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03Detailed Report
MVO
Company MVO
Period
Q3 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 15, 2026
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Executive Summary
MV Oil Trust (MVO) delivered a strong Q3 2024 with revenue of $4.95 million and net income of $4.72 million, implying robust profitability supported by high gross margins and favorable operating leverage. The quarter shows substantial YoY and QoQ improvements in key profitability metrics, underscoring the trust’s ability to generate earnings from its net profits interests across MV Partners LLC’s Mid-Continent oil and gas wells.
However, a notable feature of the quarter is the cash flow presentation. Despite a positive net income, cash flow from operating activities registered a negative $0.41 million, driven by significant non-cash adjustments (notably an otherNonCashItems line item of approximately $-5.35 million) that offset reported earnings. As of 9/30/2024, MV Oil Trust held cash and equivalents of about $1.26 million on the balance sheet, with total assets and equity reported at approximately $4.24 million and no long-term debt. The balance sheet paints a picture of a cash-heavy, low-leverage vehicle with a primary focus on continuing distributions from oil and gas properties, rather than aggressive capital expenditure or growth investments.
The market context remains important: oil price volatility and regulatory dynamics will influence distributions and unit holder returns. The current yield proxy and earnings breadth suggest a defensively positioned energy trust able to deliver stable income, but investors should monitor commodity prices, net profit interest accruals, and the timing/amount of cash distributions given the non-cash-heavy cash flow profile.
Key Performance Indicators
Revenue
Increasing
4.95M
QoQ: 23.14% | YoY: 25.64%
Gross Profit
Increasing
4.95M
1.00% margin
QoQ: 26.22% | YoY: 27.52%
Operating Income
Increasing
4.72M
QoQ: 24.24% | YoY: 195.76%
Net Income
Increasing
4.72M
QoQ: 24.24% | YoY: 26.14%
EPS
Increasing
0.41
QoQ: 24.24% | YoY: 24.24%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and profitability trend
- Revenue: $4.949 million for Q3 2024, up 25.64% YoY and 23.14% QoQ. The growth aligns with higher net profits interest accruals and favorable property-level cash flows.
- Gross Profit: $4.949 million, with a reported gross margin of 100% (ratio 1.0000). YoY gross profit growth of 27.52% and QoQ growth of 26.22% reflect improved operating leverage and cost capture on the underlying wells.
- Operating Income: $4.715 million; YoY growth of 195.76% and QoQ growth of 24.24% indicate a strong operating margin, supported by efficient cost management and relatively stable operating expenses.
- Net Income and EPS: Net income of $4.715 million, YoY growth of 26.14% and QoQ growth of 24.24%. EPS reported at $0.41 for the quarter, with YoY and QoQ gains of 24.24%.
- EBITDA/EBITDA Margin: EBITDA of $4.715 million; EBITDA margin around 0.95x of revenue (EBITDARatio ~0.953). This reflects the accounting treatment of non-cash items and the trust’s earnings from net profits interests.
- Cash flow and liquidity: Net cash provided by operating activities negative at $0.405 million; free cash flow negative $0.405 million. The cash burn in operating activities is largely attributable to non-cash adjustments (notably otherNonCashItems: -$5.354 million) that did not impact reported net income but reduced cash flow.
- Balance sheet and capitalization: Cash and cash equivalents about $1.26 million; total assets and total stockholders’ equity about $4.24 million; no debt reported; cash at end of period declined modestly to $4.241 million from $4.646 million prior quarter, a net change of -$0.405 million.
- Valuation and liquidity metrics: Dividend yield around 4.33%; price-to-book around 25.65x; price-to-earnings around 5.77x; price-to-sales around 21.98x. The trust exhibits a cash-rich, debt-free profile with a modest distribution backdrop.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
4.95M
25.64%
23.14%
Gross Profit
4.95M
27.52%
26.22%
Operating Income
4.72M
195.76%
24.24%
Net Income
4.72M
26.14%
24.24%
EPS
0.41
24.24%
24.24%
Key Financial Ratios
Gross Profit Margin
Weak
1.00%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Excellent
95.30%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Excellent
95.30%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Weak
1.11%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
1.11%
Return on equity suggests inefficient capital allocation
P/E Ratio
Value
5.77x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
High Premium
25.65x
Very high premium suggests asset-light business model or lofty expectations
Management Insights Available for Members
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