Mesa Royalty Trust Announces Trust Income for December 2022

Rhea-AI Summary

Mesa Royalty Trust (NYSE:MTR) announced a monthly distribution of $0.201199745 per unit for December 2022, payable on January 31, 2023, to unitholders of record on December 30, 2022. The Trust reported a total income of $400,819, with $336,595 from New Mexico operations and $64,224 from Hugoton properties. No income was generated from Colorado properties this month. The Trust anticipates fluctuations in distribution amounts due to production and price variability, and it aims to increase cash reserves to $2 million, potentially decreasing future distributions significantly.

Positive

• Monthly distribution of $0.201199745 per unit for December 2022.
• Total income reported at $400,819, providing some returns to unitholders.

Negative

• Income from Colorado properties was $0, indicating potential operational issues.
• Future distributions may be materially reduced as the Trust increases cash reserves.
• Substantial accumulated excess production costs may lead to decreased future distributions and potential periods of no distributions.

HOUSTON--(BUSINESS WIRE)-- Mesa Royalty Trust (the “Trust”) (NYSE symbol-MTR) announced today the Trust income distribution for the month of December 2022. Unitholders of record on December 30, 2022 will receive distributions amounting to $0.201199745 per unit, payable on January 31, 2023. The Trust received $336,595, which came from the New Mexico portion of the Trust’s San Juan Basin properties operated by Hilcorp San Juan LP, an affiliate of Hilcorp Energy Company and $64,224 which came from the Hugoton Royalty properties operated by Scout Energy Group V, LP. No income was received in December 2022 from the Colorado portion of the Trust's San Juan Basin properties operated by SIMCOE LLC, an affiliate of IKAV Energy Inc or from the Colorado portion of the Trust's San Juan Basin properties operated by Red Willow Production Company. This month, after the Trust’s withholding for cash reserves and the payment of administrative expenses, income from the distributable net profits was $374,954.

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 Hugoton field of Kansas and the San Juan Basin fields of New Mexico and Colorado. As described in the Trust's public filings, the amount of the monthly distributions is expected to fluctuate from month to month, depending on the proceeds, if any, received by the Trust as a result of production, oil and natural gas prices and the amount of the Trust’s administrative expenses, among other factors. In addition, as further described in the Trust’s most recent filing on Form 10-Q, distributions to unitholders are expected to be materially reduced during 2022, as the Trust intends to increase cash reserves to a total of $2.0 million to provide added liquidity.

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 December 31, 2021. Statements made in this press release are qualified by the cautionary statements made in such risk factors. The Trust does not intend, and assumes no obligations, to update any of the statements included in this press release. Each unitholder should consult its own tax advisor with respect to its particular circumstances.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221220005737/en/

Mesa Royalty Trust

The Bank of New York Mellon Trust Company, N.A., as Trustee

Elaina Rodgers

713-483-6020

http://mtr.q4web.com/home/default.aspx

Source: Mesa Royalty Trust

FAQ

What is the December 2022 distribution amount for Mesa Royalty Trust (MTR)?

The distribution amount for December 2022 is $0.201199745 per unit.

When will Mesa Royalty Trust (MTR) pay the December 2022 distribution?

The distribution will be paid on January 31, 2023.

What was the total income reported by Mesa Royalty Trust (MTR) for December 2022?

Mesa Royalty Trust reported a total income of $400,819 for December 2022.

Why did Mesa Royalty Trust (MTR) report no income from Colorado properties in December 2022?

The Trust received no income from the Colorado portion of its San Juan Basin properties in December 2022.

How does the fluctuation in oil prices affect Mesa Royalty Trust (MTR) distributions?

Distributions are expected to fluctuate based on production, oil and gas prices, and administrative expenses.