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VOC Energy Trust Announces Trust Quarterly Distribution
Rhea-AI Impact
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Rhea-AI Summary
VOC Energy Trust (NYSE: VOC) announced a net profit distribution of $6,205,000 or $0.365 per unit for the quarter ending September 30, 2022. Unitholders of record on October 31, 2022, will receive this amount on November 14, 2022. The Trust reported oil sales of 131,660 Bbl and natural gas sales of 76,472 Mcf, with total gross proceeds of $13,826,766. Total expenses amounted to $5,324,929, resulting in net proceeds of $8,501,837. The Trustee is building a reserve for future expenses, withholding $356,470 this quarter.
Positive
Net profit distribution of $6,205,000 or $0.365 per unit for Q3 2022.
Total gross proceeds reached $13,826,766.
High sales volumes: 131,660 Bbl of oil and 76,472 Mcf of natural gas.
Negative
Total expenses of $5,324,929 reduce available cash for distribution.
The Trust is withholding $356,470 from this quarter's proceeds to build reserves.
HOUSTON--(BUSINESS WIRE)--
VOC Energy Trust (NYSE: VOC) announced the Trust distribution of net profits for the quarterly payment period ended September 30, 2022.
Unitholders of record on October 31, 2022 will receive a distribution amounting to $6,205,000 or $0.365 per unit, payable November 14, 2022.
Volumes, average sales prices and net profits for the payment period were:
Sales volumes:
Oil (Bbl)
131,660
Natural gas (Mcf)
76,472
Total (BOE)
144,405
Average sales prices:
Oil (per Bbl)
$
100.12
Natural gas (per Mcf)
$
8.44
Gross proceeds:
Oil sales
$
13,181,203
Natural gas sales
645,563
Total gross proceeds
$
13,826,766
Costs:
Lease operating expenses
$
3,690,855
Production and property taxes
366,704
Development expenses
1,267,370
Total costs
$
5,324,929
Net proceeds
$
8,501,837
Percentage applicable to Trust’s Net Profits Interest
80%
Net profits interest
$
6,801,470
Increase in cash reserve held by VOC Brazos Energy Partners, L.P.
0
Total cash proceeds available for the Trust
$
6,801,470
Provision for current estimated Trust expenses
(240,000)
Amount withheld for future Trust expenses
(356,470)
Net cash proceeds available for distribution
$
6,205,000
As previously disclosed, in November 2021, the Trustee notified VOC Brazos Energy Partners, L.P. (“VOC Brazos”) that the Trustee intends 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. The Trustee intends to withhold a portion of the proceeds otherwise available for distribution each quarter to gradually build a cash reserve to approximately $1.175 million. This amount is in addition to the letter of credit in the amount of $1.7 million provided to the Trustee by VOC 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 $356,470 from the proceeds otherwise available for distribution this quarter, for a total amount of $943,970 withheld to date.
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 September 30, 2022. 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, 2021 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.
