MV Oil Trust Income Plummets as Termination Date Looms

TL;DR

Sell MVO; this trust is winding down with rapidly declining distributions and a confirmed termination date of June 30, 2026.

AI Summary

MV Oil Trust (MVO) reported a significant decline in distributable income for the three and nine months ended September 30, 2025, primarily due to lower income from its net profits interest. For the three months ended September 30, 2025, distributable income was $2,127,500, a sharp 54.89% decrease from $4,715,000 in the same period of 2024. Similarly, for the nine months ended September 30, 2025, distributable income fell by 41.92% to $8,050,000 from $13,857,500 in 2024. This decline is directly linked to a 52.32% drop in income from net profits interest for the three-month period, from $4,949,064 in 2024 to $2,359,674 in 2025, and a 39.90% decrease for the nine-month period, from $14,527,482 to $8,732,419. Distributions per Trust unit also decreased substantially, from $0.410 to $0.185 for the quarter and from $1.2050 to $0.700 for the nine months. A critical development is the confirmed termination of the Trust's net profits interest on June 30, 2026, as the minimum production threshold of 14.4 MMBoe (11.5 MMBoe for the Trust's interest) has been met. The Trust will make a final distribution around July 24, 2026, and units will be cancelled shortly thereafter, leading to the Trust's dissolution.

Why It Matters

This filing signals the imminent end for MV Oil Trust, with its net profits interest terminating on June 30, 2026. For investors, this means a finite timeline for distributions, which have already seen a significant decline of 54.89% quarter-over-quarter. The competitive landscape for oil and gas trusts is inherently limited by their finite nature, and MVO's winding down removes a player from this niche market. Employees are not directly impacted as the Trust is passive, but MV Partners, LLC, which operates the underlying properties, will continue operations post-termination. Customers of the oil and gas production will see no direct impact, as production continues under MV Partners. The broader market will see the delisting of MVO, reducing options for income-focused investors seeking exposure to royalty trusts.

Risk Assessment

Risk Level: high — The risk level is high because the Trust's net profits interest will terminate on June 30, 2026, leading to the dissolution of the Trust and cancellation of units. Distributable income has already fallen by 54.89% for the three months ended September 30, 2025, compared to the prior year, and distributions per unit are down to $0.185 from $0.410, indicating a rapid decline in future returns leading up to termination.

Analyst Insight

Investors should consider divesting their MVO units, as the Trust has a confirmed termination date of June 30, 2026, and distributions are significantly declining. The remaining distributions will be limited, and the units will be cancelled, offering no further value post-termination. Reallocate capital to other income-generating assets.

Financial Highlights

debt To Equity

N/A

revenue

$2,359,674

operating Margin

N/A

total Assets

$2,581,918

total Debt

$0

net Income

$2,127,500

eps

$0.185

gross Margin

N/A

cash Position

$1,147,561

revenue Growth

-52.32%

Revenue Breakdown

Key Numbers

• $2.13M — Distributable Income (Q3 2025) (Decreased 54.89% from $4.72M in Q3 2024.)
• $8.05M — Distributable Income (9M 2025) (Decreased 41.92% from $13.86M in 9M 2024.)
• $0.185 — Distributions per Trust unit (Q3 2025) (Down from $0.410 in Q3 2024.)
• $0.700 — Distributions per Trust unit (9M 2025) (Down from $1.2050 in 9M 2024.)
• June 30, 2026 — Termination Date (Confirmed date for the end of the net profits interest.)
• 15.1 MMBoe — Cumulative Production (Triggered termination of net profits interest.)
• 14.4 MMBoe — Minimum Production Threshold (Met for net profits interest termination.)
• 11,500,000 — Units Outstanding (Constant at September 30, 2025 and 2024.)
• $1.15M — Cash and Cash Equivalents (Sept 30, 2025) (Decreased from $1.28M at Dec 31, 2024.)
• $2.58M — Total Assets (Sept 30, 2025) (Decreased from $3.87M at Dec 31, 2024.)

Key Players & Entities

• MV Oil Trust (company) — registrant and statutory trust
• MV Partners, LLC (company) — trustor and operator of underlying properties
• The Bank of New York Mellon Trust Company, N.A. (company) — Trustee for MV Oil Trust
• Delaware Statutory Trust Act (regulator) — governing law for Trust formation
• MV Purchasing, LLC (company) — purchaser of majority of production from underlying properties
• $2,127,500 (dollar_amount) — distributable income for three months ended September 30, 2025
• $4,715,000 (dollar_amount) — distributable income for three months ended September 30, 2024
• $8,050,000 (dollar_amount) — distributable income for nine months ended September 30, 2025
• $13,857,500 (dollar_amount) — distributable income for nine months ended September 30, 2024
• June 30, 2026 (date) — Termination Date for the net profits interest

FAQ

Risk Factors

• Termination of Net Profits Interest [high — financial]: The Trust's net profits interest will terminate on June 30, 2026, as the minimum production threshold of 14.4 MMBoe has been met. This means all income generation for the Trust ceases on this date, leading to its dissolution.
• Declining Income from Net Profits Interest [high — market]: Income from net profits interest decreased by 52.32% for the three months ended September 30, 2025, and 39.90% for the nine months ended September 30, 2025. This significant drop directly impacts distributable income and future distributions.
• Dependence on MV Partners [medium — operational]: The Trust is passive and relies entirely on MV Partners for operational information and performance of the underlying properties. Any operational issues or misstatements from MV Partners directly affect the Trust.
• Decreasing Cash Position [medium — financial]: Cash and cash equivalents decreased from $1.28M at December 31, 2024, to $1.15M at September 30, 2025, indicating a reduction in readily available funds.
• Declining Asset Base [medium — financial]: Total assets have decreased from $3.87M at December 31, 2024, to $2.58M at September 30, 2025, primarily due to distributions exceeding new income generation.

Industry Context

The oil and gas royalty trust sector is characterized by its dependence on commodity prices and production volumes. MV Oil Trust operates within this framework, with its income directly tied to the performance of its net profits interest. The industry faces ongoing challenges related to price volatility, regulatory changes, and the need for continuous investment in production to maintain reserves.

Regulatory Implications

As a statutory trust, MV Oil Trust is subject to specific regulations governing its formation, operation, and dissolution. The confirmed termination date and dissolution process are critical regulatory milestones that investors must monitor. Compliance with reporting requirements for its net profits interest and distributions is also essential.

What Investors Should Do

1. Monitor production levels and commodity prices
2. Evaluate the remaining cash and asset position
3. Assess the impact of Trust dissolution

Key Dates

• 2026-06-30: Termination Date of Net Profits Interest — Marks the end of the Trust's income-generating period as the minimum production threshold has been met.
• 2026-07-24: Expected Final Distribution Date — The Trust will make its final cash distribution to unitholders around this date.
• 2026-07-15: Record Date for Final Distribution — Unitholders of record on this date will be eligible for the final distribution.
• 2025-09-30: Reporting Period End — Date for which the current 10-Q financial statements are reported.

Glossary

Net Profits Interest

A non-operating interest in oil and gas properties that entitles the holder to a share of the net profits after the deduction of specified costs and expenses. (This is the sole income-generating asset of the MV Oil Trust.)

Distributable Income

The income available for distribution to Trust unitholders after deducting Trust expenses. (Directly determines the amount of cash distributions made to unitholders.)

Trust Corpus

The total value of the Trust's assets, representing the capital contributed and accumulated earnings. (Reflects the overall financial position and value of the Trust.)

MMBoe

Million barrels of oil equivalent, a standard unit for measuring oil and gas reserves and production. (Used to define the production thresholds that trigger the termination of the net profits interest.)

MV Partners, LLC

The entity that conveyed the net profits interest to the Trust and manages the underlying oil and gas properties. (The operator of the properties and the source of all operational information for the Trust.)

Year-Over-Year Comparison

Compared to the prior year, MV Oil Trust has experienced a significant decline in its financial performance. Distributable income for the nine months ended September 30, 2025, fell by 41.92% to $8.05 million from $13.86 million in the same period of 2024. This is driven by a 39.90% decrease in income from the net profits interest. Consequently, distributions per unit have also dropped substantially, reflecting the diminishing returns as the Trust approaches its termination.

Key Financial Figures

• $31,603 — 0 $ 0.700 $ 1.2050 (1) Includes $31,603 and $30,387 paid to MV Partners, LLC du
• $30,387 — $ 1.2050 (1) Includes $31,603 and $30,387 paid to MV Partners, LLC during the thr
• $94,808 — er 30, 2025 and 2024, respectively, and $94,808 and $91,162 during the nine months ende
• $91,162 — and 2024, respectively, and $94,808 and $91,162 during the nine months ended September
• $37,500 — 5 and 2024, respectively. Also includes $37,500 paid to The Bank of New York Mellon Tru
• $112,500 — s ended September 30, 2025 and 2024 and $112,500 during each of the nine months ended Se
• $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
• $2,127,500 — quarterly distribution during 2025 was $2,127,500, or $0.185 per Trust unit, and was made
• $0.185 — ribution during 2025 was $2,127,500, or $0.185 per Trust unit, and was made on July 25
• $5,347,500 — quarterly distribution during 2024 was $5,347,500, or $0.465 per Trust unit, and was made

Filing Documents

• tm2524877d1_10q.htm (10-Q) — 123KB
• tm2524877d1_ex31.htm (EX-31) — 9KB
• tm2524877d1_ex32.htm (EX-32) — 5KB
• 0001104659-25-109159.txt ( ) — 139KB

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. MV OIL TRUST (Unaudited) Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Income from net profits interest $ 2,359,674 $ 4,949,064 $ 8,732,419 $ 14,527,482 Cash on hand (withheld) used for Trust expenses (31,613 ) 1,341 133,835 6,338 General and administrative expenses (1) (200,561 ) (235,405 ) (816,254 ) (676,320 ) Distributable income $ 2,127,500 $ 4,715,000 $ 8,050,000 $ 13,857,500 Distributions per Trust unit (11,500,000 Trust units issued and outstanding at September 30, 2025 and 2024) $ 0.185 $ 0.410 $ 0.700 $ 1.2050 (1) Includes $31,603 and $30,387 paid to MV Partners, LLC during the three months ended September 30, 2025 and 2024, respectively, and $94,808 and $91,162 during the nine months ended September 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 September 30, 2025 and 2024 and $112,500 during each of the nine months ended September 30, 2025 and 2024. September 30, 2025 December 31, 2024 (Unaudited) ASSETS Cash and cash equivalents $ 1,147,561 $ 1,281,396 Investment in net profits interest 50,383,675 50,383,675 Accumulated amortization (48,949,318 ) (47,799,222 ) Total assets $ 2,581,918 $ 3,865,849 TRUST CORPUS Trust corpus, 11,500,000 Trust units issued and outstanding at September 30, 2025 and December 31, 2024 $ 2,581,918 $ 3,865,849 (Unaudited) Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Trust corpus, beginning of period $ 2,938,534 $ 4,646,447 $ 3,865,849 $ 5,456,085 Income from net profits interest 2,359,674 4,949,064 8,732,419 14,527,482 Cash distributions (2,127,500 ) (4,715,000 ) (8,05

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 September 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 15.1 million barrels of oil equivalent (“MMBoe”) of production from the underlying properties (which amount is the equivalent of 12.1 MMBoe with respect t

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 Statements of Distributable Income, and the CODM uses this in making decisions about the allocation of cash reserves for current and 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 September 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—In

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. 6 Trust termination. As of September 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 15.1 million barrels of oil equivalent (“MMBoe”) of production from the underlying properties (which amount is the equivalent of 12.1 MMBoe with respect to the Trust’s net p

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