MV Oil Trust Announces Trust First Quarter Distribution
April 05 2023 - 4:15PM
Business Wire
MV Oil Trust (NYSE: MVO) announced the Trust distribution of net
profits for the quarterly payment period ended March 31, 2023.
Unitholders of record on April 17, 2023 will receive a
distribution amounting to $3,967,500 or $0.345 per unit payable
April 25, 2023.
Volumes, average price and net profits for the payment period
were:
Volume (BOE)
147,971
Average price (per BOE)
$
72.67
Gross proceeds
$
10,753,104
Costs
$
5,266,230
Net profits
$
5,486,874
Percentage applicable to Trust’s 80%
Net profits interest
$
4,389,499
MV Partners reserve for capital
expenditures
$
--
Total cash proceeds available for the
Trust
$
4,389,499
Provision for current estimated Trust
expenses
$
(158,459
)
Amount withheld for future Trust
expenses
$
(263,540
)
Net cash proceeds available for
distribution
$
3,967,500
As previously disclosed, in November 2021, the Trustee notified
MV Partners, LLC (“MV Partners”) of the Trustee’s intent 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, by withholding 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 $263,540 from the proceeds otherwise available for
distribution this quarter, for a total amount of $1,265,000
withheld to date, thus fully funding the targeted cash reserve.
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 March 31, 2023. 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,
2022 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20230405005618/en/
MV Oil Trust The Bank of New York Mellon Trust Company, N.A., as
Trustee Elaina Rodgers 713-483-6020
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