MV Oil Trust (MVO, Financial) filed Quarterly Report for the period ended 2009-09-30.
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 $221.1 million; its shares were traded at around $19.2253 with a P/E ratio of 7.8 and P/S ratio of 6.6. The dividend yield of Mv Oil Trust stocks is 12.4%.
For the three months ended September 30, 2009, revenues exceeded direct operating expenses and lease equipment and development costs from the underlying properties by $8,622,973 (with the Trust's 80% portion equal to $6,898,380). 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 portion equal to $4,839,426). The $14,672,256 difference 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 and the first 18 days of July 2008 and a related decrease in sales of oil production during July and August 2008. See "Other Events." Included in these amounts are payments to settle hedges totaling $486,749 for the three months ended September 30, 2009 and $12,758,898 for the three months ended September 30, 2008. In addition, amounts received to settle hedges were $124,288 for the three months ended September 30, 2009 and $0 for the three months ended September 30, 2008.
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 nine months ended September 30, 2009 substantially represents the production by MV Partners from September 2008 through May 2009 and the cash received by the Trust during the nine months ended September 30, 2008 substantially represents the production by MV Partners from September 2007 through May 2008. Excess of revenues over direct operating expenses and lease equipment and development costs from the underlying properties decreased $11,241,345 to $15,454,159 for the period from October 1, 2008 through June 30, 2009 from $26,695,504 for the period from October 1, 2007 through June 30, 2008. Included in these amounts are payments to settle hedges totaling $3,429,721 and $23,056,782, respectively. In addition, amounts received to settle hedges were $5,690,937 for the period from October 1, 2008 through June 30, 2009 and $0 for the period from October 1, 2007 through June 30, 2008, which resulted in a total cash receipts over cash disbursements of $21,145,096 and $26,695,504, respectively. The decrease for the period ended September 30, 2009 compared to the period ended September 30, 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 $16,916,076 and $21,356,403, 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, resulting in the income from net profits interest and hedge activities of $12,026,897 for the nine months ended September 30, 2009.
The Trustee paid general and administrative expenses of $563,411 and $650,863 for the nine months ended September 30, 2009 and 2008, respectively. The distributable income for the nine months ended September 30, 2009 was $11,101,904, a decrease of $9,674,506 from distributable income of $20,776,410 for the nine months ended September 30, 2008.
Excess of revenues over direct operating expenses and lease equipment and development costs from the underlying properties increased $4,657,269 to $16,113,859 for the nine months ended September 30, 2009 from $11,456,590 for the nine months ended September 30, 2008. Included in these amounts are payments to settle hedges totaling $486,749 and $30,781,076, respectively. In addition, amounts received to settle hedges increased $5,815,225 to $5,815,225 for the nine months ended September 30, 2009 from $0 for the nine months ended September 30, 2008, which resulted in total cash receipts over cash disbursements of $21,929,084 and $11,456,590, respectively. The Trust's portion (80%) of these totals were $17,543,267 and $9,165,272, respectively, which was decreased by a Trust holdback for future expenses of $580,309 for the nine months ended September 30, 2009 and repayments of advances totaling $650,000 for the nine months ended September 30, 2008, resulting in distributable income of $16,962,958 and $8,515,272 for the nine months ended September 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 $221.1 million; its shares were traded at around $19.2253 with a P/E ratio of 7.8 and P/S ratio of 6.6. The dividend yield of Mv Oil Trust stocks is 12.4%.
Highlight of Business Operations:
$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 Trust's net profits interest (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 $7,454,967 for the quarters ending September 30, 2009 and 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.For the three months ended September 30, 2009, revenues exceeded direct operating expenses and lease equipment and development costs from the underlying properties by $8,622,973 (with the Trust's 80% portion equal to $6,898,380). 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 portion equal to $4,839,426). The $14,672,256 difference 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 and the first 18 days of July 2008 and a related decrease in sales of oil production during July and August 2008. See "Other Events." Included in these amounts are payments to settle hedges totaling $486,749 for the three months ended September 30, 2009 and $12,758,898 for the three months ended September 30, 2008. In addition, amounts received to settle hedges were $124,288 for the three months ended September 30, 2009 and $0 for the three months ended September 30, 2008.
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 nine months ended September 30, 2009 substantially represents the production by MV Partners from September 2008 through May 2009 and the cash received by the Trust during the nine months ended September 30, 2008 substantially represents the production by MV Partners from September 2007 through May 2008. Excess of revenues over direct operating expenses and lease equipment and development costs from the underlying properties decreased $11,241,345 to $15,454,159 for the period from October 1, 2008 through June 30, 2009 from $26,695,504 for the period from October 1, 2007 through June 30, 2008. Included in these amounts are payments to settle hedges totaling $3,429,721 and $23,056,782, respectively. In addition, amounts received to settle hedges were $5,690,937 for the period from October 1, 2008 through June 30, 2009 and $0 for the period from October 1, 2007 through June 30, 2008, which resulted in a total cash receipts over cash disbursements of $21,145,096 and $26,695,504, respectively. The decrease for the period ended September 30, 2009 compared to the period ended September 30, 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 $16,916,076 and $21,356,403, 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, resulting in the income from net profits interest and hedge activities of $12,026,897 for the nine months ended September 30, 2009.
The Trustee paid general and administrative expenses of $563,411 and $650,863 for the nine months ended September 30, 2009 and 2008, respectively. The distributable income for the nine months ended September 30, 2009 was $11,101,904, a decrease of $9,674,506 from distributable income of $20,776,410 for the nine months ended September 30, 2008.
Excess of revenues over direct operating expenses and lease equipment and development costs from the underlying properties increased $4,657,269 to $16,113,859 for the nine months ended September 30, 2009 from $11,456,590 for the nine months ended September 30, 2008. Included in these amounts are payments to settle hedges totaling $486,749 and $30,781,076, respectively. In addition, amounts received to settle hedges increased $5,815,225 to $5,815,225 for the nine months ended September 30, 2009 from $0 for the nine months ended September 30, 2008, which resulted in total cash receipts over cash disbursements of $21,929,084 and $11,456,590, respectively. The Trust's portion (80%) of these totals were $17,543,267 and $9,165,272, respectively, which was decreased by a Trust holdback for future expenses of $580,309 for the nine months ended September 30, 2009 and repayments of advances totaling $650,000 for the nine months ended September 30, 2008, resulting in distributable income of $16,962,958 and $8,515,272 for the nine months ended September 30, 2009 and 2008, respectively.
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