Mesa Royalty Trust Announces Trust Income for June 2024

Rhea-AI Summary

Mesa Royalty Trust (NYSE: MTR) has announced a June 2024 income distribution of $0.038766492 per unit for unitholders of record on June 28, payable on July 31, 2024. The Trust received $85,246 solely from the New Mexico portion of the San Juan Basin properties operated by Hilcorp San Juan LP. No income was received from other working interest owners. After reserves and administrative expenses, the distributable net profit was $72,245. The Trust expects monthly distribution amounts to fluctuate due to production, oil and natural gas prices, and administrative costs. Distributions will be materially reduced until the Trust boosts its cash reserves to $2.0 million. Additionally, the Trust faces substantial accumulated excess production costs, potentially leading to periods with no distributions.

Positive

• The Trust announced a distribution of $0.038766492 per unit for June 2024.
• Received $85,246 solely from New Mexico's San Juan Basin properties operated by Hilcorp San Juan LP.

Negative

• Substantial accumulated excess production costs may result in no distributions in some periods.
• Trust distributions will be materially reduced until cash reserves reach $2.0 million.
• Only $72,245 was available for distribution after reserves and administrative expenses.

HOUSTON--(BUSINESS WIRE)-- Mesa Royalty Trust (the “Trust”) (NYSE: MTR) announced today the Trust income distribution for the month of June 2024. Unitholders of record on June 28, 2024 will receive distributions amounting to $0.038766492 per unit, payable on July 31, 2024. The Trust received $85,246, all of 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. No income was received in June 2024 from any other working interest owner. This month, after the Trust’s withholding for cash reserves and the payment of administrative expenses, income from the distributable net profits was $72,245.

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, until the Trust increases its cash reserves to a total of $2.0 million in order 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, 2023. 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.

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

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Mesa Royalty Trust

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

Elaina Rodgers

713-483-6020

Source: Mesa Royalty Trust

FAQ

What is the distribution amount for Mesa Royalty Trust for June 2024?

The distribution amount for Mesa Royalty Trust (MTR) for June 2024 is $0.038766492 per unit.

When will MTR unitholders receive the June 2024 distribution?

MTR unitholders will receive the June 2024 distribution on July 31, 2024.

How much income did Mesa Royalty Trust receive for June 2024?

Mesa Royalty Trust received a total of $85,246 for June 2024.

What are the factors affecting Mesa Royalty Trust's monthly distributions?

Factors affecting Mesa Royalty Trust's monthly distributions include production levels, oil and natural gas prices, and administrative expenses.

Why will Mesa Royalty Trust's distributions be reduced?

Distributions will be reduced until Mesa Royalty Trust increases its cash reserves to $2.0 million and due to substantial accumulated excess production costs.