VOC Energy Trust reported its financial results for the first quarter of 2025, revealing a significant decline in both revenue and profitability compared to the same period in 2024. The Trust generated income from net profits interest of $1.9 million for the three months ended March 31, 2025, a decrease of 47% from $3.6 million in the prior year. Total gross proceeds from oil and natural gas sales amounted to $7.6 million, down 22% from $9.7 million in the first quarter of 2024. This decline was attributed to lower average sales prices for oil and natural gas, which fell by 16.8% and 20.7%, respectively, alongside a decrease in sales volumes.
The Trust's total assets decreased to $11.5 million as of March 31, 2025, down from $11.9 million at the end of 2024. The decline in trust corpus was primarily driven by cash distributions of $1.4 million during the quarter, compared to $3.2 million in the same period last year. The Trust's cash and cash equivalents increased slightly to $1.8 million, reflecting a cash reserve established for future expenses. The Trust's expenses also rose, with general and administrative costs increasing to $412,521 from $356,459 in the previous year.
Operationally, VOC Energy Trust reported a decrease in oil sales volumes to 109,158 barrels, down 6.2% from 116,405 barrels in the first quarter of 2024. Natural gas sales volumes also fell by 1.9%, totaling 66,598 Mcf. The Trust's performance was impacted by market conditions, including fluctuating oil and gas prices and production costs. Lease operating expenses decreased by 12.2% to $3.4 million, while development expenses surged by 104.5% to $914,543, primarily due to significant workovers during the quarter.
Looking ahead, the Trust's management indicated that it does not expect significant changes in future costs for the underlying properties, as they are located in mature fields. The Trust has established a cash reserve of $1 million to mitigate the impact of uneven capital expenditure timing on distributions. The next distribution to unitholders is scheduled for May 15, 2025, amounting to $2.2 million, or $0.13 per Trust Unit, reflecting the Trust's ongoing commitment to return value to its unitholders despite the recent downturn in financial performance.
About VOC Energy Trust
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