MV Oil Trust Announces Trust Third Quarter Distribution
October 05 2020 - 3:05PM
Business Wire
MV Oil Trust (NYSE: MVO) announced the Trust distribution of net
profits for the third quarterly payment period ended September 30,
2020.
Unitholders of record on October 15, 2020 will receive a
distribution amounting to $1,092,500 or $0.095 per unit payable
October 23, 2020.
Volumes, average price and net profits for the payment period
were:
Volume (BOE)
156,608
Average price (per BOE)
$
35.84
Gross proceeds
$
5,613,503
Costs
$
3,634,973
Net profits
$
1,978,530
Percentage applicable to Trust’s 80%
Net profits interest
$
1,582,824
Recovery of deficiency from second quarter
2020
$
(440,532
)
Total cash proceeds available for the
Trust
$
1,142,292
Provision for estimated Trust expenses
$
(49,792
)
Net cash proceeds available for
distribution
$
1,092,500
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 MV Oil Trust to make a
payment for the scheduled quarterly distribution in July 2020 to
unitholders of record on July 15. MV Partners 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
MV Partners, LLC has advised the Trust that MV Partners, LLC
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/20201005005848/en/
MV Oil Trust The Bank of New York Mellon Trust Company, N.A.,
as Trustee Michael Ulrich 512-236-6599
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