Mesa Royalty Trust Announces Trust Income for April 2023
Mesa Royalty Trust (NYSE: MTR) announced its income distribution for April 2023. Unitholders of record on April 28, 2023, will receive $0.2379 per unit, payable on July 31, 2023. The Trust reported income totaling $515,733, with $492,928 from New Mexico and $22,805 from Colorado. However, no income was received from Hugoton Royalty properties or specific Colorado operations. After accounting for cash reserves and administrative expenses, the distributable net profits were $443,340. The Trust plans to increase cash reserves to $2 million, which may materially reduce future distributions. Furthermore, production costs may impact future distributions, with risks from commodity price volatility and operational delays potentially leading to reduced or nonexistent distributions.
- Monthly distribution of $0.2379 per unit announced.
- Total income for April 2023 reported at $515,733.
- No income reported from Hugoton Royalty properties.
- Future distributions expected to be materially reduced as cash reserves are increased to $2 million.
- Substantial accumulated excess production costs may decrease distributions.
- Potential risks from commodity price volatility and operational delays could lead to reduced or no future distributions.
The Trust was formed to own an overriding royalty interest of the net proceeds attributable to certain producing oil and gas properties located in the
Proceeds reported by the working interest owners for any month are not generally representative of net proceeds that will be received by the Trust in future periods. As further described in the Trust’s Form 10-K and Form 10-Q filings, production and development costs for the royalty interest have resulted in substantial accumulated excess production costs, which will decrease Trust distributions, and in some periods may result in no Trust distributions. The amount of proceeds, if any, received or expected to be received by the Trust (and its ability to pay distributions to unitholders) has been and will continue to be directly affected, among other things, by volatility in the industry and revenues and expenses reported to the Trust by working interest owners. Any additional expenses and adjustments, among other things, will reduce proceeds to the Trust, which will reduce the amount of cash available for distribution to unitholders and in certain periods could result in no distributions to unitholders.
This press release contains forward-looking statements. No assurances can be given that the expectations contained in this press release will prove to be correct. The working interest owners alone control historical operating data, and handle receipt and payment of funds relating to the royalty properties and payments to the Trust for the related royalty. The Trustee cannot assure that errors or adjustments or expenses accrued by the working interest owners, whether historical or future, will not affect future royalty income and distributions by the Trust. Other important factors that could cause these statements to differ materially include delays in actual results of drilling operations, risks inherent in drilling and production of oil and gas properties, declines in commodity pricing, prices received by working interest owners and other risks described in the Trust’s Form 10-K for the year ended
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