VOC Energy Trust Announces Trust Quarterly Distribution

Rhea-AI Summary

VOC Energy Trust (NYSE: VOC) has announced its quarterly distribution for the period ending December 31, 2024. Unitholders of record on January 30, 2025, will receive a distribution of $1,445,000, equivalent to $0.085 per unit, payable February 13, 2025.

The trust reported sales volumes of 109,158 barrels of oil and 66,598 Mcf of natural gas, totaling 120,258 BOE. Average sales prices were $67.71 per barrel for oil and $2.57 per Mcf for natural gas. Total gross proceeds reached $7,561,618, with costs of $5,188,093, resulting in net proceeds of $2,373,525. After applying the Trust's 80% Net Profits Interest and accounting for estimated Trust expenses, the final distribution amount was determined.

Positive

• Total gross proceeds of $7.56 million from oil and gas sales
• Healthy oil price realization at $67.71 per barrel
• Substantial production volumes with 120,258 BOE for the quarter

Negative

• Low natural gas price realization at $2.57 per Mcf
• High operational costs representing 68.6% of gross proceeds
• 23.9% of net profits consumed by Trust expenses

Insights

Financial Analyst

VOC Energy Trust's Q4 2024 distribution reveals some concerning trends. The trust will distribute $1,445,000 ($0.085 per unit), representing a notable decrease in distribution compared to historical averages. The key metrics paint a challenging picture:

The trust's operational metrics show:

• Oil sales generated $7.39M from 109,158 barrels at $67.71/barrel
• Natural gas contributed only $170,909 from 66,598 Mcf at $2.57/Mcf
• Total costs consumed 68.6% of gross proceeds

The high cost structure is particularly worrying - lease operating expenses of $3.43M combined with taxes and development costs resulted in a tight profit margin. The 80% net profits interest yielded just $1.89M before trust expenses, suggesting operational efficiency challenges. For retail investors, this distribution pattern indicates potential cash flow pressure if commodity prices don't improve or costs aren't better managed.

Energy Market Analyst

The production mix and pricing dynamics merit attention. With oil-to-gas ratio heavily skewed towards oil (109,158 barrels vs 66,598 Mcf), the trust remains primarily an oil play. The realized oil price of $67.71/barrel reflects moderate market conditions, while natural gas prices at $2.57/Mcf demonstrate the continued weakness in the gas market. The trust's high operating costs of $3.43M relative to revenue indicate potential structural issues in the underlying assets. Development expenses of $914,543 suggest ongoing maintenance requirements, which could impact future distributions if commodity prices remain range-bound.

In simpler terms: The trust is making most of its money from oil, not gas. While oil prices are okay, the high costs of running the operations are eating into profits. This means less money available for distributions to investors unless oil prices go up significantly or they find ways to cut costs.

HOUSTON--(BUSINESS WIRE)-- VOC Energy Trust (NYSE: VOC) announced the Trust distribution of net profits for the quarterly payment period ended December 31, 2024.

Unitholders of record on January 30, 2025 will receive a distribution amounting to $1,445,000 or $0.085 per unit, payable February 13, 2025.

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

Sales volumes:
Oil (Bbl)	109,158
Natural gas (Mcf)	66,598
Total (BOE)	120,258
Average sales prices:
Oil (per Bbl)	$	67.71
Natural gas (per Mcf)	$	2.57
Gross proceeds:
Oil sales	$	7,390,709
Natural gas sales		170,909
Total gross proceeds	$	7,561,618
Costs:
Lease operating expenses	$	3,431,201
Production and property taxes		842,349
Development expenses		914,543
Total costs	$	5,188,093
Net proceeds	$	2,373,525
Percentage applicable to Trust’s Net Profits Interest	80		%
Net profits interest	$	1,898,820
Increase in cash reserve held by VOC Brazos Energy Partners, L.P.		0
Total cash proceeds available for the Trust	$	1,898,820
Provision for current estimated Trust expenses		(453,820	)
Net cash proceeds available for distribution	$	1,445,000

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 December 31, 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/20250117551149/en/

VOC Energy Trust

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

Elaina Rodgers

(713) 483-6020

601 Travis Street, Floor 16, Houston, TX 77002

Source: VOC Energy Trust

FAQ

What is VOC Energy Trust's distribution per unit for Q4 2024?

VOC Energy Trust announced a distribution of $0.085 per unit for the quarter ending December 31, 2024.

When will VOC Energy Trust's Q4 2024 distribution be paid?

The distribution will be paid on February 13, 2025, to unitholders of record as of January 30, 2025.

What was VOC's average oil price realization in Q4 2024?

VOC's average oil price realization was $67.71 per barrel during the fourth quarter of 2024.

How much were VOC Energy Trust's total operational costs in Q4 2024?

Total operational costs for the quarter were $5,188,093, including lease operating expenses, taxes, and development expenses.

What was VOC's total production volume in Q4 2024?

VOC's total production volume was 120,258 BOE, consisting of 109,158 barrels of oil and 66,598 Mcf of natural gas.