Workflow
Marine Petroleum Trust(MARPS)
icon
Search documents
Marine Petroleum Trust(MARPS) - 2025 Q4 - Annual Report
2025-09-29 16:12
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM __________ TO __________ Commission File Number 000-08565 Marine Petroleum Trust (Exact name of Registrant as specified in its Charter) Texas 75-6008017 (State ...
Marine Petroleum Trust(MARPS) - 2025 Q3 - Quarterly Report
2025-05-14 17:51
Financial Performance - Distributable income for the three months ended March 31, 2025, was $242,418, a significant increase of 109.9% from $115,524 for the same period in 2024[13] - Total income for the nine months ended March 31, 2025, was $806,181, slightly down by 1.4% from $815,159 for the same period in 2024[13] - Distributions to unitholders for the nine months ended March 31, 2025, totaled $549,722, a decrease of 10.5% compared to $614,205 in the same period of 2024[15] - Distributable income per unit for the three months ended March 31, 2025, was $0.12, compared to $0.06 for the same period in 2024, marking a 100% increase[13] - Distributable income per unit for the nine months ended March 31, 2025, was $0.28, an increase from $0.27 for the same period in 2024[47] Asset and Trust Information - Total assets increased to $972,606 as of March 31, 2025, compared to $965,220 as of June 30, 2024, reflecting a growth of approximately 0.4%[9] - The trust corpus at the end of the period was $972,606, an increase from $906,797 at the end of March 31, 2024, representing a growth of approximately 7.3%[15] - The trust's only obligation is to distribute the collected distributable income to unitholders, with no requirement for capital due to its limited purpose[34] Revenue Sources - Oil and natural gas royalties for the three months ended March 31, 2025, amounted to $332,993, up 41.9% from $234,500 in the prior year[13] - For the nine months ended March 31, 2025, the company realized approximately 94% of its royalty income from oil sales and 6% from natural gas and natural gas liquids[46] - Income from natural gas royalties increased to $30,848 for the nine months ended March 31, 2025, from $6,395 for the comparable period in 2024[59] - The volume of natural gas sold increased to 14,677 thousand cubic feet for the nine months ended March 31, 2025, from 7,615 thousand cubic feet for the same period in 2024[59] - Income from natural gas liquids royalties increased to $12,330 for the nine months ended March 31, 2025, from $2,031 for the comparable period in 2024[60] Production and Pricing - Oil production decreased to 9,718 barrels for the nine months ended March 31, 2025, down from 10,005 barrels for the same period in 2024[48] - The average price realized for oil decreased to $75.67 per barrel for the nine months ended March 31, 2025, compared to $76.60 per barrel for the same period in 2024[58] Expenses - General and administrative expenses decreased to $249,073 for the nine months ended March 31, 2025, from $272,340 for the comparable period in 2024[63] Internal Controls and Risk Factors - Marine's disclosure controls and procedures were evaluated as effective as of March 31, 2025[68] - There have been no material changes in internal control over financial reporting during the quarter ended March 31, 2025[69] - No material changes in risk factors have been reported since the Annual Report for the fiscal year ended June 30, 2024[73] Market Influences - The trust's income is heavily influenced by commodity prices, which can fluctuate widely due to supply and demand changes[32] - The company’s royalty income is influenced by factors such as the number of productive wells and the prices at which oil and natural gas are sold[43] Future Expenses - The estimated reserve for future expenses deducted from distributable income for the three months ended March 31, 2025, was $75,500[21] Lease Information - As of March 31, 2025, the company holds an overriding royalty interest in 19 oil and natural gas leases covering a total of 87,326 gross acres in the Gulf of America[36]
MARINE PETROLEUM TRUST ANNOUNCES FIRST QUARTER CASH DISTRIBUTION
Prnewswire· 2025-02-18 13:00
Core Points - Marine Petroleum Trust declared a quarterly cash distribution of $0.077052 per unit, payable on March 28, 2025, to unitholders of record on February 28, 2025 [1] - The current distribution is lower than the previous quarter's distribution of $0.102923 per unit and also lower than the $0.101611 per unit distributed in the same quarter of 2024 [2] - There has been a decrease in the volumes of both oil and natural gas produced compared to the previous quarter, with oil prices decreasing and natural gas prices increasing [2] Financial Performance - The distribution amount is determined by royalties received up to the date the distribution is declared, with royalties typically received two months after oil production and three months after natural gas production [3] - Compared to the same quarter in 2024, there was a decrease in oil production volume while natural gas production volume increased, but prices realized for both oil and natural gas have decreased [2]
Marine Petroleum Trust(MARPS) - 2025 Q2 - Quarterly Report
2025-02-13 20:06
Financial Performance - Total income for the three months ended December 31, 2024, was $165,896, down 37% from $262,914 in the same period of 2023[13] - Distributable income for the six months ended December 31, 2024, was $314,690, a decrease of 26.4% compared to $427,295 for the same period in 2023[13] - Distributable income per unit for the three months ended December 31, 2024, was $0.04, down 60% from $0.10 in the same period of 2023[13] - Distributable income per unit for the six months ended December 31, 2024, was $0.16, a decrease from $0.21 for the same period in 2023[48] - Oil production decreased to 5,263 barrels for the six months ended December 31, 2024, down from 7,041 barrels for the comparable period in 2023[49] - Income from oil royalties for the three months ended December 31, 2024, decreased to $151,919 from $246,941 for the comparable period in 2023[52] Distributions and Expenses - Distributions to unitholders for the six months ended December 31, 2024, totaled $395,618, compared to $410,984 in 2023, reflecting a decrease of 3.7%[16] - General and administrative expenses increased to $153,398 for the six months ended December 31, 2024, from $140,294 for the comparable period in 2023[65] Assets and Reserves - Total assets as of December 31, 2024, were $884,292, a decrease of 8.4% from $965,220 as of June 30, 2024[9] - The trust corpus at the end of the period was $884,292, a decline of 11.1% from $994,494 at the end of December 2023[16] - The estimated reserve for future expenses deducted from distributable income for the three months ended December 31, 2024, was $102,500[22] Revenue Sources - During the six months ended December 31, 2024, Marine's royalty income was approximately 94% from oil sales and 6% from natural gas and natural gas liquids[46] - The average price realized for oil increased to $79.17 per barrel for the six months ended December 31, 2024, compared to $75.71 per barrel for the same period in 2023[60] - Income from natural gas royalties (net of expenses) increased to $20,474 for the six months ended December 31, 2024, from $5,272 for the comparable period in 2023[61] - Income from natural gas liquids royalties (net of expenses) increased to $8,383 for the six months ended December 31, 2024, from $1,839 for the comparable period in 2023[62] - The volume of natural gas sold in the three months ended December 31, 2024, increased to 3,343 thousand cubic feet from 2,291 thousand cubic feet for the comparable period in 2023[53] Operational Insights - The trust's income is significantly influenced by commodity prices, which can fluctuate widely due to supply and demand changes[33] - The trust's only obligation is to distribute the collected distributable income to unitholders, with no requirement for capital due to its limited purpose[35] - The trust's oil and natural gas properties are depleting assets, and it is prohibited from engaging in any trade or business[36] - As of December 31, 2024, Marine holds an overriding royalty interest in 19 oil and natural gas leases covering a total of 87,326 gross acres in the Gulf of Mexico[37] Risk Factors and Future Outlook - The company anticipates potential impacts on production and distributions due to factors such as oil and natural gas price fluctuations and public health concerns[66] - Marine's future financial performance is subject to uncertainties that may cause actual results to differ from expectations[66] - The company has not reported any significant market risk changes since the last Annual Report[68] Governance and Compliance - Marine's disclosure controls and procedures were evaluated as effective as of December 31, 2024[70] - There have been no material changes in internal control over financial reporting during the quarter ended December 31, 2024[71] - No material changes in risk factors have been reported since the last Annual Report for the fiscal year ended June 30, 2024[75] - There are no ongoing legal proceedings affecting the company[74] - The company does not have any directors or officers, thus no trading arrangements have been adopted or terminated[77] - Marine's website provides free access to its financial reports, ensuring transparency[67]
Marine Petroleum Trust(MARPS) - 2025 Q1 - Quarterly Report
2024-11-12 20:23
Revenue Sources - For the three months ended September 30, 2024, the Trust realized approximately 92% of its royalty income from oil sales and 8% from natural gas and natural gas liquids[37]. - Income from oil royalties decreased to $264,786 for the three months ended September 30, 2024, from $286,168 in the comparable period in 2023[42]. - Income from natural gas royalties increased to $15,362 for the three months ended September 30, 2024, from $3,964 in the same period in 2023[43]. - Total income from oil and natural gas royalties decreased to $286,498 for the three months ended September 30, 2024, from $291,021 in the comparable period in 2023[40]. - Income from natural gas liquids royalties increased to $6,350 for the three months ended September 30, 2024, from $1,375 in the comparable period in 2023, representing a growth of 362%[44]. Production and Sales - Oil production decreased to 3,265 barrels for the three months ended September 30, 2024, down from 3,964 barrels in the same period in 2023[39]. - Natural gas volumes sold increased to 5,095 thousand cubic feet for the three months ended September 30, 2024, compared to 3,148 thousand cubic feet in the same period in 2023[39]. - The volume of natural gas liquids sold rose to 8,437 mcf in Q3 2024, up from 5,512 mcf in Q3 2023, an increase of 53%[44]. - Oil sales decreased to 3,265 bbls in Q3 2024 from 3,964 bbls in Q3 2023, a decline of 17.6%[46]. - Natural gas sales increased to 5,095 mcf in Q3 2024 from 3,148 mcf in Q3 2023, a growth of 62%[46]. Pricing - Average price realized for oil increased to $81.11 per barrel for the three months ended September 30, 2024, compared to $72.19 per barrel in the same period in 2023[39]. - The average price for oil increased to $81.11 per bbl in Q3 2024, up from $72.19 per bbl in Q3 2023, an increase of 12.6%[46]. - The average price realized for natural gas liquids increased to $0.75 per mcf in Q3 2024, compared to $0.51 per mcf in Q3 2023, reflecting a 47% increase[44]. - The average price for natural gas (net of expenses) rose to $3.02 per mcf in Q3 2024, compared to $2.28 per mcf in Q3 2023, an increase of 32.4%[46]. Financial Performance - Distributable income per unit increased to $0.12 for the three months ended September 30, 2024, compared to $0.11 for the same period in 2023[38]. - Distributions per unit decreased to $0.09 for the three months ended September 30, 2024, down from $0.12 for the comparable period in 2023[38]. - Distributable income increased to $233,552 for the three months ended September 30, 2024, from $228,057 in the same period in 2023[41]. - General and administrative expenses decreased to $68,640 in Q3 2024 from $76,618 in Q3 2023, a reduction of 10.4%[46]. Risks and Controls - The company anticipates potential risks including reductions in oil and natural gas prices, which may impact production and distributions[47]. - There have been no material changes in internal control over financial reporting during the quarter ended September 30, 2024[52].
Marine Petroleum Trust(MARPS) - 2024 Q4 - Annual Report
2024-09-30 19:15
Revenue and Distributions - Marine's quarterly distributions are highly dependent on oil and natural gas prices, with a sustained decline potentially leading to reduced cash distributions to unitholders [17]. - The volatility of oil and natural gas prices reduces the predictability of future cash distributions, with substantial declines potentially resulting in Marine being unable to make distributions in future quarters [19]. - The Trust must distribute all cash accumulated each quarter to unitholders, with a reserve of $74,500 for future expenses as of June 28, 2024 [61]. - Marine's distributable income for fiscal 2024 was $713,165, or $0.36 per unit, a decrease from $1,375,417, or $0.69 per unit in fiscal 2023, representing a decline of approximately 48% [70]. - Distributions to unitholders in 2024 totaled $726,128, down 53.2% from $1,551,337 in 2023 [113]. - The September 2024 distribution is expected to decrease to $0.09 per unit from $0.12 per unit in June 2024, reflecting ongoing challenges in revenue generation [70]. Financial Performance - The Trust's total income for the fiscal year ended June 30, 2024, was $1,044,997, down 36.7% from $1,648,943 in 2023 [111]. - Revenue from oil royalties in fiscal 2024 amounted to $980,110, down 36% from $1,523,617 in fiscal 2023, with oil production decreasing to 12,805 bbls from 16,817 bbls [75]. - Revenue from natural gas royalties fell to $10,464 in fiscal 2024, down from $71,079 in fiscal 2023, a decrease of approximately 85% [76]. - Marine's total revenue for the fiscal year 2024 was $1,044,997, compared to $1,648,943 in 2023 [134]. - The average price realized for oil decreased to $76.54 per barrel in fiscal 2024 from $90.59 in fiscal 2023, a decline of approximately 15% [75]. - The average price per mcf of natural gas decreased to $0.92 in fiscal 2024 from $5.59 in fiscal 2023, a decline of approximately 84% [76]. Operational Insights - For the fiscal year ended June 30, 2024, two working interest owners accounted for 100% of the royalty payments to Marine, indicating a significant reliance on a limited number of sources for income [32]. - Marine is unable to acquire new royalty interests, as its overriding royalty interests apply only to existing leases, limiting future growth opportunities [20]. - Marine's overriding royalty interest is approximately 0.6607% across 19 different oil and natural gas leases covering 87,326 gross acres [52][54]. - Marine believes there were nine wells drilled or recompleted in which it had an interest during fiscal year 2024 [51]. - Active wells increased to 75 in fiscal 2024 from 71 in fiscal 2023, indicating a growth in operational capacity [68]. Regulatory and Market Risks - Government regulations and geopolitical factors, including the war in Ukraine and the Israel-Hamas conflict, could adversely affect oil and natural gas prices, impacting Marine's distributions [37]. - Cybersecurity disruptions pose a risk to the Trust, potentially leading to significant costs that could decrease distributions to unitholders [36]. - The market price of Marine's units may not reflect the actual value of the royalty interests, as it is influenced by cash distribution levels and market volatility [28]. Accounting and Financial Reporting - The financial statements of Marine are prepared on a modified cash basis of accounting, differing from generally accepted accounting principles (GAAP), which may affect the comparability of financial information [42]. - The Trust's financial statements are prepared on a modified cash basis, recognizing royalty income when received [63][64]. - The Trust's accounting method does not recognize depletion, and expenses are recorded on a cash basis rather than an accrual basis [126]. - The Trust's internal control over financial reporting was evaluated as effective as of June 30, 2024 [89]. Trust Structure and Governance - The Trust may be terminated and the Trustee may sell Marine's royalty interests if holders of 80% or more of the units approve the sale, which could lead to unitholders receiving no further distributions [33]. - The Trust does not have any directors or officers, and therefore does not maintain a compensation committee or equity compensation plans [93]. - The Trust has authorized 2,000,000 units of beneficial interest, all of which are issued [109]. - The Trust anticipates qualifying as a passive entity for the Texas franchise tax in 2024, which would exempt it from the tax [139].
Marine Petroleum Trust(MARPS) - 2024 Q3 - Quarterly Report
2024-05-14 18:19
Financial Performance - Total income for the nine months ended March 31, 2024 was $815,159, a decrease of 38.9% compared to $1,336,186 for the same period in 2023[12]. - Distributable income for the three months ended March 31, 2024 was $115,524, down 46.5% from $215,803 in the same period of 2023[12]. - Distributions to unitholders for the nine months ended March 31, 2024 totaled $614,205, a decrease of 53.8% from $1,331,041 in the same period of 2023[14]. - Distributable income per unit for the nine months ended March 31, 2024 was $0.27, down from $0.56 for the same period in 2023[45]. - Distributions per unit for the three months ended March 31, 2024 were $0.10, down from $0.16 in the same period of 2023[16]. Asset and Trust Corpus - Total assets decreased from $978,183 in June 30, 2023 to $906,797 as of March 31, 2024, representing a decline of approximately 7.3%[8]. - Trust corpus at the end of the period was $906,797, down from $978,183 at the beginning of the period, reflecting a decrease of approximately 7.3%[14]. Revenue Sources - Oil and natural gas royalties for the three months ended March 31, 2024 were $234,500, down 18.7% from $288,614 in the same period of 2023[12]. - For the nine months ended March 31, 2024, royalty income decreased to $774,721 from $1,309,654 for the comparable period in 2023, primarily due to a decrease in the price and production of oil and natural gas[55]. - Income from oil royalties for the nine months ended March 31, 2024 decreased to $766,295 from $1,233,506 for the comparable period in 2023[57]. - Income from natural gas royalties (net of expenses) for the nine months ended March 31, 2024 decreased to $8,426 from $76,148 for the comparable period in 2023[58]. - The Trust realized approximately 99% of its royalty income from the sale of oil and approximately 1% from the sale of natural gas during the nine months ended March 31, 2024[44]. Production and Pricing - Oil production decreased to 10,005 barrels for the nine months ended March 31, 2024, compared to 12,888 barrels for the same period in 2023[46]. - The average price realized for oil decreased to $76.60 per barrel for the nine months ended March 31, 2024, down from $95.71 per barrel for the comparable period in 2023[57]. - Natural gas production decreased to 7,615 thousand cubic feet for the nine months ended March 31, 2024, from 9,652 thousand cubic feet for the same period in 2023[58]. - The average price realized for natural gas (net of expenses) decreased to $1.11 per thousand cubic feet for the nine months ended March 31, 2024, down from $7.89 for the comparable period in 2023[58]. Expenses - General and administrative expenses increased to $272,340 for the nine months ended March 31, 2024, from $219,045 for the comparable period in 2023[60]. - A reserve of $31,500 was deducted from calculated distributable income for the three months ended March 31, 2024 for future expenses[20]. Risk and Control - The Trust's income is heavily influenced by commodity prices, which can fluctuate widely due to supply and demand changes[31]. - The Trust's only obligation is to distribute the collected distributable income to unitholders, with no capital requirements due to its limited purpose[33]. - There has been no material change in Marine's market risk disclosures since the Annual Report for the fiscal year ended June 30, 2023[63]. - Marine's disclosure controls and procedures were evaluated as effective as of March 31, 2024[64]. - No changes in internal control over financial reporting have materially affected Marine's reporting during the quarter ended March 31, 2024[65]. - There have been no material changes in risk factors since the last Annual Report filed for the fiscal year ended June 30, 2023[68].
Marine Petroleum Trust(MARPS) - 2024 Q2 - Quarterly Report
2024-02-14 13:30
Financial Performance - Total income for the three months ended December 31, 2023, was $262,914, a decrease of 39.5% compared to $435,129 for the same period in 2022[17] - Distributable income for the three months ended December 31, 2023, was $199,238, down 47.4% from $378,969 in the same period last year[17] - Distributions to unitholders for the six months ended December 31, 2023, totaled $410,984, a decrease of 59.5% compared to $1,012,417 for the same period in 2022[20] - Distributable income per unit for the three months ended December 31, 2023, was $0.10, down from $0.19 in the same period of 2022[17] - Distributable income for the six months ended December 31, 2023 was $427,295, down from $901,338 for the same period in 2022[66] Asset and Trust Corpus - Total assets increased to $994,494 as of December 31, 2023, up from $978,183 on June 30, 2023, representing a growth of approximately 1.6%[13] - The trust corpus at the end of the period was $994,494, compared to $1,043,064 at the end of the same period in 2022, indicating a decline of approximately 4.7%[20] Revenue Sources and Production - For the six months ended December 31, 2023, the Trust's royalty income decreased to $540,221 from $1,021,040 for the comparable period in 2022, primarily due to a decrease in the price and production of oil and natural gas[65] - Oil production for the six months ended December 31, 2023 decreased to 7,041 barrels from 9,499 barrels in the comparable period in 2022, while the average price realized for oil fell to $75.71 per barrel from $100.65[67] - Natural gas production decreased to 5,439 thousand cubic feet from 7,738 thousand cubic feet, with the average price realized dropping to $1.31 per thousand cubic feet from $8.40[68] - For the three months ended December 31, 2023, income from oil and natural gas royalties decreased to $249,200 from $425,321 in the comparable period in 2022[58] - The volume of oil sold in the three months ended December 31, 2023 decreased to 3,077 barrels from 4,311 barrels in the comparable period, with the average price realized for oil decreasing to $80.25 per barrel from $92.18[61] - Income from natural gas royalties (net of expenses) for the three months ended December 31, 2023 decreased to $2,259 from $27,931 for the comparable period in 2022[62] Expenses - General and administrative expenses increased to $140,294 for the six months ended December 31, 2023 from $134,241 for the comparable period in 2022, primarily due to an increase in professional fees[71] Risk and Control - The trust's income is heavily influenced by commodity prices, which can fluctuate widely due to supply and demand changes[39] - The trust's royalty income is highly dependent on the production levels and prices of oil and natural gas, which are influenced by factors beyond the company's control[49] - The trust's only obligation is to distribute the collected distributable income to unitholders, with no requirement for capital due to its limited purpose[41] - The trust's royalty income is recognized in the month received rather than the month of production, affecting the timing of income recognition[29] - As of December 31, 2023, Marine's disclosure controls and procedures were evaluated and deemed effective[76] - There have been no material changes in Marine's internal control over financial reporting during the quarter ended December 31, 2023[77] - No material changes in risk factors have been reported since the Annual Report for the fiscal year ended June 30, 2023[79]
Marine Petroleum Trust(MARPS) - 2024 Q1 - Quarterly Report
2023-11-13 16:52
Financial Performance - Total income for the three months ended September 30, 2023, was $304,675, down 49.3% from $600,450 in the same period of 2022[20]. - Distributable income for the three months ended September 30, 2023, was $228,057, a decrease of 56.4% compared to $522,369 in the prior year[20]. - Distributable income per unit dropped to $0.11 in Q3 2023 from $0.26 in Q3 2022, reflecting a decline of 57.7%[20]. - For the three months ended September 30, 2023, royalty income decreased to $291,021 from $595,719 in the comparable period in 2022, primarily due to decreased production and lower prices for oil and gas[59]. - Income from oil royalties decreased to $286,168 for the three months ended September 30, 2023, down from $558,640 in the comparable period in 2022[61]. - Income from natural gas royalties decreased to $4,852 for the three months ended September 30, 2023, compared to $37,079 for the same period in 2022[62]. Asset and Distribution Changes - Total assets decreased from $978,183 to $962,577, a decline of approximately 1.9% from June 30, 2023, to September 30, 2023[15][17]. - Distributions to unitholders for the three months ended September 30, 2023, totaled $243,663, resulting in a trust corpus of $962,577 at the end of the period[22]. - The Trust's corpus decreased from $978,183 at the beginning of the period to $962,577 at the end, reflecting the impact of distributions exceeding distributable income[22]. Production and Sales - Oil production decreased to 3,964 barrels for the three months ended September 30, 2023, down from 5,187 barrels in the comparable period in 2022, while natural gas production decreased to 3,148 thousand cubic feet from 4,417 thousand cubic feet[56]. - The volume of oil sold decreased by approximately 23.5% and natural gas sold decreased by approximately 29% compared to the same period in 2022[56]. - The average price realized for oil decreased to $72.19 per barrel in Q3 2023 from $107.70 per barrel in Q3 2022, and the average price for natural gas decreased to $1.54 per thousand cubic feet from $8.39[56]. Expenses and Reserves - General and administrative expenses decreased to $76,618 for the three months ended September 30, 2023, from $78,081 in the comparable period of 2022[64]. - The estimated reserve for future expenses deducted from distributable income for Q3 2023 was $76,500[27]. Market Influences - The Trust's royalty income is significantly influenced by commodity prices, which may fluctuate widely due to various factors including supply and demand dynamics[40][41]. - The Trust's income and distributions are expected to remain unpredictable due to the volatility of oil and natural gas prices[41][43]. - Marine's royalty income is influenced by factors beyond its control, including the number of productive wells and the prices at which oil and natural gas are sold[50]. - No new well completions were reported during the three months ended September 30, 2023, indicating a potential slowdown in exploration activities[45]. - The Trust realized approximately 97% of its royalty income from oil sales and 3% from natural gas sales during the three months ended September 30, 2023, compared to 94% and 6% respectively in the same period of 2022[54].
Marine Petroleum Trust(MARPS) - 2023 Q4 - Annual Report
2023-09-26 14:37
Revenue Sources - For the fiscal year ended June 30, 2023, approximately 95% of Marine's royalty revenues were attributable to oil sales, while 5% were from natural gas sales[23]. - Marine's royalty income is derived from contracts based on oil and natural gas sales from leases in the Gulf of Mexico, with no direct ownership of physical properties[62]. - Marine's revenue from oil royalties for fiscal 2023 was $1,523,466, an increase of approximately 21% from $1,259,133 in fiscal 2022, driven by higher oil prices and production[97]. - Revenue from natural gas royalties decreased to $86,416 in fiscal 2023 from $89,121 in fiscal 2022, despite an increase in average price per mcf to $6.80 from $5.86[98]. - Revenue from natural gas royalties increased to $89,121 in fiscal 2022, up from $23,905 in fiscal 2021, representing a growth of approximately 272%[103]. Production and Sales - For the fiscal year ended June 30, 2023, Marine reported net quantities sold of 16,817 barrels of oil and 12,712 thousand cubic feet of natural gas, compared to 16,096 barrels and 15,221 thousand cubic feet in 2022[66]. - The average sales price for oil in 2023 was $90.59 per barrel, an increase from $78.23 in 2022, while the average sales price for natural gas was $6.80 per thousand cubic feet, up from $5.86 in 2022[66]. - Marine's oil sales for the twelve months ended June 30, 2023, totaled 16,817 barrels, an increase from 16,096 barrels in 2022, representing a growth of 4.46%[180]. - Natural gas sales for Marine in the twelve months ended June 30, 2023, were 12,712 mcf, a decrease from 15,221 mcf in 2022, reflecting a decline of 16.54%[180]. Financial Performance - Total income for the fiscal year ended June 30, 2023 was $1,648,943, up from $1,441,940 in 2022, reflecting an increase of about 14.4%[148]. - Distributable income for the fiscal year 2023 was $1,375,417, compared to $1,204,193 in 2022, marking a rise of approximately 14.2%[148]. - Distributable income per unit increased from $0.60 in 2022 to $0.69 in 2023, an increase of 15%[148]. - Total distributions to unitholders rose to $1,551,337 in 2023 from $952,080 in 2022, indicating a significant increase of about 63%[151]. - The June 2023 distribution was $0.11 per unit, down from $0.16 in March 2023, but is expected to increase to $0.12 in September 2023[89]. Assets and Liabilities - Total assets increased from $978,183 in June 30, 2022 to $1,154,143 in June 30, 2023, representing a growth of approximately 18%[146]. - Cash and cash equivalents increased from $978,176 in June 30, 2022 to $1,154,136 in June 30, 2023, a growth of approximately 18%[166]. - The Trust's corpus at the end of the year was $978,183, down from $1,154,143 at the beginning of the year, reflecting a decrease of about 15%[151]. Operational Risks - Marine's royalty revenues are highly dependent on oil and natural gas prices, which are subject to significant volatility due to various uncontrollable factors[30]. - Marine does not have access to engineering data regarding reserves, making it difficult to estimate proved oil and natural gas reserves attributable to its interests[63]. - Marine is exposed to risks related to cybersecurity disruptions, which could adversely affect its operations and distributions to unitholders[51]. Trust Structure and Governance - The Trust is prohibited from engaging in any business activities and is set to expire on June 1, 2041, unless extended by unitholders[16]. - The Trust may be terminated and Marine's royalty interests sold if 80% or more of the unitholders approve, which could result in no further distributions to unitholders[49]. - The Trust is authorized to issue 2,000,000 units of beneficial interest, with 195 unitholders as of September 1, 2023, and distributions are made quarterly[76]. - The Trust has no long-term contractual obligations other than the obligation to distribute income to unitholders[108]. - The Trust does not maintain any off-balance sheet arrangements[108]. Audit and Compliance - Marine's financial statements are prepared on a modified cash basis, differing from generally accepted accounting principles (GAAP), which may affect the comparability of financial information[57]. - Audit fees for the fiscal year ended June 30, 2023, were $57,680, an increase from $50,630 in fiscal 2022[132]. - The Trust has no critical audit matters reported for the current period[143]. - As of June 30, 2023, the Trustee concluded that Marine's disclosure controls and procedures were effective[118]. Market and Trading - The trading volume of Marine's units has historically been low, which could lead to significant price fluctuations with small sales[45]. - The market price of Marine's units may not reflect the actual value of the royalty interests held, as it is influenced by external factors such as oil and natural gas prices[43]. - Two working interest owners accounted for 100% of the royalty payments to Marine for the fiscal year ended June 30, 2023, indicating a high concentration of revenue sources[48].