MV Oil Trust (MVO, Financial) filed Quarterly Report for the period ended 2009-03-31.
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 $129.6 million; its shares were traded at around $11.27 with a P/E ratio of 4.6 and P/S ratio of 3.8. The dividend yield of MV Oil Trust stocks is 14.9%.
The cash received by the Trust from MV Partners during the quarter ended March 31, 2009 substantially represents the production by MV Partners from September 2008 through November 2008. The cash received by the Trust during the quarter ended March 31, 2008 substantially represents the production by MV Partners from September 2007 through November 2007. Excess of revenues over direct operating expenses and lease equipment and development costs from the underlying properties decreased $1,226,358 to $7,963,273 for the three months ended December 31, 2008 from $9,189,631 for the three months ended December 31, 2007. Included in these amounts are payments to settle hedges totaling $3,429,721 during the three months ended December 31, 2008 and $5,034,603 during the three months ended December 31, 2007. In addition, amounts received to settle hedges were $0 for the three months ended December 31, 2008 and $0 for the period ended December 31, 2007, which resulted in a
total cash receipts over cash disbursements of $7,963,273 and $9,189,631, respectively. The Trust's net profits interest (80%) of these totals are $6,370,618 and $7,351,705, respectively. As a result of the $4,839,426 deficiency in the three months ended September 30, 2008, the payment made by MV Partners to the Trust during the quarter ended March 31, 2009 took into account the recovery of such $4,839,426, plus $49,753 in interest as contemplated by the conveyance creating the Trust's net profits interest, resulting in income from net profits interest and hedge activities of $1,481,439 and $7,351,705 for the quarter ended March 31, 2009 and March 31, 2008, respectively.
The Trustee paid general and administrative expenses of $260,350 and $151,727 for the quarters ended March 31, 2009 and 2008, respectively. The distributable income for the quarter ended March 31, 2009 was $981,444, a decrease of $6,340,261 from a distributable income of $7,321,705 for the quarter ended March 31, 2008.
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 period from January 1, 2009 through March 31, 2009 from $7,687,162 for the period from January 1, 2008 through March 31, 2008. In addition, amounts received to settle hedges increased $3,346,935 to $3,346,935 for the period from January 1, 2009 through March 31, 2009 from $0 for the period from January 1, 2008 through March 31, 2008, which resulted in total cash receipts over cash disbursements of $6,335,666 and $7,687,162, respectively, for the two periods. The Trust's net profits interest (80%) of these totals were $5,068,533 and $6,149,730, respectively, and was decreased by a repayment of an advance of $150,000 for the quarter ending June 30, 2008, resulting in income from net profits interest and hedge and other
The average price received for crude oil sold was $34.16 per Bbl while the average price received for natural gas sold was $3.53 per Mcf for the period from January 1, 2009 through March 31, 2009. The average price received for crude oil sold was $88.45 per Bbl while the average price received for natural gas sold was $5.47 per Mcf for the period from January 1, 2008 through March 31, 2008.
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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 $129.6 million; its shares were traded at around $11.27 with a P/E ratio of 4.6 and P/S ratio of 3.8. The dividend yield of MV Oil Trust stocks is 14.9%.
Highlight of Business Operations:
For the three months ended September 30, 2008, direct operating expenses and lease equipment and development costs from the underlying properties exceeded revenues from the underlying properties by an aggregate of $6,049,283 (with the Trust's 80% portion equal to $4,839,426). The deficiency is primarily attributable to the failure of Eaglwing to pay MV Partners the aggregate of approximately $15.5 million originally owing for Eaglwing's purchase of production during June 2008 and the first 18 days of July 2008 and a related decrease in sales of oil production in July and August 2008. Included in the amounts for the three-month period are payments to settle hedges totaling $12,758,898 for the three months ended September 30, 2008. No amounts were received to settle hedges for the three months ended September 30, 2008.The cash received by the Trust from MV Partners during the quarter ended March 31, 2009 substantially represents the production by MV Partners from September 2008 through November 2008. The cash received by the Trust during the quarter ended March 31, 2008 substantially represents the production by MV Partners from September 2007 through November 2007. Excess of revenues over direct operating expenses and lease equipment and development costs from the underlying properties decreased $1,226,358 to $7,963,273 for the three months ended December 31, 2008 from $9,189,631 for the three months ended December 31, 2007. Included in these amounts are payments to settle hedges totaling $3,429,721 during the three months ended December 31, 2008 and $5,034,603 during the three months ended December 31, 2007. In addition, amounts received to settle hedges were $0 for the three months ended December 31, 2008 and $0 for the period ended December 31, 2007, which resulted in a
total cash receipts over cash disbursements of $7,963,273 and $9,189,631, respectively. The Trust's net profits interest (80%) of these totals are $6,370,618 and $7,351,705, respectively. As a result of the $4,839,426 deficiency in the three months ended September 30, 2008, the payment made by MV Partners to the Trust during the quarter ended March 31, 2009 took into account the recovery of such $4,839,426, plus $49,753 in interest as contemplated by the conveyance creating the Trust's net profits interest, resulting in income from net profits interest and hedge activities of $1,481,439 and $7,351,705 for the quarter ended March 31, 2009 and March 31, 2008, respectively.
The Trustee paid general and administrative expenses of $260,350 and $151,727 for the quarters ended March 31, 2009 and 2008, respectively. The distributable income for the quarter ended March 31, 2009 was $981,444, a decrease of $6,340,261 from a distributable income of $7,321,705 for the quarter ended March 31, 2008.
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 period from January 1, 2009 through March 31, 2009 from $7,687,162 for the period from January 1, 2008 through March 31, 2008. In addition, amounts received to settle hedges increased $3,346,935 to $3,346,935 for the period from January 1, 2009 through March 31, 2009 from $0 for the period from January 1, 2008 through March 31, 2008, which resulted in total cash receipts over cash disbursements of $6,335,666 and $7,687,162, respectively, for the two periods. The Trust's net profits interest (80%) of these totals were $5,068,533 and $6,149,730, respectively, and was decreased by a repayment of an advance of $150,000 for the quarter ending June 30, 2008, resulting in income from net profits interest and hedge and other
The average price received for crude oil sold was $34.16 per Bbl while the average price received for natural gas sold was $3.53 per Mcf for the period from January 1, 2009 through March 31, 2009. The average price received for crude oil sold was $88.45 per Bbl while the average price received for natural gas sold was $5.47 per Mcf for the period from January 1, 2008 through March 31, 2008.
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