What changed in this filing

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Item 1. Financial Statements

2024-05-08 compared with 2023-11-09 · 102 added, 186 removed, 195 unchanged (60% of the section changed)

2 unchanged sentences

Three months ended

September 30,

Nine months ended

September 30,

Income from net profits interest

Cash on hand withheld for Trust expenses

Cash on hand used (withheld) for Trust expenses

General and administrative expenses (1)

Distributable income

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.

Distributions per Trust unit (11,500,000 Trust units issued and outstanding at March 31, 2024 and 2023)

$30,387 and $29,219 paid to MV Partners, LLC during the three months ended March 31, 2024 and 2023, 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, 2024 and 2023.

CONDENSED STATEMENTS OF ASSETS AND TRUST CORPUS

September 30,

Cash and cash equivalents

3 unchanged sentences

(46,191,522 )

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

Trust corpus, 11,500,000 Trust units issued and outstanding at March 31, 2024 and December 31, 2023

CONDENSED STATEMENTS OF CHANGES IN TRUST CORPUS

Three 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

3 unchanged sentences

these condensed financial statements.

NOTES TO CONDENSED FINANCIAL STATEMENTS

NOTES TO CONDENSED FINANCIAL

Note 1—Organization of the Trust

23 unchanged sentences

thereafter wind up its affairs and terminate.

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

As of March 31, 2024, 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, 2023, which has been derived from audited financial statements, and the unaudited interim condensed

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.

financial statements as of March 31, 2024 and for the three months ended March 31, 2024 and March 31, 2023, 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

37 unchanged sentences

No new accounting pronouncements were adopted or

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

issued during the quarter ended March 31, 2024 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

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 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 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.

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.

(2) Pursuant to the terms of the conveyance of the net profits interest, MV Partners can reserve up to $1,000,000 for future capital expenditures

During the three months ended March 31, 2024 and 2023, MV Partners did not withhold or release any dollar amounts

due to the Trust.

The reserve balance was $1,000,000 at March 31, 2024 and 2023.

(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 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,

three months ended March 31, 2024 substantially represents the production by MV Partners from September 2023 through November 2023,

and the cash received by the Trust during the three months ended March 31, 2022 substantially represents the production by MV Partners

from September 2022 through November 2022.

For the three months ended March 31, 2024

and 2023, 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

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

market-sensitive pricing.

Note 6—Income Taxes

3 unchanged sentences

Note 7—Distributions to Unitholders

MV Partners makes quarterly payments of the net

profits interest to the Trust.

The Trustee determines for each quarter the amount available for distribution to the Trust unitholders.

This distribution is expected to be made on or before the 25th day of the month following the end of each quarter to the Trust unitholders

of record on the 15th day of the month following the end of each quarter (or the next succeeding business day).

Such amounts will be equal

to the excess, if any, of the cash received by the Trust relating to the preceding quarter, over the expenses of the Trust paid during

such quarter, subject to adjustments for changes made by the Trustee during such quarter in any cash reserves established for future expenses

of the Trust.

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 of the Trust.

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.

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 targeted $1.265 million cash reserve was fully funded by April 2023 and is included in cash

and cash equivalents on the accompanying Condensed Statements of Assets and Trust Corpus.

Partners makes quarterly payments of the net profits interest to the Trust.

The Trustee determines for each quarter the amount available

for distribution to the Trust unitholders.

This distribution is expected to be made on or before the 25th day of the month following the

end of each quarter to the Trust unitholders of record on the 15th day of the month following the end of each quarter (or the next succeeding

business day).

Such amounts will be equal to the excess, if any, of the cash received by the Trust relating to the preceding quarter,

over the expenses of the Trust paid during such quarter, subject to adjustments for changes made by the Trustee during such quarter in

any cash reserves established for future expenses of the Trust.

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 of the Trust.

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 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.

This cash reserve is included in cash and cash equivalents on the accompanying Condensed Statements of Assets and Trust Corpus.

The first quarterly distribution during 2024 was

2 unchanged sentences

2023 through December 31, 2023.

The Trustee withheld $263,541 from the net proceeds otherwise available for distribution towards

the building of the cash reserve described above.

The second quarterly distribution during 2023 was

$3,967,500, or $0.345 per Trust unit, and was made on April 25, 2023 to Trust unitholders owning Trust units as of April 17,

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

2023 through March 31, 2023.

The Trustee withheld $263,540 from the net proceeds otherwise available for distribution towards the

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 2023 was

4 unchanged sentences

the building of the cash reserve described above.

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 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 September 30, 2023 and 2022, there were no borrowings

During the three months ended March 31, 2024 and 2023, there were no borrowings

or amounts owed for money borrowed in previous quarters.

2 unchanged sentences

Note 9—Subsequent Events

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,

The second quarterly distribution during 2024 was

$3,795,000, or $0.33 per Trust unit, and was made on April 25, 2024 to Trust unitholders owning Trust units as of April 15,

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

2024 through March 31, 2024.

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.

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.

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,

2023 and 2022

The cash received by the Trust from MV Partners

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 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

$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 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 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.

Results of Operations for the Quarters Ended March 31, 2024

cash received by the Trust from MV Partners during the quarter ended March 31, 2024 substantially represents the production by MV

Partners from September 2023 through November 2023.

The cash received by the Trust from MV Partners during the quarter

ended March 31, 2023 substantially represents the production by MV Partners from September 2022 through November 2022.

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

The Trust’s income from net profits

interest increased $372,755 to $5,559,056 for the quarter ended March 31, 2024 from $5,186,301 for the quarter ended March 31,

The increase was primarily due to a $465,942 increase in excess of revenues over direct operating expenses and lease equipment and

development costs for the underlying properties to $6,948,819 from $6,482,877 for the same period in the prior year.

These amounts were

reduced by a Trustee holdback for current Trust expenses of $211,556 and $207,760 for the quarters ended March 31, 2024 and 2023,

respectively, and a Trustee holdback for future estimated Trust expenses of $263,541 for the quarter ended March 31, 2023.

paid general and administrative expenses of $314,712 and $332,503 for the quarters ended March 31, 2024 and 2023, respectively.

the quarters ended March 31, 2024 and 2023, 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, 2024 of $5,347,500, an increase of $632,500 from $4,715,000 for the quarter ended March 31, 2023.

The average price received for crude oil sold was

$80.07 per Bbl and the average price received for natural gas sold was $2.23 per Mcf for the period from October 1, 2023 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.

December 31, 2023.

The average price received for crude oil sold was $80.66 per Bbl and the average price received for natural gas

sold was $6.85 per Mcf for the period from October 1, 2022 through December 31, 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 June 30,

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

2023 were 122,548 Bbls of oil, 5,977 Mcf of natural gas and 6 Bbls of natural gas liquids, for a total of 123,548 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 June 30, 2022 were 367,336 Bbls of oil, 21,179 Mcf of natural gas and 65 Bbls of

the period from October 1, 2022 through December 31, 2022 were 124,305 Bbls of oil, 6,636 Mcf of natural gas and 22 Bbls of

natural gas liquids, for a total of 125,425 barrels of oil equivalent.

10 unchanged sentences

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

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

such a reserve.

Beginning in the first quarter of 2022, the

trustee withheld a portion of the proceeds otherwise available for distribution each quarter to gradually build a cash reserve for

the payment of future known, anticipated or contingent expenses or liabilities.

This amount is in addition to the $1.8 million

letter of credit described below.

The Trustee may increase or decrease the targeted amount 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 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.

As of March 31, 2024, $1,160,776 was held by the Trustee and is reported as cash and cash equivalents.

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 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

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.

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.

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 targeted $1.265 million cash reserve was fully funded as of April 25, 2023.

the three months ended March 31, 2024 and 2023, 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.

Income to the Trust from the net profits interest

2 unchanged sentences

contained in the conveyance.

As substantially all of the underlying properties

are located in mature fields, MV Partners does not expect future costs for the underlying properties to change significantly as compared

Substantially all of the underlying properties

are located in mature fields, and MV Partners does not expect future costs for the underlying properties to change significantly as compared

to recent historical costs other than changes due to fluctuations in the general cost of oilfield services.

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 timing.

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

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 March 31, 2024, $1,000,000 was held by MV Partners as a capital reserve.

The Trust does not have any transactions, arrangements

14 unchanged sentences

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.

are disclosed in the Trust’s Annual Report on Form 10-K for the year ended December 31, 2023 (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