VOC Energy Trust Announces Trust Quarterly Distribution
October 20 2020 - 4:15PM
Business Wire
VOC Energy Trust (NYSE: VOC) announced the Trust distribution of
net profits for the third quarterly payment period ended September
30, 2020.
Unitholders of record on October 30, 2020 will receive a
distribution amounting to $1,445,000 or $0.085 per unit, payable
November 13, 2020.
Volumes, average sales prices and net profits for the payment
period were:
Sales volumes:
Oil (Bbl)
130,203
Natural gas (Mcf)
64,863
Total (BOE)
141,014
Average sales prices:
Oil (per Bbl)
$
36.83
Natural gas (per Mcf)
$
1.42
Gross proceeds:
Oil sales
$
4,795,420
Natural gas sales
92,028
Total gross proceeds
$
4,887,448
Costs:
Lease operating expenses
$
2,316,455
Production and property taxes
135,358
Development expenses
557,664
Total costs
$
3,009,477
Net proceeds
$
1,877,971
Percentage applicable to Trust’s Net
Profits Interest
80
%
Net profits interest
$
1,502,377
Recovery of deficiency from second quarter
2020
(7,045
)
Total cash proceeds available for the
Trust
$
1,495,332
Provision for estimated Trust expenses
(50,332
)
Net cash proceeds available for
distribution
$
1,445,000
As previously reported, there was a substantial decrease in oil
prices during the first six months of 2020 due in part to
significantly decreased demand as a result of the COVID-19 pandemic
and an oversupply of crude oil. Oil prices have remained low
through the third quarter of 2020 and could remain low for an
extended period of time, which in turn could have a material
adverse effect on Trust distributions. Low oil prices and other
factors reduced net proceeds to which the Trust was entitled, and
there were not sufficient net proceeds for VOC Energy Trust to make
a payment for the scheduled quarterly distribution in August 2020
to unitholders of record on July 30, 2020. VOC Brazos Energy
Partners L.P. applied funds from the reserve for future
expenditures to cover the Trust deficit. For the quarter ended
September 30, 2020, gross proceeds exceed quarterly costs and the
reserve account is being replenished. The Trustee will withhold an
additional minimal amount and use cash reserves from the provision
for estimated Trust expenses provided in the first quarter
distribution to pay current Trust administrative expenses. If
commodity prices for crude oil remain at reduced levels, subsequent
distributions in 2021 will be substantially lower than historical
distributions, and in certain periods there may be no distribution
to unitholders.
This press release contains forward-looking statements. Although
VOC Brazos Energy Partners, L.P. has advised the Trust that VOC
Brazos Energy Partners, L.P. 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 September 30, 2020. 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, the dispute over production levels between Russia and the
members of the Organization of Petroleum Exporting Countries,
including Saudi Arabia, and other risk factors described in the
Trust’s Annual Report on Form 10-K for the year ended December 31,
2019 and Quarterly Report on Form 10-Q for the period ended June
30, 2020 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/20201020005962/en/
VOC Energy Trust The Bank of New York Mellon Trust Company,
N.A., as Trustee Mike Ulrich (512) 236-6599
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