UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): July 20, 2020

 

VOC Energy Trust

(Exact name of registrant as specified in its charter)

 

Delaware 001-35160 80-6183103
(State or other jurisdiction of
incorporation)
(Commission File Number) (IRS Employer Identification No.)

 

The Bank of New York Mellon Trust Company, N.A., Trustee

Global Corporate Trust

601 Travis Street, Floor 16

Houston, Texas

77002
(Address of principal executive offices) (Zip Code)

 

Registrant’s telephone number, including area code: 1-512-236-6599

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class Trading Symbol(s) Name of each exchange on which registered
Units of Beneficial Interest VOC The New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

 

 

 

Item 2.02Results of Operations and Financial Condition.

 

On July 20, 2020, VOC Energy Trust issued a press release announcing that there will be no Trust quarterly distribution for the payment period ended June 30, 2020. A copy of the press release is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.

 

Pursuant to General Instruction B.2 of Form 8-K, the press release attached as Exhibit 99.1 is not “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is not subject to the liabilities of that section and is not deemed incorporated by reference in any filing by VOC Energy Trust under the Exchange Act or the Securities Act of 1933, as amended, but is instead “furnished” for purposes of that instruction.

 

Item 9.01Financial Statements and Exhibits.

 

(d)   Exhibits.

 

Exhibit No. Description
   
99.1 VOC Energy Trust Press Release issued July 20, 2020.

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  VOC Energy Trust
   
  By: The Bank of New York Mellon Trust Company, N.A.,
as Trustee

 

Date: July 20, 2020  By: /s/ Michael J. Ulrich
     Michael J. Ulrich
     Vice President

 

 

Exhibit 99.1

 

VOC Energy Trust

 

VOC Energy Trust Announces There Will Be No Trust Second Quarter Distribution

 

VOC ENERGY TRUST

The Bank of New York Mellon Trust Company, N.A., Trustee

NEWS RELEASE

 

FOR IMMEDIATE RELEASE

 

Houston, Texas, July 20, 2020 — VOC Energy Trust (NYSE Symbol — VOC) announced that there will be no Trust distribution of net profits for the second quarterly payment period ended June 30, 2020. The revenue received from the underlying properties was not sufficient to cover the costs attributable to the underlying properties during the period. The following table shows the underlying data for the Net Profits Interest for the quarter.

 

Volumes, average sales prices and net profits for the payment period were:

 

Sales volumes:     
Oil (Bbl)   122,672 
Natural gas (Mcf)   100,804 
Total (BOE)   139,473 
Average sales prices:     
Oil (per Bbl)  $22.53 
Natural gas (per Mcf)  $1.24 
Gross proceeds:     
Oil sales  $2,764,248 
Natural gas sales   125,344 
Total gross proceeds  $2,889,592 
Costs:     
Lease operating expenses  $2,251,208 
Production and property taxes   262,775 
Development expenses   384,415 
Total costs  $2,898,398 
Net costs  $(8,806)
Percentage applicable to Trust’s Net Profits Interest   80%
Net profits interest  $(7,045)
Decrease in cash reserve held by VOC Brazos Energy Partners, L.P.   7,045 
Total cash proceeds available for the Trust  $0 
Provision for estimated Trust expenses   0 
Net cash proceeds available for distribution  $0 

 

As previously reported, there has been a recent substantial decrease in oil prices due in part to significantly decreased demand as a result of the COVID-19 pandemic and an oversupply of crude oil. Oil prices could remain low for an extended period of time, which in turn could have a material adverse effect on Trust distributions. Low oil prices and other factors have reduced net proceeds to which the Trust is entitled, and there are not sufficient net proceeds for VOC Energy Trust to make a payment for the scheduled quarterly distribution in August 2020. VOC Brazos Energy Partners L.P. has applied funds from the reserve for future expenditures to cover the Trust deficit. The Trust will not receive future distributions until future gross proceeds exceed quarterly costs and the reserve account is replenished. The Trustee will use cash reserves from the provision for estimated Trust expenses provided in the first quarter distribution to pay current Trust administrative expenses. If commodity prices for crude oil remain at reduced levels, subsequent distributions in 2020 will be substantially lower than historical distributions, and in certain periods there may be no distribution to unitholders.

 

 

 

This press release contains forward-looking statements. Although VOC Brazos Energy Partners, L.P. has advised the Trust that VOC Brazos Energy Partners, L.P. believes that the expectations contained in this press release are reasonable, no assurances can be given that such expectations will prove to be correct. The announced distributable amount is based on the amount of cash received or expected to be received by the Trustee from the underlying properties on or prior to the record date with respect to the quarter ended June 30, 2020. Any differences in actual cash receipts by the Trust could affect this distributable amount. Other important factors that could cause these statements to differ materially include the actual results of drilling operations, risks inherent in drilling and production of oil and gas properties, the ability of commodity purchasers to make payment, the effect, impact, potential duration or other implications of the COVID-19 pandemic, the dispute over production levels between Russia and the members of the Organization of Petroleum Exporting Countries, including Saudi Arabia, and other risk factors described in the Trust’s Annual Report on Form 10-K for the year ended December 31, 2019 and Quarterly Report on Form 10-Q for the period ended March 31, 2020 filed with the Securities and Exchange Commission. Statements made in this press release are qualified by the cautionary statements made in these risk factors. The Trust does not intend, and assumes no obligations, to update any of the statements included in this press release.

 

Contact:  VOC Energy Trust
   The Bank of New York Mellon Trust Company, N.A., as Trustee
   Mike Ulrich
   (512) 236-6599
   601 Travis Street, Floor 16, Houston, TX 77002

 

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