MV Oil Trust has reported its financial results for the fiscal year ending December 31, 2024, revealing a net income of $18.6 million, a slight increase from $18.1 million in 2023. The Trust's distributable income per unit rose to $1.535, compared to $1.460 in the previous year, reflecting a total of $17.7 million available for distribution. The Trust's cash reserves were adjusted, with $0.9 million withheld for future expenses in 2024, down from $1.3 million in 2023. The average price for crude oil sold during 2024 was $75.52 per barrel, while natural gas averaged $2.19 per Mcf, indicating a decline in natural gas prices compared to $4.31 per Mcf in 2023.
The Trust's operational metrics showed a total production of approximately 481,018 barrels of oil equivalent (Boe) for the year, down from 490,320 Boe in 2023. The decrease in production volumes is attributed to the natural decline of mature fields, which comprise the Trust's underlying properties located in Kansas and Colorado. As of December 31, 2024, the Trust's estimated proved reserves were reported at 618,704 Boe, a significant reduction from 1,089,430 Boe in 2023, primarily due to production and revisions in reserve estimates.
Looking ahead, the Trust's net profits interest is set to terminate on June 30, 2026, as it has already produced the minimum required amount of 14.4 million Boe. Following this termination, the Trust will dissolve and cease distributions, with a final cash distribution anticipated shortly thereafter. The Trust's management has indicated that it will continue to implement a development and workover program to optimize production from existing wells, although capital expenditures will be limited to an average annual amount adjusted for inflation.
The Trust's financial health remains contingent on oil and gas market conditions, with fluctuations in commodity prices directly impacting cash distributions. The Trust has established a cash reserve of approximately $1.3 million to cover future expenses, and it is subject to various operational risks, including regulatory changes and environmental compliance costs. The Trustee has confirmed that internal controls over financial reporting are effective, ensuring reliable financial disclosures as the Trust approaches its termination date.
About MV Oil Trust
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