VOC Energy Trust

Tax Information

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Elaina Rodgers
The Bank of New York Mellon
Trust Company, N.A.

Corporate Trust
601 Travis Street, 16th Floor
Houston, TX 77002
Phone: 713-483-6020

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VOC Energy Trust Announces Trust Quarterly Distribution

Wednesday, July 20, 2022

HOUSTON--(BUSINESS WIRE)-- VOC Energy Trust (NYSE: VOC) announced the Trust distribution of net profits for the second quarterly payment period ended June 30, 2022.

Unitholders of record on August 1, 2022 will receive a distribution amounting to $6,460,000 or $0.38 per unit, payable August 12, 2022.

Volumes, average sales prices and net profits for the payment period were:

Sales volumes:

 

 

Oil (Bbl)

 

131,018

 

Natural gas (Mcf)

 

74,199

 

Total (BOE)

 

143,385

 

Average sales prices:

 

 

Oil (per Bbl)

 

$

104.64

 

Natural gas (per Mcf)

 

$

6.65

 

Gross proceeds:

 

 

 

Oil sales

 

$

13,709,782

 

Natural gas sales

 

 

493,468

 

Total gross proceeds

 

$

14,203,250

 

Costs:

 

 

 

Lease operating expenses

 

$

3,851,595

 

Production and property taxes

 

 

645,568

 

Development expenses

 

 

1,084,572

 

Total costs

 

$

5,581,735

 

Net proceeds

 

$

8,621,515

 

Percentage applicable to Trust’s Net Profits Interest

 

80

%

Net profits interest

 

$

6,897,212

 

Increase in cash reserve held by VOC Brazos Energy Partners, L.P.

 

 

0

 

Total cash proceeds available for the Trust

 

$

6,897,212

 

Provision for current estimated Trust expenses

 

 

(215,546

)

Amount withheld for future Trust expenses

 

 

(221,666

)

Net cash proceeds available for distribution

 

$

6,460,000

 

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 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 $221,666 from the proceeds otherwise available for distribution this quarter, for a total amount of $587,500 withheld to date.

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 June 30, 2022. 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, 2021 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.

VOC Energy Trust
The Bank of New York Mellon Trust Company, N.A., as Trustee
Elaina Rodgers
(713) 483-6020

Source: VOC Energy Trust

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