What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2022-05-10 compared with 2021-11-12 · 166 added, 226 removed, 129 unchanged (75% of the section changed)

2 unchanged sentences

Three months ended

September 30,

Nine months ended

September 30,

Income from net profits interest

2 unchanged sentences

Distributable income

Distributions per Trust unit (11,500,000 Trust units issued and outstanding at September 30, 2021 and 2020)

Includes $27,014 and $0 paid to MV Partners, LLC during the three months ended September 30, 2021 and 2020, respectively, and $107,018 and $76,926 during the nine months ended September 30, 2021 and 2020, respectively.

Also includes $37,500 paid to The Bank of New York Mellon Trust Company, N.A.

during each of the three months ended September 30, 2021 and 2020 and $112,500 during each of the nine months ended September 30, 2021 and 2020.

Distributions per Trust unit (11,500,000 Trust units issued and outstanding at March 31, 2021 and 2020)

Includes $28,095 and $52,989 paid to MV Partners, LLC during the three months ended March 31, 2022 and 2021, respectively, and $37,500 paid to The Bank of New York Mellon Trust Company, N.A.

during each of the three-month periods ended March 31, 2022 and 2021.

CONDENSED STATEMENTS OF ASSETS AND TRUST CORPUS

September 30,

Cash and cash equivalents

3 unchanged sentences

(42,771,353 )

Trust corpus, 11,500,000 Trust units issued and outstanding at September 30, 2021 and December 31, 2020

Trust corpus, 11,500,000 Trust units issued and outstanding at March 31, 2022 and December 31, 2021

CONDENSED STATEMENTS OF CHANGES IN TRUST CORPUS

Three months ended

September 30,

Nine months ended

September 30,

Trust corpus, beginning of period

7 unchanged sentences

NOTES TO CONDENSED FINANCIAL STATEMENTS

Note 1—Organization of the Trust

MV Oil Trust (the “Trust”) is a statutory

trust formed on August 3, 2006, under the Delaware Statutory Trust Act pursuant to a Trust Agreement (the “Trust Agreement”)

among MV Partners, LLC, a Kansas limited liability company (“MV Partners”), as trustor, The Bank of New York Mellon Trust

Company, N.A., as Trustee (the “Trustee”), and Wilmington Trust Company, as Delaware Trustee (the “Delaware Trustee”).

Note 1—Organization of the Trust

MV Oil Trust (the “Trust”) is a statutory

trust formed on August 3, 2006, under the Delaware Statutory Trust Act pursuant to a Trust Agreement (the “Trust Agreement”)

among MV Partners, LLC, a Kansas limited liability company (“MV Partners”), as trustor, The Bank of New York Mellon Trust

Company, N.A., as Trustee (the “Trustee”), and Wilmington Trust Company, as Delaware Trustee (the “Delaware Trustee”).

The Trust was created to acquire and hold a term

2 unchanged sentences

interest represents the right to receive 80% of the net proceeds (calculated as described below in Note 5) from production from the underlying

properties (as defined below) (the “net profits interest”).

The net profits interest consists of MV Partners’ net interests

in all of its oil and natural gas properties located in the Mid-Continent region in the states of Kansas and Colorado (the “underlying

properties”).

properties (as defined below) (the “net profits interest”).

The net profits interest consists of MV Partners’

net interests

in all of its oil and natural gas properties located in the Mid-Continent region in the states of Kansas and Colorado (the “underlying

properties”).

The underlying properties include approximately 860 producing oil and gas wells.

net profits interest is passive in nature, and the Trustee has no management control over and no responsibility relating to the operation

of the underlying properties.

The net profits interest entitles the Trust to receive 80% of the net proceeds attributable to MV Partners’

interest from the sale of production from the underlying properties during the term of the Trust.

The net profits interest will terminate

on the later to occur of (1) June 30, 2026 or (2) the time when 14.4 million barrels of oil equivalent (“MMBoe”)

have been produced from the underlying properties and sold (which amount is the equivalent of 11.5 MMBoe with respect to the Trust’s

net profits interest), and the Trust will soon thereafter wind up its affairs and terminate.

As of September 30, 2021, cumulatively,

since inception, the Trust has received payment for 80% of the net proceeds attributable to MV Partners’ interest from the sale

of 12.7 MMBoe of production from the underlying properties (which amount is the equivalent of 10.2 MMBoe with respect to the Trust’s

net profits interest).

The net profits interest is passive in nature,

and the Trustee has no management control over and no responsibility relating to the operation of the underlying properties.

The net profits

interest entitles the Trust to receive 80% of the net proceeds attributable to MV Partners’

interest from the sale of production

from the underlying properties during the term of the Trust.

The net profits interest will terminate on the later to occur of (1) June 30,

2026 or (2) the time when 14.4 million barrels of oil equivalent (“MMBoe”) have been produced from the underlying properties

and sold (which amount is the equivalent of 11.5 MMBoe with respect to the Trust’s net profits interest), and the Trust will soon

thereafter wind up its affairs and terminate.

As of March 31, 2022, cumulatively, since inception, the Trust has received payment

for 80% of the net proceeds attributable to MV Partners’

interest from the sale of 13.0 MMBoe of production from the underlying

properties (which amount is the equivalent of 10.4 MMBoe with respect to the Trust’s net profits interest).

The Trustee can authorize the Trust to borrow money

5 unchanged sentences

in an account with itself and make other short-term investments with the funds distributed to the Trust.

Note 2—Basis of Presentation

The accompanying Condensed Statements of Assets

and Trust Corpus as of December 31, 2021, which has been derived from audited financial statements, and the unaudited interim condensed

financial statements as of September 30, 2021 and for the three and nine months ended September 30, 2021 and September 30,

2020, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”).

Accordingly, certain information and note disclosures normally included in annual financial statements have been condensed or omitted

pursuant to those rules and regulations.

financial statements as of March 31, 2022 and for the three months ended March 31, 2022 and March 31, 2021, have been prepared

pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”).

Accordingly, certain information

and note disclosures normally included in annual financial statements have been condensed or omitted pursuant to those rules and

The preparation of financial statements requires

the Trust to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets

and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.

and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

Actual results could differ from those estimates.

4 unchanged sentences

The financial information should be read in conjunction

with the financial statements and notes thereto included in the Trust’s Annual Report on Form 10-K for the year ended December 31,

Note 3—Trust Accounting Policies

The Trust uses the modified cash basis of

accounting to report receipts of the net profits interest and payments of expenses incurred.

The net profits interest represents the

right to receive revenues (oil, gas and natural gas liquid sales) less direct operating expenses (lease operating expenses, lease

maintenance, lease overhead, and production and property taxes) and an adjustment for lease equipment costs and lease development

expenses (which are capitalized in financial statements prepared in accordance with accounting principles generally accepted in the

United States of America (“U.S.

GAAP”)) of the underlying properties times 80%.

Actual cash receipts may vary due to

timing delays of actual cash receipts from the property operators or purchasers and due to wellhead and pipeline volume balancing

agreements or practices.

The actual cash distributions of the Trust will be made based on the terms of the conveyance that created

the Trust’s net profits interest.

Expenses of the Trust, which include accounting, engineering, legal and other professional

fees, Trustee fees, an administrative fee paid to MV Partners and out-of-pocket expenses, are recognized when paid.

revenues and expenses would be recognized on an accrual basis.

Amortization of the investment in net profits interest is recorded on

a unit-of-production method in the period in which the cash is received with respect to such production.

Such amortization does not

reduce distributable income, rather it is charged directly to Trust Corpus.

with the financial statements and notes thereto included in the Trust’s Annual Report on Form 10-K for the year ended December 31,

Note 3—Trust Accounting Policies

The Trust uses the modified cash basis of accounting

to report receipts of the net profits interest and payments of expenses incurred.

The net profits interest represents the right to receive

revenues (oil, gas and natural gas liquid sales) less direct operating expenses (lease operating expenses, lease maintenance, lease overhead,

and production and property taxes) and an adjustment for lease equipment costs and lease development expenses (which are capitalized in

financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.

GAAP”)) of the underlying properties times 80%.

Actual cash receipts may vary due to timing delays of actual cash receipts from

the property operators or purchasers and due to wellhead and pipeline volume balancing agreements or practices.

The actual cash distributions

of the Trust will be made based on the terms of the conveyance that created the Trust’s net profits interest.

Expenses of the Trust,

which include accounting, engineering, legal and other professional fees, Trustee fees, an administrative fee paid to MV Partners and

out-of-pocket expenses, are recognized when paid.

GAAP, revenues and expenses would be recognized on an accrual basis.

of the investment in net profits interest is recorded on a unit-of-production method in the period in which the cash is received with

respect to such production.

Such amortization does not reduce distributable income, rather it is charged directly to Trust corpus.

This comprehensive basis of accounting other than

8 unchanged sentences

No new accounting pronouncements were adopted or

issued during the quarter ended September 30, 2021 that would impact the financial statements of the Trust.

Note 4—Investment in Net Profits Interest

issued during the quarter ended March 31, 2022 that would impact the financial statements of the Trust.

Note 4—Investment in Net Profits Interest

The net profits interest was recorded at the historical

5 unchanged sentences

Times 80% net profits interest to Trust

Note 5—Income from Net Profits Interest

Three months ended

September 30,

Nine months ended

September 30,

Excess (deficit) of revenues over direct operating expenses and lease equipment and development costs(1)

Excess of revenues over direct operating expenses and lease equipment and development costs(1)

Times net profits interest over the term of the Trust

Income (loss) from net profits interest before reserve adjustments

Income from net profits interest before reserve adjustments

MV Partners reserve for future capital expenditures(2)

Income from net profits interest(3)

Excess of revenues over direct operating expenses and lease equipment and development costs reflect expenses and costs incurred by MV Partners during the March through May production periods for the three months ended September 30, 2021 and 2020, respectively, and during each of the September through May production periods for the nine months ended September 30, 2021 and 2020, respectively.

Excess of revenues over direct operating expenses and lease equipment and development costs reflect expenses and costs incurred by MV Partners during the September through November production period.

Pursuant to the terms of the conveyance of the net profits interest, lease equipment and development costs are to be deducted when calculating the distributable income to the Trust.

Pursuant to the terms of the conveyance of the net profits interest, MV Partners can reserve up to $1.0 million for future capital expenditures at any time.

During the three and nine months ended September 30, 2021, MV Partners did not withhold or release any dollar amounts due to the Trust.

During the three and nine months ended September 30, 2020, MV Partners released $440,532 previously held for future capital expenditures.

The reserve balance was $1,000,000 at September 30, 2021 and $559,468 at September 30, 2020.

During the three months ended March 31, 2022 and March 31, 2021, MV Partners did not withhold or release any dollar amounts due to the Trust.

The reserve balance was $1,000,000 at March 31, 2022 and 2021.

The income from net profits interest is based upon the cash receipts from MV Partners for the oil and gas production.

The revenues from oil production are typically received by MV Partners one month after production;

thus, the cash received by the Trust during the three months ended September 30, 2021 substantially represents the production by MV Partners from March 2021 through May 2021 and the cash received by the Trust during the three months ended September 30, 2020 substantially represents the production by MV Partners from March 2020 through May 2020.

The cash received by the Trust during the nine months ended September 30, 2021 substantially represents the production by MV Partners from September 2020 through May 2021, and the cash received by the Trust during the nine months ended September 30, 2020 substantially represents the production by MV Partners from September 2019 through May 2020.

For the three and nine months ended September 30,

thus, the cash received by the Trust during the three months ended March 31, 2022 substantially represents the production by MV Partners from September 2021 through November 2021, and the cash received by the Trust during the three months ended March 31, 2021 substantially represents the production by MV Partners from September 2020 through November 2020.

For the three months ended March 31, 2022

and 2021, MV Purchasing, LLC, which is majority-owned by the indirect equity owners of MV Partners, purchased a majority of the production

from the underlying properties.

Sales to MV Purchasing, LLC are under short-term arrangements, ranging from one to six months, using market-sensitive

Note 6—Income Taxes

Sales to MV Purchasing, LLC are under short-term arrangements, ranging from one to six months, using

market-sensitive pricing.

Note 6—Income Taxes

The Trust is a Delaware statutory trust and is

1 unchanged sentence

Accordingly, no provision for federal or state income taxes has been made.

Note 7—Distributions to Unitholders

MV Partners makes quarterly payments of the net

7 unchanged sentences

of the Trust.

In November 2021, the Trustee notified MV Partners that the Trustee intends to build a reserve for the payment of future

known, anticipated or contingent expenses or liabilities, commencing with the distribution payable in the first quarter of 2022.

may increase or decrease the targeted amount at any time, and may increase or decrease the rate at which it is withholding funds to build

the cash reserve at any time, without advance notice to the unitholders.

Cash held in reserve will be invested as required by the Trust

Any cash reserved in excess of the amount necessary to pay or provide for the payment of future known, anticipated or contingent

expenses or liabilities eventually will be distributed to unitholders, together with interest earned on the funds.

The Trustee intends to build a cash reserve of approximately $1.265 million for the payment of future known, anticipated

or contingent expenses or liabilities, commencing with the distribution payable in the first quarter of 2022.

The Trustee may increase

or decrease the targeted amount at any time, and may increase or decrease the rate at which it is withholding funds to build the cash

reserve at any time, without advance notice to the unitholders.

Cash held in reserve will be invested as required by the Trust Agreement.

Any cash reserved in excess of the amount necessary to pay or provide for the payment of future known, anticipated or contingent expenses

or liabilities eventually will be distributed to unitholders, together with interest earned on the funds.

The first quarterly distribution during 2022 was

$4,715,000, or $0.410 per Trust unit, and was made on January 25, 2022 to Trust unitholders owning Trust units as of January 14,

Such distribution included the net proceeds attributable to the sale of production received by MV Partners from October 1, 2020 through

December 31, 2020.

The second quarterly distribution during 2021 was

$2,415,000, or $0.210 per Trust unit, and was made on April 23, 2021 to Trust unitholders owning Trust units as of April 15, 2021.

distribution included the net proceeds of production collected by MV Partners from January 1, 2021 through March 31, 2021.

The third quarterly distribution during 2021 was

$3,450,000, or $0.300 per Trust unit, and was made on July 23, 2021 to Trust unitholders owning Trust units as of July 15, 2021.

distribution included the net proceeds of production collected by MV Partners from April 1, 2021 through June 30, 2021.

Such distribution included the net proceeds attributable to the sale of production received by MV Partners from October 1,

2021 through December 31, 2021.

The Trustee withheld $105,417 from the net proceeds otherwise available for distribution towards

the building of the cash reserve described above.

The first quarterly distribution during 2021 was

$1,265,000, or $0.110 per Trust unit, and was made on January 25, 2021 to Trust unitholders owning Trust units as of January 15,

Such distribution included the net proceeds attributable to the sale of production received by MV Partners from October 1, 2019 through

December 31, 2019.

The second quarterly distribution during 2020 was

$2,357,500, or $0.205 per Trust unit, and was made on April 24, 2020 to Trust unitholders owning Trust units as of April 15,

Such distribution included the net proceeds of production collected by MV Partners from January 1, 2020 through March 31,

There was no quarterly distribution during the

third quarter of 2020 to Trust unitholders owning Trust units as of July 15, 2020.

The revenue collected by MV Partners from April 1,

2020 through June 30, 2020 was not sufficient to cover the costs paid during the period.

MV Partners applied $440,532 from the reserve

for future expenditures to cover the deficit.

Note 8—Advance for Trust Expenses

Such distribution included the net proceeds attributable to the sale of production received by MV Partners from October 1,

2020 through December 31, 2020.

Note 8—Advance for Trust Expenses

Under the terms of the Trust Agreement, the Trustee

is allowed to borrow money to pay Trust expenses.

During the three months ended September 30, 2021 and 2020, there were no borrowings

During the three months ended March 31, 2022 and 2021, there were no borrowings

or amounts owed for money borrowed in previous quarters.

1 unchanged sentence

the Trustee to protect the Trust against the risk that it does not have sufficient cash to pay future expenses.

Note 9—Subsequent Events

The fourth quarterly distribution during 2021 was

$4,197,500, or $0.365 per Trust unit, and was made on October 25, 2021 to Trust unitholders owning Trust units as of October 15,

Such distribution included the net proceeds attributable to the sale of production received by MV Partners from July 1, 2021 through

September 30, 2021.

Trustee’s Discussion and Analysis of Financial Condition

Note 9—Subsequent Events

The second quarterly distribution during 2022 was

$4,887,500, or $0.425 per Trust unit, and was made on April 25, 2022 to Trust unitholders owning Trust units as of April 18,

Such distribution included the net proceeds attributable to the sale of production received by MV Partners from January 1,

2022 through March 31, 2022.

The Trustee withheld $105,417 from the net proceeds otherwise available for distribution towards the

building of the cash reserve described in Note 7.

Trustee’s Discussion and Analysis of Financial Condition

and Results of Operations.

The following discussion of the Trust’s financial

condition and results of operations should be read in conjunction with the financial statements and notes thereto.

The Trust’s purpose

is, in general, to hold the net profits interest, to distribute to the Trust unitholders cash that the Trust receives in respect of the

net profits interest, and to perform certain administrative functions in respect of the net profits interest and the Trust units.

derives substantially all of its income and cash flows from the net profits interest.

All information regarding operations has been provided

to the Trustee by MV Partners.

The 2020 outbreak of the novel form of coronavirus

known as COVID-19 and its development into a global pandemic negatively impacted worldwide economic and commercial activity

and financial markets, as well as global demand for crude oil and natural gas.

The West Texas Intermediate (“WTI”) spot

price of crude oil dropped sharply in the beginning of 2020, from $61.18 per barrel on January 2, 2020 to $12.34 per barrel

on April 28, 2020, primarily attributable to the economic effects of the COVID-19 pandemic and the dispute over production levels

between Russia and the members of the Organization of Petroleum Exporting Countries (“OPEC”), which resulted in an oversupply

of crude oil and exacerbated the decline in crude oil prices.

The responses by federal, state and local governmental authorities to the

pandemic have also resulted in significant business and operational disruptions, including business closures, supply chain disruptions,

travel restrictions, stay-at-home orders and limitations on the availability of workforces.

After April 28, 2020, the WTI

price started increasing and has returned to pre-COVID levels.

Nevertheless, prices could decline again, and the Trust’s quarterly

cash distributions could similarly decline, depending on future actions by OPEC or the future course of the ongoing COVID-19 pandemic.

Trust derives substantially all of its income and cash flows from the net profits interest.

All information regarding operations has been

provided to the Trustee by MV Partners.

Results of Operations

Results of Operations for the Quarters Ended September 30,

2021 and 2020

The cash received by the Trust from MV

Partners during the quarter ended September 30, 2021 substantially represents the production by MV Partners from March 2021 through

The cash received by the Trust from MV Partners during the quarter ended September 30, 2020 substantially represents the

production by MV Partners from March 2020 through May 2020.

The revenues from oil production are typically received by MV

Partners one month after production.

The Trust’s income from net profits interest before reserve adjustments increased

$4,116,434 to $3,675,902 for the quarter ended September 30, 2021 from $($440,532) for the quarter ended September 30, 2020.

The increase was primarily due to a $5,145,543 increase in excess of revenues over direct operating expenses and lease equipment and

development costs for the underlying properties to $4,594,878 from ($550,665) for the same period in the prior year.

These amounts

were reduced by a Trust holdback for future expenses of $225,902 and $0 for the quarters ended September 30, 2021 and 2020,

respectively.

The Trustee paid general and administrative expenses of $181,251 and $151,049 for the quarters ended September 30,

2021 and 2020, respectively.

During the quarter ended September 30, 2020, MV Partners released $440,532 due to the Trust from the

previously established reserve for future capital expenditures.

These factors resulted in distributable income for the quarter ended

September 30, 2021 of $3,450,000, an increase of $3,450,000 from $0 for the quarter ended September 30, 2020.

The average price received for crude oil sold

was $58.47 per Bbl and the average price received for natural gas sold was $2.36 per Mcf for the period from April 1, 2021 through June

The average price received for crude oil sold was $22.39 per Bbl and the average price received for natural gas sold was $1.14

per Mcf for the period from April 1, 2020 through June 30, 2020.

The overall production sales volumes attributable

to the net profits interest for the oil and gas production collected during the period from April 1, 2021 through June 30, 2021 were 131,830

Bbls of oil, 7,468 Mcf of natural gas and 17 Bbls of natural gas liquids for a total of 133,086 barrels of oil equivalent.

production sales volumes attributable to the net profits interest for the oil and gas production collected during the period from April

1, 2020 through June 30, 2020 were 117,376 Bbls of oil, 6,800 Mcf of natural gas and 16 Bbls of natural gas liquids for a total of

118,520 barrels of oil equivalent.

Results of Operations for the Nine Months Ended September 30,

2021 and 2020

Results of Operations for the Quarters Ended March 31, 2022

The cash received by the Trust from MV Partners

during the nine months ended September 30, 2021 substantially represents the production by MV Partners from September 2020 through May

The cash received by the Trust from MV Partners during the nine months ended September 30, 2020 substantially represents the production

by MV Partners from September 2019 through May 2020.

The revenues from oil production are typically received by MV Partners one month

after production.

The Trust’s income from net profits interest before reserve adjustments increased $2,417,409 to $7,625,028 for

the nine months ended September 30, 2021 from $5,207,619 for the nine months ended September 30, 2020.

The increase was primarily due

to a $3,021,762 increase in excess of revenues over direct operating expenses and lease equipment and development costs for the underlying

properties to $9,531,285 from $6,509,523 for the same period in the prior year.

Additionally, the Trustee held back $495,028 for future

expenses for the nine months ended September 30, 2021 and $1,105,651 for the nine months ended September 30, 2020.

This decrease of $610,623

is primarily the result of including an amount estimated to be sufficient to pay Trust expenses through approximately April 2021 during

the nine months ended September 30, 2020.

The Trustee paid general and administrative expenses of $747,035 and $631,963 for the nine months

ended September 30, 2021 and 2020, respectively.

During the nine months ended September 30, 2020, MV Partners released $440,532 due to

the Trust from the previously established reserve for future capital expenditures.

These factors resulted in distributable income for

the nine months ended September 30, 2021 of $7,130,000, an increase of $2,587,500 from $4,542,500 for the nine months ended September

average price received for crude oil sold was $47.15 per Bbl and the average price received for natural gas sold was $2.05 per Mcf for

the period from October 1, 2020 through June 30, 2021.

The average price received for crude oil sold was $43.10 per Bbl and the

average price received for natural gas sold was $1.50 per Mcf for the period from October 1, 2019 through June 30, 2020.

during the quarter ended March 31, 2022 substantially represents the production by MV Partners from September 2021 through November 2021.

The cash received by the Trust from MV Partners during the quarter ended March 31, 2021 substantially represents the production by

MV Partners from September 2020 through November 2020.

The revenues from oil production are typically received by MV Partners

one month after production.

The Trust’s income from net profits interest increased $3,757,919 to $5,084,681 for the quarter ended

March 31, 2022 from $1,326,752 for the quarter ended March 31, 2021.

The increase was primarily due to a $4,697,411 increase

in excess of revenues over direct operating expenses and lease equipment and development costs for the underlying properties to $6,355,851

from $1,658,440 for the same period in the prior year.

These amounts were reduced by a Trust holdback for current expenses of $264,264

and $61,752 for the quarters ended March 31, 2022 and 2021, respectively, and a Trustee holdback for future estimated expenses of

$105,417 for the quarter ended March 31, 2022.

The Trustee paid general and administrative expenses of $331,621 and $405,752 for

the quarters ended March 31, 2022 and 2021, respectively.

During the quarters ended March 31, 2022 and 2021, MV Partners

did not withhold or release any dollar amounts due to the Trust from the previously established reserve for future capital expenditures.

These factors resulted in distributable income for the quarter ended March 31, 2022 of $4,715,000, an increase of $3,450,000 from

$1,265,000 for the quarter ended March 31, 2021.

The average price received for crude oil sold was

$72.66 per Bbl and the average price received for natural gas sold was $4.15 per Mcf for the period from October 1, 2021 through

December 31, 2021.

The average price received for crude oil sold was $35.54 per Bbl and the average price received for natural gas

sold was $1.58 per Mcf for the period from October 1, 2020 through December 31, 2020.

The overall production sales volumes attributable

to the net profits interest for the oil and gas production collected during the period from October 1, 2020 through June 30, 2021 were

388,307 Bbls of oil, 23,362 Mcf of natural gas and 64 Bbls of natural gas liquids for a total of 392,242 barrels of oil equivalent.

to the net profits interest for the oil and gas production collected during the period from October 1, 2021 through December 31,

2021 were 127,429 Bbls of oil, 8,304 Mcf of natural gas and 17 Bbls of natural gas liquids, for a total of 128,824 barrels of oil equivalent.

The overall production sales volumes attributable to the net profits interest for the oil and gas production collected during the period

from October 1, 2019 through June 30, 2020 were 406,350 Bbls of oil, 19,889 Mcf of natural gas and 190 Bbls of natural gas liquids

for a total of 409,789 barrels of oil equivalent.

from October 1, 2020 through December 31, 2020 were 132,202 Bbls of oil, 7,096 Mcf of natural gas and 23 Bbls of natural gas

liquids, for a total of 133,399 barrels of oil equivalent.

Liquidity and Capital Resources

Other than Trust administrative expenses, including

any reserves established by the Trustee for future liabilities, the Trust’s only use of cash is for distributions to Trust unitholders.

Administrative expenses include payments to the Trustee as well as an annual administrative fee to MV Partners pursuant to an administrative

3 unchanged sentences

cash, if any, received by the Trust from the net profits interest and payments from other sources (such as interest earned on any amounts

reserved by the Trustee) in that quarter, over the Trust’s expenses paid for that quarter.

Available funds are reduced by any cash

the Trustee decides to hold as a reserve against future expenses.

As of September 30, 2021, $253,000 was held by the Trustee as such a

In November 2021, the Trustee notified MV Partners

that the Trustee intends to build a reserve for the payment of future known, anticipated or contingent expenses or liabilities, commencing

with the distribution payable in the first quarter of 2022.

The Trustee may increase or decrease the targeted amount at any time, and

may increase or decrease the rate at which it is withholding funds to build the cash reserve at any time, without advance notice to the

Cash held in reserve will be invested as required by the Trust Agreement.

Any cash reserved in excess of the amount necessary

to pay or provide for the payment of future known, anticipated or contingent expenses or liabilities eventually will be distributed to

unitholders, together with interest earned on the funds.

As of March 31, 2022, $335,200 was held by the Trustee as such

The Trustee may cause the Trust to borrow funds

required to pay expenses if the Trustee determines that the cash on hand and the cash to be received are insufficient to cover the Trust’s

If the Trust borrows funds, the Trust unitholders will not receive distributions until the borrowed funds are repaid.

the three and nine months ended September 30, 2021 and 2020, there were no such borrowings.

MV Partners has provided a letter of

credit in the amount of $1.8 million to the Trustee to protect the Trust against the risk that it does not have sufficient cash to pay

future expenses.

the quarters ended March 31, 2021 and 2020, there were no such borrowings.

MV Partners has provided a letter of credit in the amount

of $1.8 million to the Trustee to protect the Trust against the risk that it does not have sufficient cash to pay future expenses.

In November 2021, the Trustee notified MV

Partners that the Trustee intends to build a reserve for the payment of future known, anticipated or contingent expenses or liabilities,

commencing with the distribution payable in the first quarter of 2022.

The Trustee intends to withhold a portion of the proceeds otherwise

available for distribution each quarter to gradually build a cash reserve to approximately $1.265 million.

This amount is in addition

to the $1.8 million letter of credit described above.

The Trustee may increase or decrease the targeted amount at any time, and may increase

or decrease the rate at which it is withholding funds to build the cash reserve at any time, without advance notice to the unitholders.

Cash held in reserve will be invested as required by the Trust Agreement.

Any cash reserved in excess of the amount necessary to pay or

provide for the payment of future known, anticipated or contingent expenses or liabilities eventually will be distributed to unitholders,

together with interest earned on the funds.

The Trustee withheld $105,417 from the proceeds otherwise available for distribution through

March 31, 2022 towards the building of the cash reserve described above.

Income to the Trust from the net profits interest

is based on the calculation and definitions of “gross proceeds” and “net proceeds” contained in the conveyance.

is based on the calculation and definitions of “gross proceeds”

and “net proceeds”

contained in the conveyance.

As substantially all of the underlying properties

3 unchanged sentences

a capital reserve of up to $1,000,000 in the aggregate at any given time to reduce the impact on distributions of uneven capital expenditure

As of September 30, 2021, $1,000,000 was held by MV Partners as a capital reserve.

As of March 31, 2022, $1,000,000 was held by MV Partners as a capital reserve.

The Trust does not have any transactions, arrangements

or other relationships with unconsolidated entities or persons that could materially affect the Trust’s liquidity or the availability

of capital resources.

Note Regarding Forward-Looking Statements

This Form 10-Q includes “forward-looking

statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities

Exchange Act of 1934, as amended (the “Exchange Act”).

This Form 10-Q includes “forward-looking

statements”

within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities

Exchange Act of 1934, as amended (the “Exchange Act”).

All statements other than statements of historical fact included in

this Form 10-Q, including without limitation the statements under “Trustee’s Discussion and Analysis of Financial Condition

and Results of Operations” are forward-looking statements.

this Form 10-Q, including without limitation the statements under “Trustee’s Discussion and Analysis of Financial Condition

and Results of Operations”

are forward-looking statements.

Although MV Partners advised the Trust that it believes that the expectations

1 unchanged sentence

to have been correct.

Important factors that could cause actual results to differ materially from expectations (“Cautionary Statements”)

are disclosed in this Form 10-Q and in the Trust’s Annual Report on Form 10-K for the year ended December 31, 2020

(the “Form 10-K”), including under the section “Item 1A.

Risk Factors”.

All subsequent written and oral forward-looking

statements attributable to the Trust or persons acting on its behalf are expressly qualified in their entirety by the Cautionary Statements.

Important factors that could cause actual results to differ materially from expectations (“Cautionary Statements”)

are disclosed in the Trust’s Annual Report on Form 10-K for the year ended December 31, 2021 (the “Form 10-K”),

including under the section “Item 1A.

Risk Factors”.

All subsequent written and oral forward-looking statements attributable

to the Trust or persons acting on its behalf are expressly qualified in their entirety by the Cautionary Statements.

Quantitative and Qualitative Disclosures About Market Risk.

2 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements