{"url_path":"/sec/mvo/10-q/2026/item-1","section_key":"item-1","section_title":"Item 1 Financial Statements.**","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-13","source_url":"https://www.sec.gov/Archives/edgar/data/1371782/0001104659-26-060259-index.html","accession_number":"0001104659-26-060259","cik":"0001371782","ticker":"MVO","issuer_name":"MV Oil Trust","edgar_url":"https://www.sec.gov/Archives/edgar/data/1371782/0001104659-26-060259-index.html","primary_entity_key":"0001371782","primary_entity_name":"MV Oil Trust"},"word_count":2475,"has_tables":true,"body_markdown":"**Item 1. Financial Statements.**\n\n**MV OIL TRUST**\n\n**STATEMENTS OF DISTRIBUTABLE INCOME**\n\n**(Unaudited)**\n\nThree months ended\nMarch 31,\n\n2026\n2025\n\nIncome from net profits interest\n$1,836,437\n$2,992,742\n\nCash on hand used for Trust expenses\n85,425\n157,886\n\nGeneral and administrative expenses (1)\n(311,862)\n(390,628)\n\nDistributable income\n$1,610,000\n$2,760,000\n\nDistributions per Trust unit (11,500,000 Trust units issued and outstanding at March 31, 2026 and 2025)\n$0.140\n$0.240\n\n(1)Includes $32,866 and $31,603 paid to MV Partners, LLC during the three months ended March 31, 2026 and 2025, respectively, and\n$37,500 paid to The Bank of New York Mellon Trust Company, N.A. during each of the three-month periods ended March 31, 2026 and 2025.\n\n**STATEMENTS OF ASSETS AND TRUST CORPUS**\n\nMarch 31,\n2026\nDecember 31,\n2025\n\n(Unaudited)\n\nASSETS\n\nCash and cash equivalents\n$1,082,681\n$1,168,106\n\nInvestment in net profits interest\n50,383,675\n50,383,675\n\nAccumulated amortization\n(49,633,967)\n(49,290,940)\n\nTotal assets\n$1,832,389\n$2,260,841\n\nTRUST CORPUS\n\nTrust corpus, 11,500,000 Trust units issued and outstanding at March 31, 2026 and December 31, 2025\n$1,832,389\n$2,260,841\n\n**STATEMENTS OF CHANGES IN TRUST CORPUS**\n\n**(Unaudited)**\n\nThree months ended\nMarch 31,\n\n2026\n2025\n\nTrust corpus, beginning of period\n$2,260,841\n$3,865,849\n\nIncome from net profits interest\n1,836,437\n2,992,742\n\nCash distributions\n(1,610,000)\n(2,760,000)\n\nTrust expenses\n(311,862)\n(390,628)\n\nAmortization of net profits interest\n(343,027)\n(385,735)\n\nTrust corpus, end of period\n$1,832,389\n$3,322,228\n\nThe accompanying notes are an integral part of\nthese financial statements.\n\n1\n\n**MV OIL TRUST**\n\n**NOTES TO FINANCIAL STATEMENTS**\n\n**(Unaudited)**\n\n**Note 1—Organization of the Trust**\n\nMV Oil Trust (the “Trust”) is a statutory\ntrust formed on August 3, 2006, under the Delaware Statutory Trust Act pursuant to a Trust Agreement (the “Trust Agreement”)\namong MV Partners, LLC, a Kansas limited liability company (“MV Partners”), as trustor, The Bank of New York Mellon Trust\nCompany, N.A., as Trustee (the “Trustee”), and Wilmington Trust Company, as Delaware Trustee (the “Delaware Trustee”).\n\nThe Trust was created to acquire and hold a term\nnet profits interest for the benefit of the Trust unitholders pursuant to a conveyance from MV Partners to the Trust. The term net profits\ninterest represents the right to receive 80% of the net proceeds (calculated as described below in Note 5) from production from the underlying\nproperties (as defined below) (the “net profits interest”). The net profits interest consists of MV Partners’ net interests\nin all of its oil and natural gas properties located in the Mid-Continent region in the states of Kansas and Colorado (the “underlying\nproperties”). The underlying properties include approximately 830 producing oil and gas wells.\n\nThe net profits interest is passive in nature,\nand the Trustee has no management control over and no responsibility relating to the operation of the underlying properties. The net profits\ninterest entitles the Trust to receive 80% of the net proceeds attributable to MV Partners’ interest from the sale of production\nfrom the underlying properties during the term of the Trust.\n\nAs of March 31, 2026, cumulatively, since\ninception, the Trust has received payment for 80% of the net proceeds attributable to MV Partners’ interest from the sale of 15.4\nmillion barrels of oil equivalent (“MMBoe”) of production from the underlying properties (which amount is the equivalent of\n12.3 MMBoe with respect to the Trust’s net profits interest). Consequently, pursuant to the conveyance that created the net profits\ninterest, the net profits interest will terminate on June 30, 2026 (the “Termination Date”), because the minimum amount\nof production (14.4 MMBoe) applicable to the net profits interest has been produced and sold (which amount is the equivalent of 11.5 MMBoe\nwith respect to the Trust’s net profits interest). The Trustee will make a final quarterly cash distribution, if any, on or about\nJuly 24, 2026 to the Trust unitholders of record on the 15th day following June 30, 2026, and the Trust units are expected to be\ncancelled shortly thereafter. **The Trust will not be entitled to any net proceeds that MV Partners receives after the Termination Date\nfrom the sale of production from the underlying properties. The Trust will dissolve and commence winding up its business and affairs after\nthe Termination Date and, once the Trust winds up and terminates, it will pay no further distributions.**\n\nThe Trustee can authorize the Trust to borrow\nmoney to pay administrative or incidental expenses of the Trust that exceed cash held by the Trust. The Trustee may authorize the Trust\nto borrow from the Trustee or the Delaware Trustee as a lender provided the terms of the loan are similar to the terms it would grant\nto a similarly situated commercial customer with whom it did not have a fiduciary relationship. The Trustee may also deposit funds awaiting\ndistribution in an account with itself and make other short-term investments with the funds distributed to the Trust.\n\n**Note 2—Basis of Presentation**\n\nThe accompanying Statement of Assets and Trust\nCorpus as of December 31, 2025, which has been derived from audited financial statements, and the unaudited interim financial statements\nas of March 31, 2026 and for the three months ended March 31, 2026 and March 31, 2025, have been prepared pursuant to the\nrules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, certain information and note\ndisclosures normally included in annual financial statements have been condensed or omitted pursuant to those rules and regulations.\n\nThe preparation of financial statements requires\nthe Trust to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets\nand liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.\nActual results could differ from those estimates. The Trustee believes such information includes all the disclosures necessary to make\nthe information presented not misleading. The information furnished reflects all adjustments that are, in the opinion of the Trustee,\nnecessary for a fair presentation of the results of the interim period presented. The financial information should be read in conjunction\nwith the financial statements and notes thereto included in the Trust’s Annual Report on Form 10-K for the year ended December 31,\n2025.\n\n2\n\n**Note 3—Trust Accounting Policies**\n\nThe Trust uses the modified cash basis of accounting\nto report receipts of the net profits interest and payments of expenses incurred. The net profits interest represents the right to receive\nrevenues (oil, gas and natural gas liquid sales) less direct operating expenses (lease operating expenses, lease maintenance, lease overhead,\nand production and property taxes) and an adjustment for lease equipment costs and lease development expenses (which are capitalized in\nfinancial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.\nGAAP”)) of the underlying properties times 80%. Actual cash receipts may vary due to timing delays of actual cash receipts from\nthe property operators or purchasers and due to wellhead and pipeline volume balancing agreements or practices. The actual cash distributions\nof the Trust will be made based on the terms of the conveyance that created the Trust’s net profits interest. Expenses of the Trust,\nwhich include accounting, engineering, legal and other professional fees, Trustee fees, an administrative fee paid to MV Partners and\nout-of-pocket expenses, are recognized when paid. Under U.S. GAAP, revenues and expenses would be recognized on an accrual basis. Amortization\nof the investment in net profits interest is recorded on a unit-of-production method in the period in which the cash is received with\nrespect to such production. Such amortization does not reduce distributable income, rather it is charged directly to Trust corpus.\n\nThis comprehensive basis of accounting other than\nU.S. GAAP corresponds to the accounting permitted for royalty trusts by the SEC as specified by Staff Accounting Bulletin Topic 12:E,\nFinancial Statements of Royalty Trusts.\n\nInvestment in the net profits interest was recorded\ninitially at the historical cost of MV Partners and is periodically assessed to determine whether its aggregate value has been impaired\nbelow its total capitalized cost based on the underlying properties. The Trust will provide a write-down to its investment in the net\nprofits interest if and when total capitalized costs, less accumulated amortization, exceed undiscounted future net revenues attributable\nto the proved oil and gas reserves of the underlying properties.\n\nThe Trust has one business activity as the owner\nof an investment in net profits interest, as reported in the accompanying Statements of Assets and Trust Corpus, and operates in a single\noperating and reportable segment. Operating segments are defined as components of an entity for which separate financial information is\nevaluated regularly by the chief operating decision maker (the “CODM”), which is the Trustee. The segment participates in\nactivities and derives its income from net profits interest as reported in the accompanying Statements of Distributable Income, and the\nCODM uses this in making decisions about the allocation of cash reserves for current and future Trust general and administrative expenses\nand the ultimate distribution to the Trust unitholders.\n\nNo new accounting pronouncements were adopted or\nissued during the quarter ended March 31, 2026 that would impact the financial statements of the Trust.\n\n**Note 4—Investment in Net Profits Interest**\n\nThe net profits interest was recorded at the historical\ncost of MV Partners on January 24, 2007, the date of conveyance of the net profits interest to the Trust, and was calculated as follows:\n\nOil and gas properties\n$96,210,819\n\nAccumulated depreciation and depletion\n(40,468,762)\n\nHedge asset\n7,237,537\n\nNet property value to be conveyed\n62,979,594\n\nTimes 80% net profits interest to Trust\n$50,383,675\n\n3\n\n**Note 5—Income from Net Profits Interest**\n\nThree months ended\nMarch 31,\n\n2026\n2025\n\nExcess of revenues over direct operating expenses and lease equipment and development costs (1)\n$2,295,546\n$3,740,927\n\nTimes net profits interest over the term of the Trust\n80%\n80%\n\nIncome from net profits interest before reserve adjustments\n1,836,437\n2,992,742\n\nMV Partners reserve for future capital expenditures (2)\n–\n–\n\nIncome from net profits interest (3)\n$1,836,437\n$2,992,742\n\n(1)Excess of revenues over direct operating expenses and lease equipment and development costs reflect expenses and costs incurred by\nMV Partners during the September through November production period. Pursuant to the terms of the conveyance of the net profits\ninterest, lease equipment and development costs are to be deducted when calculating the distributable income to the Trust.\n\n(2)Pursuant to the terms of the conveyance of the net profits interest, MV Partners can reserve up to $1,000,000 for future capital expenditures\nat any time. During the three months ended March 31, 2026 and 2025, MV Partners did not withhold or release any dollar amounts\ndue to the Trust. The reserve balance was $1,000,000 at March 31, 2026 and 2025.\n\n(3)The income from net profits interest is based upon the cash receipts from MV Partners for the oil and gas production. The revenues\nfrom oil production are typically received by MV Partners one month after production; thus, the cash received by the Trust during the\nthree months ended March 31, 2026 substantially represents the production by MV Partners from September 2025 through November 2025,\nand the cash received by the Trust during the three months ended March 31, 2025 substantially represents the production by MV Partners\nfrom September 2024 through November 2024.\n\nFor the three months ended March 31, 2026\nand 2025, MV Purchasing, LLC, which is majority-owned by the indirect equity owners of MV Partners, purchased a majority of the production\nfrom the underlying properties. Sales to MV Purchasing, LLC are under short-term arrangements, ranging from one to six months, using\nmarket-sensitive pricing.\n\n**Note 6—Income Taxes**\n\nThe Trust is a Delaware statutory trust and is\nnot required to pay federal or state income taxes. Accordingly, no provision for federal or state income taxes has been made.\n\n**Note 7—Distributions to Unitholders**\n\nMV Partners makes quarterly payments of the net\nprofits interest to the Trust. The Trustee determines for each quarter the amount available for distribution to the Trust unitholders.\nThis distribution is expected to be made on or before the 25th day of the month following the end of each quarter to the Trust unitholders\nof record on the 15th day of the month following the end of each quarter (or the next succeeding business day). Such amounts will be equal\nto the excess, if any, of the cash received by the Trust relating to the preceding quarter, over the expenses of the Trust paid during\nsuch quarter, subject to adjustments for changes made by the Trustee during such quarter in any cash reserves established for future expenses\nof the Trust. From the first quarter of 2022 to the second quarter of 2023, the Trustee withheld a portion of the proceeds otherwise available\nfor distribution each quarter and built a $1.265 million cash reserve for the payment of future known, anticipated or contingent expenses\nor liabilities of the Trust. The Trustee may increase or decrease the targeted amount at any time and may increase or decrease the rate\nat which it withholds funds to build the cash reserve at any time, without advance notice to the unitholders. Cash held in reserve will\nbe invested as required by the Trust Agreement. Any cash reserved in excess of the amount necessary to pay or provide for the payment\nof future known, anticipated or contingent expenses or liabilities will be included in the final quarterly cash distribution to unitholders,\ntogether with interest earned on the funds. This cash reserve is included in cash and cash equivalents on the accompanying Statements\nof Assets and Trust Corpus.\n\nThe first quarterly distribution during 2026 was\n$1,610,000, or $0.140 per Trust unit, and was made on January 23, 2026 to Trust unitholders owning Trust units as of January 16,\n2026. Such distribution included the net proceeds attributable to the sale of production received by MV Partners from October 1,\n2025 through December 31, 2025.\n\nThe first quarterly distribution during 2025 was\n$2,760,000, or $0.240 per Trust unit, and was made on January 24, 2025 to Trust unitholders owning Trust units as of January 16,\n2025. Such distribution included the net proceeds attributable to the sale of production received by MV Partners from October 1,\n2024 through December 31, 2024.\n\n**Note 8—Advance for Trust Expenses**\n\nUnder the terms of the Trust Agreement, the Trustee\nis allowed to borrow money to pay Trust expenses. During the three months ended March 31, 2026 and 2025, there were no borrowings\nor amounts owed for money borrowed in previous quarters. MV Partners has provided a letter of credit in the amount of $1.8 million to\nthe Trustee to protect the Trust against the risk that it does not have sufficient cash to pay future expenses.\n\n4\n\n**Note 9—Subsequent Events**\n\nThe second quarterly distribution during 2026 was\n$1,955,000, or $0.170 per Trust unit, and was made on April 24, 2026 to Trust unitholders owning Trust units as of April 15,\n2026. Such distribution included the net proceeds attributable to the sale of production received by MV Partners from January 1,\n2026 through March 31, 2026."}