MV Oil Trust Reports Significant Decline in Financial Performance for Q2 2025

MV Oil Trust reported a significant decline in financial performance for the second quarter of 2025, with income from net profits interest decreasing to $3.38 million, down from $4.02 million in the same period last year. For the first half of 2025, the Trust's income totaled $6.37 million, a decrease of $3.21 million compared to $9.58 million for the first half of 2024. The Trust's total assets as of June 30, 2025, were $2.94 million, a notable drop from $3.87 million at the end of 2024, primarily due to reduced cash reserves and distributions.

The decrease in income was attributed to a $4.01 million decline in excess revenues over direct operating expenses and lease costs, which fell to $7.97 million for the six months ended June 30, 2025, compared to $11.97 million for the same period in 2024. The Trust's cash distributions also reflected this downturn, with $5.92 million distributed in the first half of 2025, down from $9.14 million in the previous year. The average price received for crude oil sold during this period was $67.22 per barrel, compared to $75.29 per barrel in the same timeframe last year.

Operationally, the Trust continues to rely on its net profits interest from MV Partners, which encompasses approximately 850 producing oil and gas wells in Kansas and Colorado. The Trust has received payments for 80% of the net proceeds from the sale of 15 million barrels of oil equivalent since its inception. However, the Trust is set to terminate on June 30, 2026, as it has met the minimum production threshold required for the net profits interest. The final distribution to unitholders is expected to occur shortly after this termination date.

As of June 30, 2025, the Trust held $1.12 million in cash and cash equivalents, a decrease from $1.28 million at the end of 2024. The Trust has not engaged in any borrowings during the reporting period and maintains a letter of credit of $1.8 million to cover potential future expenses. The Trustee has also established a reserve of $1 million for future capital expenditures, which has remained unchanged.

Looking ahead, the Trust's financial outlook remains cautious due to the impending termination of the net profits interest and the anticipated decrease in distributions. The Trustee will continue to monitor cash flows and expenses closely, with the expectation that any excess cash reserves will be distributed to unitholders before the Trust's dissolution. The Trust's reliance on MV Partners for operational data and revenue generation underscores the importance of market conditions and production levels in determining future performance.