VOC Energy Trust Reports 16.4% Decrease in Net Profits Interest for Q1 2026

VOC Energy Trust reported its financial results for the first quarter of 2026, revealing a total income from net profits interest of $1,586,124, a decrease of 16.4% from $1,898,820 in the same period of 2025. The Trust's gross proceeds from oil and natural gas sales amounted to $6,496,072, down 14.1% from $7,561,618 year-over-year. This decline was attributed to lower market prices for oil and reduced sales volumes, with average oil prices falling to $58.49 per barrel, a 13.6% decrease from the previous year, while natural gas prices increased by 14.8% to $2.95 per Mcf.

The Trust's total assets decreased to $9,719,075 as of March 31, 2026, compared to $10,399,993 at the end of 2025. The decline in trust corpus was primarily due to cash distributions and expenses exceeding income from net profits interest. The Trust distributed $1,530,000, or $0.090 per Trust Unit, to unitholders in February 2026, an increase from the $1,445,000 distribution made in February 2025. The Trust's cash and cash equivalents stood at $1,771,113, which includes a cash reserve of $1,175,000 established for future expenses.

Operationally, the Trust reported a slight decrease in oil sales volumes to 108,032 barrels, down 1.0% from 109,158 barrels in the prior year, while natural gas sales volumes fell by 10.1% to 59,866 Mcf. The decrease in production volumes and the overall decline in gross proceeds were reflected in the excess of revenues over direct operating expenses, which decreased to $1,982,655 from $2,373,525 in the previous year. The Trust's expenses also saw a reduction, with general and administrative expenses decreasing to $311,650 from $412,521.

Looking ahead, VOC Energy Trust remains focused on managing its cash reserves and ensuring sufficient liquidity to cover future expenses. The Trust has not made any borrowings during the quarter and continues to rely on cash generated from its net profits interest. The Trustee has indicated that while the underlying properties are located in mature fields, future costs are not expected to change significantly, barring fluctuations in oilfield service costs. The Trust's next distribution, amounting to $1,615,000 or $0.095 per Trust Unit, is scheduled for May 15, 2026, reflecting ongoing efforts to maintain consistent returns for unitholders.