Mesa Royalty Trust Announces Trust Income for October 2024

Rhea-AI Summary

Mesa Royalty Trust (NYSE: MTR) announced its income distribution for October 2024. Unitholders of record on October 31, 2024, will receive $0.005692813 per unit, payable on January 31, 2025. The Trust received $26,349 from the Colorado portion of its San Juan Basin properties operated by SIMCOE After administrative expenses, the distributable net profits were $10,609.

The Trust owns overriding royalty interests in oil and gas properties in the Hugoton field of Kansas and the San Juan Basin fields of New Mexico and Colorado. Monthly distributions are expected to fluctuate based on production, oil and gas prices, and administrative expenses. Distributions to unitholders are expected to be materially reduced until the Trust increases its cash reserves to $2.0 million for added liquidity.

Positive

• Trust received $26,349 from Colorado properties
• Distributable net profits of $10,609 after expenses
• Distribution of $0.005692813 per unit to be paid

Negative

• No income received from other working interest owners
• Distributions expected to be materially reduced
• Substantial accumulated excess production costs decreasing distributions
• Volatility in industry affecting Trust's ability to pay distributions

HOUSTON--(BUSINESS WIRE)-- Mesa Royalty Trust (the “Trust”) (NYSE: MTR) announced today the Trust income distribution for the month of October 2024. Unitholders of record on October 31, 2024 will receive distributions amounting to $0.005692813 per unit, payable on January 31, 2025. The Trust received $26,349 which came from the Colorado portion of the Trust’s San Juan Basin properties operated by SIMCOE LLC, an affiliate of IKAV Energy Inc. No income was received in October 2024 from any other working interest owner. This month, after the Trust’s payment of administrative expenses, income from the distributable net profits was $10,609.

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 per unit for Mesa Royalty Trust (MTR) in October 2024?

Mesa Royalty Trust (MTR) announced a distribution of $0.005692813 per unit for unitholders of record on October 31, 2024, payable on January 31, 2025.

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

Mesa Royalty Trust (MTR) received $26,349 from the Colorado portion of its San Juan Basin properties operated by SIMCOE in October 2024.

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

Distributions to Mesa Royalty Trust (MTR) unitholders are expected to be materially reduced until the Trust increases its cash reserves to $2.0 million to provide added liquidity.

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

Mesa Royalty Trust (MTR) monthly distributions are affected by production levels, oil and natural gas prices, administrative expenses, and accumulated excess production costs, among other factors.