{"url_path":"/sec/mvo/10-q/2026/item-2","section_key":"item-2","section_title":"Item 2 Trustee’s Discussion and Analysis of Financial Condition","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":1633,"has_tables":true,"body_markdown":"**Item 2. Trustee’s Discussion and Analysis of Financial Condition\nand Results of Operations.**\n\nThe following discussion of the Trust’s financial\ncondition and results of operations should be read in conjunction with the financial statements and notes thereto. The Trust’s purpose\nis, in general, to hold the net profits interest, to distribute to the Trust unitholders cash that the Trust receives in respect of the\nnet profits interest, and to perform certain administrative functions in respect of the net profits interest and the Trust units. The\nTrust derives substantially all of its income and cash flows from the net profits interest. All information regarding operations has been\nprovided to the Trustee by MV Partners.\n\n**Overview and Trust Termination**\n\nThe Trust does not conduct any operations or activities.\nThe net profits interest is passive in nature, and the Trustee has no management control over and no responsibility relating to the operation\nof the underlying properties. The Trust’s purpose is, in general, to hold the net profits interest, to distribute to the Trust unitholders\ncash that the Trust receives in respect of the net profits interest, and to perform certain administrative functions in respect of the\nnet profits interest and the Trust units. The Trust derives substantially all of its income and cash flows from the net profits interest.\nThe net profits interest entitles the Trust to receive 80% of the net proceeds attributable to MV Partners’ interest from the sale\nof production from the underlying properties during the term of the Trust.\n\n*Trust\ntermination.* As of March 31, 2026, cumulatively, since inception, the Trust has received payment for 80% of the net proceeds\nattributable to MV Partners’ interest from the sale of 15.4 million barrels of oil equivalent (“MMBoe”) of production\nfrom the underlying properties (which amount is the equivalent of 12.3 MMBoe with respect to the Trust’s net profits interest).\nConsequently, pursuant to the terms of the conveyance that created the net profits interest,\nthe net profits interest will terminate on June 30, 2026 (the “Termination Date”), because the minimum amount of production\n(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\nor about July 24, 2026 to the Trust unitholders of record on the 15th day following June 30, 2026, and the Trust units are expected\nto be cancelled shortly thereafter. **The Trust will not be entitled to any net proceeds that MV Partners receives after the Termination\nDate from the sale of production from the underlying properties. The Trust will dissolve and commence winding up its business and affairs\nafter the Termination Date and, once the Trust winds up and terminates, it will pay no further distributions.**\n\n**Results of Operations**\n\n*Results of Operations for the Quarters Ended March 31, 2026\nand 2025*\n\nThe cash received by the Trust from MV Partners\nduring the quarter ended March 31, 2026 substantially represents the production by MV Partners from September 2025 through November 2025.\nThe cash received by the Trust from MV Partners during the quarter ended March 31, 2025 substantially represents the production\nby MV Partners from September 2024 through November 2024. The revenues from oil production are typically received by MV Partners\none month after production. The Trust’s income from net profits interest decreased $1,156,305 to $1,836,437 for the quarter ended\nMarch 31, 2026 from $2,992,742 for the quarter ended March 31, 2025. The decrease was primarily due to a $1,445,381 decrease\nin excess of revenues over direct operating expenses and lease equipment and development costs for the underlying properties to $2,295,546\nfrom $3,740,927 for the same period in the prior year. These amounts were reduced by a Trustee holdback for current Trust expenses of\n$226,437 and $232,742 for the quarters ended March 31, 2026 and 2025, respectively. The Trustee paid general and administrative expenses\nof $311,862 and $390,628 for the quarters ended March 31, 2026 and 2025, respectively. During the quarters ended March 31, 2026\nand 2025, MV Partners did not withhold or release any dollar amounts due to the Trust from the previously established reserve for\nfuture capital expenditures. These factors resulted in distributable income for the quarter ended March 31, 2026 of $1,610,000, a\ndecrease of $1,150,000 from $2,760,000 for the quarter ended March 31, 2025.\n\n5\n\nThe average price received for crude oil sold was\n$56.94 per Bbl and the average price received for natural gas sold was $2.03 per Mcf for the period from October 1, 2025 through\nDecember 31, 2025. The average price received for crude oil sold was $66.34 per Bbl and the average price received for natural gas\nsold was $1.78 per Mcf for the period from October 1, 2024 through December 31, 2024.\n\nThe overall production sales volumes attributable\nto the net profits interest for the oil and gas production collected during the period from October 1, 2025 through December 31,\n2025 were 113,579 Bbls of oil, 5,282 Mcf of natural gas and 15 Bbls of natural gas liquids, for a total of 114,470 barrels of oil\nequivalent. The overall production sales volumes attributable to the net profits interest for the oil and gas production collected during\nthe period from October 1, 2024 through December 31, 2024 were 114,328 Bbls of oil, 5,666 Mcf of natural gas and 5 Bbls of natural\ngas liquids, for a total of 115,276 barrels of oil equivalent.\n\n**Liquidity and Capital Resources**\n\nOther than Trust administrative expenses, including\nany reserves established by the Trustee for future liabilities, the Trust’s only use of cash is for distributions to Trust unitholders.\nAdministrative expenses include payments to the Trustee as well as an annual administrative fee to MV Partners pursuant to an administrative\nservices agreement. Each quarter, the Trustee determines the amount of funds available for distribution. Available funds are the excess\ncash, if any, received by the Trust from the net profits interest and payments from other sources (such as interest earned on any amounts\nreserved by the Trustee) in that quarter, over the Trust’s expenses paid for that quarter. Available funds are reduced by any cash\nthe Trustee decides to hold as a reserve against future expenses.\n\nFrom the first quarter of 2022 to the second quarter\nof 2023, the Trustee withheld a portion of the proceeds otherwise available for distribution each quarter and built a $1.265 million cash\nreserve for the payment of future known, anticipated or contingent expenses or liabilities. This amount is in addition to the $1.8 million\nletter of credit described below. The Trustee may increase or decrease the targeted amount at any time and may increase or decrease the\nrate at which it withholds funds to build the cash reserve at any time, without advance notice to the unitholders. Cash held in reserve\nwill be 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. As of March 31, 2026, $1,082,681 was held by the Trustee and is reported as cash and cash\nequivalents.\n\nThe Trustee may cause the Trust to borrow funds\nrequired 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\nexpenses. If the Trust borrows funds, the Trust unitholders will not receive distributions until the borrowed funds are repaid. During\nthe three months ended March 31, 2026 and 2025, there were no such borrowings. MV Partners has provided a letter of credit in the\namount 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.\n\nIncome to the Trust from the net profits interest\nis based on the calculation and definitions of “gross proceeds” and “net proceeds” contained in the conveyance.\n\nSubstantially all of the underlying properties\nare located in mature fields, and MV Partners does not expect future costs for the underlying properties to change significantly as compared\nto recent historical costs other than changes due to fluctuations in the general cost of oilfield services. MV Partners may establish\na capital reserve of up to $1,000,000 in the aggregate at any given time to reduce the impact on distributions of uneven capital expenditure\ntiming. As of March 31, 2026, $1,000,000 was held by MV Partners as a capital reserve.\n\nThe Trust does not have any transactions, arrangements\nor other relationships with unconsolidated entities or persons that could materially affect the Trust’s liquidity or the availability\nof capital resources.\n\n**Note Regarding Forward-Looking Statements**\n\nThis Form 10-Q includes “forward-looking\nstatements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities\nExchange Act of 1934, as amended (the “Exchange Act”). All statements other than statements of historical fact included in\nthis Form 10-Q, including without limitation the statements under “Trustee’s Discussion and Analysis of Financial Condition\nand Results of Operations” are forward-looking statements. Although MV Partners advised the Trust that it believes that the expectations\nreflected in the forward-looking statements contained herein are reasonable, such expectations may not prove to have been correct. Important\nfactors that could cause actual results to differ materially from expectations (“Cautionary Statements”) are disclosed in\nthe Trust’s Annual Report on Form 10-K for the year ended December 31, 2025 (the “Form 10-K”), including\nunder the section “Item 1A. Risk Factors”. All subsequent written and oral forward-looking statements attributable to the\nTrust or persons acting on its behalf are expressly qualified in their entirety by the Cautionary Statements.\n\n6"}