VOC Energy Trust (VOC) Q3 2024 earnings summary

Executive summary

• Q3 income from the 80% net profits interest was $3.40 million; distributable income was $3.06 million, or $0.18 per unit, down from $3.57 million and $0.21 per unit YoY.

• 9M income from net profits interest was $10.38 million and distributable income was $9.35 million, compared with $12.34 million and $11.39 million in 2023.

Financial highlights

• Q3 oil and gas gross proceeds were $9.27 million, up 0.3% YoY; excess of revenues over direct operating expenses and development costs fell 10.3% to $4.25 million.

• 9M gross proceeds fell 9.2% to $27.04 million; excess of revenues over direct operating expenses and development costs declined 15.9% to $12.98 million.

• 9M G&A expenses decreased to $679,784 from $868,648; Q3 G&A expenses decreased to $202,488 from $257,220.

• Total assets were $12.36 million at September 30, 2024, versus $13.37 million at December 31, 2023; cash and cash equivalents were $1.78 million.

Outlook and guidance

• The net profits interest ends at the later of December 31, 2030 or production and sale of 10.6 million BOE from underlying properties, equivalent to 8.5 million BOE for the interest; 9.0 million BOE had been sold cumulatively, equivalent to 7.2 million BOE for the interest, by September 30, 2024.

• VOC Brazos expects costs for mature-field properties to remain near recent historical levels, except for changes from oilfield-services cost fluctuations.