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Understanding MV Oil Trust (MVO): A Statutory Trust in the Energy Sector
MV Oil Trust (NYSE: MVO) is a statutory trust established to manage and distribute income derived from its underlying oil and natural gas assets. These assets consist of MV Partners, LLC's net interests in oil and gas properties located in the Mid-Continent region, specifically in the states of Kansas and Colorado. The trust's primary function is to passively oversee these assets, ensuring the efficient collection and distribution of royalty income to its unitholders.
Core Business Model: Passive Income through Royalty Interests
Unlike traditional exploration and production companies, MV Oil Trust does not engage in active exploration, drilling, or development activities. Instead, it operates as a pass-through entity, relying on royalties generated from the production and sale of crude oil and natural gas extracted from its properties. This model allows the trust to focus on income distribution rather than operational complexities. The trust’s revenue stream is directly tied to commodity prices and production volumes, making it sensitive to market fluctuations in the energy sector.
Geographical Focus: The Mid-Continent Region
The underlying properties of MV Oil Trust are located in the Mid-Continent region, a historically significant area for oil and gas production in the United States. Kansas and Colorado provide a stable operational environment with established infrastructure for extraction and transportation. These assets include producing oil and gas wells, which contribute to the trust’s consistent revenue generation.
Industry Context and Market Position
MV Oil Trust operates within the upstream segment of the energy industry, focusing on the extraction of natural resources. Its statutory trust structure sets it apart from traditional energy companies, as it does not reinvest in exploration or development. Instead, it prioritizes income distribution to its unitholders. This makes it an appealing option for investors seeking exposure to the energy sector without the operational risks associated with exploration and production activities.
Challenges and Limitations
As a royalty trust, MV Oil Trust faces unique challenges. The finite nature of its reserves means that production volumes will decline over time, potentially impacting future income streams. Additionally, the trust is highly sensitive to fluctuations in oil and natural gas prices, which can significantly affect revenue. Regulatory changes and environmental considerations also pose potential risks to its operations.
Competitive Landscape
MV Oil Trust competes with other royalty trusts and upstream oil and gas companies. Its differentiation lies in its passive income model and focus on the Mid-Continent region. While it does not engage in active development, its established assets and consistent income distribution provide a stable investment option within the energy sector.
Conclusion
MV Oil Trust represents a unique investment vehicle within the energy industry, offering exposure to the oil and gas sector through a passive income model. Its focus on income distribution, geographical footprint in the Mid-Continent region, and statutory trust structure make it a distinctive player in the market. However, potential investors should consider the finite nature of its reserves and sensitivity to commodity price fluctuations when evaluating its long-term viability.
MV Oil Trust (NYSE:MVO) announced a net profit distribution of
MV Oil Trust (NYSE: MVO) announced a distribution of net profits for the quarter ending September 30, 2022, of $7,877,500, equating to $0.685 per unit. This payment will be distributed on October 25, 2022, to unitholders recorded by October 17, 2022. Key figures include production volume of 163,043 BOE, an average price of $97.16 per BOE, and net profits of $10,253,592. A portion of proceeds will be withheld to build a cash reserve of approximately $1.265 million to manage future expenses.
MV Oil Trust (NYSE: MVO) declared a net profit distribution of
MV Oil Trust (NYSE: MVO) announced a net profit distribution of $4,887,500, equating to $0.425 per unit, for the first quarterly payment period ending March 31, 2022. The distribution will be paid on April 25, 2022, to unitholders of record as of April 18, 2022. The trust recorded a total volume of 144,512 BOE and an average price of $77.07 per BOE, resulting in gross proceeds of $11,138,205 and net profits of $6,553,256 after costs of $4,584,949. The Trust is also building a cash reserve for future expenses, withholding $105,417 this quarter.
MV Oil Trust (NYSE: MVO) filed its Annual Report on Form 10-K for the year ended December 31, 2021, with the U.S. Securities and Exchange Commission on March 17, 2022. The report includes audited financial statements and is available online on the Trust's website and the SEC's website. Trust unitholders can request a printed copy of the report, free of charge, by contacting the Trustee, The Bank of New York Mellon Trust Company, N.A., in Houston, TX.
MV Oil Trust (NYSE: MVO) announced a quarterly distribution of net profits for Q4 2021, amounting to $4,715,000 or $0.41 per unit, payable on January 25, 2022. The distribution is for unitholders of record as of January 14, 2022. For the payment period, the Trust reported a total volume of 161,030 BOE and gross proceeds of $11,618,783. The net profits amounted to $6,355,851, with costs at $5,262,932. Additionally, a reserve will be created for future expenses, starting with this distribution.
MV Oil Trust (NYSE: MVO) announced its second quarterly distribution of net profits for the period ending June 30, 2021. Unitholders on record as of July 16, 2021, will receive a total distribution of $3,450,000, equivalent to $0.300 per unit, payable on July 23, 2021. For this period, the Trust reported a total volume of 166,357 BOE, an average price of $58.05 per BOE, and net profits of $4,594,878. Notably, gross proceeds stood at $9,657,182 with costs amounting to $5,062,304. The net cash proceeds available for distribution amount to $3,450,000 after accounting for estimated Trust expenses.
MV Oil Trust (NYSE: MVO) announced a distribution of net profits amounting to $2,415,000 or $0.210 per unit for the quarter ending March 31, 2021, payable on April 23, 2021, to unitholders of record as of April 15, 2021.
The Trust reported total volumes of 157,196 BOE at an average price of $47.11 per BOE, leading to gross proceeds of $7,405,502. After accounting for costs of $4,127,535, net profits for the quarter were $3,277,967.
MV Oil Trust (NYSE: MVO) filed its Annual Report on Form 10-K for the year ended December 31, 2020, with the U.S. Securities and Exchange Commission on March 16, 2021. The report contains audited financial statements and is accessible on the Trust's website and the SEC's site. Unitholders can request a printed copy free of charge by contacting Elaina C. Rodgers at The Bank of New York Mellon Trust Company.
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