Mesa Royalty Trust Announces Trust Income and Distribution for December 2024

On December 18, 2024, Mesa Royalty Trust (NYSE: MTR) issued a press release detailing the royalty income and income distribution for the month of December 2024. The Trust announced that unitholders of record on December 31, 2024, will be receiving distributions totaling $0.022423076 per unit, which are set to be payable on January 31, 2025. During December 2024, the Trust received a total of $47,632, solely sourced from the New Mexico section of the Trust’s San Juan Basin properties operated by Hilcorp San Juan LP, an affiliate of Hilcorp Energy Company. However, there was no income received from any other working interest owner during the same period. After administrative expenses were deducted, the Trust’s distributable net profits amounted to $41,787.

The primary purpose behind the formation of the Trust is to possess an overriding royalty interest in the net proceeds from specific producing oil and gas properties situated in the Hugoton field of Kansas, and the San Juan Basin fields of New Mexico and Colorado. As per the Trust’s public filings, the monthly distributions are expected to vary due to factors such as production levels, oil and natural gas prices, and the Trust’s administrative expenses. It was noted in the Trust’s recent Form 10-Q filing that distributions to unitholders are projected to be significantly reduced until the Trust accumulates $2.0 million in cash reserves to enhance liquidity.

The income received by the Trust from working interest owners in any given month may not accurately represent the net proceeds to be received in future periods. The Trust emphasized that production and development expenses related to the royalty interest have led to considerable accumulated excess production costs, which could shrink Trust distributions, potentially resulting in periods of no distributions. The Trust’s ability to make distributions to unitholders will continue to be influenced by various factors including industry volatility and revenues and expenses communicated by the working interest owners.

This press release contains forward-looking statements; however, it is cautioned that the expectations outlined may not necessarily materialize. The historical operating data solely rests with the working interest owners, and any errors or expenses recognized by them could affect the Trust’s future royalty income and subsequent distributions. Other elements that could lead to discrepancies include operational delays, drilling and production risks, commodity price declines, and risks detailed in the Trust’s Form 10-K for the year ended December 31, 2023. The Trust does not intend to update the statements in this press release. Unitholders are advised to consult with their tax advisors regarding their specific circumstances.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Mesa Royalty Trust’s 8K filing here.

About Mesa Royalty Trust

Mesa Royalty Trust owns overriding royalty interests in various oil and gas producing properties in the United States. It holds interests in properties located in the Hugoton field of Kansas; and the San Juan Basin field of Northwestern New Mexico and Southwestern Colorado. The company was founded in 1979 and is based in Houston, Texas.