Mesa Royalty Trust Announces Trust Income for May 2024

Rhea-AI Summary

Mesa Royalty Trust (NYSE: MTR) announced the income distribution for May 2024. Unitholders of record on May 31, 2024, will receive $0.054572375 per unit, payable on July 31, 2024. The Trust received $130,266 from its San Juan Basin properties, operated by Hilcorp San Juan LP. After withholding for cash reserves and administrative expenses, the distributable net profit totals $101,701.

The Trust's monthly distributions fluctuate based on production, oil and natural gas prices, and administrative expenses. Due to accumulated excess production costs and a strategy to increase cash reserves to $2.0 million, distributions are expected to be materially reduced.

Future distributions will also be affected by industry volatility and additional expenses.

Positive

• Unitholders will receive $0.054572375 per unit, payable on July 31, 2024.
• Total income received was $130,266 for May 2024.
• Distributable net profit is $101,701 after deductions.

Negative

• Only $130,266 was received from the New Mexico portion of the Trust’s San Juan Basin properties.
• No income was received from other working interest owners.
• Distributions are expected to be materially reduced until cash reserves increase to $2.0 million.
• Accumulated excess production costs reduce Trust distributions.
• Industry volatility and additional expenses may further reduce distributions.

HOUSTON--(BUSINESS WIRE)-- Mesa Royalty Trust (the “Trust”) (NYSE: MTR) announced today the Trust income distribution for the month of May 2024. Unitholders of record on May 31, 2024 will receive distributions amounting to $0.054572375 per unit, payable on July 31, 2024. The Trust received $130,266, 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 May 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 $101,701.

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-K, 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 income distribution per unit for Mesa Royalty Trust (MTR) in May 2024?

The income distribution per unit for Mesa Royalty Trust (MTR) in May 2024 is $0.054572375.

When will the distribution for Mesa Royalty Trust (MTR) be payable?

The distribution for Mesa Royalty Trust (MTR) will be payable on July 31, 2024.

How much total income did Mesa Royalty Trust (MTR) receive in May 2024?

Mesa Royalty Trust (MTR) received a total income of $130,266 in May 2024.

What are the factors affecting the monthly distributions of Mesa Royalty Trust (MTR)?

The monthly distributions of Mesa Royalty Trust (MTR) are affected by production, oil and natural gas prices, administrative expenses, industry volatility, and additional expenses.

Why are distributions to Mesa Royalty Trust (MTR) unitholders expected to be reduced?

Distributions to Mesa Royalty Trust (MTR) unitholders are expected to be reduced due to the need to increase cash reserves to $2.0 million and accumulated excess production costs.

What was the net distributable profit for Mesa Royalty Trust (MTR) in May 2024?

The net distributable profit for Mesa Royalty Trust (MTR) in May 2024 was $101,701 after withholding for cash reserves and administrative expenses.