MV Oil Trust Files Q2 2024 10-Q

TL;DR

MV Oil Trust filed its Q2 10-Q. Financials and operations updated.

AI Summary

MV Oil Trust filed its 10-Q for the quarterly period ended June 30, 2024. The filing details the trust's financial performance and operational status. The trust's principal executive offices are located at 601 Travis Street, Floor 16, Houston, Texas.

Why It Matters

This filing provides investors with an update on MV Oil Trust's financial health and operational performance for the second quarter of 2024, crucial for understanding its current value and future prospects.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial and operational updates for MV Oil Trust.

Key Numbers

• 001-33219 — SEC File Number (Identifies the specific SEC filing for MV Oil Trust.)
• 1231 — Fiscal Year End (Indicates the end of the trust's fiscal year.)

Key Players & Entities

• MV Oil Trust (company) — Registrant
• June 30, 2024 (date) — Quarterly period end date
• 601 Travis Street, Floor 16, Houston, Texas (location) — Principal executive offices address
• The Bank of New York Mellon Trust Company, N.A., Trustee (company) — Trustee
• MVO (ticker) — Trading Symbol for Units of Beneficial Interest

FAQ

Key Financial Figures

• $30,387 — 0.345 $ 0.795 $ 0.755 (1) Includes $30,387 and $29,219 paid to MV Partners, LLC du
• $29,219 — 795 $ 0.755 (1) Includes $30,387 and $29,219 paid to MV Partners, LLC during the thr
• $60,775 — ne 30, 2024 and 2023, respectively, and $60,775 and $58,437 during the six months ended
• $58,437 — and 2023, respectively, and $60,775 and $58,437 during the six months ended June 30, 20
• $37,500 — 4 and 2023, respectively. Also includes $37,500 paid to The Bank of New York Mellon Tru
• $75,000 — months ended June 30, 2024 and 2023 and $75,000 during each of the six months ended Jun
• $1.0 million — interest, MV Partners can reserve up to $1.0 million for future capital expenditures at any
• $1.265 million — ter to gradually build an approximately $1.265 million cash reserve for the payment of future
• $5,347,500 — quarterly distribution during 2024 was $5,347,500, or $0.465 per Trust unit, and was made
• $0.465 — ribution during 2024 was $5,347,500, or $0.465 per Trust unit, and was made on January
• $3,795,000 — quarterly distribution during 2024 was $3,795,000, or $0.330 per Trust unit, and was made
• $0.330 — ribution during 2024 was $3,795,000, or $0.330 per Trust unit, and was made on April 2
• $4,715,000 — quarterly distribution during 2023 was $4,715,000, or $0.410 per Trust unit, and was made
• $0.410 — ribution during 2023 was $4,715,000, or $0.410 per Trust unit, and was made on January
• $263,541 — December 31, 2022. The Trustee withheld $263,541 from the net proceeds otherwise availab

Filing Documents

• tm2415200d1_10q.htm (10-Q) — 121KB
• tm2415200d1_ex-31.htm (EX-31) — 9KB
• tm2415200d1_ex-32.htm (EX-32) — 5KB
• 0001104659-24-087786.txt ( ) — 137KB

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. MV OIL TRUST (Unaudited) Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Income from net profits interest $ 4,019,362 $ 4,389,499 $ 9,578,418 $ 9,575,800 Cash on hand used (withheld) for Trust expenses (98,159 ) (179,663 ) 4,997 (318,461 ) General and administrative expenses (1) (126,203 ) (242,336 ) (440,915 ) (574,839 ) Distributable income $ 3,795,000 $ 3,967,500 $ 9,142,500 $ 8,682,500 Distributions per Trust unit (11,500,000 Trust units issued and outstanding at June 30, 2024 and 2023) $ 0.330 $ 0.345 $ 0.795 $ 0.755 (1) Includes $30,387 and $29,219 paid to MV Partners, LLC during the three months ended June 30, 2024 and 2023, respectively, and $60,775 and $58,437 during the six months ended June 30, 2024 and 2023, respectively. Also includes $37,500 paid to The Bank of New York Mellon Trust Company, N.A. during each of the three months ended June 30, 2024 and 2023 and $75,000 during each of the six months ended June 30, 2024 and 2023. June 30, 2024 December 31, 2023 (Unaudited) ASSETS Cash and cash equivalents $ 1,258,935 $ 1,263,932 Investment in net profits interest 50,383,675 50,383,675 Accumulated amortization (46,996,163 ) (46,191,522 ) Total assets $ 4,646,447 $ 5,456,085 TRUST CORPUS Trust corpus, 11,500,000 Trust units issued and outstanding at June 30, 2024 and December 31, 2023 $ 4,646,447 $ 5,456,085 (Unaudited) Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Trust corpus, beginning of period $ 4,940,153 $ 6,597,502 $ 5,456,085 $ 6,883,554 Income from net profits interest 4,019,362 4,389,499 9,578,418 9,575,800 Cash distributions (3,795,000 ) (3,967,500 ) (9,142,500 ) (8,682,500 ) Trust expenses (126,203 ) (242,336 ) (440,915 ) (574,839 ) Amortiza

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS (Unaudited) Note 1—Organization of the Trust MV Oil Trust (the “Trust”) is a statutory trust formed on August 3, 2006, under the Delaware Statutory Trust Act pursuant to a Trust Agreement (the “Trust Agreement”) among MV Partners, LLC, a Kansas limited liability company (“MV Partners”), as trustor, The Bank of New York Mellon Trust Company, N.A., as Trustee (the “Trustee”), and Wilmington Trust Company, as Delaware Trustee (the “Delaware Trustee”). The Trust was created to acquire and hold a term net profits interest for the benefit of the Trust unitholders pursuant to a conveyance from MV Partners to the Trust. The term net profits interest represents the right to receive 80% of the net proceeds (calculated as described below in Note 5) from production from the underlying properties (as defined below) (the “net profits interest”). The net profits interest consists of MV Partners’ net interests in all of its oil and natural gas properties located in the Mid-Continent region in the states of Kansas and Colorado (the “underlying properties”). The underlying properties include approximately 850 producing oil and gas wells. The net profits interest is passive in nature, and the Trustee has no management control over and no responsibility relating to the operation of the underlying properties. The net profits interest entitles the Trust to receive 80% of the net proceeds attributable to MV Partners’ interest from the sale of production from the underlying properties during the term of the Trust. As of June 30, 2024, cumulatively, since inception, the Trust has received payment for 80% of the net proceeds attributable to MV Partners’ interest from the sale of 14.4 million barrels of oil equivalent (“MMBoe”) of production from the underlying properties (which amount is the equivalent of 11.5 MMBoe with respect to the

Financial Statements of Royalty Trusts

Financial Statements of Royalty Trusts. Investment in the net profits interest was recorded initially at the historical cost of MV Partners and is periodically assessed to determine whether its aggregate value has been impaired below its total capitalized cost based on the underlying properties. The Trust will provide a write-down to its investment in the net profits interest if and when total capitalized costs, less accumulated amortization, exceed undiscounted future net revenues attributable to the proved oil and gas reserves of the underlying properties. No new accounting pronouncements were adopted or issued during the quarter ended June 30, 2024 that would impact the financial statements of the Trust. Note 4—Investment in Net Profits Interest The net profits interest was recorded at the historical cost of MV Partners on January 24, 2007, the date of conveyance of the net profits interest to the Trust, and was calculated as follows: Oil and gas properties $ 96,210,819 Accumulated depreciation and depletion (40,468,762 ) Hedge asset 7,237,537 Net property value to be conveyed 62,979,594 Times 80% net profits interest to Trust $ 50,383,675 Note 5—Income from Net Profits Interest Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Excess of revenues over direct operating expenses and lease equipment and development costs (1) $ 5,024,203 $ 5,486,874 $ 11,973,022 $ 11,969,751 Times net profits interest over the term of the Trust 80 % 80 % 80 % 80 % Income from net profits interest before reserve adjustments 4,019,362 4,389,499 9,578,418 9,575,800 MV Partners reserve for future capital expenditures (2) — — — — Income from net profits interest (3) $ 4,019,362 $ 4,389,499 $ 9,578,418 $ 9,575,800 (1) Excess of revenues over direct operating expenses and lease equipment and development costs reflect expenses and costs incurred by MV Partners during the D

Trustee’s Discussion and Analysis of Financial Condition

Item 2. Trustee’s Discussion and Analysis of Financial Condition and Results of Operations. The following discussion of the Trust’s financial condition and results of operations should be read in conjunction with the financial statements and notes thereto. The Trust’s purpose is, in general, to hold the net profits interest, to distribute to the Trust unitholders cash that the Trust receives in respect of the net profits interest, and to perform certain administrative functions in respect of the net profits interest and the Trust units. The Trust derives substantially all of its income and cash flows from the net profits interest. All information regarding operations has been provided to the Trustee by MV Partners. Overview and Trust Termination The Trust does not conduct any operations or activities. The net profits interest is passive in nature, and the Trustee has no management control over and no responsibility relating to the operation of the underlying properties. The Trust’s purpose is, in general, to hold the net profits interest, to distribute to the Trust unitholders cash that the Trust receives in respect of the net profits interest, and to perform certain administrative functions in respect of the net profits interest and the Trust units. The Trust derives substantially all of its income and cash flows from the net profits interest. The net profits interest entitles the Trust to receive 80% of the net proceeds attributable to MV Partners’ interest from the sale of production from the underlying properties during the term of the Trust. Trust termination. The Trust will wind up its affairs and terminate after the net profits interest termination date, which is set at June 30, 2026. Results of Operations Results of Operations for the Quarters Ended June 30, 2024 and 2023 The cash received by the Trust from MV Partners during the quarter ended June 30, 2024 substantially represents the production by MV Partners from D

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