VOC Energy Trust Announces Trust Quarterly Distribution

Rhea-AI Summary

VOC Energy Trust (NYSE: VOC) has announced a distribution of net profits of $4,250,000, equivalent to $0.25 per unit, for the fourth quarterly payment period ending December 31, 2021. Unitholders of record on February 1, 2022, will receive this distribution on February 14, 2022. The total sales volumes included 135,762 barrels of oil and 84,632 Mcf of natural gas, generating total gross proceeds of $10,507,066, with net proceeds of $5,890,233. The Trust intends to build a cash reserve of $1.175 million for future expenses, withholding $182,917 from this quarter's distribution.

Positive

• Distribution of $4,250,000 ($0.25 per unit) planned for February 14, 2022.
• Total gross proceeds of $10.5 million reported for the quarter.
• Strong sales volumes: 135,762 barrels of oil and 84,632 Mcf of natural gas.

Negative

• Actual cash receipts may differ, impacting the distributable amount.
• Increased cash reserve for future expenses may limit immediate distributions.

HOUSTON--(BUSINESS WIRE)-- VOC Energy Trust (NYSE: VOC) announced the Trust distribution of net profits for the fourth quarterly payment period ended December 31, 2021.

Unitholders of record on February 1, 2022 will receive a distribution amounting to $4,250,000 or $0.25 per unit, payable February 14, 2022.

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

Sales volumes:
Oil (Bbl)		135,762
Natural gas (Mcf)		84,632
Total (BOE)		149,867
Average sales prices:
Oil (per Bbl)		$	73.79
Natural gas (per Mcf)		$	5.78
Gross proceeds:
Oil sales		$	10,017,815
Natural gas sales			489,251
Total gross proceeds		$	10,507,066
Costs:
Lease operating expenses		$	3,458,894
Production and property taxes			665,791
Development expenses			492,148
Total costs		$	4,616,833
Net proceeds		$	5,890,233
Percentage applicable to Trust’s Net Profits Interest		80%
Net profits interest		$	4,712,186
Increase in cash reserve held by VOC Brazos Energy Partners, L.P.			0
Total cash proceeds available for the Trust		$	4,712,186
Provision for current estimated Trust expenses			(279,269)
Amount withheld for future Trust expenses			(182,917)
Net cash proceeds available for distribution		$	4,250,000

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 Brazos 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.

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, 2021. 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, 2020 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/20220120005901/en/

VOC Energy Trust

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

Elaina Rogers

(713) 483-6020

Source: VOC Energy Trust

FAQ

What is the distribution amount announced by VOC Energy Trust for Q4 2021?

VOC Energy Trust announced a distribution of $4,250,000 or $0.25 per unit for Q4 2021.

When will VOC Energy Trust's distribution be paid to unitholders?

Unitholders will receive the distribution on February 14, 2022.

What were the total sales volumes reported by VOC Energy Trust for the fourth quarter?

The total sales volumes included 135,762 barrels of oil and 84,632 Mcf of natural gas.

What measures is VOC Energy Trust taking regarding future expenses?

VOC Energy Trust is building a cash reserve of $1.175 million for anticipated future expenses.

What is the total gross proceeds reported by VOC Energy Trust for Q4 2021?

The total gross proceeds reported for the fourth quarter were $10,507,066.