Mission Statement, Vision, & Core Values (2024) of VOC Energy Trust (VOC)

An Overview of VOC Energy Trust (VOC)

General Summary of VOC Energy Trust

VOC Energy Trust (the “Trust”) was formed on November 3, 2010, under the Delaware Statutory Trust Act. The Trust was established to acquire and hold a term net profits interest for the benefit of its unitholders. It derives its income primarily from the production and sale of oil and natural gas from properties located in Texas and Kansas, operated by VOC Brazos Energy Partners, L.P. As of 2024, VOC Energy Trust has 17,000,000 Trust Units outstanding, with a total corpus of $12,364,625 as of September 30, 2024.

The Trust holds an 80% net profits interest in the oil and gas properties operated by VOC Brazos and its subsidiary, VOC Kansas. The net profits interest entitles the Trust to receive 80% of the net proceeds from the sale of production from these properties.

In the nine months ended September 30, 2024, VOC Energy Trust reported total gross proceeds from oil and natural gas sales of $27,041,669, marking a decrease of 9.2% from $29,793,178 in the same period of 2023. This decline was attributed to lower sales volumes and a decrease in market prices for natural gas.

Company's Financial Performance in the Latest Financial Reports

For the nine months ended September 30, 2024, VOC Energy Trust reported the following financial highlights:

In the most recent quarter ending September 30, 2024, the Trust reported gross proceeds of $9,270,907, a slight increase of 0.3% compared to $9,240,585 in the same quarter of 2023. The increase was primarily driven by a rise in the average price for oil sales, which increased by 9.6% to $78.36 per Bbl.

However, the Trust experienced a decrease in sales volumes, with oil sales volumes declining by 10,367 Bbls (8.2%) and natural gas sales volumes decreasing by 5,149 Mcf (7.3%) compared to the previous year.

Introduction to VOC Energy Trust as a Leader in the Industry

VOC Energy Trust is recognized as a significant player in the oil and gas industry, particularly in the regions of Texas and Kansas. The Trust's operational model, which focuses on passive income through net profits interest, allows for streamlined operations without direct management of the underlying properties. This approach has positioned the Trust to effectively navigate market fluctuations and operational challenges.

As of September 30, 2024, VOC Energy Trust has a cash reserve of $1,779,712 and has maintained a consistent distribution strategy to its unitholders, with distributions totaling $9,350,000 for the nine months ended September 30, 2024.

Investors and stakeholders are encouraged to explore further details about VOC Energy Trust's operational strategies and market positioning to understand the factors contributing to its success in the industry.

Mission Statement of VOC Energy Trust (VOC)

Company's Mission Statement Overview

The mission statement of VOC Energy Trust (VOC) serves as a guiding principle that informs its strategic direction and operational decisions. It reflects the Trust's commitment to generating long-term value for its unitholders through the efficient management of its net profits interest in oil and natural gas production. This mission emphasizes the importance of sustainability, operational excellence, and financial transparency in the energy sector.

Core Component 1: Commitment to Unitholders

VOC Energy Trust prioritizes the interests of its unitholders by ensuring consistent cash distributions and transparent reporting. For the nine months ended September 30, 2024, the Trust reported distributable income of $9,350,000, a decline from $11,390,000 during the same period in 2023.

The Trust's quarterly distributions have been structured as follows:

These distributions reflect VOC’s dedication to providing value to its unitholders while managing operational costs effectively.

Core Component 2: Operational Efficiency

Operational efficiency is a cornerstone of VOC’s mission. The Trust focuses on minimizing operating expenses and maximizing net profits from its oil and natural gas production. For the nine months ended September 30, 2024, VOC reported lease operating expenses of $11,004,093, which is a slight decrease of 1.9% from $11,213,378 in the previous year.

The Trust's performance metrics are as follows:

This data indicates a focus on maintaining operational excellence even in the face of fluctuating market conditions.

Core Component 3: Sustainable Practices

VOC Energy Trust emphasizes sustainability in its operations, aiming to balance profitability with environmental stewardship. The Trust's oil production for the nine months ended September 30, 2024, was 342,945 barrels, a decrease of 8.5% from 374,744 barrels in 2023. The average sales price for oil increased to $77.10 per barrel, compared to $76.18 in the prior year.

The commitment to sustainable energy practices is reflected in the Trust's strategic initiatives and operational adjustments, including:

• Investment in technologies that enhance energy efficiency.
• Adoption of best practices for environmental protection in oil and gas extraction.
• Regular assessments of operational impacts on local ecosystems.

Through these measures, VOC aims to contribute positively to the energy landscape while fulfilling its mission to unitholders.

Vision Statement of VOC Energy Trust (VOC)

Vision Statement Overview

The vision statement of VOC Energy Trust (VOC) emphasizes its commitment to delivering value to its unitholders through sustainable and efficient operations in the energy sector. This is reflective of the Trust's strategic focus on maximizing net profits interest from oil and gas production while adhering to environmental and operational excellence.

Commitment to Sustainable Practices

VOC Energy Trust aims to operate in a manner that is environmentally responsible. As part of its vision, the Trust emphasizes sustainable practices in its operations. This includes:

• Reduction of Environmental Impact: Ensuring that extraction processes minimize ecological disturbances.
• Emphasis on Safety: Implementing stringent safety protocols to protect workers and surrounding communities.
• Investment in Technology: Utilizing advanced technologies to enhance operational efficiency and reduce waste.

Financial Performance Goals

VOC Energy Trust is focused on achieving strong financial performance to provide consistent distributions to its unitholders. Key financial metrics as of September 30, 2024, include:

Unitholder Value Creation

VOC Energy Trust is dedicated to enhancing value for its unitholders through strategic distributions and financial management. The Trust's distribution strategy reflects its commitment to delivering consistent returns. The quarterly distributions in 2024 include:

• First Quarter: $3,230,000 or $0.19 per Trust Unit
• Second Quarter: $3,060,000 or $0.18 per Trust Unit
• Third Quarter: $3,060,000 or $0.18 per Trust Unit

Operational Efficiency and Growth

The vision of VOC Energy Trust includes a focus on operational efficiency to maximize profit margins. Efforts to improve operational metrics are evident in:

• Cost Management: Lease operating expenses were $11,004,093 for the nine months ended September 30, 2024, a slight decrease from the previous year.
• Development Activities: Increased development expenses amounting to $1,504,651 for the nine months ended September 30, 2024, indicating a proactive approach to enhancing production capabilities.

Market Positioning and Competitive Advantage

VOC Energy Trust aims to strengthen its market position through strategic partnerships and operational excellence. The Trust's ability to adapt to market fluctuations and maintain profitability is key to its vision. The Trust's 80% net profits interest allows it to capture significant revenue from oil and gas sales, providing a competitive edge in the market.

Core Values of VOC Energy Trust (VOC)

Integrity

Integrity is a foundational value at VOC Energy Trust (VOC). It represents the commitment to ethical practices, transparency, and accountability in all operations.

In 2024, VOC has demonstrated its integrity through rigorous compliance with regulatory requirements and maintaining transparent communication with unitholders. The Trust's financial reports are audited annually, ensuring accuracy and reliability of the financial data shared with stakeholders.

For instance, the Trust reported a gross revenue of $27,041,669 for the nine months ended September 30, 2024, reflecting a transparent accounting of oil and natural gas sales. This was a decrease of 9.2% from $29,793,178 for the same period in 2023.

Innovation

Innovation is crucial for VOC to adapt to changing market conditions and technological advancements. The Trust actively seeks to improve operational efficiency and reduce costs.

In 2024, VOC has invested in advanced technologies for oil extraction and monitoring. Development expenses increased by 13.4% to $1,504,651 for the nine months ended September 30, 2024, compared to $1,326,443 in 2023, indicating a focus on enhancing operational capabilities.

Safety

Safety is a core value that underscores VOC's commitment to protecting its employees, contractors, and the environment. The Trust implements comprehensive safety protocols across all operations.

In 2024, VOC has maintained a strong safety performance record, with no reported incidents during the reporting period. The focus on safety is reflected in the operational protocols that ensure compliance with industry standards and regulations.

Community Engagement

Community Engagement is vital for VOC, as the Trust aims to positively impact the communities where it operates. VOC actively participates in local initiatives and supports community development programs.

In 2024, VOC has contributed to local educational programs, allocating funds to support STEM education in Texas and Kansas. This commitment is part of a broader initiative to foster community relations and enhance local economic development.

Environmental Stewardship

Environmental Stewardship reflects VOC's dedication to sustainable practices and minimizing environmental impact. The Trust adheres to strict environmental regulations and continuously seeks to improve its ecological footprint.

In 2024, VOC has implemented enhanced environmental monitoring systems, resulting in a 14.9% decrease in production and property taxes, down to $1,557,681 from $1,830,926 in the previous year, largely due to improved operational efficiencies.

Updated on 16 Nov 2024

Resources:

1. VOC Energy Trust (VOC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of VOC Energy Trust (VOC)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View VOC Energy Trust (VOC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.