VOC Energy Trust (VOC) Q2 2024 earnings summary

Executive summary

• Q2 2024 income from the net profits interest was $3.38M, down from $4.22M YoY; distributable income was $3.06M, or $0.18/unit, versus $3.91M, or $0.23/unit.

• H1 income from the net profits interest was $6.98M, down from $8.55M YoY; distributable income was $6.29M, or $0.37/unit, versus $7.82M, or $0.46/unit.

Financial highlights

• Q2 gross oil and gas proceeds fell 13.7% YoY to $8.08M; H1 proceeds fell 13.5% to $17.77M, reflecting lower prices and sales volumes.

• Q2 net proceeds before the 80% interest fell 20.0% YoY to $4.22M; H1 fell 18.4% to $8.73M.

• Q2 general and administrative expenses declined to $120,837 from $235,865; H1 expenses declined to $477,296 from $611,428.

Outlook and guidance

• VOC Brazos expects costs for properties in mature fields to remain broadly consistent with recent historical costs, except for changes from oilfield services cost fluctuations.

• The net profits interest terminates at the later of Dec. 31, 2030 or production and sale of 10.6 MMboe from the underlying properties, equivalent to 8.5 MMboe for the interest.