VOC Energy Trust Announces Trust Quarterly Distribution
January 20 2022 - 4:10PM
Business Wire
VOC Energy Trust (NYSE: VOC) announced the Trust distribution of
net profits for the fourth quarterly payment period ended December
31, 2021.
Unitholders of record on February 1, 2022 will receive a
distribution amounting to $4,250,000 or $0.25 per unit, payable
February 14, 2022.
Volumes, average sales prices and net profits for the payment
period were:
Sales volumes:
Oil (Bbl)
135,762
Natural gas (Mcf)
84,632
Total (BOE)
149,867
Average sales prices:
Oil (per Bbl)
$
73.79
Natural gas (per Mcf)
$
5.78
Gross proceeds:
Oil sales
$
10,017,815
Natural gas sales
489,251
Total gross proceeds
$
10,507,066
Costs:
Lease operating expenses
$
3,458,894
Production and property taxes
665,791
Development expenses
492,148
Total costs
$
4,616,833
Net proceeds
$
5,890,233
Percentage applicable to Trust’s Net
Profits Interest
80%
Net profits interest
$
4,712,186
Increase in cash reserve held by VOC
Brazos Energy Partners, L.P.
0
Total cash proceeds available for the
Trust
$
4,712,186
Provision for current estimated Trust
expenses
(279,269)
Amount withheld for future Trust
expenses
(182,917)
Net cash proceeds available for
distribution
$
4,250,000
As previously disclosed, in November 2021, the Trustee notified
VOC Brazos Energy Partners, L.P. (“VOC Brazos”) 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 $1.175 million. This amount is in addition to the
letter of credit in the amount of $1.7 million provided to the
Trustee by VOC Brazos 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 $182,917 from the
proceeds otherwise available for distribution this quarter.
This press release contains forward-looking statements. Although
VOC Brazos has advised the Trust that VOC Brazos 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 December 31, 2021. 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,
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/20220120005901/en/
VOC Energy Trust The Bank of New York Mellon Trust
Company, N.A., as Trustee Elaina Rogers (713)
483-6020
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