VOC Energy Trust

What they do

The Trust was formed in November 2010 by VOC Brazos Energy Partners, L.P. and completed its IPO in May 2011. It holds a net profits interest entitling it to 80% of the net proceeds from the sale and production of substantially all of VOC Brazos' interests in oil and natural gas properties in Kansas and Texas. The Trust is passive, has no employees, and is managed by The Bank of New York Mellon Trust Company, N.A. as Trustee; Vess Oil Corporation, L.D. Drilling, Inc. and Davis Petroleum, Inc. operate the Underlying Properties. As of December 31, 2025, the Underlying Properties included interests in 703 gross (433.4 net) producing wells and 80,935 gross (50,160.7 net) acres.

Revenue drivers

• Oil sales — Oil is the dominant revenue source. For the quarter ended June 30, 2026, oil sales were $10,166,938 on 107,234 Bbl at an average price of $94.81 per Bbl, representing about 97% of total gross proceeds.
• Natural gas sales — Natural gas is a minor contributor. For the quarter ended June 30, 2026, natural gas sales were $284,505 on 64,022 Mcf at an average price of $4.44 per Mcf, about 3% of total gross proceeds.
• Net profits interest — The Trust receives 80% of net proceeds after lease operating expenses, production and property taxes, and development expenses. For the quarter ended June 30, 2026, net proceeds were $6,117,947 and the Trust's 80% share was $4,894,357.

Recent performance

For the quarter ended June 30, 2026, the Trust reported income from net profits interest of $1,700,695 and distributable income of $1,615,000, or $0.095 per unit, down from $2,484,950 and $2,210,000, or $0.13 per unit, in the second quarter of 2025. For the six months ended June 30, 2026, income from net profits interest was $3,286,819 and distributable income was $3,145,000, or $0.185 per unit, compared with $4,383,770 and $3,655,000, or $0.215 per unit, in the first half of 2025. The July 20, 2026 earnings release announced a distribution of $4,760,000, or $0.28 per unit, payable August 14, 2026 to unitholders of record on July 30, 2026, based on second-quarter sales volumes of 107,234 Bbl of oil and 64,022 Mcf of natural gas. Total costs deducted in the second quarter were $4,333,496, including $3,291,240 of lease operating expenses, $525,488 of production and property taxes, and $516,768 of development expenses. General and administrative expenses rose to $327,961 in the second quarter of 2026 from $213,891 in the year-earlier period.

Strategy

The Trust is passive and does not control operations or capital allocation; its stated approach is to hold the net profits interest, receive quarterly cash proceeds, and distribute substantially all cash receipts after administrative expenses on or about 45 days after each quarter end. Distributions are scheduled through the quarter ending December 31, 2030, when the Trust is expected to wind up and terminate, unless the production threshold of 10.6 MMBoe from the Underlying Properties is reached earlier. As of December 31, 2025, cumulatively since inception, the Trust had received payment for approximately 7.7 MMBoe of its 8.5 MMBoe interest. Because payments deplete assets and production is expected to decline over time, a portion of each distribution represents a return of original investment.

Risks

• Commodity price volatility — Distributions are highly dependent on oil and gas prices; oil prices ranged from a high of $80.04 to a low of $55.27 in 2025, and the NYMEX crude oil price was $57.42 per Bbl at December 31, 2025.
• Finite trust life — The net profits interest terminates on the later of December 31, 2030, or when 10.6 MMBoe have been produced and sold from the Underlying Properties, after which the Trust will wind up and terminate.
• No operational control — The Trust is passive and neither the Trust nor the Trustee controls costs or operations of the Underlying Properties, which are operated by Vess Oil Corporation, L.D. Drilling, Inc. and Davis Petroleum, Inc.
• Declining production and asset depletion — Production from the Underlying Properties is expected to diminish over time, reducing proceeds to the Trust and resulting in a portion of each distribution representing a return of original investment.

Outlook

The Trust states it will make quarterly cash distributions of substantially all quarterly cash receipts, after administrative expenses, on or about 45 days following each quarter end through the quarter ending December 31, 2030. The Trust has no stated growth strategy and does not intend to update forward-looking statements. Future distribution amounts will depend on oil and gas prices, production volumes, property and production taxes, development expenses, lease operating expenses, and Trust administrative expenses.