• Like a Real Estate Investment Trust (REIT), but collecting royalties from specific oil wells instead of rent from buildings.
• Think of it as the passive royalty collection arm of an oil company like ExxonMobil, without any of the active drilling, exploration, or refining.

• Cash Distributions from Oil and Gas Production: MV Oil Trust collects net profits from oil and natural gas production in specific properties and distributes this income periodically to its unitholders.

MV Oil Trust (MVO) is a royalty trust that holds a net profits interest in certain oil and gas producing properties located in Kansas. It does not directly operate these properties, nor does it sell crude oil or natural gas to end customers (like refineries or individuals).

Instead, the trust's revenue is derived from distributions of net profits paid by the operating company responsible for the properties. Therefore, the "major customer" or, more precisely, the primary entity from which MV Oil Trust derives its income is the operator of these properties.

The major company responsible for the operation of the properties and payments to MV Oil Trust is:

• MV Partners, LLC

MV Partners, LLC is a private company and does not have a public stock symbol.

• MV Partners, LLC

Cécile Nagel, Global Head of Corporate Trust

Cécile Nagel was appointed Global Head of Corporate Trust at BNY Mellon, effective October 1, 2023. Prior to this role, she served as the head of BNY Mellon's Pershing EMEA business. Before joining BNY Mellon in 2022, Nagel was the CEO of EuroCCP, a European cash equities central counterparty, and held several senior leadership positions at the London Stock Exchange Group (LSEG).

Brian Ruane, Senior Executive Vice President and Global Head of Clearance and Collateral Management, Corporate Trust, and Credit Services

Brian Ruane is a Senior Executive Vice President and Global Head overseeing BNY Mellon's Clearance and Collateral Management, Corporate Trust, and Credit Services, and is a member of BNY Mellon's Executive Committee. He is also the CEO of BNY Government Securities Services Corp. In his earlier career at BNY Mellon, Ruane focused on supporting financial institutions and broker-dealers, later expanding to client segments including endowments, foundations, mutual funds, and insurance companies. He previously served as CEO of BNY Mellon's Alternative Investment Services (AIS) business, where he helped position the company as a partner to hedge funds, funds of hedge funds, and private equity clients. Ruane was a key participant in the Federal Reserve Bank of New York's Triparty Repo Infrastructure Reform Task Force.

Dennis Wallestad, Head of BNY Mellon's Pershing EMEA Business (formerly CFO and Head of Transformation for Pershing EMEA)

Dennis Wallestad was appointed to succeed Cécile Nagel as head of BNY Mellon's Pershing EMEA business. Prior to this, he served as Chief Financial Officer (CFO) and head of transformation for Pershing EMEA. Wallestad joined BNY Mellon in 2002 as CFO of BNY Clearing and has held various other senior positions, including global CFO for Pershing, and CEO, COO, and CFO for Pershing Australia. He also served as EMEA CFO at JPMorgan Chase.

Kevin Weeks, Global Head of Sales and Relationship Management for Corporate Trust

Kevin Weeks was appointed as Global Head of Sales and Relationship Management for BNY Mellon's corporate trust business, effective June 3, 2024. Before joining BNY Mellon, Weeks was the head of sales for global corporate trust and custody at US Bank. He also previously served as head of issuer services and global head of sales for institutional cash and securities services at Deutsche Bank.

The primary and most significant risk for MV Oil Trust (MVO) is the imminent termination of the trust. As a "term trust," it is scheduled to dissolve around June 30, 2026, after which it will cease making distributions to unitholders, and the trust units are expected to be canceled. This "terminal risk" is a major factor impacting the trust's valuation and outlook.

Secondly, MV Oil Trust is highly exposed to the inherent volatility of crude oil prices. Fluctuations in oil prices directly impact the trust's distributable income and cash flow, leading to significant declines in distributions when prices are low. For instance, Q1 2025 saw an average oil price of $67.77/BOE, down from $71/barrel earlier in the year, contributing to reduced distributions.

Finally, declining production volumes from the underlying properties and rising operational costs pose a continuous threat to the trust's financial health. Surging operational costs, such as the $5.3 million in Q1 2025, consume net profits and squeeze distributable cash flow, further depleting the trust's cash reserves.

The primary clear emerging threat to MV Oil Trust (MVO) stems from the accelerating global transition away from fossil fuels, driven by climate change concerns, advancements in renewable energy technologies, and evolving environmental, social, and governance (ESG) standards.

This systemic shift, comparable in its disruptive potential to how Netflix challenged Blockbuster or the iPhone threatened BlackBerry, impacts MVO in several key ways:

• Increased Regulatory and Compliance Burden: Governments worldwide are implementing stricter environmental regulations, methane emission standards, and permitting processes for oil and gas operations. These regulations can increase operating costs for MV Partners, LLC (the operator of the underlying properties), thereby reducing the net proceeds from which MVO derives its royalties. Future policies could even limit or restrict existing production, accelerating the depletion of the trust's income-generating assets.
• Long-Term Demand Destruction: The rapid adoption of electric vehicles, renewable energy sources, and energy efficiency initiatives is projected to reduce global demand for crude oil over the coming decades. This sustained downward pressure on oil prices could significantly diminish the economic viability of extracting oil from MVO's mature properties sooner than anticipated, directly impacting the trust's distributions and overall lifespan.
• ESG Pressures and Divestment: Growing pressure from investors, financial institutions, and the public for companies to divest from or reduce their exposure to fossil fuels can make it more challenging for operators like MV Partners to secure financing, attract talent, or find buyers for their assets. This could indirectly affect the operational continuity and investment in the underlying properties, potentially leading to curtailed production or early abandonment of wells.

For MV Oil Trust (MVO), a public company structured as a terminating trust, the expected drivers of future revenue, more accurately described as factors influencing net profits before its termination, over the next 2-3 years are primarily tied to the oil and natural gas market and the operational aspects of its existing properties. The Trust is set to terminate on June 30, 2026, as the net profits interest termination date will be reached.

Given this finite operational period, traditional drivers of long-term revenue growth such as market expansion or new product launches are not applicable. Instead, the focus remains on:

1. Commodity Prices: The most significant factor influencing the Trust's net profits is the market price of oil and natural gas. As a holder of an 80% net profits interest in oil and gas properties, fluctuations in commodity prices directly impact the gross proceeds generated from these assets. Higher average realized prices per barrel of oil equivalent (BOE) would lead to greater gross proceeds and, consequently, higher net profits for the Trust.
2. Production Volumes: The volume of oil and natural gas produced from the underlying properties in Kansas and Colorado directly contributes to the Trust's gross proceeds. Sustained or higher-than-anticipated production volumes from the existing wells would positively affect the revenue before the Trust's termination. The Trust's proved reserves were estimated at 618,704 BOE as of December 31, 2024.
3. Control of Operating Costs: The net profits interest means that the Trust's income is calculated after deducting the costs incurred by MV Partners, the operator of the underlying properties. While MV Partners does not anticipate significant changes in future costs other than general fluctuations in oilfield services, effective management and control of these operating expenses would maximize the net profits available for distribution to unitholders during the remaining lifespan of the Trust.

Capital Expenditures

• MV Partners, the operator of the underlying oil and natural gas properties, did not withhold any reserves for future capital expenditures during 2024.
• The Trust's net profits interest, which entitles it to receive 80% of net proceeds from MV Partners' properties, is set to terminate on June 30, 2026, as the minimum production amount has been reached.