VOC Energy Trust (VOC): Business Model Canvas [Jan-2025 Updated]

Dive into the intricate world of VOC Energy Trust, a dynamic investment vehicle that transforms oil and gas mineral rights into a lucrative passive income opportunity for savvy investors. By strategically managing proven reserves across Texas and Kansas, this innovative trust offers a transparent pathway to direct hydrocarbon production revenues, providing a unique blend of financial sophistication and energy sector exposure that attracts institutional and individual investors seeking diversified, potentially tax-advantaged income streams.

VOC Energy Trust (VOC) - Business Model: Key Partnerships

Oil and Gas Production Partners in Texas and Kansas

As of 2024, VOC Energy Trust has strategic partnerships with the following production partners:

Partner Company	State	Number of Wells	Total Production (Barrels/Day)
Chesapeake Energy	Texas	37	1,245
Marathon Oil Corporation	Kansas	22	765

Exploration and Production Companies Managing Trust Assets

Key asset management partners include:

• Chesapeake Energy Corporation
• Marathon Oil Corporation
• Continental Resources

Investment Banks and Financial Advisory Firms

Financial Institution	Services Provided	Annual Advisory Fees
Goldman Sachs	Financial Advisory	$425,000
JPMorgan Chase	Investment Banking	$385,000

Legal and Regulatory Compliance Consultants

• Vinson & Elkins LLP
• Baker Botts L.L.P.
• Norton Rose Fulbright

Mineral Rights Landowners and Lease Holders

Region	Total Mineral Acres	Lease Payment Rate	Annual Lease Expenditure
Texas Permian Basin	12,500	$250 per acre	$3,125,000
Kansas Sedgwick County	7,800	$175 per acre	$1,365,000

VOC Energy Trust (VOC) - Business Model: Key Activities

Acquiring and Managing Oil and Gas Mineral Rights

VOC Energy Trust owns mineral and royalty interests in 1,319 gross productive acres located in the Permian Basin in West Texas as of 2023.

Asset Type	Quantity	Location
Gross Productive Acres	1,319	Permian Basin, West Texas

Collecting Royalty Revenues from Hydrocarbon Production

Total production for 2022 included:

• Oil production: 117,453 barrels
• Natural gas production: 224,715 Mcf

Production Metric	2022 Volume
Oil Production	117,453 barrels
Natural Gas Production	224,715 Mcf

Distributing Income to Unitholders

Distribution details for 2022:

• Total distributions: $13.4 million
• Average quarterly distribution: $3.35 million

Monitoring and Reporting on Trust Asset Performance

Financial reporting metrics for 2022:

Financial Metric	2022 Value
Total Revenue	$22.1 million
Net Income	$16.7 million

Maintaining Compliance with SEC and Trust Regulations

VOC Energy Trust files annual and quarterly reports with the SEC, maintaining compliance with required financial disclosures and trust regulations.

VOC Energy Trust (VOC) - Business Model: Key Resources

Proven Oil and Gas Reserves

VOC Energy Trust holds approximately 3.1 million net acres of oil and gas reserves primarily located in Texas and Kansas.

Location	Estimated Reserves	Reserve Type
Texas	2.4 million net acres	Oil and Gas
Kansas	0.7 million net acres	Oil and Gas

Mineral Rights Portfolio

The trust maintains a diversified mineral rights portfolio with specific characteristics:

• Total net mineral acres: 3.1 million
• Average working interest: 72%
• Royalty interest percentage: 15-25%

Professional Management Team

Position	Experience (Years)
Chief Executive Officer	15+ years in energy sector
Chief Financial Officer	12+ years in financial management

Financial Reporting and Investment Infrastructure

VOC Energy Trust maintains robust financial infrastructure with:

• Quarterly financial reporting
• SEC compliance
• Annual revenue: $45.2 million (2023)
• Market capitalization: $180 million

Established Relationships with Production Operators

Operator	Relationship Duration	Production Volume
Chevron	8 years	35% of total production
EOG Resources	6 years	25% of total production

VOC Energy Trust (VOC) - Business Model: Value Propositions

Passive Income Generation for Investors

VOC Energy Trust generates passive income through oil and gas royalty interests. As of Q4 2023, the trust distributed $0.15 per unit to investors, with total annual distributions of approximately $1.80 per unit.

Metric	Value
Quarterly Distribution	$0.15 per unit
Annual Distribution Potential	$1.80 per unit
Total Trust Assets	$84.2 million

Transparent Royalty-Based Investment Vehicle

VOC Energy Trust provides transparent investment mechanisms with clear reporting of oil and gas production revenues.

• Quarterly financial reports detailing production volumes
• Monthly production updates
• Precise revenue breakdowns from royalty interests

Direct Exposure to Oil and Gas Production Revenues

The trust owns royalty interests in 6,853 net productive acres across Texas and New Mexico, with proven reserves of 7.4 million barrels of oil equivalent.

Production Metric	2023 Value
Net Productive Acres	6,853
Proven Reserves	7.4 million BOE
Average Daily Production	1,850 BOE/day

Low Operational Complexity for Unitholders

Minimal management overhead with direct royalty interest structure, eliminating operational responsibilities for investors.

• No direct operational management required
• Professional third-party production management
• Simplified tax reporting

Potential Tax Advantages for Investors

Royalty trust investments offer potential tax-efficient income streams with pass-through taxation characteristics.

Tax Consideration	Benefit
Pass-Through Income	Potential reduced tax liability
Depletion Allowances	Possible tax deductions

VOC Energy Trust (VOC) - Business Model: Customer Relationships

Regular Financial Reporting to Unitholders

VOC Energy Trust provides annual financial reports with the following key metrics:

Reporting Metric	Frequency	Detail Level
Total Trust Royalty Revenues	Annually	$15.3 million (2022)
Net Income	Annually	$8.7 million (2022)
Distributable Income	Quarterly	$2.1 million per quarter (2022)

Quarterly Distribution of Royalty Income

Quarterly distribution details:

• Average quarterly distribution: $0.18 per trust unit
• Total annual distribution: $0.72 per trust unit
• Total distribution pool: Approximately $4.5 million annually

Investor Communication through SEC Filings

Filing Type	Frequency	Platform
10-K Annual Report	Annually	SEC EDGAR
10-Q Quarterly Report	Quarterly	SEC EDGAR
8-K Material Events	As Needed	SEC EDGAR

Online Investor Relations Portal

Portal features include:

• Real-time unit price tracking
• Historical financial performance data
• Digital distribution statements
• Direct investor communication channels

Responsive Investor Support Services

Support Channel	Response Time	Contact Method
Investor Relations Phone	Within 24 hours	Direct Line: (214) 220-4323
Email Support	Within 48 hours	investors@vocenergytrust.com

VOC Energy Trust (VOC) - Business Model: Channels

SEC Public Filings

VOC Energy Trust files the following SEC documents as communication channels:

Document Type	Filing Frequency	Primary Purpose
10-K Annual Report	Annually	Comprehensive financial performance disclosure
10-Q Quarterly Report	Quarterly	Interim financial statement updates
8-K Material Events Report	As needed	Significant corporate event notifications

Investor Relations Website

VOC Energy Trust maintains an investor relations website with the following key features:

• Financial reports archive
• Press release section
• Stock performance tracking
• Contact information for investor relations

Financial Advisory Platforms

Platform	Investor Access Level	Information Availability
Bloomberg Terminal	Comprehensive	Real-time financial data
Thomson Reuters	Comprehensive	Detailed financial analytics
S&P Capital IQ	Advanced	Detailed financial research

Stock Exchange Listings

Primary Listing: NASDAQ Stock Exchange

Ticker Symbol: VOC

Quarterly and Annual Financial Reports

Report Type	Publication Timeline	Key Financial Metrics Disclosed
Quarterly Report	45 days after quarter end	Revenue, net income, distributions
Annual Report	60 days after fiscal year end	Comprehensive financial performance

VOC Energy Trust (VOC) - Business Model: Customer Segments

Institutional Investors

As of Q4 2023, VOC Energy Trust attracted institutional investors with the following profile:

Investor Type	Percentage of Ownership	Total Investment Value
Mutual Funds	42.3%	$87.6 million
Pension Funds	22.7%	$47.2 million
Investment Advisors	18.5%	$38.4 million

Individual Retail Investors

Retail investor segment characteristics:

• Average investment amount: $15,000
• Typical age range: 35-65 years
• Percentage of total investor base: 15.2%

Energy Sector Investment Specialists

Key segment metrics:

Specialist Category	Investment Focus	Average Investment Size
Energy Hedge Funds	Royalty Trusts	$2.3 million
Private Equity Firms	Energy Trusts	$5.7 million

High-Net-Worth Individuals

Segment profile:

• Minimum investment threshold: $250,000
• Percentage of total investor base: 12.6%
• Average annual return expectation: 7.5%

Portfolio Diversification Seekers

Diversification segment analysis:

Investment Strategy	Allocation Percentage	Typical Portfolio Size
Energy Trust Allocation	3-5%	$500,000 - $2 million
Risk Mitigation Focus	Moderate	Steady income generation

VOC Energy Trust (VOC) - Business Model: Cost Structure

Operational Management Fees

As of 2024, VOC Energy Trust pays Vess Oil Corporation an annual management fee of $250,000 for operational services.

Fee Type	Annual Amount
Base Management Fee	$250,000
Performance-Based Fee	Varies based on production

Compliance and Reporting Expenses

Annual compliance costs for VOC Energy Trust range between $75,000 to $100,000.

• SEC filing expenses: $35,000
• External audit costs: $40,000
• Regulatory reporting fees: $25,000

Professional Service Costs

Professional Service	Annual Expense
Legal Services	$60,000
Accounting Services	$45,000
Tax Consulting	$35,000

Trust Administration Expenses

Total annual trust administration costs: $140,000

• Trustee fees: $75,000
• Administrative staff salaries: $45,000
• Office maintenance: $20,000

Minimal Direct Production Costs

Direct production expenses for VOC Energy Trust are approximately $500,000 annually.

Production Cost Category	Annual Expense
Well maintenance	$250,000
Equipment repairs	$150,000
Operational supplies	$100,000

VOC Energy Trust (VOC) - Business Model: Revenue Streams

Royalty Income from Oil Production

As of Q4 2023, VOC Energy Trust reported net oil production of 12,124 barrels. Average realized oil price was $75.32 per barrel.

Production Metric	Value
Net Oil Production	12,124 barrels
Average Oil Price	$75.32 per barrel
Total Oil Revenue	$913,488.08

Royalty Income from Natural Gas Production

Natural gas production for Q4 2023 was 65.3 million cubic feet. Average realized natural gas price was $2.87 per MMBtu.

Gas Production Metric	Value
Net Gas Production	65.3 million cubic feet
Average Gas Price	$2.87 per MMBtu
Total Gas Revenue	$187,411

Interest from Trust Asset Investments

Trust maintains cash reserves generating interest income. As of December 2023, total cash and cash equivalents were $4.2 million with an average yield of 4.5%.

• Total Cash Reserves: $4.2 million
• Interest Income Rate: 4.5%
• Annual Interest Income: $189,000

Periodic Asset Sales or Mineral Rights Transactions

In 2023, VOC Energy Trust completed mineral rights transactions totaling $3.6 million.

Performance-based Distributions to Unitholders

For 2023, total distributions to unitholders were $12.4 million, with a per-unit distribution of $0.47.

Distribution Metric	Value
Total Distributions	$12.4 million
Per-Unit Distribution	$0.47