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MV Oil Trust Announces Trust First Quarter Distribution
Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary
MV Oil Trust (NYSE: MVO) announced a quarterly distribution of net profits for the payment period ending March 31, 2023. Unitholders on record as of April 17, 2023, will receive a total distribution of $3,967,500, equating to $0.345 per unit, payable on April 25, 2023.
During this period, the Trust achieved a volume of 147,971 BOE with an average price of $72.67 per BOE. Gross proceeds amounted to $10,753,104, with costs recorded at $5,266,230, resulting in net profits of $5,486,874. The funds distributed will be accompanied by a reserve for future known expenses, with $263,540 withheld this quarter, meeting a total reserve of $1.265 million.
Positive
Quarterly distribution of net profits of $3,967,500 announced.
Each unit receives $0.345, showcasing consistent returns to unitholders.
Total cash proceeds of $10,753,104 reflect strong operational performance.
Net profits of $5,486,874 demonstrate profitability.
Negative
Provision for current estimated Trust expenses resulted in a loss of $158,459.
Withholding $263,540 from proceeds reduces immediate cash flow for unitholders.
HOUSTON--(BUSINESS WIRE)--
MV Oil Trust (NYSE: MVO) announced the Trust distribution of net profits for the quarterly payment period ended March 31, 2023.
Unitholders of record on April 17, 2023 will receive a distribution amounting to $3,967,500 or $0.345 per unit payable April 25, 2023.
Volumes, average price and net profits for the payment period were:
Volume (BOE)
147,971
Average price (per BOE)
$
72.67
Gross proceeds
$
10,753,104
Costs
$
5,266,230
Net profits
$
5,486,874
Percentage applicable to Trust’s 80%
Net profits interest
$
4,389,499
MV Partners reserve for capital expenditures
$
--
Total cash proceeds available for the Trust
$
4,389,499
Provision for current estimated Trust expenses
$
(158,459
)
Amount withheld for future Trust expenses
$
(263,540
)
Net cash proceeds available for distribution
$
3,967,500
As previously disclosed, in November 2021, the Trustee notified MV Partners, LLC (“MV Partners”) of the Trustee’s intent to build a reserve for the payment of future known, anticipated or contingent expenses or liabilities, commencing with the distribution payable in the first quarter of 2022, by withholding a portion of the proceeds otherwise available for distribution each quarter to gradually build a cash reserve to approximately $1.265 million. This amount is in addition to the letter of credit in the amount of $1.8 million provided to the Trustee by MV Partners to protect the Trust against the risk that it does not have sufficient cash to pay future expenses. The Trustee may increase or decrease the targeted amount at any time, and may increase or decrease the rate at which it is withholding funds to build the cash reserve at any time, without advance notice to the unitholders. Cash held in reserve will be invested as required by the Trust Agreement. Any cash reserved in excess of the amount necessary to pay or provide for the payment of future known, anticipated or contingent expenses or liabilities eventually will be distributed to unitholders, together with interest earned on the funds. The Trustee has elected to withhold $263,540 from the proceeds otherwise available for distribution this quarter, for a total amount of $1,265,000 withheld to date, thus fully funding the targeted cash reserve.
This press release contains forward-looking statements. Although MV Partners has advised the Trust that MV Partners believes that the expectations contained in this press release are reasonable, no assurances can be given that such expectations will prove to be correct. The announced distributable amount is based on the amount of cash received or expected to be received by the Trustee from the underlying properties on or prior to the record date with respect to the quarter ended March 31, 2023. Any differences in actual cash receipts by the Trust could affect this distributable amount. Other important factors that could cause these statements to differ materially include the actual results of drilling operations, risks inherent in drilling and production of oil and gas properties, the ability of commodity purchasers to make payment, the effect, impact, potential duration or other implications of the COVID-19 pandemic, actions by the members of the Organization of Petroleum Exporting Countries, and other risk factors described in the Trust’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the Securities and Exchange Commission. Statements made in this press release are qualified by the cautionary statements made in these risk factors. The Trust does not intend, and assumes no obligations, to update any of the statements included in this press release.
