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Item 1. Financial Statements

2025-11-10 compared with 2025-08-12 · 241 added, 209 removed, 228 unchanged (66% of the section changed)

1 unchanged sentence

VOC ENERGY TRUST

STATEMENTS OF DISTRIBUTABLE INCOME

Three months ended

Six months ended

STATEMENTS OF DISTRIBUTABLE

September 30,

Nine months ended

September 30,

Income from net profits interest

Cash on hand withheld for Trust expenses

General and administrative expenses (1)

and administrative expenses (1)

Distributable income

Distributions per Trust unit (17,000,000 Trust units issued and outstanding at June 30, 2025 and 2024)

(1) Includes $32,464 and $31,215 paid to VOC Brazos Energy Partners, LP (“VOC Brazos”) during the three months ended June 30,

2025 and 2024, respectively, and $63,679 and $61,229 during the six months ended June 30, 2025 and 2024, respectively.

Distributions

per Trust unit (17,000,000 Trust units issued and outstanding at September 30, 2025 and 2024)

(1) Includes $32,464 and $31,215 paid to VOC Brazos Energy Partners, LP (“VOC Brazos”)

during the three months ended September 30, 2025 and 2024, respectively, and $96,143 and $92,444

during the nine months ended September 30, 2025 and 2024, respectively.

Also includes $37,500

paid to The Bank of New York Mellon Trust Company, N.A.

during each of the three-month periods ended June 30, 2025 and 2024

and $75,000 during each of the six-month periods ended June 30, 2025 and 2024.

during each of the three months ended September 30,

2025 and 2024 and $112,500 during each of the nine months ended September 30, 2025 and 2024.

STATEMENTS OF ASSETS AND TRUST CORPUS

September 30,

Cash and cash equivalents

3 unchanged sentences

(130,464,406 )

Trust corpus, 17,000,000 Trust units issued and outstanding at June 30, 2025 and December 31, 2024

corpus, 17,000,000 Trust units issued and outstanding at September 30, 2025 and December 31, 2024

STATEMENTS OF CHANGES IN TRUST CORPUS

Three months ended

Six months ended

September 30,

Nine months ended

September 30,

Trust corpus, beginning of period

5 unchanged sentences

The accompanying notes are an integral part of

these financial statements.

these condensed financial statements.

VOC ENERGY TRUST

1 unchanged sentence

Organization of the Trust

VOC Energy Trust (the “Trust”) is a

statutory trust formed on November 3, 2010 (capitalized on December 17, 2010), under the Delaware Statutory Trust Act pursuant

VOC Energy Trust (the “Trust”) is

a statutory trust formed on November 3, 2010 (capitalized on December 17, 2010) under the Delaware Statutory Trust Act pursuant

to a Trust Agreement dated November 3, 2010 (as amended and restated on May 10, 2011, the “Trust Agreement”) among

VOC Brazos Energy Partners, L.P., a Texas limited partnership (“VOC Brazos”), 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”).

VOC Brazos Energy Partners, L.P., a Texas limited partnership (“VOC Brazos”), 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 net profits interest for the benefit of the Trust unitholders.

18 unchanged sentences

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 VOC Brazos’

profits interest entitles the Trust to receive 80% of the net proceeds attributable to VOC Brazos’

interest from the sale of production

4 unchanged sentences

wind up its affairs and terminate.

As of June 30, 2025, cumulatively, since inception,

the Trust has received payment for 80% of the net proceeds attributable to VOC Brazos’

interest from the sale of 9.4 MMBoe of production

from the underlying properties (which is the equivalent of 7.5 MMBoe (unaudited) in respect of the net profits interest).

The Trustee can authorize the Trust to borrow money

to pay administrative or incidental expenses of the Trust that exceed cash held by the Trust.

The Trustee may authorize the Trust to borrow

from the Trustee or the Delaware Trustee as a lender provided the terms of the loan are similar to the terms it would grant to a similarly

situated commercial customer with whom it did not have a fiduciary relationship.

The Trustee may also deposit funds awaiting distribution

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

As of September 30, 2025, cumulatively, since

inception, the Trust has received payment for 80% of the net proceeds attributable to VOC Brazos’

interest from the sale of 9.5

MMBoe of production from the underlying properties (which is the equivalent of 7.6 MMBoe (unaudited) in respect of the net profits interest).

The Trustee can authorize the Trust to borrow

money to pay administrative or incidental expenses of the Trust that exceed cash held by the Trust.

The Trustee may authorize the Trust

to borrow from the Trustee or the Delaware Trustee as a lender provided the terms of the loan are similar to the terms it would grant

to a similarly situated commercial customer with whom it did not have a fiduciary relationship.

The Trustee may also deposit funds awaiting

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

Basis of Presentation

1 unchanged sentence

Corpus as of December 31, 2024, which has been derived from audited financial statements, and the unaudited interim financial statements

as of June 30, 2025 and for the three- and six-month periods ended June 30, 2025 and 2024, 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 omitted pursuant to those rules and regulations.

as of September 30, 2025 and for the three- and nine-month periods ended September 30, 2025 and 2024, 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 omitted pursuant to those rules and regulations.

The preparation of financial statements requires

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The actual cash distributions of the

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

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

Expenses of the Trust, which

16 unchanged sentences

There was no impairment of the investment in the net profits interest

during the quarters ended June 30, 2025 or 2024.

during the quarters ended September 30, 2025 or 2024.

The Trust has one business activity as the owner

1 unchanged sentence

operating and reportable segment.

Operating segments are defined as components of an entity for which separate financial information is

evaluated regularly by the chief operating decision maker (the “CODM”), which is the Trustee.

The segment participates in

activities and derives its income from net profits interest as reported in the accompanying Statements of Distributable Income, and the

CODM uses this in making decisions about the allocation of cash reserves for current and future Trust general and administrative expenses

and the ultimate distribution to the Trust unitholders.

No new accounting pronouncements were adopted or

issued during the quarter ended June 30, 2025 that would impact the financial statements of the Trust.

Operating segments are defined as components of an entity for which separate financial information

is evaluated regularly by the chief operating decision maker (the “CODM”), which is the Trustee.

The segment participates

in activities and derives its income from net profits interest as reported in the accompanying Statements of Distributable Income, and

the CODM uses this in making decisions about the allocation of cash reserves for current and future Trust general and administrative

expenses and the ultimate distribution to the Trust unitholders.

No new accounting pronouncements were adopted

or issued during the quarter ended September 30, 2025 that would impact the financial statements of the Trust.

Investment in Net Profits Interest

12 unchanged sentences

Three months ended

Six months ended

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

September 30,

Nine months ended

September 30,

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

Times 80% net profits interest to Trust

Income from net profits interest before reserve adjustments

VOC Brazos reserve for future development, maintenance or operating expenditures (2)

Income from net profits interest (3)

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

VOC Brazos during each of the December through February production periods for the three months ended June 30 and during

each of the September through February production periods for the six months ended June 30.

Income from net

profits interest before reserve adjustments

Brazos reserve for future development, maintenance or operating expenditures (2)

from net profits interest (3)

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

expenses and costs incurred by VOC Brazos during each of the March through May production

periods for the three months ended September 30 and during each of the September through

May production periods for the nine months ended September 30.

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, VOC Brazos can reserve up to $1.0 million for future development,

maintenance or operating expenditures at any time.

During the three months ended June 30, 2025 and 2024, and the six months ended

June 30, 2025 and 2024, VOC Brazos did not withhold or release any dollar amounts due to the Trust from the reserve.

balance was $1.0 million at June 30, 2025 and 2024.

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

from oil production are typically received by VOC Brazos one month after production;

thus, the cash received by the Trust during the three

months ended June 30, 2025 substantially represents production by VOC Brazos from December 2024 through February 2025,

and the cash received by the Trust during the three months ended June 30, 2024 substantially represents production by VOC Brazos

from December 2023 through February 2024.

The cash received by the Trust during the six months ended June 30, 2025 substantially

represents production by VOC Brazos from September 2024 through February 2025, and the cash received by the Trust during the

six months ended June 30, 2024 substantially represents production by VOC Brazos from September 2023 through February 2024.

For the three and six months ended June 30,

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, VOC Brazos can reserve up

to $1.0 million for future development, maintenance or operating expenditures at any time.

three months ended September 30, 2025 and 2024, and the nine months ended September 30, 2025

and 2024, VOC Brazos did not withhold or release any dollar amounts due to the Trust from the reserve.

The reserve balance was $1.0 million at September 30, 2025 and 2024.

(3) The income from net profits interest is based upon the cash receipts from VOC Brazos for the oil

and gas production.

The revenues from oil production are typically received by VOC Brazos one month

after production;

thus, the cash received by the Trust during the three months ended September 30,

2025 substantially represents production by VOC Brazos from March 2025 through May 2025,

and the cash received by the Trust during the three months ended September 30, 2024 substantially

represents production by VOC Brazos from March 2024 through May 2024.

The cash received

by the Trust during the nine months ended September 30, 2025 substantially represents production

by VOC Brazos from September 2024 through May 2025, and the cash received by the Trust during

the nine months ended September 30, 2024 substantially represents production by VOC Brazos from

September 2023 through May 2024.

For the three and nine months ended September 30,

2025 and 2024, MV Purchasing, LLC, an affiliate of VOC Brazos, purchased a significant portion of the production of the underlying properties.

26 unchanged sentences

Such distribution included the net proceeds of production collected by VOC Brazos from October 1, 2024 through December 31,

The second quarterly distribution during 2025 was

$2,210,000, or $0.13 per Trust Unit, and was made on May 15, 2025 to Trust unitholders owning Trust Units as of April 30, 2025.

The second quarterly distribution during 2025

was $2,210,000, or $0.13 per Trust Unit, and was made on May 15, 2025 to Trust unitholders owning Trust Units as of April 30,

Such distribution included the net proceeds of production collected by VOC Brazos from January 1, 2025 through March 31,

The third quarterly distribution during 2025 was

$1,870,000, or $0.11 per Trust Unit, and was made on August 14, 2025 to Trust unitholders owning Trust Units as of July 30,

Such distribution included the net proceeds of production collected by VOC Brazos from April 1, 2025 through June 30,

The first quarterly distribution during 2024 was

1 unchanged sentence

Such distribution included the net proceeds of production collected by VOC Brazos from October 1, 2023 through December 31,

The second quarterly distribution during 2024 was

$3,060,000, or $0.18 per Trust Unit, and was made on May 15, 2024 to Trust unitholders owning Trust Units as of April 30, 2024.

The second quarterly distribution during 2024

was $3,060,000, or $0.18 per Trust Unit, and was made on May 15, 2024 to Trust unitholders owning Trust Units as of April 30,

Such distribution included the net proceeds of production collected by VOC Brazos from January 1, 2024 through March 31,

The third quarterly distribution during 2024 was

$3,060,000, or $0.18 per Trust Unit, and was made on August 14, 2024 to Trust unitholders owning Trust Units as of July 30,

Such distribution included the net proceeds of production collected by VOC Brazos from April 1, 2024 through June 30,

Advance for Trust Expenses

1 unchanged sentence

is allowed to borrow money to pay Trust expenses.

During the three and six months ended June 30, 2025 and 2024, there were no borrowings

or amounts owed for money borrowed in previous quarters.

Under the terms of the Trust Agreement, VOC Brazos has provided a letter of credit

in the amount of $1.7 million to the Trustee to protect the Trust against the risk that it does not have sufficient cash to pay future

During the three and nine months ended September 30, 2025 and 2024, there were

no borrowings or amounts owed for money borrowed in previous quarters.

Under the terms of the Trust Agreement, VOC Brazos has provided

a letter of credit in the amount of $1.7 million to the Trustee to protect the Trust against the risk that it does not have sufficient

cash to pay future expenses.

Subsequent Events

On July 17, 2025, the Trust announced a Trust

distribution of net profits for the quarterly payment period ended June 30, 2025.

Unitholders of record on July 30, 2025 will

receive a distribution amounting to $1,870,000, or $0.11 per Trust Unit, which will be paid on August 14, 2025.

On October 20, 2025, the Trust announced

a Trust distribution of net profits for the quarterly payment period ended September 30, 2025.

Unitholders of record on October 30,

2025 will receive a distribution amounting to $1,870,000, or $0.11 per Trust Unit, which will be paid on November 14, 2025.

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 VOC Brazos.

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.

The 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 VOC Brazos.

Results of Operations

Results of Operations for the Quarters Ended June 30, 2025

The following is a summary of income from net profits

interest received by the Trust for the three months ended June 30, 2025 and 2024 consisting of the April distribution for each

respective year:

Results of Operations for the Quarters Ended September 30,

2025 and 2024

The following is a summary of income from net

profits interest received by the Trust for the three months ended September 30, 2025 and 2024 consisting of the July distribution

for each respective year:

Three months ended

September 30,

Sales volumes:

10 unchanged sentences

Development expenses

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

Times net profits interest over the term of the Trust

Excess of revenues over

direct operating expenses and lease equipment and development costs

Times net profits interest over the term

Income from net profits interest before reserve adjustments

VOC Brazos reserve for future development, maintenance or operating expenditures

VOC Brazos reserve for future development,

maintenance or operating expenditures

Income from net profits interest

The cash received by the Trust from VOC Brazos

during the quarter ended June 30, 2025 substantially represents the production by VOC Brazos from December 2024 through February 2025.

The cash received by the Trust from VOC Brazos during the quarter ended June 30, 2024 substantially represents the production by

VOC Brazos from December 2023 through February 2024.

The revenues from oil production are typically received by VOC Brazos one

month after production.

during the quarter ended September 30, 2025 substantially represents the production by VOC Brazos from March 2025 through May 2025.

The cash received by the Trust from VOC Brazos during the quarter ended September 30, 2024 substantially represents the production

by VOC Brazos from March 2024 through May 2024.

The revenues from oil production are typically received by VOC Brazos one month

after production.

Gross proceeds .

Oil and natural gas sales

were $7,812,508 for the three months ended June 30, 2025, a decrease of $263,719 or 3.3% from $8,076,227 for the three months ended

June 30, 2024.

Revenues are a function of oil and natural gas sales prices and volumes sold.

The decrease in gross proceeds was due

to a decrease in market prices for oil and in oil and natural gas sales volumes, offset slightly by an increase in market prices for natural

gas, during the second quarter of 2025.

During the three months ended June 30, 2025, the average price for oil decreased 2.7% to

$69.32 per Bbl and the average price for natural gas increased 15.2% to $3.57 per Mcf.

Oil sales volumes were 109,667 Bbls for the three

months ended June 30, 2025, a decrease of 867 Bbls or 0.8% from 110,534 Bbls for the three months ended June 30, 2024, while

natural gas sales volumes were 58,971 Mcf, a decrease of 5,837 Mcf or 9.0% from 64,808 Mcf for the same period in 2024.

were $7,225,060 for the three months ended September 30, 2025, a decrease of $2,045,847 or 22.1% from $9,270,907 for the three months

ended September 30, 2024.

Revenues are a function of oil and natural gas volumes sold and prices received.

The decrease in gross

proceeds was due to a decrease in the market price for oil sales partially offset by an increase in the market price for natural gas

sales during the third quarter of 2025.

During the three months ended September 30, 2025, the average price for oil decreased 22.0%

to $61.11 per Bbl and the average price for natural gas increased 35.9% to $3.72 per Mcf.

Oil sales volumes were 115,025 Bbls for

the three months ended September 30, 2025, a decrease of 981 Bbls or 0.8% from 116,006 Bbls for the three months ended September 30,

2024, while natural gas sales volumes were 52,514 Mcf, a decrease of 13,301 Mcf or 20.2% from 65,815 Mcf for the same period in 2024.

Lease operating expenses were $3,510,384

for the three months ended June 30, 2025, an increase of $374,798 or 11.3% from $3,312,352 for the three months ended June 30,

Production and property taxes were $205,576 for the three months ended June 30, 2025, an increase of $21,848 or 11.9% from

$183,728 for the same period in 2024.

This increase is the result of a $5,114 decrease in production taxes, primarily due to lower sales

prices, and a $26,962 increase in property taxes.

Development expenses were $813,595 for the three months ended June 30, 2025, an

increase of $455,277 or 127.1% from $358,318 for the same period in 2024.

This increase was primarily due to two significant workovers

during the three months ended June 30, 2025.

for the three months ended September 30, 2025, a decrease of $273,707 or 7.2% from $3,784,091 for the three months ended September 30,

Production and property taxes were $564,734 for the three months ended September 30, 2025, an increase of $25,265 or 4.7%

from $539,469 for the same period in 2024.

This increase is the result of an increase of $14,669 or 8.3% in production taxes due primarily

to a tax refund for the three months ended September 30, 2024 and an increase of $10,596 or 2.9% in property taxes.

expenses were $453,043 for the three months ended September 30, 2025, a decrease of $246,031 or 35.2% from $699,074 for the same

period in 2024.

This increase was primarily due to decreased development activity during the three months ended September 30, 2025,

compared to the three months ended September 30, 2024.

Excess of revenues over direct operating expenses

1 unchanged sentence

The excess of revenues over direct operating expenses and lease equipment and development

costs from the underlying properties was $3,106,187 for the three months ended June 30, 2025, a decrease of $1,115,642 or 26.4% from

$4,221,829 for the three months ended June 30, 2024.

The Trust’s 80% net profits interest of these totals was $2,484,950 and

$3,377,463, respectively.

During the three months ended June 30, 2025 and 2024, VOC Brazos did not withhold or release any dollar

amounts due to the Trust from the previously established cash reserve for future development, maintenance or operating expenditures, which

resulted in income from the net profits interest of $2,484,950 and $3,377,463 for such periods, respectively.

These amounts were reduced

by a Trustee holdback for current estimated Trust expenses of $274,950 and $317,463 for the three months ended June 30, 2025 and

2024, respectively.

The Trustee paid general and administrative expenses of $213,891 for the three months ended June 30, 2025, an

increase of $93,054 from $120,837 for the three months ended June 30, 2024.

These factors resulted in distributable income for the

three months ended June 30, 2025 of $2,210,000, a decrease of $850,000 from $3,060,000 for the three months ended June 30, 2024.

Results of Operations for the Six Months Ended June 30, 2025

The following is a summary of income from net profits

interest received by the Trust for the six months ended June 30, 2025 and 2024 consisting of the January and April distributions

for each respective year:

Six months ended

costs from the underlying properties was $2,696,899 for the three months ended September 30, 2025, a decrease of $1,551,374 or 36.5%

from $4,248,273 for the three months ended September 30, 2024.

The Trust’s 80% net profits interest of these totals was $2,157,519

and $3,398,618, respectively.

During the three months ended September 30, 2025 and 2024, VOC Brazos did not withhold or release

any dollar amounts due to the Trust from the previously established cash reserve for future development, maintenance or operating expenditures,

which resulted in income from the net profits interest of $2,157,519 and $3,398,618 for such periods, respectively.

These amounts were

reduced by a Trustee holdback for current estimated Trust expenses of $287,519 and $338,618 for the three months ended September 30,

2025 and 2024, respectively.

The Trustee paid general and administrative expenses of $156,192 for the three months ended September 30,

2025, a decrease of $46,296 from $202,488 for the three months ended September 30, 2024.

These factors resulted in distributable

income for the three months ended September 30, 2025 of $1,870,000, a decrease of $1,190,000 from $3,060,000 for the three months

ended September 30, 2024.

Results of Operations for the Nine Months Ended September 30,

2025 and 2024

The following is a summary of income from net

profits interest received by the Trust for the nine months ended September 30, 2025 and 2024 consisting of the January, April and

July distributions for each respective year:

Nine months ended

September 30,

Sales volumes:

10 unchanged sentences

Development expenses

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

Times net profits interest over the term of the Trust

Excess of revenues over

direct operating expenses and lease equipment and development costs

Times net profits interest over the term

Income from net profits interest before reserve adjustments

VOC Brazos reserve for future development, maintenance or operating expenditures

Brazos reserve for future development, maintenance or operating expenditures

Income from net profits interest

The cash received by the Trust from VOC Brazos

during the six months ended June 30, 2025 substantially represents the production by VOC Brazos from September 2024 through

February 2025.

The cash received by the Trust from VOC Brazos during the six months ended June 30, 2024 substantially represents

the production by VOC Brazos from September 2023 through February 2024.

The revenues from oil production are typically received

by VOC Brazos one month after production.

during the nine months ended September 30, 2025 substantially represents the production by VOC Brazos from September 2024 through

The cash received by the Trust from VOC Brazos during the nine months ended September 30, 2024 substantially

represents the production by VOC Brazos from September 2023 through May 2024.

The revenues from oil production are typically

received by VOC Brazos one month after production.

Gross proceeds .

Oil and natural gas sales

were $15,374,126 for the six months ended June 30, 2025, a decrease of $2,396,636 or 13.5% from $17,770,762 for the six months ended

June 30, 2024.

Revenues are a function of oil and natural gas sales prices and volumes sold.

The decrease in gross proceeds was due

to decreases in market prices for oil and natural gas and in oil and natural gas sales volumes during the second quarter of 2025.

the six months ended June 30, 2025, the average price for oil decreased 10.4% to $68.51 per Bbl and the average price for natural

gas decreased 4.1% to $3.04 per Mcf.

During the six months ended June 30, 2025, oil sales volumes were 218,825 Bbls, a decrease of

8,114 Bbls or 3.6% from 226,939 Bbls for the six months ended June 30, 2024, while natural gas sales volumes were 125,569 Mcf,

a decrease of 7,157 Mcf or 5.4% from 132,726 Mcf for the same period in 2024.

Oil and natural gas

sales were $22,599,186 for the nine months ended September 30, 2025, a decrease of $4,442,483 or 16.4% from $27,041,669 for the

nine months ended September 30, 2024.

Revenues are a function of oil and natural gas volumes sold and prices received.

decrease in gross proceeds was due to decreases in oil and natural gas sales volumes and in the market price for oil sales partially

offset by a slight increase in the market price for natural gas sales during the nine months ended September 30, 2025.

the nine months ended September 30, 2025, the average price for oil decreased 14.4% to $65.96 per Bbl and the average price for

natural gas increased 7.0% to $3.24 per Mcf.

Oil sales volumes were 333,850 Bbls for the nine months ended September 30, 2025, a

decrease of 9,095 Bbls or 2.7% from 342,945 Bbls for the nine months ended September 30, 2024, while natural gas sales volumes were

178,083 Mcf, a decrease of 20,461 Mcf or 10.3% from 198,544 Mcf for the same period in 2024.

Lease operating expenses were

for the six months ended June 30, 2025, a decrease of $101,651 or 1.4% from $7,220,002 for the six months ended June 30, 2024.

Production and property taxes were $1,047,925 for the six months ended June 30, 2025, an increase of $29,713 or 2.9% from $1,018,212

for the six months ended June 30, 2024.

This increase is the result of a $91,699 increase in property taxes partially offset by a

$61,986 decrease in production taxes, primarily due to lower sales volumes and sales prices for oil and natural gas.

Development expenses

were $1,728,138 for the six months ended June 30, 2025, an increase of $922,561 or 114.5% from $805,577 for the same period in 2024.

This increase was primarily due to five significant workovers during the six months ended June 30, 2025.

$10,628,735 for the nine months ended September 30, 2025, a decrease of $375,358 or 3.4% from $11,004,093 for the nine months ended

September 30, 2024.

Production and property taxes were $1,612,659 for the nine months ended September 30, 2025, an increase

of $54,978 or 3.5% from $1,557,681 for the nine months ended September 30, 2024.

This increase is the result of a decrease of $47,277

or 7.4% in production taxes due primarily to lower sales volumes for oil and natural gas and an increase of $102,255 or 11.1% in property

Development expenses were $2,181,181 for the nine months ended September 30, 2025, an increase of $676,530 or 45.0% from

$1,504,651 for the same period in 2024.

This increase was primarily due to increased development activity during the nine months ended

September 30, 2025, compared to the nine months ended September 30, 2024.

Excess of revenues over direct operating expenses

1 unchanged sentence

The excess of revenues over direct operating expenses and lease equipment and development

costs from the underlying properties was $5,479,712 for the six months ended June 30, 2025, a decrease of $3,247,259 or 37.2% from

$8,726,971 for the six months ended June 30, 2024.

The Trust’s 80% net profits interest of these totals was $4,383,770 and

$6,981,577, respectively.

During the six months ended June 30, 2025 and 2024, VOC Brazos did not withhold or release any dollar amounts

due to the Trust from the previously established cash reserve for future development, maintenance or operating expenditures, which resulted

in income from the net profits interest of $4,383,770 and $6,981,577 for such periods, respectively.

These amounts were reduced by a Trustee

holdback for current estimated Trust expenses of $728,770 and $691,577 for the six months ended June 30, 2025 and 2024, respectively.

The Trustee paid general and administrative expenses of $626,412 for the six months ended June 30, 2025, an increase of $149,116

from $477,296 for the six months ended June 30, 2024.

These factors resulted in distributable income of $3,655,000 for the six months

ended June 30, 2025 and $6,290,000 for the six months ended June 30, 2024.

costs from the underlying properties was $8,176,611 for the nine months ended September 30, 2025, a decrease of $4,798,633 or 37.0%

from $12,975,244 for the nine months ended September 30, 2024.

The Trust’s 80% net profits interest of these totals was

$6,541,289 and $10,380,195, respectively.

During the nine months ended September 30, 2025 and 2024, VOC Brazos did not withhold

or release any dollar amounts due to the Trust from the previously established cash reserve for future development, maintenance or operating

expenditures, which resulted in income from the net profits interest of $6,541,289 and $10,380,195 for such periods, respectively.

amounts were reduced by a Trustee holdback for current estimated Trust expenses of $1,016,289 and $1,030,195 for the nine months ended

September 30, 2025 and 2024, respectively.

The Trustee paid general and administrative expenses of $782,604 for the nine months

ended September 30, 2025, an increase of $102,820 from $679,784 for the nine months ended September 30, 2024.

These factors

resulted in distributable income of $5,525,000 for the nine months ended September 30, 2025 and $9,350,000 for the nine months ended

September 30, 2024.

Liquidity and Capital Resources

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Each quarter, the Trustee determines the amount of funds available for distribution.

Available funds are the excess

cash, if any, received by the Trust from the net profits interest and 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 that the

Trustee decides to reserve for future development, maintenance or operating expenses.

As of June 30, 2025, the Trustee held $1,847,035

as cash and cash equivalents on the accompanying Statements of Assets and Trust Corpus, which includes the $1.175 million cash reserve

described below, as such a reserve.

Available funds are the

excess cash, if any, received by the Trust from the net profits interest and 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

that the Trustee decides to reserve for future development, maintenance or operating expenses.

As of September 30, 2025, the Trustee

held $1,978,362 as cash and cash equivalents on the accompanying Statements of Assets and Trust Corpus, which includes the $1.175 million

cash reserve described below, 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, 2025 and 2024, there were no such borrowings.

VOC Brazos has provided a letter of credit

in the amount of $1.7 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, 2025 and 2024, there were no such borrowings.

VOC Brazos has provided a letter of

credit in the amount of $1.7 million to the Trustee to protect the Trust against the risk that it does not have sufficient cash

to pay future expenses.

From the first quarter of 2022 to the second quarter

of 2023, the Trustee withheld a portion of the proceeds otherwise available for distribution each quarter and built a $1.175 million cash

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

This amount is in addition to

the $1.7 million letter of credit described above.

of 2023, the Trustee withheld a portion of the proceeds otherwise available for distribution each quarter and built a $1.175 million

cash reserve for the payment of future known, anticipated or contingent expenses or liabilities of the Trust.

This amount is in addition

to the $1.7 million letter of credit described above.

The Trustee may increase or decrease this reserve amount at any time and may increase

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As substantially all of the underlying properties

are located in mature fields, VOC Brazos does not expect future costs for the underlying properties to change significantly compared to

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

VOC Brazos may establish a cash

reserve of up to $1,000,000 in the aggregate at any given time from the dollar amount otherwise distributable to the Trust to reduce the

impact on distributions of uneven capital expenditure timing.

The cash reserve balance was $1,000,000 on June 30, 2025 and 2024,

respectively.

are located in mature fields, VOC Brazos does not expect future costs for the underlying properties to change significantly compared

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

VOC Brazos may establish

a cash reserve of up to $1,000,000 in the aggregate at any given time from the dollar amount otherwise distributable to the Trust to

reduce the impact on distributions of uneven capital expenditure timing.

The cash reserve balance was $1,000,000 at September 30,

2025 and 2024.

Note Regarding Forward-Looking Statements

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and Results of Operations”, are forward-looking statements.

Although VOC Brazos advised the Trust that it believes that the expectations

reflected in the forward-looking statements contained herein are reasonable, such expectations may not prove to have been correct.

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, 2024 (the “Form 10-K”),

including under the section “Item 1A.

Although VOC Brazos advised the Trust that it believes that the

expectations reflected in the forward-looking statements contained herein are reasonable, such expectations may not prove to have been

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, 2024

(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