MV Oil Trust : Announces Trust Second Quarter Distribution - Form 8-K
July 06, 2022 at 01:54 am IST
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MV Oil Trust Announces Trust Second Quarter Distribution
MV OIL TRUST
The Bank of New York Mellon Trust Company, N.A., Trustee
NEWS RELEASE
FOR IMMEDIATE RELEASE
Houston, Texas, July 5, 2022 - MV Oil Trust (NYSE: MVO) announced the Trust distribution of net profits for the second quarterly payment period ended June 30, 2022.
Unitholders of record on July 15, 2022 will receive a distribution amounting to $8,050,000 or $0.700 per unit payable July 25, 2022.
Volumes, average price and net profits for the payment period were:
Volume (BOE)
158,092
Average price (per BOE)
$
102.11
Gross proceeds
$
16,142,188
Costs
$
5,299,150
Net profits
$
10,843,038
Percentage applicable to Trust's 80%
Net profits interest
$
8,674,430
MV Partners reserve for capital expenditures
$
--
Total cash proceeds available for the Trust
$
8,674,430
Provision for current estimated Trust expenses
$
(202,762
)
Amount withheld for future Trust expenses
$
(421,668
)
Net cash proceeds available for distribution
$
8,050,000
As previously disclosed, in November 2021, the Trustee notified MV Partners, LLC ("MV Partners") 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 $1.265 million. This amount is in addition to the letter of credit in the amount of $1.8 million provided to the Trustee by MV Partners 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 $421,668 from the proceeds otherwise available for distribution this quarter, for a total amount of $632,502 withheld to date.
This press release contains forward-looking statements. Although MV Partners has advised the Trust that MV Partners 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 June 30, 2022. 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, 2021 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.
Contact:
MV Oil 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
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Disclaimer
MV Oil Trust published this content on 05 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 July 2022 20:23:03 UTC.
MV Oil Trust (the Trust) is a statutory trust. The business and affairs of the trust are managed by The Bank of New York Mellon Trust Company, N.A., (the Trustee). The Trust acquire and holds a term net profits interest, which include interest in underlying properties consisting of MV Partnersâ 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 located in the El Dorado area are operated on behalf of MV Partners, LLC by Vess Oil Corporation and are located in the include El Dorado, Augusta and Valley Center Fields. These oil and gas properties include approximately 850 producing oil and gas wells. The El Dorado Field is located atop the Nemaha Ridge in Central Butler County. The Augusta Field is on a trend similar to the nearby El Dorado Field and strikes northeast parallel to the Nemaha Ridge.