Executive Summary

VOC Energy Trust announced Q1 2025 net cash proceeds available for distribution of $2.21M, or $0.13 per unit, payable May 15, 2025, reflecting sequential improvement from Q4 2024 ($1.45M; $0.085 per unit) as commodity realizations and cost mix improved .
Q1 2025 gross proceeds were $7.81M, down versus Q3 2024 ($8.75M) and up modestly versus Q4 2024 ($7.56M); the move was driven by realized oil at $69.32/bbl (vs $75.35 in Q3 and $67.71 in Q4) and lower production/property taxes relative to Q4 .
No formal guidance or earnings call was provided; the Trust reiterates its pass‑through structure, distributing available cash each quarter per its Trust Agreement and subsequent events disclosure .
Near‑term stock reaction is tied to distribution yield and commodity price trajectory; filings explicitly attribute revenue variability to market prices/volumes and maintenance activity (e.g., workovers) .

What Went Well and What Went Wrong

What Went Well

Sequential distribution uplift: Q1 2025 distribution increased to $0.13 per unit from $0.085 in Q4 2024 on higher realized oil prices ($69.32/bbl vs $67.71/bbl) and lower production/property taxes ($205,576 vs $842,349) .
Development expenses declined sequentially ($813,595 in Q1 2025 vs $914,543 in Q4 2024), supporting improved distributable cash despite slightly higher LOE .
Trustee reaffirmed operational stability of the mature fields, with no impairment and continued reserve/letter of credit support for expense smoothing, underscoring distribution resilience mechanics .

What Went Wrong

Year‑over‑year softness: Q1 2025 gross proceeds of $7.81M were below Q1 2024’s $8.08M, and the per‑unit payout fell to $0.13 from $0.18 as realized oil and gas prices moderated .
Lease operating expenses rose sequentially to $3,687,150 from $3,431,201 in Q4 2024, partly offsetting benefits from lower taxes and development costs .
The 10‑Q highlights that lower commodity prices/volumes can materially compress the “excess of revenues over direct operating expenses,” which reduced distributable income in the comparable quarter analysis (context for investors tracking yoy trends) .

Financial Results

Distributable Cash Flow Bridge and Per‑Unit Distribution (Oldest → Newest)

Metric	Q3 2024	Q4 2024	Q1 2025
Gross Proceeds ($)	$8,746,955	$7,561,618	$7,812,508
Net Proceeds ($)	$4,053,154	$2,373,525	$3,106,187
Net Profits Interest (80%) ($)	$3,242,523	$1,898,820	$2,484,950
Provision for Trust Expenses ($)	$(182,523)	$(453,820)	$(274,950)
Net Cash Proceeds Available for Distribution ($)	$3,060,000	$1,445,000	$2,210,000
Distribution per Unit ($)	$0.18	$0.085	$0.13

Volumes, Prices, and Operating Costs Detail (Oldest → Newest)

KPI	Q3 2024	Q4 2024	Q1 2025
Oil Sales Volumes (Bbl)	113,737	109,158	109,667
Natural Gas Sales Volumes (Mcf)	65,152	66,598	58,971
Total (BOE)	124,596	120,258	119,496
Average Oil Price ($/Bbl)	$75.35	$67.71	$69.32
Average Gas Price ($/Mcf)	$2.71	$2.57	$3.57
Lease Operating Expenses ($)	$3,548,505	$3,431,201	$3,687,150
Production & Property Taxes ($)	$197,734	$842,349	$205,576
Development Expenses ($)	$947,562	$914,543	$813,595

Year-over-Year Snapshot

Metric	Q1 2024	Q1 2025
Gross Proceeds ($)	$8,076,227	$7,812,508
Net Cash Proceeds Available for Distribution ($)	$3,060,000	$2,210,000
Distribution per Unit ($)	$0.18	$0.13

Note: VOC is a pass‑through trust; it does not present GAAP revenue/EPS like an operating company. The Trust focuses on cash distributions sourced from net profits interest .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Forward revenue/EPS guidance	Q2 2025 onward	N/A	N/A	No formal guidance provided in Q1 2025 filings/press release
Distribution schedule (timing)	Ongoing	On/around 45th day post‑quarter; record date ~30th day post‑quarter	Maintained	Maintained distribution timing mechanics per Trust Agreement

The Trust reiterates its quarterly distribution mechanics; no forward ranges for revenue, margins, OpEx, or tax rate are issued .

Earnings Call Themes & Trends

No earnings call transcript was available for Q1 2025; themes are drawn from the 10‑Q MD&A and quarter press releases .

Topic	Previous Mentions (Q‑2: Q3 2024; Q‑1: Q4 2024)	Current Period (Q1 2025)	Trend
Commodity price sensitivity	Oil $75.35/bbl (Q3); $67.71/bbl (Q4); distributions moved with realizations	Oil $69.32/bbl; gas $3.57/Mcf; sequential improvement in payout from Q4	Mixed (oil modest up vs Q4; still below Q3)
Volumes	Oil/gas volumes drifted lower Q3→Q4; BOE down from 124,596 to 120,258	BOE 119,496; oil steady; gas lower	Slight decline vs Q3; near flat vs Q4
Operating costs (LOE)	LOE $3.55M (Q3) → $3.43M (Q4)	LOE increased to $3.69M	Up sequentially
Taxes	$197,734 (Q3) → $842,349 (Q4)	$205,576	Down sharply vs Q4
Development activity	$947,562 (Q3); $914,543 (Q4)	$813,595; 10‑Q notes workover activity as a driver in comparable analysis	Down vs Q4; activity remains an important driver
Governance/structure	Single segment; passive net profits interest; no management control over operations	Same; distribution mechanics reiterated	Stable

Management Commentary

“Oil and natural gas sales were $7,561,618 for the three months ended March 31, 2025, a decrease of $2,132,917 or 22.0% from $9,694,535 for the three months ended March 31, 2024. … The decrease in gross proceeds was due to decreases in market prices for oil and natural gas and by decreases in oil and natural gas sales volumes” .
“Development expenses were $914,543 for the three months ended March 31, 2025, an increase of $467,284 or 104.5% from $447,259 for the same period in 2024 … primarily from three significant workovers during the three months ended March 31, 2025” (context for yoy analysis; sequentially development declined into the Q1 2025 distribution period) .
“On April 17, 2025, the Trust announced a Trust distribution … $2,210,000, or $0.13 per Trust Unit, which will be paid on May 15, 2025” .

Q&A Highlights

No analyst Q&A; the Trust did not host an earnings call. Filings and press releases constitute primary disclosures for the period .

Estimates Context

S&P Global consensus was unavailable for VOC in Q1 2025 for EPS and revenue; no consensus values were returned for “Primary EPS Consensus Mean” or “Revenue Consensus Mean” when queried. Values retrieved from S&P Global.*

Key Takeaways for Investors

Distribution improved sequentially to $0.13 per unit on a better cost mix and slightly higher oil realizations vs Q4; monitor realized commodity prices and LOE trends for next quarter’s payout .
Taxes normalized from an elevated Q4 level, materially aiding distributable cash; sustainability depends on local tax assessments and production mix .
LOE pressure emerged in Q1 2025; sustained cost control is critical to maintain payouts if prices soften .
Development/workover cadence can temporarily raise expenses but supports production; filings flag workovers as a driver in comparable periods—track activity signals in future 8‑Ks .
No forward guidance or call; rely on quarterly 8‑K distributions and 10‑Q for trend data; distribution timing mechanics remain unchanged .
Trading lens: near‑term moves are driven by distribution yield and spot/realized oil prices; the Trust’s passive structure amplifies commodity volatility into payouts .

Appendix: Source Documents Reviewed

Q1 2025 8‑K 2.02 and Exhibit 99.1 press release (distribution of $2.21M; $0.13 per unit; full period detail) .
Q1 2025 Form 10‑Q (financial statements; MD&A; subsequent events confirming distribution; structure/segment disclosure) .
Prior quarters: Q4 2024 and Q3 2024 8‑K press releases (for trend analysis) .
Other relevant press release: 2024 10‑K filing notice (context only) .

Footnote: *Values retrieved from S&P Global.

VOC Energy Trust (VOC)·Q1 2025 Earnings Summary