What changed in this filing

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Item 1. Financial Statements

2023-11-09 compared with 2023-08-10 · 144 added, 123 removed, 237 unchanged (53% of the section changed)

2 unchanged sentences

Three months ended

Six 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 June 30, 2023 and 2022)

(1) Includes $29,219 and $28,095 paid to MV Partners, LLC during the three months ended June 30, 2023 and 2022, respectively, and

$58,437 and $56,189 during the six months ended June 30, 2023 and 2022, respectively.

Also includes $37,500 paid to The Bank of New

York Mellon Trust Company, N.A.

during each of the three months ended June 30, 2023 and 2022 and $75,000 during each of the six months

ended June 30, 2023 and 2022.

Distributions per Trust unit (11,500,000 Trust units issued and outstanding at September 30, 2023 and 2022)

(1) Includes $29,219 and $28,095 paid to MV Partners, LLC during the three months ended September 30, 2023 and 2022, respectively,

and $87,656 and $84,284 during the nine months ended September 30, 2023 and 2022, 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, 2023 and 2022 and $112,500 during

each of the nine months ended September 30, 2023 and 2022.

CONDENSED STATEMENTS OF ASSETS AND TRUST CORPUS

September 30,

Cash and cash equivalents

3 unchanged sentences

(44,536,335 )

Trust corpus, 11,500,000 Trust units issued and outstanding at June 30, 2023 and December 31, 2022

Trust corpus, 11,500,000 Trust units issued and outstanding at September 30, 2023 and December 31, 2022

CONDENSED STATEMENTS OF CHANGES IN TRUST CORPUS

Three months ended

Six months ended

September 30,

Nine months ended

September 30,

Trust corpus, beginning of period

1 unchanged sentence

Cash distributions

(12,420,000 )

(17,652,500 )

Trust expenses

29 unchanged sentences

thereafter wind up its affairs and terminate.

As of June 30, 2023, cumulatively, since inception, the Trust has received payment

As of September 30, 2023, cumulatively, since inception, the Trust has received payment

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

11 unchanged sentences

and Trust Corpus as of December 31, 2022, which has been derived from audited financial statements, and the unaudited interim condensed

financial statements as of June 30, 2023 and for the three and six months ended June 30, 2023 and June 30, 2022, 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

financial statements as of September 30, 2023 and for the three and nine months ended September 30, 2023 and September 30,

2022, 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.

The preparation of financial statements requires

13 unchanged sentences

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.

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%.

20 unchanged sentences

No new accounting pronouncements were adopted or

issued during the quarter ended June 30, 2023 that would impact the financial statements of the Trust.

issued during the quarter ended September 30, 2023 that would impact the financial statements of the Trust.

Note 4—Investment in Net Profits Interest

3 unchanged sentences

Accumulated depreciation and depletion

(40,468,762 )

Net property value to be conveyed

2 unchanged sentences

Three months ended

Six months ended

September 30,

Nine months ended

September 30,

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

4 unchanged sentences

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

MV Partners during the December through February production periods for the three months ended June 30, 2023 and 2022,

respectively, and during each of the September through February production periods for the six months ended June 30, 2023

and 2022, respectively.

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.

MV Partners during the March through May production periods for the three months ended September 30, 2023 and 2022, respectively,

and during each of the September through May production periods for the nine months ended September 30, 2023 and 2022,

respectively.

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.

(2) 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 six months ended June 30, 2023 and 2022, MV Partners did not withhold or release

any dollar amounts due to the Trust.

The reserve balance was $1.0 million at June 30, 2023 and 2022.

During the three and nine months ended September 30, 2023 and 2022, MV Partners did not withhold or

release any dollar amounts due to the Trust.

The reserve balance was $1.0 million at September 30, 2023 and 2022.

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

1 unchanged sentence

thus, the cash received by the Trust during the

three months ended June 30, 2023 substantially represents the production by MV Partners from December 2022 through February 2023,

and the cash received by the Trust during the three months ended June 30, 2022 substantially represents the production by MV Partners

from December 2021 through February 2022.

The cash received by the Trust during the six months ended June 30, 2023 substantially

represents the production by MV Partners from September 2022 through February 2023, and the cash received by the Trust during

the six months ended June 30, 2022 substantially represents the production by MV Partners from September 2021 through February 2022.

For the three and six months ended June 30,

three months ended September 30, 2023 substantially represents the production by MV Partners from March 2023 through May 2023,

and the cash received by the Trust during the three months ended September 30, 2022 substantially represents the production by MV

Partners from March 2022 through May 2022.

The cash received by the Trust during the nine months ended September 30, 2023

substantially represents the production by MV Partners from September 2022 through May 2023, and the cash received by the Trust

during the nine months ended September 30, 2022 substantially represents the production by MV Partners from September 2021 through

For the three and nine months ended September 30,

2023 and 2022, 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 pricing.

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

Note 6—Income Taxes

35 unchanged sentences

building of the cash reserve described above and with that amount, the targeted reserve was fully funded.

The third quarterly distribution during 2023 was

$3,737,500, or $0.325 per Trust unit, and was made on July 25, 2023 to Trust unitholders owning Trust units as of July 17, 2023.

Such distribution included the net proceeds attributable to the sale of production received by MV Partners from April 1, 2023 through

June 30, 2023.

The first quarterly distribution during 2022 was

10 unchanged sentences

building of the cash reserve described above.

The third quarterly distribution during 2022 was

$8,050,000, or $0.700 per Trust unit, and was made on July 25, 2022 to Trust unitholders owning Trust units as of July 15, 2022.

Such distribution included the net proceeds attributable to the sale of production received by MV Partners from April 1, 2022 through

June 30, 2022.

The Trustee withheld $421,668 from the net proceeds otherwise available for distribution towards the building of the

cash reserve described above.

Note 8—Advance for Trust Expenses

1 unchanged sentence

is allowed to borrow money to pay Trust expenses.

During the three months ended June 30, 2023 and 2022, there were no borrowings

During the three months ended September 30, 2023 and 2022, there were no borrowings

or amounts owed for money borrowed in previous quarters.

2 unchanged sentences

Note 9—Subsequent Events

The third quarterly distribution during 2023 was

$3,737,500, or $0.325 per Trust unit, and was made on July 25, 2023 to Trust unitholders owning Trust units as of July 17, 2023.

Such distribution included the net proceeds of production collected by MV Partners from April 1, 2023 through June 30, 2023.

The fourth quarterly distribution during 2023 was

$4,370,000, or $0.380 per Trust unit, and was made on October 25, 2023 to Trust unitholders owning Trust units as of October 16,

Such distribution included the net proceeds of production collected by MV Partners from July 1, 2023 through September 30,

Trustee’s Discussion and Analysis of Financial Condition

5 unchanged sentences

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

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.

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 June 30, 2023

Results of Operations for the Quarters Ended September 30,

2023 and 2022

The cash received by the Trust from MV Partners

during the quarter ended June 30, 2023 substantially represents the production by MV Partners from December 2022 through February 2023.

The cash received by the Trust from MV Partners during the quarter ended June 30, 2022 substantially represents the production

by MV Partners from December 2021 through February 2022.

The revenues from oil production are typically received by MV Partners

one month after production.

The Trust’s income from net profits interest decreased $853,106 to $4,389,499 for the quarter ended

June 30, 2023 from $5,242,605 for the quarter ended June 30, 2022.

The decrease was primarily due to a $1,066,282 decrease in

excess of revenues over direct operating expenses and lease equipment and development costs for the underlying properties to $5,486,974

from $6,553,256 for the same period in the prior year.

These amounts were reduced by a Trustee holdback for current Trust expenses of

$158,459 and $249,688 for the quarters ended June 30, 2023 and 2022, respectively, and a Trustee holdback for future Trust expenses

of $263,540 and $105,417 for the quarters ended June 30, 2023 and 2022, respectively.

The Trustee paid general and administrative

expenses of $242,336 and $228,829 for the quarters ended June 30, 2023 and 2022, respectively.

During the quarters ended June 30,

during the quarter ended September 30, 2023 substantially represents the production by MV Partners from March 2023 through May 2023.

The cash received by the Trust from MV Partners during the quarter ended September 30, 2022 substantially represents the production

by MV Partners from March 2022 through May 2022.

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 decreased $4,735,272 to $3,939,158

for the quarter ended September 30, 2023 from $8,674,430 for the quarter ended September 30, 2022.

The decrease was primarily

due to a $5,919,090 decrease in excess of revenues over direct operating expenses and lease equipment and development costs for the underlying

properties to $4,923,948 from $10,843,038 for the same period in the prior year.

These amounts were reduced by a Trustee holdback for

current Trust expenses of $201,658 and $202,762 for the quarters ended September 30, 2023 and 2022, respectively, and a Trustee holdback

for future Trust expenses of $421,668 for the quarter ended September 30, 2022.

The Trustee paid general and administrative expenses

of $143,670 and $197,654 for the quarters ended September 30, 2023 and 2022, respectively.

During the quarters ended September 30,

2023 and 2022, 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 June 30, 2023 of $3,967,500, a

decrease of $920,000 from $4,887,500 for the quarter ended June 30, 2022.

These factors resulted in distributable income for the quarter ended September 30, 2023 of $3,737,500,

a decrease of $4,312,500 from $8,050,000 for the quarter ended September 30, 2022.

The average price received for crude oil sold was

$73.03 per Bbl and the average price received for natural gas sold was $5.04 per Mcf for the period from January 1, 2023 through

March 31, 2023.

The average price received for crude oil sold was $77.53 per Bbl and the average price received for natural gas sold

was $5.31 per Mcf for the period from January 1, 2022 through March 31, 2022.

$70.33 per Bbl and the average price received for natural gas sold was $3.58 per Mcf for the period from April 1, 2023 through June 30,

The average price received for crude oil sold was $102.67 per Bbl and the average price received for natural gas sold was $5.00

per Mcf for the period from April 1, 2022 through June 30, 2022.

The overall production sales volumes attributable

to the net profits interest for the oil and gas production collected during the period from January 1, 2023 through March 31,

2023 were 117,365 Bbls of oil, 5,982 Mcf of natural gas and 23 Bbls of natural gas liquids, for a total of 118,377 barrels of oil

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

the period from January 1, 2022 through March 31, 2022 were 114,429 Bbls of oil, 6,996 Mcf of natural gas and 24 Bbls of natural

gas liquids, for a total of 115,610 barrels of oil equivalent.

Results of Operations for the Six Months Ended June 30, 2023

to the net profits interest for the oil and gas production collected during the period from April 1, 2023 through June 30, 2023

were 122,936 Bbls of oil, 5,874 Mcf of natural gas and 6 Bbls of natural gas liquids, for a total of 123,919 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 April 1, 2022 through June 30, 2022 were 125,478 Bbls of oil, 5,880 Mcf of natural gas and 24 Bbls of natural gas liquids,

for a total of 126,474 barrels of oil equivalent.

Results of Operations for the Nine Months Ended

September 30, 2023 and 2022

The cash received by the Trust from MV Partners

during the six months ended June 30, 2023 substantially represents the production by MV Partners from September 2022 through

February 2023.

The cash received by the Trust from MV Partners during the six months ended June 30, 2022 substantially represents

the production by MV Partners from September 2021 through February 2022.

The revenues from oil production are typically received

by MV Partners one month after production.

The Trust’s income from net profits interest decreased $751,485 to $9,575,800 for the

six months ended June 30, 2023 from $10,327,285 for the six months ended June 30, 2022.

The decrease was primarily due to a

$939,356 decrease in excess of revenues over direct operating expenses and lease equipment and development costs for the underlying properties

to $11,969,751 from $12,909,107 for the same period in the prior year.

These amounts were reduced by a Trustee holdback for current Trust

expenses of $366,219 and $513,952 for the quarters ended June 30, 2023 and 2022, respectively, and a Trustee holdback for future

Trust expenses of $527,081 and $210,834 for the six months ended June 30, 2023 and 2022, respectively.

The Trustee paid general and

administrative expenses of $574,839 and $560,450 for the six months ended June 30, 2023 and 2022, respectively.

During the six months

ended June 30, 2023 and 2022, 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 six months ended June 30, 2023 of

$8,682,500, a decrease of $920,000 from $9,602,500 for the six months ended June 30, 2022.

The average price received for crude oil sold

was $76.95 per Bbl and the average price received for natural gas sold was $5.99 per Mcf for the period from October 1, 2022 through

March 31, 2023.

The average price received for crude oil sold was $74.97 per Bbl and the average price received for natural gas

sold was $4.68 per Mcf for the period from October 1, 2021 through March 31, 2022.

during the nine months ended September 30, 2023 substantially represents the production by MV Partners from September 2022 through

The cash received by the Trust from MV Partners during the nine months ended September 30, 2022 substantially

represents the production by MV Partners from September 2021 through May 2022.

The revenues from oil production are typically

received by MV Partners one month after production.

The Trust’s income from net profits interest decreased $5,486,758 to $13,514,958

for the nine months ended September 30, 2023 from $19,001,716 for the nine months ended September 30, 2022.

The decrease was

primarily due to a $6,858,447 decrease in excess of revenues over direct operating expenses and lease equipment and development costs

for the underlying properties to $16,893,698 from $23,752,145 for the same period in the prior year.

These amounts were reduced by a Trustee

holdback for current Trust expenses of $567,877 and $716,714 for the nine months ended September 30, 2023 and 2022, respectively,

and a Trustee holdback for future Trust expenses of $527,081 and $632,502 for the nine months ended September 30, 2023 and 2022,

respectively.

The Trustee paid general and administrative expenses of $718,509 and $758,105 for the nine months ended September 30,

2023 and 2022, respectively.

During the nine months ended September 30, 2023 and 2022, 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 nine months ended September 30, 2023 of $12,420,000, a decrease of $5,232,500 from $17,652,500 for the nine months

ended September 30, 2022.

The average price received for crude oil sold was

$74.72 per Bbl and the average price received for natural gas sold was $5.22 per Mcf for the period from October 1, 2022 through

June 30, 2023.

The average price received for crude oil sold was $84.43 per Bbl and the average price received for natural gas sold

was $4.77 per Mcf for the period from October 1, 2021 through June 30, 2022.

The overall production sales volumes attributable

to the net profits interest for the oil and gas production collected during the period from October 1, 2022 through March 31,

to the net profits interest for the oil and gas production collected during the period from October 1, 2022 through June 30,

2023 were 364,606 Bbls of oil, 18,492 Mcf of natural gas and 50 Bbls of natural gas liquids, for a total of 367,721 barrels of oil

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

the period from October 1, 2021 through March 31, 2022 were 241,858 Bbls of oil, 15,300 Mcf of natural gas and 41 Bbls

of natural gas liquids, for a total of 244,434 barrels of oil equivalent.

the period from October 1, 2021 through June 30, 2022 were 367,336 Bbls of oil, 21,179 Mcf of natural gas and 65 Bbls of

natural gas liquids, for a total of 370,908 barrels of oil equivalent.

Liquidity and Capital Resources

9 unchanged sentences

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

As of June 30, 2023, $1,354,675 was held by the Trustee as such

As of September 30, 2023, $1,412,663 was held by the Trustee as

such a reserve.

The Trustee may cause the Trust to borrow funds

1 unchanged sentence

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

the three and six months ended June 30, 2023 and 2022, 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

the three and nine months ended September 30, 2023 and 2022, 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.

Beginning in the first quarter of 2022, the Trustee

18 unchanged sentences

MV Partners may establish

a capital reserve of up to $1.0 million in the aggregate at any given time to reduce the impact on distributions of uneven capital expenditure

As of June 30, 2023, $1.0 million was held by MV Partners as a capital reserve.

a capital reserve of up to $1.0 million in the aggregate at any given time to reduce the impact on distributions of uneven capital

expenditure timing.

As of September 30, 2023, $1.0 million was held by MV Partners as a capital reserve.

The Trust does not have any transactions, arrangements

2 unchanged sentences

Note Regarding Forward-Looking Statements

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”

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.

Although MV Partners advised

the Trust that it believes that the expectations reflected in the forward-looking statements contained herein are reasonable, no assurance

can be given that such expectations will prove 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, 2022 (the “Form 10-K”), including under the section “Item

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

reflected in the forward-looking statements contained herein are reasonable, no assurance can be given that such expectations will prove

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, 2022

(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.

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