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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 May 10, 2011 under the symbol “VOC.” As of March 20, 2025, the 17,000,000 units outstanding were held by six unitholders of record.
+Added: The Trust Units commenced trading on the New York Stock Exchange on May 10, 2011 under the symbol “VOC.” As of March 20, 2026, the 17,000,000 units outstanding were held by seven unitholders of record.
+Added: Distributions
Each quarter, the Trustee determines the amount of funds available for distribution to the Trust unitholders.
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Quarterly cash distributions during the term of the Trust are made by the Trustee on or before the 45th day following the end of each quarter to the Trust unitholders of record on the 30th day following the end of each quarter (or the next succeeding business day).
−Removed: Equity Compensation Plans
−Removed: The Trust does not have any employees and, therefore, does not maintain any equity compensation plans.
Recent Sales of Unregistered Securities
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There were no purchases of Trust Units by the Trust or any affiliated purchaser during the fourth quarter of the year ended December 31, 2025.
+Added: TABLE OF CONTENTS
Trustee’s Discussion and Analysis of Financial Condition and Results of Operations.
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Natural gas (Mcf)
+Added: Year Ended December 31,
Average sales prices:
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1,394,915 (1)
−Removed: 1,394,915 (2)
Total gross proceeds
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Development expenses
−Removed: Year Ended December 31,
Excess of revenues over direct operating expenses and lease equipment and development costs
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Revenues are a function of oil and natural gas sales prices and volumes sold.
−Removed: The decrease in gross proceeds was due to a decrease in oil and gas sales volumes compared to 2023 and a decrease in the market price for natural gas sales offset slightly by an increase in the market price for oil sales during 2024 compared to 2023.
−Removed: Oil sales volumes were 456,682 Bbls for the year ended December 31, 2024, a decrease of 38,990 Bbls or 7.9% from 495,672 Bbls for the year ended December 31, 2023, while natural gas sales volumes were 263,696 Mcf, a decrease of 34,232 Mcf from 297,928 Mcf for the year ended December 31, 2023.
−Removed: These oil and natural gas sales volume decreases are partially the result of severe winter storms in January 2024 that affected Kansas and Texas and resulted in curtailment of production on certain of the Underlying Properties, as discussed in the Trust’s Current Report on Form 8-K filed on January 19, 2024.
−Removed: The snow and ice associated with those storms disabled electrical power to the affected Underlying Properties for an extended period, rendering some properties inaccessible and generally created difficult working periods.
−Removed: During the year ended December 31, 2024, the average price for oil increased 1.8% to $76.66 per Bbl and the average price for natural gas decreased 37.0% to $2.95 per Mcf.
−Removed: Lease operating expenses were $14,552,598 for the year ended December 31, 2024, an increase of $283,940 or 2.0% from $14,268,658 for the year ended December 31, 2023.
−Removed: The increase was primarily due to increases in the costs of oilfield goods and services.
−Removed: Production and property taxes were $1,755,415 for
−Removed: the year ended December 31, 2024, a decrease of $282,249 or 13.9% from $2,037,664 for the year ended December 31, 2023.
−Removed: The decrease is primarily due to a decrease in production taxes of $224,273 or 21.5% as a result of lower sales volumes for oil and natural gas sales along with a decrease in property taxes of $57,976 or 5.8%.
+Added: The decrease in gross proceeds was due to a decrease in oil and gas sales volumes compared to 2024 and a decrease in the market price for oil sales during 2025 compared to 2024.
+Added: Oil sales volumes were 440,042 Bbls for the year ended December 31, 2025, a decrease of 16,660 Bbls or 3.6% from 456,682 Bbls for the year ended December 31, 2024, while natural gas sales volumes were 237,471 Mcf, a decrease of 26,225 Mcf or 9.9% from 263,696 Mcf for the year ended December 31, 2024.
+Added: During the year ended December 31, 2025, the average price for oil decreased 14.6% to $65.44 per Bbl and the average price for natural gas increased 9.0% to $3.22 per Mcf.
+Added: Lease operating expenses were $14,109,579 for the year ended December 31, 2025, a decrease of $443,019 or 3.0% from $14,552,598 for the year ended December 31, 2024.
+Added: The decrease was primarily due to shutting in certain wells with higher service costs.
+Added: Production and property taxes were $1,781,339 for the year ended December 31, 2025, an increase of $25,924 or 1.5% from $1,755,415 for the year ended December 31, 2024.
+Added: The increase is primarily due to a decrease in production taxes of $49,836 or 6.1% as a result of lower sales volumes for oil and natural gas sales offset by an increase in property taxes of $75,760 or 8.1%.
Development expenses were $2,892,647 for the year ended December 31, 2025, an increase of $440,434 or 18.0% from $2,452,213 for the year ended December 31, 2024.
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During the years ended December 31, 2025 and 2024, VOC Brazos did not withhold or release any dollar amounts due to the Trust from previously established cash reserves for future development, maintenance or operating expenditures, which resulted in income from the net profits interest of $8,619,944 and $13,622,718, respectively, for such years.
−Removed: These amounts were reduced by a Trustee holdback for current estimated expenses of $1,212,718 and $1,013,888 for the years ended December 31, 2024 and 2023, respectively, and a Trustee holdback for future estimated expenses of $231,030 for the year ended December 31, 2023.
−Removed: The Trustee paid general and administrative expenses of $897,342 for the year ended December 31, 2024, a decrease of $167,152 from $1,064,494 for the year ended December 31, 2023.
+Added: These amounts were reduced by a Trustee holdback for current estimated expenses of $1,224,944 and $1,212,718 for the years ended December 31, 2025 and 2024, respectively.
+Added: The Trustee paid general and administrative expenses of $942,982 for the year ended December 31, 2025, an increase of $45,640 from $897,342 for the year ended December 31, 2024.
These factors resulted in distributable income for the year ended December 31, 2025 of $7,395,000, a decrease of $5,015,000 from $12,410,000 for the year ended December 31, 2024.
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The Trust paid, out of the first cash payment received by the Trust, the Trustee’s and Delaware Trustee’s legal expenses incurred in forming the Trust, in connection with the initial public offering (that were not otherwise paid by VOC Brazos) and related matters, as well as the Delaware Trustee’s acceptance fee in the amount of $5,000.
−Removed: 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 to build an approximately $1.175 million cash reserve for the payment of future known, anticipated or contingent expenses or liabilities of the Trust.
+Added: 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 letter of credit in the amount of $1.7 million provided to the Trustee by VOC Brazos 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 withholds funds to build the cash reserve at any time, without advance notice to the Trust unitholders.
+Added: The Trustee may increase or decrease this reserve 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.
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, The interest earned on this cash reserve is used to reduce the reported general and administrative expense each quarter on the statements of distributable income.
+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
+Added: liabilities eventually will be distributed to Trust unitholders, The interest earned on this cash reserve is used to reduce the reported general and administrative expense each quarter on the statements of distributable income.
The Trustee can authorize the Trust to borrow money to pay Trust administrative or incidental expenses that exceed cash held by the Trust.
The Trustee may authorize the Trust to borrow from the Trustee as lender provided the terms of the loan are fair to the Trust unitholders.
−Removed: The Trustee may also deposit funds awaiting distribution in an account with itself, if the interest paid to the Trust at least equals amounts paid by the Trustee on similar deposits, and make no other short-term investments with the funds
−Removed: distributed to the Trust.
+Added: The Trustee may also deposit funds awaiting distribution in an account with itself, if the interest paid to the Trust at least equals amounts paid by the Trustee on similar deposits, and make no other short-term investments with the funds distributed to the Trust.
The Trustee has no current plans to authorize the Trust to borrow money.
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VOC Brazos’ historical development and workover program for the Kansas Underlying Properties has included recompleting certain existing wells, drilling infill development wells, conducting 3-D seismic surveys, completing workovers and applying new production technologies.
−Removed: VOC Brazos expects to incur future development expenditures for these properties through December 31, 2027 of approximately $1.1 million, of which VOC Brazos contemplates spending approximately $1.0 million to drill and complete three vertical wells.
+Added: VOC Brazos expects to incur future development expenditures for these properties through December 31, 2026 of approximately $1.6 million, of which VOC Brazos contemplates spending approximately $1.4 million to drill and complete four vertical wells.
The remaining approximately $0.2 million is expected to be used for recompletions and workovers of three wells.
VOC Brazos’ historical development and workover program for the Texas Underlying Properties has included recompleting certain existing wells, drilling infill development wells, completing workovers and applying new production technologies.
−Removed: In particular, since 2003, through its ownership in the Kurten Woodbine Unit, VOC Brazos has pursued operational, strategic and technological initiatives to economically produce and sell hydrocarbons from the Woodbine Interval, also commonly referred to as the Eaglebine formation, which is the correlative interval defined as encompassing all depths from the base of the Austin Chalk to the top of the Buda formation.
+Added: In particular, since 2003, through its ownership in the Kurten Woodbine Unit, VOC Brazos has pursued operational, strategic and technological initiatives to economically produce and sell hydrocarbons from the Woodbine Interval, also commonly referred to as the Eaglebine formation, which is the correlative interval defined as
+Added: encompassing all depths from the base of the Austin Chalk to the top of the Buda formation.
VOC Brazos has:
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VOC Brazos expects to incur future development expenditures for the Texas Underlying Properties through December 31, 2032 of approximately $34.5 million to drill and complete eight non-joint venture agreement wells, all within the Woodbine Interval of the Kurten Woodbine Unit.
−Removed: Additionally, VOC Brazos expects to incur approximately $0.8 million to convert 15 horizontal wells from gas lift to rod pump and workover 2 wells.
+Added: Additionally, VOC Brazos expects to incur approximately $0.6 million to convert 12 horizontal wells from gas lift to rod pump.
The Trust will indirectly bear an 80% share of these development expenditures as described below.
7 unchanged sentences
However, if annual cash proceeds attributable to the net profits interest are less than $1 million for each of two consecutive years, then under the terms of the Trust Agreement, the Trust would be required to dissolve.
−Removed: VOC Brazos, as the designated 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 VOC Brazos may incur with respect to the Underlying Properties.
−Removed: VOC Brazos is required under the Conveyance to use commercially reasonable efforts to cause the operators of the Underlying Properties to operate these properties as would a reasonably prudent operator acting with respect to its own properties (without regard to the existence of the net profits interest).
−Removed: As the Trust unitholders would not be expected to fully realize the benefits of capital expenditures made with respect to the Underlying Properties towards the end of the term of the Trust, during each twelve-month period beginning on the later to occur of (1) December 31, 2027 and (2) the time when 9.8 MMBoe have been produced from the Underlying Properties and sold (which is the equivalent of 7.8 MMBoe in respect of the
+Added: VOC Brazos, as the designated 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 VOC Brazos may incur with respect to the Underlying
TABLE OF CONTENTS
−Removed: 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 increased by 2.5% to account for expected increased costs due to inflation.
+Added: VOC Brazos is required under the Conveyance to use commercially reasonable efforts to cause the operators of the Underlying Properties to operate these properties as would a reasonably prudent operator acting with respect to its own properties (without regard to the existence of the net profits interest).
+Added: As the Trust unitholders would not be expected to fully realize the benefits of capital expenditures made with respect to the Underlying Properties towards the end of the term of the Trust, during each twelve-month period beginning on the later to occur of (1) December 31, 2027 and (2) the time when 9.8 MMBoe have been produced from the Underlying Properties and sold (which is the equivalent of 7.8 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 increased by 2.5% to account for expected increased costs due to inflation.
Quantitative and Qualitative Disclosures About Market Risk.
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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.