MV Oil Trust Income Plunges 33.5% Amid Price, Production Woes

TL;DR

**MVO's income is tanking, sell if you're chasing yield – this trust is a pure commodity play getting hammered.**

AI Summary

MV Oil Trust reported a significant decline in distributable income for the three and six months ended June 30, 2025. For the three months, income from net profits interest decreased to $3,380,004 from $4,019,362 in the prior year, representing a 15.9% drop. The six-month period saw an even steeper decline, with income falling to $6,372,746 from $9,578,418, a 33.5% reduction. This was primarily due to lower oil and natural gas prices and decreased production volumes. The Trust also noted a change in cash on hand used for Trust expenses, moving from a $98,159 withholding in Q2 2024 to $7,562 used in Q2 2025. Despite these challenges, the Trust continues to operate as a passive entity, distributing net profits to unitholders. The strategic outlook remains tied to commodity price fluctuations and production levels from the underlying oil and gas properties.

Why It Matters

This substantial decline in distributable income directly impacts MVO unitholders, as the Trust's primary function is to pass through net profits. A 33.5% drop over six months signals reduced distributions, making the Trust less attractive for income-focused investors. For employees of the underlying operators, sustained low prices could eventually impact operational decisions, though MVO itself has no employees. In the broader market, MVO's performance reflects the challenging environment for smaller, passive oil and gas trusts, highlighting the volatility of commodity prices and their immediate effect on revenue streams. This also puts competitive pressure on similar trusts to maintain production and manage costs effectively.

Risk Assessment

Risk Level: high — The risk level is high due to the significant and direct exposure to volatile commodity prices and production declines. Income from net profits interest decreased by 33.5% for the six months ended June 30, 2025, falling from $9,578,418 to $6,372,746. This substantial reduction in the Trust's core revenue stream indicates high sensitivity to market conditions beyond its control.

Analyst Insight

Investors should re-evaluate MVO's position in their portfolio, especially if seeking stable income. Given the direct correlation to volatile oil and gas prices and declining production, consider reducing exposure or reallocating to less commodity-sensitive assets. Monitor future commodity price trends and production reports closely.

Financial Highlights

revenue

$3,380,004

revenue Growth

-15.9%

Revenue Breakdown

Key Numbers

• $3.38M — Q2 2025 Net Profits Income (Down 15.9% from $4.02M in Q2 2024, indicating reduced revenue.)
• $6.37M — H1 2025 Net Profits Income (Down 33.5% from $9.58M in H1 2024, showing a significant year-over-year decline.)
• 15.9% — Q2 Income Decrease (Percentage drop in income from net profits interest for the three months ended June 30, 2025, compared to the prior year.)
• 33.5% — H1 Income Decrease (Percentage drop in income from net profits interest for the six months ended June 30, 2025, compared to the prior year.)
• 11.5M — Units Outstanding (Total Units of Beneficial Interest outstanding as of August 12, 2025, representing the base for distributions.)

Key Players & Entities

• MV Oil Trust (company) — registrant and issuer of Units of Beneficial Interest
• The Bank of New York Mellon Trust Company, N.A. (company) — Trustee for MV Oil Trust
• New York Stock Exchange (regulator) — exchange where MVO Units of Beneficial Interest are registered
• $3,380,004 (dollar_amount) — income from net profits interest for three months ended June 30, 2025
• $4,019,362 (dollar_amount) — income from net profits interest for three months ended June 30, 2024
• $6,372,746 (dollar_amount) — income from net profits interest for six months ended June 30, 2025
• $9,578,418 (dollar_amount) — income from net profits interest for six months ended June 30, 2024
• 11,500,000 (dollar_amount) — Units of Beneficial Interest outstanding as of August 12, 2025
• June 30, 2025 (date) — end of the quarterly reporting period
• August 12, 2025 (date) — filing date of the 10-Q report

FAQ

Risk Factors

• Commodity Price Volatility [high — market]: The Trust's primary revenue source is income from net profits interest, which is directly tied to the market prices of oil and natural gas. Declines in these prices, as seen in the reported periods, significantly impact distributable income. For the three months ended June 30, 2025, income decreased by 15.9%, and for the six-month period, it fell by 33.5%.
• Production Volume Decline [medium — operational]: Reduced production volumes from the underlying oil and gas properties directly correlate with lower revenue. The Trust experienced decreased production in the periods ended June 30, 2025, contributing to the overall decline in net profits interest income. This highlights the dependency on the operational success of the properties generating the profits.
• Distributable Income Reduction [high — financial]: The significant drop in distributable income, particularly the 33.5% decrease for the first six months of 2025 compared to 2024, directly affects unitholder distributions. This trend poses a risk to the Trust's ability to maintain historical distribution levels.

Industry Context

The crude petroleum and natural gas industry is highly cyclical and sensitive to global supply and demand dynamics, geopolitical events, and macroeconomic conditions. MV Oil Trust operates within this volatile environment, where fluctuations in oil and natural gas prices directly impact revenue and profitability. The industry is capital-intensive, with ongoing needs for exploration, development, and production, making operational efficiency and reserve management critical.

Regulatory Implications

As a registrant with the SEC, MV Oil Trust is subject to the reporting requirements of the Securities Exchange Act of 1934, including the timely filing of Form 10-Q. Compliance with accounting standards and disclosure regulations is paramount. Changes in environmental regulations or tax policies related to oil and gas production could also impact operational costs and profitability.

What Investors Should Do

1. Monitor commodity prices closely.
2. Analyze production reports for underlying properties.
3. Evaluate the Trust's expense management.

Key Dates

• 2025-06-30: Quarterly Period End — Marks the end of the reporting period for the 10-Q filing, reflecting financial performance and operational status.
• 2025-08-12: Filing Date of 10-Q — Indicates the date the report was officially submitted to the SEC, providing investors with the latest financial information.

Glossary

Net Profits Interest

A type of overriding royalty interest that entitles the holder to a share of the net profits from the sale of oil and gas produced from a specified property, after the deduction of specified costs and expenses. (This is the primary source of revenue for MV Oil Trust, and its performance directly impacts distributable income and unitholder distributions.)

Distributable Income

The income available for distribution to the Trust's unitholders after deducting Trust expenses and other applicable charges. (This is the key metric for unitholders as it represents the amount of cash they can expect to receive from the Trust.)

Units of Beneficial Interest

Represents ownership in the MV Oil Trust, entitling holders to a share of the Trust's distributable income. (These are the securities investors hold, and their value is directly influenced by the Trust's financial performance and distribution levels.)

Year-Over-Year Comparison

Compared to the prior year's filing for the period ended June 30, 2024, MV Oil Trust has reported a significant decline in its primary revenue stream. Income from net profits interest for the three months ended June 30, 2025, decreased by 15.9% to $3,380,004 from $4,019,362, and the six-month period saw a steeper 33.5% drop to $6,372,746 from $9,578,418. This downturn is attributed to lower oil and natural gas prices and reduced production volumes, indicating a challenging market environment compared to the previous year.

Key Financial Figures

• $31,603 — 0.330 $ 0.515 $ 0.795 (1) Includes $31,603 and $30,387 paid to MV Partners, LLC du
• $30,387 — 515 $ 0.795 (1) Includes $31,603 and $30,387 paid to MV Partners, LLC during the thr
• $63,206 — ne 30, 2025 and 2024, respectively, and $63,206 and $60,775 during the six months ended
• $60,775 — and 2024, respectively, and $63,206 and $60,775 during the six months ended June 30, 20
• $37,500 — 5 and 2024, respectively. Also includes $37,500 paid to The Bank of New York Mellon Tru
• $75,000 — months ended June 30, 2025 and 2024 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 — r distribution each quarter and built a $1.265 million cash reserve for the payment of future
• $2,760,000 — quarterly distribution during 2025 was $2,760,000, or $0.240 per Trust unit, and was made
• $0.240 — ribution during 2025 was $2,760,000, or $0.240 per Trust unit, and was made on January
• $3,162,500 — quarterly distribution during 2025 was $3,162,500, or $0.275 per Trust unit, and was made
• $0.275 — ribution during 2025 was $3,162,500, or $0.275 per Trust unit, and was made on April 2
• $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

Filing Documents

• tm2516757d1_10q.htm (10-Q) — 122KB
• tm2516757d1_ex31.htm (EX-31) — 10KB
• tm2516757d1_ex32.htm (EX-32) — 6KB
• 0001104659-25-076844.txt ( ) — 139KB

—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, 2025 2024 2025 2024 Income from net profits interest $ 3,380,004 $ 4,019,362 $ 6,372,746 $ 9,578,418 Cash on hand used (withheld) for Trust expenses 7,562 (98,159 ) 165,448 4,997 General and administrative expenses (1) (225,066 ) (126,203 ) (615,694 ) (440,915 ) Distributable income $ 3,162,500 $ 3,795,000 $ 5,922,500 $ 9,142,500 Distributions per Trust unit (11,500,000 Trust units issued and outstanding at June 30, 2025 and 2024) $ 0.275 $ 0.330 $ 0.515 $ 0.795 (1) Includes $31,603 and $30,387 paid to MV Partners, LLC during the three months ended June 30, 2025 and 2024, respectively, and $63,206 and $60,775 during the six months ended June 30, 2025 and 2024, 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, 2025 and 2024 and $75,000 during each of the six months ended June 30, 2025 and 2024. June 30, 2025 December 31, 2024 (Unaudited) ASSETS Cash and cash equivalents $ 1,115,948 $ 1,281,396 Investment in net profits interest 50,383,675 50,383,675 Accumulated amortization (48,561,089 ) (47,799,222 ) Total assets $ 2,938,534 $ 3,865,849 TRUST CORPUS Trust corpus, 11,500,000 Trust units issued and outstanding at June 30, 2025 and December 31, 2024 $ 2,938,534 $ 3,865,849 (Unaudited) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Trust corpus, beginning of period $ 3,322,228 $ 4,940,153 $ 3,865,849 $ 5,456,085 Income from net profits interest 3,380,004 4,019,362 6,372,746 9,578,418 Cash distributions (3,162,500 ) (3,795,000 ) (5,922,500 ) (9,142,500 ) Trust expenses (225,066 ) (126,203 ) (615,694 ) (440,915 ) Amortizati

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, 2025, cumulatively, since inception, the Trust has received payment for 80% of the net proceeds attributable to MV Partners’ interest from the sale of 15.0 million barrels of oil equivalent (“MMBoe”) of production from the underlying properties (which amount is the equivalent of 12.0 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. The Trust has one business activity as the owner of an investment in net profits interest, as reported in the accompanying Statements of Assets and Trust Corpus, and operates in a single operating and reportable segment. Operating segments are defined as components of an entity for which separate financial information is evaluated regularly by the chief operating decision maker (the “CODM”), which is the Trustee. The segment participates in activities and derives its income from net profits interest as reported in the accompanying future Trust general and administrative expenses and the ultimate distribution to the Trust unitholders. No new accounting pronouncements were adopted or issued during the quarter ended June 30, 2025 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 4 Note 5—Income

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. As of June 30, 2025, cumulatively, since inception, the Trust has received payment for 80% of the net proceeds attributable to MV Partners’ interest from the sale of 15.0 million barrels of oil equivalent (“MMBoe”) of production from the underlying properties (which amount is the equivalent of 12.0 MMBoe with respect to the Trust’s net profits in

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