MV Oil Trust Announces Trust Second Quarter Distribution

Rhea-AI Summary

MV Oil Trust (NYSE: MVO) announced a distribution of net profits for the quarter ending June 30, 2024. Unitholders of record as of July 15, 2024, will receive $4,715,000 or $0.410 per unit, payable on July 25, 2024.

Key figures for the quarter include a volume of 151,140 BOE, an average price of $76.62 per BOE, generating gross proceeds of $11,580,171. After subtracting costs of $5,393,841, the net profits stood at $6,186,330.

The Trust's 80% net profits interest resulted in $4,949,064, with an estimated $234,064 reserved for Trust expenses, leaving $4,715,000 available for distribution.

Positive

• Distribution of $4,715,000 or $0.410 per unit scheduled for July 25, 2024.
• Net profits for the quarter were $6,186,330.
• Gross proceeds amounted to $11,580,171 with an average price of $76.62 per BOE.

Negative

• Costs for the quarter were significant at $5,393,841.

Insights

Financial Analyst

MV Oil Trust's distribution announcement presents concrete data that investors should consider closely. The $4,715,000 distribution, translating to $0.410 per unit, is the direct result of operations for the second quarter ending June 30, 2024. The data shared highlights several key financial metrics: a volume of 151,140 BOE produced, an average price per BOE of $76.62, gross proceeds amounting to $11,580,171 and importantly, net profits of $6,186,330.

For retail investors, this equates to an observable return on investment, provided the market price of the units remains stable or appreciates. The trust's costs, totaling $5,393,841, are a significant factor here, as they directly impact the net profit calculation. With 80% of net profits applicable to the Trust, the flow-through to unitholders seems solid.

Short-term implications include the upcoming distribution payout, which can be directly beneficial to unitholders. However, it also signals stability in operational efficiency and market pricing for the underlying commodity.

In the long-term, sustainability of such distributions depends on continued operational efficiency, stable or increasing BOE prices and controlling costs. Investors should keep an eye on these factors to gauge whether the Trust can maintain or increase its distributions in future periods.

Market Research Analyst

Distribution announcements like these serve as a barometer for operational health and market conditions of dividend-paying entities like MV Oil Trust. The average price per BOE at $76.62 indicates a favorable market environment, contributing significantly to the profitability and thus the distribution amount.

Given the volume of 151,140 BOE produced, we can infer steady production levels and a favorable market price environment. It is important to monitor how market prices and production volumes trend over subsequent quarters for a clearer picture of sustainability.

Investors might consider the impacts of market volatility on oil prices, geopolitical events and regulatory changes, which can affect future distributions. Understanding these macroeconomic factors helps in predicting the Trust's ability to maintain such distributions.

HOUSTON--(BUSINESS WIRE)-- MV Oil Trust (NYSE: MVO) announced the Trust distribution of net profits for the quarterly payment period ended June 30, 2024.

Unitholders of record on July 15, 2024 will receive a distribution amounting to $4,715,000 or $0.410 per unit payable July 25, 2024.

Volumes, average price and net profits for the payment period were:

Volume (BOE)		151,140
Average price (per BOE)		$	76.62
Gross proceeds		$	11,580,171
Costs		$	5,393,841
Net profits		$	6,186,330
Percentage applicable to Trust’s 80%
Net profits interest		$	4,949,064
MV Partners reserve for capital expenditures		$	--
Total cash proceeds available for the Trust		$	4,949,064
Provision for current estimated Trust expenses		$	(234,064	)
Net cash proceeds available for distribution		$	4,715,000

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 June 30, 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/20240705736099/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's second quarter 2024?

The distribution amount is $4,715,000 or $0.410 per unit.

When will MV Oil Trust's Q2 2024 distribution be paid?

The distribution will be paid on July 25, 2024.

What were MV Oil Trust's net profits for Q2 2024?

The net profits for Q2 2024 were $6,186,330.

How many BOEs did MV Oil Trust produce in Q2 2024?

MV Oil Trust produced 151,140 BOEs in Q2 2024.

What was the average price per BOE for MV Oil Trust in Q2 2024?

The average price per BOE was $76.62.