MV Oil Trust Announces Trust First Quarter Distribution
- MV Oil Trust (NYSE: MVO) announced a distribution of $3,795,000 or $0.330 per unit for the quarter ending March 31, 2024.
- Volumes for the period were 146,612 barrels of oil equivalent (BOE) with an average price of $69.82 per BOE.
- Net profits for the period amounted to $5,024,202, with $4,019,362 applicable to the Trust's 80% interest.
- Total cash proceeds available for the Trust after expenses were $3,795,000.
- The distribution will be payable on April 25, 2024, to unitholders of record on April 15, 2024.
- None.
Insights
The recent distribution announcement by MV Oil Trust indicates a significant payment to unitholders, which is reflective of the Trust's performance over the past quarter. The distribution of $0.330 per unit is a concrete figure that investors can use to gauge the Trust's profitability and efficiency in capital management. Analyzing the given data, the cost management appears to be effective, with net profits of $5,024,202 from gross proceeds of $10,236,574 after costs of $5,212,372.
Moreover, the average price per BOE (Barrel of Oil Equivalent) of $69.82 suggests a favorable market condition for oil and gas during the quarter. This price point, coupled with the volume of 146,612 BOE, has led to substantial gross proceeds. Investors should note that the oil and gas sector is highly cyclical and sensitive to global economic factors, which can significantly affect prices and, consequently, the profitability of trusts like MVO.
From an energy market perspective, the average price of $69.82 per BOE reported by MV Oil Trust is indicative of the current state of the oil market. This price is influenced by a myriad of factors including geopolitical events, supply and demand dynamics and OPEC policies. The volume of 146,612 BOE suggests stable production levels. However, investors should be aware of the potential volatility in the energy sector, as changes in the market can rapidly affect prices and production economics.
Additionally, the absence of a reserve for capital expenditures in this report could be a point of interest. It could imply that the Trust is currently not setting aside funds for future development or maintenance, which may affect long-term sustainability and production capabilities. Stakeholders should consider the implications of such a strategy on future distributions and the overall health of the Trust.
Unitholders of record on April 15, 2024 will receive a distribution amounting to
Volumes, average price and net profits for the payment period were:
Volume (BOE) |
|
|
146,612 |
|
Average price (per BOE) |
|
$ |
69.82 |
|
Gross proceeds |
|
$ |
10,236,574 |
|
Costs |
|
$ |
5,212,372 |
|
Net profits |
|
$ |
5,024,202 |
|
Percentage applicable to Trust’s |
|
|
|
|
Net profits interest |
|
$ |
4,019,362 |
|
MV Partners reserve for capital expenditures |
|
$ |
-- |
|
Total cash proceeds available for the Trust |
|
$ |
4,019,362 |
|
Provision for current estimated Trust expenses |
|
$ |
(224,362 |
) |
Net cash proceeds available for distribution |
|
$ |
3,795,000 |
|
This press release contains forward-looking statements. Although MV Partners, LLC (“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, 2024. 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, 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, 2023 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240405999106/en/
MV Oil Trust
The Bank of New York Mellon Trust Company, N.A., as Trustee
Elaina Rodgers
713-483-6020
Source: MV Oil Trust
FAQ
What is the distribution amount for MV Oil Trust (NYSE: MVO) for the quarter ending March 31, 2024?
What were the volumes and average price for MV Oil Trust (NYSE: MVO) for the payment period?
What were the net profits for MV Oil Trust (NYSE: MVO) for the quarter ending March 31, 2024?
When will the distribution be payable for MV Oil Trust (NYSE: MVO) for the quarter ending March 31, 2024?
