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VE

VOC Energy Trust (VOC)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 distribution declared at $1.87M, or $0.11 per unit, down 15.4% QoQ (vs $0.13) and down 38.9% YoY (vs $0.18), driven primarily by lower realized oil prices offset partially by higher oil volumes and lower development spending .
  • Gross proceeds fell to $7.23M from $7.81M in Q1 and $9.27M YoY; average oil price realized declined to $61.11/bbl (Q1: $69.32; YoY: $78.36), while oil volumes rose QoQ to 115,025 bbl (Q1: 109,667 bbl) .
  • Operating cost profile improved sequentially on development expenses ($0.45M vs $0.81M QoQ) and slightly lower LOE, though production/property taxes normalized higher vs an unusually low Q1 .
  • The Trust does not provide formal guidance; distributions remain primarily a function of commodity prices, production volumes, LOE, taxes and development activity as reiterated in the release’s forward-looking statement .

What Went Well and What Went Wrong

What Went Well

  • Sequential volume uptick: Oil sales volumes increased 4.9% QoQ to 115,025 bbl, supporting gross proceeds despite lower commodity prices .
  • Cost discipline on development: Development expenses dropped to $0.45M from $0.81M QoQ and $0.91M in Q4 2024, boosting net proceeds resilience .
  • Stable LOE QoQ and YoY improvement vs Q2 2024: LOE was $3.51M (Q1: $3.69M) and below Q2 2024 ($3.78M), aiding margins relative to price headwinds .

What Went Wrong

  • Realized prices compressed: Average oil price fell to $61.11/bbl (Q1: $69.32; YoY: $78.36), driving most of the decline in gross proceeds and distributions .
  • Distribution decreased: $0.11 per unit vs $0.13 in Q1 and $0.18 YoY, reflecting lower net profits interest and a modestly higher provision vs Q1 .
  • Production/property taxes rebounded from a low Q1: Taxes were $0.565M vs $0.206M in Q1, partially offsetting savings in development and LOE .

Financial Results

MetricQ2 2024Q4 2024Q1 2025Q2 2025
Total Gross Proceeds ($)$9,270,907 $7,561,618 $7,812,508 $7,225,060
Net Proceeds ($)$4,248,273 $2,373,525 $3,106,187 $2,696,899
Net Profits Interest to Trust (80%) ($)$3,398,618 $1,898,820 $2,484,950 $2,157,519
Provision for Trust Expenses ($)$338,618 $453,820 $274,950 $287,519
Distribution to Unitholders ($)$3,060,000 $1,445,000 $2,210,000 $1,870,000
Distribution per Unit ($)$0.18 $0.085 $0.13 $0.11
Avg Oil Price ($/Bbl)$78.36 $67.71 $69.32 $61.11
Oil Sales Volumes (Bbl)116,006 109,158 109,667 115,025
Avg Gas Price ($/Mcf)$2.74 $2.57 $3.57 $3.72
Gas Volumes (Mcf)65,815 66,598 58,971 52,514
Lease Operating Expenses ($)$3,784,091 $3,431,201 $3,687,150 $3,510,384
Production & Property Taxes ($)$539,469 $842,349 $205,576 $564,734
Development Expenses ($)$699,074 $914,543 $813,595 $453,043
Net Proceeds Margin (% of Gross)45.8% 31.4% 39.8% 37.3%

KPIs

KPIQ2 2024Q4 2024Q1 2025Q2 2025
Total BOE126,975 120,258 119,496 123,777
LOE per BOE ($/BOE)$29.80 $28.52 $30.84 $28.36
Distribution per Unit ($)$0.18 $0.085 $0.13 $0.11
Oil Mix (% of BOE)91.4% 90.8% 91.8% 92.9%

Notes: LOE/BOE and oil mix are calculated from the reported LOE, oil barrels, and total BOE in each release .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Distribution/Revenue/Margins/OpEx/TaxQ3 2025 onwardNot providedNot providedMaintained (no formal guidance)

The Trust does not issue formal financial guidance; distributions are based on cash received/expected from underlying properties and are sensitive to commodity prices, production, costs, and other factors as noted in the forward-looking statements .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
Realized oil pricingQ4: $67.71/bbl; Q1: $69.32/bbl $61.11/bbl Down sequentially
VolumesQ4 oil: 109,158 bbl; Q1 oil: 109,667 bbl Oil: 115,025 bbl Up QoQ
Development spendQ4: $0.91M; Q1: $0.81M $0.45M Down
LOEQ4: $3.43M; Q1: $3.69M $3.51M Slightly down QoQ
Production & property taxesQ4: $0.84M; Q1: $0.21M $0.56M Normalized higher vs Q1 anomaly

Note: No earnings call transcript was identified in our document set; themes reflect trends from quarterly distribution press releases .

Management Commentary

  • “The announced distributable amount is based on the amount of cash received or expected to be received by the Trustee from the underlying properties on or prior to the record date with respect to the quarter ended June 30, 2025.”
  • The release reiterated that outcomes depend on drilling results, risks inherent in oil and gas production, purchaser payment ability, OPEC actions, and risk factors in the 10-K for the year ended December 31, 2024 .

Q&A Highlights

  • N/A (distribution announcement; no Q&A provided in the filing set).

Estimates Context

  • S&P Global consensus coverage appears limited: no EPS consensus, target price, or recommendation available for Q2 2025; revenue/“sales” estimates are not typically applicable to royalty trusts and only actuals are present in the data feed (no forward consensus)*.
  • Implication: With no formal Street benchmarks, near-term estimate adjustments are unlikely; investor focus will remain on commodity price trajectory, realized pricing, LOE discipline, and development cadence.
MetricQ2 2025 ConsensusQ2 2025 Actual
EPSN/A*N/A
RevenueN/A*$7.23M (Total gross proceeds)
Net Profits Interest to TrustN/A*$2.16M
Distribution per UnitN/A*$0.11

*Values retrieved from S&P Global.

Key Takeaways for Investors

  • Distribution compression largely price-driven: realized oil at $61.11/bbl weighed on gross proceeds and distributions despite higher volumes; watch WTI/realized differentials as primary driver .
  • Cost tailwinds emerging: development spend materially lower and LOE improved QoQ; sustained cost control could buffer downside if prices remain soft .
  • Taxes normalized from an unusually low Q1, which, alongside lower prices, curbed sequential distributable cash despite volume gains .
  • With no guidance or consensus, catalysts are macro (oil/gas prices), operating execution (LOE/BOE), and development activity affecting net proceeds and future distributions .
  • Near-term trading bias will hinge on commodity price momentum into the next record date/payment cycle and any continued improvement in per-BOE cost metrics .
  • Medium-term, stability in volumes plus disciplined capex by the operator can support distributions if pricing stabilizes; conversely, further price weakness would likely pressure payouts given high sensitivity .