, Distribution, Net Profits, BOE, Oil and Gas, Unitholders, MV Oil Trust