Executive Summary

Q4 2024 distributable cash fell sharply as total gross proceeds declined on lower oil prices and higher production/property taxes; net cash available for distribution was $1.445M ($0.085 per unit), down from $3.060M ($0.18) in Q3 and $3.230M ($0.19) in Q4 2023 .
Key drivers were a drop in average oil price to $67.71/bbl (vs. $75.35 in Q3 and $81.39 in Q4 2023) and a notable spike in production/property taxes to $842K (vs. $198K in Q3), compressing net proceeds despite similar volumes .
No formal guidance is issued by the Trust; management reiterates distributions reflect cash receipts, commodity prices, and operating/tax costs per the Trust structure and risk factors in the 10-K .
Estimates context: Wall Street consensus (S&P Global) for Q4 2024 EPS/revenue was unavailable for VOC; results should drive investor focus toward distribution sustainability, commodity price trajectory, and cost/tax normalization [GetEstimates error].

What Went Well and What Went Wrong

What Went Well
- Lease operating expenses declined sequentially to $3.431M from $3.549M in Q3, partially offsetting weaker prices .
- Development spending remained steady ($915K in Q4 vs. $948K in Q3), supporting longer-term production stability under the operating plan .
- Management reaffirmed that quarterly distributions pass through “substantially all… quarterly cash receipts” after expenses, reinforcing transparency of the trust structure .
What Went Wrong
- Average oil price dropped to $67.71/bbl (Q3: $75.35; Q4 2023: $81.39), driving lower gross proceeds and net profits .
- Production and property taxes surged to $842K (Q3: $198K), materially compressing net proceeds and the distribution in Q4 2024 .
- Distribution per unit fell to $0.085 (Q3: $0.18; Q4 2023: $0.19), highlighting sensitivity to price/tax variability quarter-to-quarter .

Financial Results

Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Distribution per unit ($)	$0.19	$0.18	$0.18	$0.085
Net cash proceeds available for distribution ($)	$3,230,000	$3,060,000	$3,060,000	$1,445,000
Total gross proceeds ($)	$9,694,535	$9,270,907	$8,746,955	$7,561,618
Oil sales ($)	$9,474,489	$9,090,488	$8,570,477	$7,390,709
Natural gas sales ($)	$220,046	$180,419	$176,478	$170,909
Lease operating expenses ($)	$3,907,650	$3,784,091	$3,548,505	$3,431,201
Production & property taxes ($)	$834,484	$539,469	$197,734	$842,349
Development expenses ($)	$447,259	$699,074	$947,562	$914,543
Net proceeds ($)	$4,505,142	$4,248,273	$4,053,154	$2,373,525
Net profits interest ($)	$3,604,114	$3,398,618	$3,242,523	$1,898,820
Provision for Trust expenses ($)	$(374,114)	$(338,618)	$(182,523)	$(453,820)
Sales volumes - Oil (Bbl)	116,405	116,006	113,737	109,158
Sales volumes - Gas (Mcf)	67,921	65,815	65,152	66,598
Total (BOE)	127,725	126,975	124,596	120,258
Avg oil price ($/Bbl)	$81.39	$78.36	$75.35	$67.71
Avg gas price ($/Mcf)	$3.24	$2.74	$2.71	$2.57

Segment/product breakdown (current quarter):

Q4 2024 Gross Proceeds	Amount ($)
Oil sales	$7,390,709
Natural gas sales	$170,909
Total gross proceeds	$7,561,618

KPIs (current quarter):

KPI	Q4 2024
Percentage applicable to Trust’s Net Profits Interest	80%
Total cash proceeds available to Trust ($)	$1,898,820
Provision for estimated Trust expenses ($)	$(453,820)

Context and drivers:

The sequential drop in distribution is primarily due to lower realized oil prices and a sharp increase in production/property taxes; LOE trended down but was insufficient to offset price/tax headwinds .
Volumes were modestly lower QoQ/YoY in oil; gas volumes were roughly stable, reinforcing pricing/taxation as the principal delta .
Trust documentation reiterates distributions reflect pass-through cash flows subject to operating costs, taxes, development expenses, and commodity price volatility .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Distribution / EPS	Q4 2024	Not provided	Not provided	Maintained (Trust does not issue guidance)
Outlook Commentary	Q1 2025+	Not provided	No formal guidance; distributions depend on cash receipts, commodity prices, costs, and taxes	Maintained

Note: VOC Energy Trust does not issue forward guidance; the structure distributes cash receipts net of expenses and reserves .

Earnings Call Themes & Trends

No Q4 2024 earnings call transcript was found for VOC; Trust typically communicates via press releases and SEC filings.

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q3 2024)	Current Period (Q4 2024)	Trend
Weather impacts	Not discussed	Not discussed	Not discussed	Neutral
Commodity prices	Implied via realized pricing	Implied via realized pricing	Lower realized prices pressured proceeds	Negative QoQ
Taxes/Costs	Standard disclosure	Lower taxes in Q3	Higher production/property taxes materially impacted net proceeds	Deteriorating
Development program	Implied steady spend	Higher spend	Slightly lower sequentially; ongoing	Stable

Management Commentary

“The Trust will make quarterly cash distributions of substantially all of its quarterly cash receipts, after deducting the Trust’s administrative expenses…” .
“The amount of Trust revenues and cash distributions… will depend on, among other things: oil sales prices… volumes… property and production taxes; development expenses; lease operating expenses; and administrative expenses of the Trust.” .
Risk factors emphasize price volatility, OPEC actions, and regulatory/tax variability as key determinants of future distributions .

Q&A Highlights

No earnings call/Q&A was available for Q4 2024; investor communication occurred via the 8-K/press release and the FY2024 10-K .

Estimates Context

S&P Global consensus EPS and revenue estimates for Q4 2024 were unavailable for VOC Energy Trust; tool access returned an error and the Trust appears lightly covered by sell-side estimates for quarterly results [GetEstimates error].
With no consensus to benchmark, investors should focus on realized commodity prices, tax/LOE trends, and development spend cadence as primary distribution drivers .

Key Takeaways for Investors

Distribution dropped to $0.085 per unit in Q4 2024 on lower oil price realization and sharply higher production/property taxes; watch for normalization of tax accruals and commodity price trajectory into 2025 .
Cost control (LOE down QoQ) provided a partial offset; sustained progress on LOE and predictable tax rates would support steadier distributions .
Volumes are relatively stable but long-lived assets imply gradual decline; development expenditures support stability within the Trust’s finite life (terminates at or near 2030 per reserves plan) .
Near-term trading: sensitivity to WTI moves and any indication of tax/expense volatility—distribution prints will be key catalysts .
Medium-term thesis: trust structure passes through cash; absent guidance, position sizing should reflect commodity/tax risk, finite duration, and the inability to acquire offsetting assets .
Monitor quarterly press releases for realized prices, taxes, and development spend updates; the 10-K provides broader context on reserves and operating assumptions .

Sources: Q4 2024 distribution press release and 8-K ; Q3 2024 press release and 8-K ; Q2 2024 press release and 8-K ; Q4 2023 press release and 8-K ; FY2024 10-K .

VOC Energy Trust (VOC)·Q4 2024 Earnings Summary