Mesa Royalty Trust Announces Trust Income for August 2023
22 August 2023 - 6:15AM
Business Wire
Mesa Royalty Trust (the “Trust”) (NYSE: MTR) announced today the
Trust income distribution for the month of August 2023. Unitholders
of record on August 31, 2023 will receive distributions amounting
to $0.040989891 per unit, payable on October 31, 2023. The Trust
received $96,253, 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 August 2023 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 $76,388.
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, 2022. 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20230821453243/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
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