MV Oil Trust (MVO, Financial) filed Quarterly Report for the period ended 2009-06-30.
MV OIL TRUST is a statutory trust formed pursuant to a Trust Agreement (the Trust Agreement) among MV Partners LLC (MV Partners) as trustor The Bank of New York Trust Company N.A. as Trustee (the Trustee) and Wilmington Trust Company as Delaware Trustee (the Delaware Trustee). The Trust was formed to acquire and hold the net profits interest for the benefit of the trust unitholders. The business and affairs of the trust are managed by the trustee. The properties comprising the underlying properties for which MV Partners is designated as the operator are operated on a contract operator basis by Vess Oil Corporation and Murfin Drilling Company Inc. each of which is an affiliate of MV Energy LLC the sole manager of MV Partners. MV Partners sells all of its oil production to third-party crude oil purchasers including to three oil refineries located in McPherson El Dorado and Coffeyville Kansas MV Oil Trust has a market cap of $161.6 million; its shares were traded at around $14.05 with a P/E ratio of 5.7 and P/S ratio of 4.8. The dividend yield of MV Oil Trust stocks is 13.1%.
for the three months ended March 31, 2008, which resulted in a total cash receipts over cash disbursements of $6,335,666 and $7,687,162, respectively. The Trust\'s net profits interest (80%) of these totals were $5,068,533 and $6,149,730, respectively, resulting in income from net profits interest and hedge activities of $5,068,533 and $6,149,730 for the quarters ended June 30, 2009 and June 30, 2008, respectively. The decrease in such income in 2009 from 2008 is primarily attributable to higher realized prices for unhedged volumes of oil for the 2008 period as compared to the 2009 period.
Excess of revenues over direct operating expenses and lease equipment and development costs from the underlying properties decreased $5,316,556 to $4,502,154 for the three months ended June 30, 2009 from $9,818,710 for the three months ended June 30, 2008. Included in these amounts are payments to settle hedges totaling $0 for the three months ended June 30, 2009 and $10,260,421 for the three months ended June 30, 2008. In addition, amounts received to settle hedges were $2,344,003 for the three months ended June 30, 2009 and $0 for the three months ended June 30, 2008, which resulted in a total cash receipts over cash disbursements of $6,846,157 and $9,818,710, respectively. The decrease in 2009 from 2008 is primarily attributable to higher realized prices for unhedged volumes of oil for the 2008 period compared to the 2009 period. The Trust\'s portion (80%) of these totals were $5,476,925 and $7,854,968, respectively, and were decreased by Trust holdback for future expenses of $175,000 for the quarter ending September 30, 2009 and a repayment of an advance of $400,000 for the quarter ended September 30, 2008, resulting in distributable income of $5,301,925 and $7,454,968 for the quarters ending September 30, 2009 and 2008, respectively.
As noted above, the revenues from oil production are typically received by MV Partners one month after production, thus the cash received by the Trust during the six months ended June 30, 2009 substantially represents the production by MV Partners from September 2008 through February 2009 and the cash received by the Trust during the six months ended June 30, 2008 substantially represents the production by MV Partners from September 2007 through February 2008. Excess of revenues over direct operating expenses and lease equipment and development costs from the underlying properties decreased $5,924,789 to $10,952,004 for the period from October 1, 2008 through March 31, 2009 from $16,876,793 for the period from October 1, 2007 through March 31, 2008. Included in these amounts are payments to settle hedges totaling $3,429,721 and $12,796,360, respectively. In addition, amounts received to settle hedges were $3,346,935 for the period from October 1, 2008 through March 31, 2009 and $0 for the period from October 1, 2007 through March 31, 2008, which resulted in a total cash receipts over cash disbursements of $14,298,939 and $16,876,793, respectively. The decrease for the period ended March 31, 2009 compared to the period ended March 31, 2008 is primarily attributable to higher realized prices for unhedged volumes of oil for the 2008 period compared to the 2009 period.
The Trust\'s portion (80%) of these totals were $11,439,151 and $13,501,435, respectively, with the 2009 result reduced by a recovery of deficiency from the fourth quarter of 2008 in the amount of $4,889,179 which included applicable interest of $49,753 during the six months ended June 30, 2009, resulting in the income from net profits interest and hedge activities of $6,549,972 for that period.
Excess of revenues over direct operating expenses and lease equipment and development costs from the underlying properties decreased $10,014,987 to $7,490,885 for the six months ended June 30, 2009 from $17,505,872 for the six months ended June 30, 2008. Included in these amounts are payments to settle hedges totaling $0 and $18,022,179, respectively. In addition, amounts received to settle hedges increased $5,690,938 to $5,690,938 for the six months ended June 30, 2009 from $0 for the six months ended June 30, 2008, which resulted in total cash receipts over cash disbursements of $13,181,823 and $17,505,872, respectively. The Trust\'s portion (80%) of these totals were $10,545,458 and $14,004,698, respectively, which was decreased by a Trust holdback for future expenses of $425,000 for the six months ended June 30, 2009 and repayments of advances totaling $550,000 for the six months ended June 30, 2008, resulting in distributable income of $10,120,458 and $13,454,698 for the six months ended June 30, 2009 and 2008, respectively.
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MV OIL TRUST is a statutory trust formed pursuant to a Trust Agreement (the Trust Agreement) among MV Partners LLC (MV Partners) as trustor The Bank of New York Trust Company N.A. as Trustee (the Trustee) and Wilmington Trust Company as Delaware Trustee (the Delaware Trustee). The Trust was formed to acquire and hold the net profits interest for the benefit of the trust unitholders. The business and affairs of the trust are managed by the trustee. The properties comprising the underlying properties for which MV Partners is designated as the operator are operated on a contract operator basis by Vess Oil Corporation and Murfin Drilling Company Inc. each of which is an affiliate of MV Energy LLC the sole manager of MV Partners. MV Partners sells all of its oil production to third-party crude oil purchasers including to three oil refineries located in McPherson El Dorado and Coffeyville Kansas MV Oil Trust has a market cap of $161.6 million; its shares were traded at around $14.05 with a P/E ratio of 5.7 and P/S ratio of 4.8. The dividend yield of MV Oil Trust stocks is 13.1%.
Highlight of Business Operations:
The cash received by the Trust during the quarter ended June 30, 2009 substantially represents the production by MV Partners from December 2008 through February 2009. The cash received by the Trust during the quarter ended June 30, 2008 substantially represents the production by MV Partners from December 2007 through February 2008. The revenues from oil production are typically received by MV Partners one month after production. Excess of revenues over direct operating expenses and lease equipment and development costs from the underlying properties decreased $4,698,431 to $2,988,731 for the three months ended March 31, 2009 from $7,687,162 for the three months ended March 31, 2008. Included in these amounts are payments to settle hedges totaling $0 for the three months ended March 31, 2009 and $7,761,757 for the three months ended March 31, 2008. In addition, amounts received to settle hedges were $3,346,935 for the three months ended March 31, 2009 and $0for the three months ended March 31, 2008, which resulted in a total cash receipts over cash disbursements of $6,335,666 and $7,687,162, respectively. The Trust\'s net profits interest (80%) of these totals were $5,068,533 and $6,149,730, respectively, resulting in income from net profits interest and hedge activities of $5,068,533 and $6,149,730 for the quarters ended June 30, 2009 and June 30, 2008, respectively. The decrease in such income in 2009 from 2008 is primarily attributable to higher realized prices for unhedged volumes of oil for the 2008 period as compared to the 2009 period.
Excess of revenues over direct operating expenses and lease equipment and development costs from the underlying properties decreased $5,316,556 to $4,502,154 for the three months ended June 30, 2009 from $9,818,710 for the three months ended June 30, 2008. Included in these amounts are payments to settle hedges totaling $0 for the three months ended June 30, 2009 and $10,260,421 for the three months ended June 30, 2008. In addition, amounts received to settle hedges were $2,344,003 for the three months ended June 30, 2009 and $0 for the three months ended June 30, 2008, which resulted in a total cash receipts over cash disbursements of $6,846,157 and $9,818,710, respectively. The decrease in 2009 from 2008 is primarily attributable to higher realized prices for unhedged volumes of oil for the 2008 period compared to the 2009 period. The Trust\'s portion (80%) of these totals were $5,476,925 and $7,854,968, respectively, and were decreased by Trust holdback for future expenses of $175,000 for the quarter ending September 30, 2009 and a repayment of an advance of $400,000 for the quarter ended September 30, 2008, resulting in distributable income of $5,301,925 and $7,454,968 for the quarters ending September 30, 2009 and 2008, respectively.
As noted above, the revenues from oil production are typically received by MV Partners one month after production, thus the cash received by the Trust during the six months ended June 30, 2009 substantially represents the production by MV Partners from September 2008 through February 2009 and the cash received by the Trust during the six months ended June 30, 2008 substantially represents the production by MV Partners from September 2007 through February 2008. Excess of revenues over direct operating expenses and lease equipment and development costs from the underlying properties decreased $5,924,789 to $10,952,004 for the period from October 1, 2008 through March 31, 2009 from $16,876,793 for the period from October 1, 2007 through March 31, 2008. Included in these amounts are payments to settle hedges totaling $3,429,721 and $12,796,360, respectively. In addition, amounts received to settle hedges were $3,346,935 for the period from October 1, 2008 through March 31, 2009 and $0 for the period from October 1, 2007 through March 31, 2008, which resulted in a total cash receipts over cash disbursements of $14,298,939 and $16,876,793, respectively. The decrease for the period ended March 31, 2009 compared to the period ended March 31, 2008 is primarily attributable to higher realized prices for unhedged volumes of oil for the 2008 period compared to the 2009 period.
The Trust\'s portion (80%) of these totals were $11,439,151 and $13,501,435, respectively, with the 2009 result reduced by a recovery of deficiency from the fourth quarter of 2008 in the amount of $4,889,179 which included applicable interest of $49,753 during the six months ended June 30, 2009, resulting in the income from net profits interest and hedge activities of $6,549,972 for that period.
Excess of revenues over direct operating expenses and lease equipment and development costs from the underlying properties decreased $10,014,987 to $7,490,885 for the six months ended June 30, 2009 from $17,505,872 for the six months ended June 30, 2008. Included in these amounts are payments to settle hedges totaling $0 and $18,022,179, respectively. In addition, amounts received to settle hedges increased $5,690,938 to $5,690,938 for the six months ended June 30, 2009 from $0 for the six months ended June 30, 2008, which resulted in total cash receipts over cash disbursements of $13,181,823 and $17,505,872, respectively. The Trust\'s portion (80%) of these totals were $10,545,458 and $14,004,698, respectively, which was decreased by a Trust holdback for future expenses of $425,000 for the six months ended June 30, 2009 and repayments of advances totaling $550,000 for the six months ended June 30, 2008, resulting in distributable income of $10,120,458 and $13,454,698 for the six months ended June 30, 2009 and 2008, respectively.
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