VOC Energy Trust Faces Reduced Profits and Distributions Due to Winter Storms
Houston-based VOC Energy Trust warns of lower profits and reduced distributions in Q1 2024 as a result of severe winter storms in Kansas and Texas. The storms caused a loss of electrical power and hindered worker access, leading to a deferred oil pro...
Troy D. Hanson
January 19, 2024
Houston-based VOC Energy Trust announced a decrease in its distribution of profits to unitholders and warned of lower payouts in the first quarter of 2024. This unfortunate development is a consequence of severe winter storms in Kansas and Texas, which severely impacted oil production at the trust's properties.
For the quarter ended December 31, unitholders of VOC Energy Trust will receive a reduced distribution of $3.2 million, equivalent to 19 cents per unit. In comparison, during the same period a year ago, the trust distributed $3.9 million, or 23 cents per unit.
The storms resulted in the loss of electrical power to oil-producing properties and hindered access for workers at several locations. Consequently, VOC Brazos Energy Partners, responsible for managing the properties, estimated a deferred oil production of 12,500 to 15,000 net barrels due to the storms.
Fortunately, VOC Brazos anticipates that the majority of curtailed production will be restored by the end of January 2024. Moreover, the storm's effects on production from the underlying properties should be significantly minimized by the end of the quarterly payment period ending June 30, as stated by VOC Energy Trust.
In terms of sales performance in the fourth quarter, VOC recorded 116,405 barrels of oil and 67.9 million cubic feet of natural gas sold.