4 unchanged sentences
Market for Registrant’s Common Equity, Related Unitholder Matters and Issuer Purchases of Equity Securities.
−Removed: The trust units commenced trading on the New York Stock Exchange on January 19, 2007 under the symbol “MVO.” As of March 16, 2023, the 11,500,000 units outstanding were held by 11 unitholders of record.
+Added: The Trust Units commenced trading on the New York Stock Exchange on January 19, 2007 under the symbol “MVO.” As of March 20, 2024, the 11,500,000 Trust Units outstanding were held by 11 Trust unitholders of record.
Each quarter, the Trustee determines the amount of funds available for distribution to the Trust unitholders.
5 unchanged sentences
Recent Sales of Unregistered Securities
−Removed: There were no equity securities sold by the trust during the year ended December 31, 2022 that were not registered under the Securities Act of 1933, as amended, which we refer to herein as the “Securities Act.”
+Added: There were no equity securities sold by the Trust during the year ended December 31, 2023 that were not registered under the Securities Act of 1933, as amended (the “Securities Act”).
Purchases of Equity Securities
There were no purchases of Trust Units by the Trust or any affiliated purchaser during the fourth quarter of the year ended December 31, 2023.
−Removed: TABLE OF CONTENTS
Trustee’s Discussion and Analysis of Financial Condition and Results of Operations.
6 unchanged sentences
GAAP”)) of the underlying properties times 80%.
−Removed: Cash distributions of the trust will be made based on the amount of cash received by the trust pursuant to terms of the conveyance creating the net profits interest.
+Added: Cash distributions of the Trust will be made based on the amount of cash received by the Trust pursuant to terms of the Conveyance.
The financial statements of the Trust, as prepared on a modified cash basis, reflect the Trust’s assets, Trust corpus, earnings and distributions as follows:
17 unchanged sentences
General and administrative expense for the Trust was $1.05 million for 2023 and $0.94 million for 2022.
−Removed: These factors resulted in distributable income of $25.5 million, or $2.220 per unit, in 2022 compared to $11.3 million, or $0.985 per unit, in 2021.
+Added: These factors resulted in distributable income of $16.8 million, or $1.460 per Trust Unit, in 2023 compared to $25.5 million, or $2.220 per Trust Unit, in 2022.
The revenues from oil production are typically received by MV Partners one month after production;
20 unchanged sentences
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.
−Removed: Administrative expenses include payments to the trustee as well as an annual administrative fee to MV Partners pursuant to the
−Removed: administrative services agreement.
+Added: Administrative expenses include payments to the Trustee as well as an annual administrative fee to MV Partners pursuant to an administrative services agreement.
Each quarter, the Trustee determines the amount of funds available for distribution.
1 unchanged sentence
Available funds are reduced by any cash the Trustee decides to hold as a reserve against future expenses.
−Removed: As of December 31, 2022, the trustee held $298,295 as such a reserve, in addition to $737,919 of the $1.265 million cash reserve described below.
−Removed: As previously disclosed, the trustee is building a reserve for the payment of future known, anticipated or contingent expenses or liabilities of the trust.
−Removed: Since January 2022, the Trustee has been withholding, and in the future intends to withhold, a portion of the proceeds otherwise available for distribution each quarter to build a cash reserve of approximately $1.265 million.
−Removed: This amount is in addition to the letter of credit in the amount of $1.8 million provided to the Trustee by MV Partners to protect the Trust against the risk that it does not have sufficient cash to pay future expenses.
−Removed: 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.
−Removed: Cash held in reserve will be invested as required by the Trust Agreement.
−Removed: 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 trust unitholders, together with interest earned on the funds.
−Removed: Through March 16, 2023, the Trustee has withheld a total of $1,001,460 from the proceeds otherwise available for distribution towards the building of the cash reserve described above.
−Removed: 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 liabilities.
+Added: As of December 31, 2023, $1,263,932 was held by the Trustee as such a reserve.
+Added: 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 expenses.
If the Trust borrows funds, the Trust unitholders will not receive distributions until the borrowed funds are repaid.
−Removed: During each of 2021 and 2022, the trust made no borrowings.
+Added: During the years ended December 31, 2023 and 2022 there were no such borrowings.
+Added: 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.
+Added: Beginning in the first quarter of 2022, the Trustee withheld a portion of the proceeds otherwise available for distribution each quarter to gradually build an approximately $1.265 million cash reserve for the payment of future known, anticipated or contingent expenses or liabilities.
+Added: This amount is in addition to the $1.8 million letter of credit described above.
+Added: The Trustee may increase or decrease the targeted amount at any time and may increase or decrease the rate at which it withholds funds to build the cash reserve at any time, without advance notice to the Trust unitholders.
+Added: Cash held in reserve will be invested as required by the Trust Agreement.
+Added: 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.
+Added: The targeted $1.265 million cash reserve was fully funded as of April 25, 2023.
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.
5 unchanged sentences
These activities included recompletion of certain existing wells into new producing horizons, workovers of existing wells, and the drilling of infill development wells.
−Removed: The development program that MV Partners currently intends to implement over the four years ending December 31, 2026 with respect to the underlying properties categorized as proved undeveloped reserves consists of recompletion and workover projects, and polymer workovers.
−Removed: The development program that MV Partners currently intends to implement over the next five years with respect to the underlying properties categorized as proved developed non-producing reserves consists of well-reactivation projects, injection well-workover projects, recompletion projects, and well-workover projects.
−Removed: MV Partners expects total capital expenditures for the underlying properties during the four years ending December 31, 2026 will be approximately $1.3 million.
−Removed: Of this total, MV Partners contemplates spending approximately $0.3 million to drill a saltwater disposal well and approximately $1.0 million for recompletion and workovers of existing wells.
+Added: The development program that MV Partners currently intends to implement over the three years ending December 31, 2026 with respect to the underlying properties categorized as proved undeveloped reserves consists of recompletion and workover projects, and polymer workovers.
+Added: The development program that MV Partners currently intends to implement over the next three years with respect to the underlying properties categorized as proved developed non-producing reserves consists of well-reactivation projects, injection well-workover projects, recompletion projects, and well-workover projects.
+Added: MV Partners expects total capital expenditures for the underlying properties during the three years ending December 31, 2026 will be approximately $0.6 million for recompletion and workovers of existing wells.
MV Partners expects that these capital projects will add production that will partially offset the natural decline in production otherwise expected to occur with respect to the underlying properties.
The Trust is not directly obligated to pay any portion of any capital expenditures made with respect to the underlying properties;
−Removed: however, capital expenditures made by MV Partners with
−Removed: TABLE OF CONTENTS
−Removed: respect to the underlying properties will be deducted from the gross proceeds in calculating the net proceeds from which cash will be paid to the trust.
+Added: however, capital expenditures made by MV Partners with respect to the underlying properties will be deducted from the gross proceeds in calculating the net proceeds from which cash will be paid to the Trust.
As a result, the Trust will indirectly bear an 80% (subject to certain limitations during the final three years of the Trust, as described above under “Item 1.
4 unchanged sentences
MV Partners, as the operator of the underlying properties, is entitled to make all determinations related to capital expenditures with respect to the underlying properties, and there are no limitations on the amount of capital expenditures that MV Partners may incur with respect to the underlying properties, except as described above under “Item 1.
−Removed: Business — Computation of Net Proceeds — Net Profits Interest.” As the trust unitholders would not be expected to fully realize the benefits of capital expenditures made with respect to the underlying properties toward the end of the term of the trust, during each twelve-month period beginning on the later to occur of (1) June 30, 2023, and (2) the time when 13.2 MMBoe have been produced from the underlying properties and sold (which is the equivalent of 10.6 MMBoe in respect of the net profits interest), capital expenditures that may be taken into account in calculating net proceeds attributable to the net profits interest will be limited to the average annual capital expenditures during the preceding three years, as adjusted for inflation.
+Added: Business — Computation of Net Proceeds — Net Profits Interest.” As the Trust unitholders would not be expected to fully realize the benefits of capital expenditures made with respect to the underlying properties toward the end of the term of the Trust, during each twelve-month period beginning on June 30, 2023, capital expenditures that may be taken into account in calculating net proceeds attributable to the net profits interest will be limited to the average annual capital expenditures during the preceding three years, as adjusted for inflation.
+Added: The Average Annual Capital Expenditure Amount for the twelve-month period ending June 30, 2024 is $2,223,892.
Business — Computation of Net Proceeds — Net Profits Interest.”
+Added: TABLE OF CONTENTS
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.