VOC Energy Trust Announces Trust Quarterly Distribution

Rhea-AI Summary

VOC Energy Trust (NYSE: VOC) has announced its quarterly distribution for the period ending June 30, 2024. Unitholders of record on July 30, 2024, will receive a distribution of $3,060,000, or $0.18 per unit, payable on August 14, 2024.

The Trust reported sales volumes of 126,975 BOE, with average sales prices of $78.36 per barrel for oil and $2.74 per Mcf for natural gas. Total gross proceeds were $9,270,907, while total costs amounted to $5,022,634. The net proceeds applicable to the Trust's 80% Net Profits Interest were $3,398,618.

Positive

• Quarterly distribution of $0.18 per unit announced
• Total gross proceeds of $9,270,907
• Net proceeds of $4,248,273
• Strong oil sales of $9,090,488

Negative

• Natural gas sales relatively low at $180,419
• High lease operating expenses of $3,784,091
• Significant production and property taxes of $539,469
• Development expenses of $699,074 impacting net proceeds

Insights

Financial Analyst

VOC Energy Trust's recent distribution announcement is indicative of the trust's operational health and performance for the quarter ended June 30, 2024. The trust reported a distribution of $3,060,000, or $0.18 per unit, which will be distributed to unitholders on record by July 30, 2024.

Analyzing the underlying figures, the sales volumes of oil and natural gas were 116,006 barrels and 65,815 Mcf respectively. The average sales price for oil was $78.36 per barrel, a figure that is relatively strong compared to the industry average, signaling good market conditions or strategic pricing. Natural gas, however, fetched an average price of $2.74 per Mcf, which aligns with current market trends of lower natural gas prices.

The gross proceeds from these sales totaled $9,270,907, with oil sales contributing the vast majority. The operating expenses, production taxes and development expenses amounted to $5,022,634, leading to net proceeds of $4,248,273. Given the trust's 80% net profits interest, this translates to net cash proceeds of $3,398,618, out of which $338,618 is set aside for estimated trust expenses.

Investors should note the robust net profit margin after operational costs, which suggests efficient cost management. However, the relatively low natural gas prices could be a concern if this trend continues, potentially impacting future distributions unless offset by higher oil prices or increased production volumes. Furthermore, the absence of an increase in cash reserves by VOC Brazos Energy Partners, L.P. could indicate an optimal cash flow management strategy focused on immediate returns to unitholders.

Overall, this quarterly distribution reflects a stable performance with well-managed operational costs, but investors should remain vigilant to market fluctuations particularly in natural gas prices.

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

Unitholders of record on July 30, 2024 will receive a distribution amounting to $3,060,000 or $0.18 per unit, payable August 14, 2024.

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

Sales volumes:
Oil (Bbl)		116,006
Natural gas (Mcf)		65,815
Total (BOE)		126,975
Average sales prices:
Oil (per Bbl)		$	78.36
Natural gas (per Mcf)		$	2.74
Gross proceeds:
Oil sales		$	9,090,488
Natural gas sales			180,419
Total gross proceeds		$	9,270,907
Costs:
Lease operating expenses		$	3,784,091
Production and property taxes			539,469
Development expenses			699,074
Total costs		$	5,022,634
Net proceeds		$	4,248,273
Percentage applicable to Trust’s Net Profits Interest		80%
Net profits interest		$	3,398,618
Increase in cash reserve held by VOC Brazos Energy Partners, L.P.			0
Total cash proceeds available for the Trust		$	3,398,618
Provision for current estimated Trust expenses			(338,618)
Net cash proceeds available for distribution		$	3,060,000

This press release contains forward-looking statements. Although VOC Brazos has advised the Trust that VOC Brazos 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/20240718634371/en/

VOC Energy Trust

The Bank of New York Mellon Trust Company, N.A., as Trustee

Elaina Rodgers

(713) 483-6020

 

Source: VOC Energy Trust

FAQ

What is the quarterly distribution amount for VOC Energy Trust (NYSE: VOC) for Q2 2024?

VOC Energy Trust announced a quarterly distribution of $3,060,000, or $0.18 per unit, for the period ended June 30, 2024.

When is the payment date for VOC Energy Trust's Q2 2024 distribution?

The payment date for VOC Energy Trust's Q2 2024 distribution is August 14, 2024.

What were the average sales prices for oil and natural gas for VOC Energy Trust in Q2 2024?

The average sales prices were $78.36 per barrel for oil and $2.74 per Mcf for natural gas.

How much were the total costs for VOC Energy Trust (NYSE: VOC) in Q2 2024?

The total costs for VOC Energy Trust in Q2 2024 were $5,022,634, including lease operating expenses, production and property taxes, and development expenses.