Overview and Trust Termination

The Trust does not conduct any operations or activities. The net profits interest is passive in nature, and the Trustee has no management control over and no responsibility relating to the operation of the underlying properties. The Trust’s purpose is to hold the net profits interest, distribute cash received from the net profits interest to the Trust unitholders, and perform certain administrative functions.

The Trust will wind up its affairs and terminate after the net profits interest termination date, which is set at June 30, 2026.

Results of Operations

Quarters Ended September 30, 2024 and 2023

The Trust’s income from net profits interest before reserve adjustments increased by $1,009,906 to $4,949,064 for the quarter ended September 30, 2024 from $3,939,158 for the quarter ended September 30, 2023. This was primarily due to a $1,262,382 increase in excess of revenues over direct operating expenses and lease equipment and development costs for the underlying properties.

The average price received for crude oil sold was $77.13 per Bbl and the average price received for natural gas sold was $2.07 per Mcf for the period from April 1, 2024 through June 30, 2024. The overall production sales volumes attributable to the net profits interest for the oil and gas production collected during this period were 119,962 Bbls of oil and 5,697 Mcf of natural gas, for a total of 120,912 barrels of oil equivalent.

Nine Months Ended September 30, 2024 and 2023

The Trust’s income from net profits interest increased by $1,012,524 to $14,527,482 for the nine months ended September 30, 2024 from $13,514,958 for the nine months ended September 30, 2023. This was primarily due to a $1,265,654 increase in excess of revenues over direct operating expenses and lease equipment and development costs for the underlying properties.

The average price received for crude oil sold was $75.90 per Bbl and the average price received for natural gas sold was $2.31 per Mcf for the period from October 1, 2023 through June 30, 2024. The overall production sales volumes attributable to the net profits interest for the oil and gas production collected during this period were 358,874 Bbls of oil, 17,212 Mcf of natural gas and 11 Bbls of natural gas liquids, for a total of 361,750 barrels of oil equivalent.

Liquidity and Capital Resources

The Trust’s only use of cash is for distributions to Trust unitholders and administrative expenses. The Trustee may hold a portion of the proceeds as a cash reserve for future known, anticipated or contingent expenses or liabilities. As of September 30, 2024, $1,257,594 was held by the Trustee as cash and cash equivalents.

The Trustee may cause the Trust to borrow funds required to pay expenses if the Trustee determines that the cash on hand and the cash to be received are insufficient to cover the Trust’s expenses. 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.

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, 2024, $1.0 million was held by MV Partners as a capital reserve.

Note Regarding Forward-Looking Statements

This report includes “forward-looking statements” that are subject to various risks and uncertainties. Actual results may differ materially from expectations due to factors disclosed in the Trust’s previous filings, including under the “Risk Factors” sections.