VOC Energy Trust Announces Trust Quarterly Distribution

Rhea-AI Summary

VOC Energy Trust (NYSE: VOC) announced a first-quarter distribution of net profits for the period ending March 31, 2022. Unitholders of record on May 2, 2022, will receive a total distribution of $4,760,000, equating to $0.28 per unit, payable on May 13, 2022. The Trust reported sales volumes of 124,939 barrels of oil and 80,423 Mcf of natural gas, resulting in total gross proceeds of $10,374,559. After costs of $3,895,583, net proceeds available for distribution amount to $4,760,000. A reserve for future expenses is being established, with $182,917 withheld this quarter.

Positive

• Announced total distribution of $4,760,000 ($0.28 per unit) for first quarter.
• Sales volumes: 124,939 barrels of oil and 80,423 Mcf of natural gas.
• Total gross proceeds of $10,374,559 reported.

Negative

• Trust is withholding $182,917 from proceeds for future expense reserve.

HOUSTON--(BUSINESS WIRE)-- VOC Energy Trust (NYSE: VOC) announced the Trust distribution of net profits for the first quarterly payment period ended March 31, 2022.

Unitholders of record on May 2, 2022 will receive a distribution amounting to $4,760,000 or $0.28 per unit, payable May 13, 2022.

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

Sales volumes:
Oil (Bbl)		124,939
Natural gas (Mcf)		80,423
Total (BOE)		138,343
Average sales prices:
Oil (per Bbl)		$	78.89
Natural gas (per Mcf)		$	6.44
Gross proceeds:
Oil sales		$	9,856,344
Natural gas sales			518,215
Total gross proceeds		$	10,374,559
Costs:
Lease operating expenses		$	3,246,529
Production and property taxes			318,419
Development expenses			330,635
Total costs		$	3,895,583
Net proceeds		$	6,478,976
Percentage applicable to Trust’s Net Profits Interest		80		%
Net profits interest		$	5,183,181
Increase in cash reserve held by VOC Brazos Energy Partners, L.P.			0
Total cash proceeds available for the Trust		$	5,183,181
Provision for current estimated Trust expenses			(240,264	)
Amount withheld for future Trust expenses			(182,917	)
Net cash proceeds available for distribution		$	4,760,000

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 $182,917 from the proceeds otherwise available for distribution this quarter, for a total amount of $365,834 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 March 31, 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220420006041/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 distribution amount for VOC Energy Trust for the first quarter of 2022?

The distribution amount is $4,760,000, or $0.28 per unit.

When will the distribution for VOC Energy Trust be paid?

The distribution will be paid on May 13, 2022.

What were the sales volumes reported by VOC Energy Trust for the first quarter of 2022?

The Trust reported sales volumes of 124,939 barrels of oil and 80,423 Mcf of natural gas.

What are the total gross proceeds reported by VOC Energy Trust for the first quarter of 2022?

The total gross proceeds reported are $10,374,559.

Is VOC Energy Trust establishing a cash reserve for future expenses?

Yes, VOC Energy Trust is withholding $182,917 from proceeds to build a cash reserve for future expenses.