Workflow
Marine Petroleum Trust(MARPS)
icon
Search documents
Marine Petroleum Trust(MARPS) - 2023 Q3 - Quarterly Report
2023-05-15 15:56
Financial Performance - Total income for the three months ended March 31, 2023 was $300,607, down 35.3% from $464,333 in the same period of 2022[19] - Distributable income for the nine months ended March 31, 2023 increased to $1,117,141, a 45% increase compared to $770,793 for the same period in 2022[19] - The Trust's distributable income for the three months ended March 31, 2023 was $215,803, a decrease of 44.1% from $386,137 in the same period of 2022[19] - Distributable income for the three months ended March 31, 2023 decreased to $215,803 from $386,137 for the comparable period in 2022[64] Asset and Trust Corpus - Total assets decreased from $1,154,143 in June 30, 2022 to $940,243 as of March 31, 2023, representing a decline of approximately 18.5%[14] - Trust corpus at the end of the period was $940,243, down from $1,154,143 at the beginning of the period, indicating a decrease of approximately 18.5%[22] - The Trust's corpus at the end of the nine months ended March 31, 2023 was $940,243, compared to $1,115,744 at the end of the same period in 2022, reflecting a decrease of approximately 15.7%[22] Distributions - Distributions per unit for the three months ended March 31, 2023 were $0.11, down from $0.19 in the same period of 2022, reflecting a decrease of 42.1%[19] - Distributable income per unit for the nine months ended March 31, 2023 was $0.56, up from $0.39 for the same period in 2022, while distributions per unit increased to $0.67 from $0.28[58] Expenses - General and administrative expenses for the nine months ended March 31, 2023 were $219,045, an increase of 16.8% compared to $187,542 in the same period of 2022[19] - General and administrative expenses increased to $84,804 for the three months ended March 31, 2023, up from $78,196 in the prior year, mainly due to increased professional fees[69] Production and Income Sources - For the nine months ended March 31, 2023, the Trust's royalty income increased to $1,309,654 from $865,314 for the comparable period in 2022, primarily due to higher oil and natural gas prices and increased oil production[70] - Oil production for the nine months ended March 31, 2023 rose to 12,888 barrels from 11,635 barrels in the prior year, with the average price realized for oil increasing to $95.71 per barrel from $69.30[72] - Natural gas production decreased to 9,652 thousand cubic feet from 10,457 thousand cubic feet, but the average price realized for natural gas increased to $7.89 per thousand cubic feet from $5.65[73] - For the three months ended March 31, 2023, income from oil and natural gas royalties decreased to $288,614 from $371,382 in the same period of 2022, primarily due to lower production[63] Price Realization - The average price realized for oil in the three months ended March 31, 2023 was $81.85 per barrel, compared to $74.05 per barrel in the same period of 2022[65] - The average price realized for natural gas (net of expenses) decreased to $5.82 per thousand cubic feet for the three months ended March 31, 2023, down from $5.98 in the prior year[66] Internal Controls and Risk Factors - As of March 31, 2023, Marine's disclosure controls and procedures were evaluated and deemed effective[80] - There have been no material changes in Marine's internal control over financial reporting during the quarter ended March 31, 2023[81] - No material changes have occurred in the risk factors previously disclosed in Marine's Annual Report for the fiscal year ended June 30, 2022[83]
Marine Petroleum Trust(MARPS) - 2023 Q2 - Quarterly Report
2023-02-14 19:17
Financial Performance - Total income for the three months ended December 31, 2022, was $435,129, a 64.4% increase from $264,707 in the same period of 2021[15] - Distributable income for the six months ended December 31, 2022, was $901,338, compared to $384,656 for the same period in 2021, reflecting a 134% increase[15] - Distributions to unitholders for the six months ended December 31, 2022, totaled $1,012,417, significantly higher than $342,109 in the prior year[18] - Distributable income per unit for the six months ended December 31, 2022, was $0.45, up from $0.19 in the same period of 2021[15] - Distributable income per unit for the six months ended December 31, 2022 was $0.45, up from $0.19 for the same period in 2021, while distributions per unit increased to $0.51 from $0.17[53] Asset and Trust Corpus - The trust corpus at the end of the period was $1,043,064, down from $1,154,143 at the end of June 2022, representing a decrease of 9.6%[10] - The trust's total assets decreased from $1,154,143 as of June 30, 2022, to $1,043,064 as of December 31, 2022, a decline of 9.6%[10] - The trust's corpus at the beginning of the six months ended December 31, 2022, was $1,154,143, compared to $902,030 at the beginning of the same period in 2021, indicating a growth of 28%[18] Production and Revenue - For the six months ended December 31, 2022, royalty income increased to $1,021,040 from $493,932 for the comparable period in 2021, primarily due to increased oil and natural gas prices and production[65] - Oil production for the six months ended December 31, 2022 rose to 9,499 barrels from 6,917 barrels in the same period in 2021, with the average price realized for oil increasing to $100.65 per barrel from $66.06[67] - Natural gas production increased to 7,738 thousand cubic feet from 6,775 thousand cubic feet, with the average price realized for natural gas rising to $8.40 per thousand cubic feet from $5.46[68] - Income from oil royalties for the three months ended December 31, 2022 increased to $397,391 from $248,187 for the comparable period in 2021, with oil sold increasing to 4,311 barrels from 3,676 barrels[60] - Income from natural gas royalties for the three months ended December 31, 2022 increased to $27,931 from $16,505 for the comparable period in 2021, with natural gas sold increasing to 3,321 thousand cubic feet from 2,967 thousand cubic feet[61] Expenses - General and administrative expenses for the three months ended December 31, 2022, were $56,160, down from $83,263 in the same period of 2021, a reduction of 32.5%[15] - General and administrative expenses decreased to $56,160 for the three months ended December 31, 2022 from $83,263 for the comparable period in 2021[64] Risk and Control - The Trust's income is heavily influenced by commodity prices, which may fluctuate due to various factors including political conditions and market uncertainty[41] - The Trust's only obligation is to distribute the collected distributable income to unitholders, with no requirement for capital due to its limited purpose[42] - The Trust's royalty income is derived from third-party oil and natural gas production activities, and is subject to fluctuations based on production levels and market prices[49] - Marine's disclosure controls and procedures were evaluated as effective as of December 31, 2022[77] - There have been no material changes in Marine's internal control over financial reporting during the quarter ended December 31, 2022[78] - No material changes in risk factors have been disclosed since the Annual Report for the fiscal year ended June 30, 2022[80] - Marine's forward-looking statements include potential impacts from oil and natural gas price reductions and COVID-19[72] - The company anticipates that actual results may differ from expected results due to various uncertainties[72] - The Trustee is responsible for maintaining Marine's disclosure controls and procedures[75] - The company has not reported any changes in market risk disclosures since the last Annual Report[74] Strategic Developments - Marine has not disclosed any new strategies or market expansions in the current report[80] - No new products or technologies have been mentioned in the current report[80]
Marine Petroleum Trust(MARPS) - 2022 Q4 - Annual Report
2022-08-31 18:31
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION For the transition period from to . Commission File No. 000-08565 Marine Petroleum Trust (Exact name of registrant as specified in its charter) 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, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Texas 75-6008017 (State or other jurisdiction o ...
Marine Petroleum Trust(MARPS) - 2022 Q3 - Quarterly Report
2022-05-16 16:18
PART I. FINANCIAL INFORMATION This part presents the Trust's unaudited condensed consolidated financial statements, including assets, liabilities, distributable income, and changes in trust corpus, along with the Trustee's discussion and analysis of operations [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Marine Petroleum Trust, including statements of assets, liabilities and trust corpus, distributable income, and changes in trust corpus for the periods ended March 31, 2022, and June 30, 2021. It also includes notes detailing accounting policies, basis of accounting (modified cash basis, not GAAP), distributable income components, and the Trust's investment in Tidelands Royalty Trust "B" [Condensed Consolidated Statements of Assets, Liabilities and Trust Corpus](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Assets%2C%20Liabilities%20and%20Trust%20Corpus) This section provides a snapshot of the Trust's financial position, detailing assets, liabilities, and trust corpus as of March 31, 2022, and June 30, 2021 | Metric | March 31, 2022 (Unaudited) | June 30, 2021 | | :-------------------------- | :-------------------------- | :------------ | | Cash and cash equivalents | $1,115,737 | $902,023 | | Total assets | $1,115,744 | $902,030 | | Trust corpus | $1,115,744 | $902,030 | [Condensed Consolidated Statements of Distributable Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Distributable%20Income) This section outlines the Trust's distributable income for the three and nine months ended March 31, 2022, and 2021, highlighting royalty income and expenses | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | Nine Months Ended March 31, 2022 | Nine Months Ended March 31, 2021 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | :------------------------------- | :------------------------------- | | Oil and natural gas royalties | $371,382 | $82,501 | $865,314 | $237,686 | | Oil and natural gas royalties from affiliate | $93,134 | — | $93,134 | — | | Total income | $464,333 | $82,853 | $958,335 | $237,869 | | General and administrative expenses | $78,196 | $71,343 | $187,542 | $188,640 | | Distributable income | $386,137 | $11,241 | $770,793 | $49,229 | | Distributable income per unit | $0.19 | $0.01 | $0.39 | $0.02 | [Condensed Consolidated Statements of Changes in Trust Corpus (Nine Months)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Trust%20Corpus%20(Nine%20Months)) This section details the changes in the Trust's corpus over the nine months ended March 31, 2022, and 2021, including distributable income and unitholder distributions | Metric | Nine Months Ended March 31, 2022 | Nine Months Ended March 31, 2021 | | :-------------------------- | :------------------------------- | :------------------------------- | | Trust corpus, beginning | $902,030 | $936,552 | | Distributable income | $770,793 | $49,229 | | Distributions to unitholders | ($557,079) | ($139,647) | | Trust corpus, end of period | $1,115,744 | $846,134 | | Distributions per unit | $0.28 | $0.07 | [Condensed Consolidated Statements of Changes in Trust Corpus (Three Months)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Trust%20Corpus%20(Three%20Months)) This section details the changes in the Trust's corpus over the three months ended March 31, 2022, and 2021, including distributable income and unitholder distributions | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :-------------------------- | :-------------------------------- | :-------------------------------- | | Trust corpus, beginning | $944,577 | $871,152 | | Distributable income | $386,137 | $11,241 | | Distributions to unitholders | ($214,970) | ($36,259) | | Trust corpus, end of period | $1,115,744 | $846,134 | | Distributions per unit | $0.11 | $0.02 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides critical details on the Trust's accounting policies, basis of accounting, components of distributable income, and its investment in Tidelands Royalty Trust "B" - The financial statements are prepared on a **modified cash basis method**, not in conformity with GAAP, as permitted for royalty trusts by SEC Staff Accounting Bulletin Topic 12:E[22](index=22&type=chunk) - Distributable income is paid quarterly and fluctuates primarily due to changes in oil and natural gas prices and production quantities, and includes royalties from offshore Texas leases, **98% of royalties from offshore Louisiana leases** (via MPC), cash distributions from Tidelands Royalty Trust "B", and dividends from MPC, less administrative expenses[23](index=23&type=chunk)[24](index=24&type=chunk) - The Trust owned **32.6% of Tidelands Royalty Trust "B"** at March 31, 2022. Tidelands was wound up, and a final distribution of **$93,134** was received in February 2022[26](index=26&type=chunk)[28](index=28&type=chunk) [Item 2. Trustee's Discussion and Analysis of Financial Condition and Results of Operations](index=9&type=section&id=Item%202.%20Trustee%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides an overview of the Trust's organization, its financial condition, and results of operations, highlighting the impact of commodity prices, liquidity, and accounting policies. It details the significant increase in distributable income and distributions per unit for both the three and nine months ended March 31, 2022, driven by higher oil and natural gas production volumes and prices, as well as a final distribution from Tidelands Royalty Trust "B" [Organization](index=9&type=section&id=Organization) This section describes Marine Petroleum Trust's structure, purpose, and its role as a royalty trust administering oil and natural gas lease payments - Marine Petroleum Trust is a royalty trust created in **1956**, with Simmons Bank serving as the corporate trustee; a proposed change to Argent Trust Company was not approved by unitholders[29](index=29&type=chunk) - The Trust's sole purpose is the administration and liquidation of rights to payments from oil and natural gas leases in the Gulf of Mexico, holding interests offshore Texas, while its wholly-owned subsidiary, Marine Petroleum Corporation (MPC), holds interests offshore Louisiana[30](index=30&type=chunk)[31](index=31&type=chunk) - The Trust holds overriding royalty interests, which are passive and terminate with the underlying lease, with income based on the selling price or wellhead value of produced minerals[32](index=32&type=chunk) [Commodity Prices](index=11&type=section&id=Commodity%20Prices) This section discusses how fluctuating commodity prices for oil and natural gas significantly impact the Trust's income and distributions - The Trust's income and monthly distributions are heavily influenced by fluctuating commodity prices, which are affected by supply/demand, market uncertainty, and various external factors including political and economic conditions, and governmental regulation[35](index=35&type=chunk)[40](index=40&type=chunk) - Declining crude oil and natural gas prices reduce distributable income and may lead to decreased exploration and development activity on the Trust's royalty properties[36](index=36&type=chunk) [Liquidity and Capital Resources](index=11&type=section&id=Liquidity%20and%20Capital%20Resources) This section clarifies that the Trust has no capital requirements, as its sole function is to distribute collected income from depleting royalty assets - The Trust has **no capital requirements**, as its only obligation is to distribute collected distributable income to unitholders quarterly after administrative expenses[37](index=37&type=chunk) - The Trust's oil and natural gas properties are depleting assets, and the Trust is prohibited from making new investments, allowing it to be treated as a grantor trust for tax purposes[38](index=38&type=chunk) [The Leases](index=11&type=section&id=The%20Leases) This section provides an overview of the Trust's overriding royalty interests in Gulf of Mexico leases and reports on recent drilling activities - No new well completions or drilling/recompletion activities were reported on Marine's interest leases during the three months ended March 31, 2022, or as of May 1, 2022[39](index=39&type=chunk) - Marine holds an overriding royalty interest equal to **three-fourths of one percent** of the working interest on **55 leases** covering **199,868 gross acres** in the Gulf of Mexico, applicable only to existing leases[40](index=40&type=chunk) [Critical Accounting Policies and Estimates](index=12&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section explains Marine's modified cash basis accounting method and confirms no changes in critical accounting policies or estimates - Marine uses the **modified cash basis method of accounting**, recording royalty income when received and distributions when declared, with expenses recorded on an actual paid basis, and cash reserves may be established for contingencies[41](index=41&type=chunk) - There were **no changes** in critical accounting policies or estimates during the three and nine months ended March 31, 2022[42](index=42&type=chunk) [New Accounting Pronouncements](index=12&type=section&id=New%20Accounting%20Pronouncements) This section confirms that no new accounting pronouncements have a significant impact on Marine's financial statements due to its modified-cash basis accounting - No new accounting pronouncements have been adopted or issued that would significantly impact Marine's financial statements due to its modified-cash basis accounting[43](index=43&type=chunk) [General](index=12&type=section&id=General) This section highlights that Marine's royalty income is subject to external factors like production levels and commodity prices, with expected declines due to normal depletion - Marine's royalty income is derived from third-party oil and natural gas production and fluctuates based on factors beyond its control, including productive wells, production levels, and commodity prices[44](index=44&type=chunk) - Production from existing wells is expected to decrease due to normal depletion, and operators do not provide information on future drilling or re-working operations[46](index=46&type=chunk) [Summary of Operating Results](index=12&type=section&id=Summary%20of%20Operating%20Results) This section summarizes the Trust's operating performance, including distributable income, distributions per unit, and key production and pricing metrics - For the nine months ended March 31, 2022, royalty income was primarily from oil (**93%**) with natural gas contributing **7%**, compared to **95% oil** and **5% natural gas** in the prior year[47](index=47&type=chunk) | Metric | 9 Months Ended March 31, 2022 | 9 Months Ended March 31, 2021 | | :-------------------------- | :---------------------------- | :---------------------------- | | Distributable income per unit | $0.39 | $0.02 | | Distributions per unit | $0.28 | $0.07 | | Metric | 9 Months Ended March 31, 2022 | 9 Months Ended March 31, 2021 | | :----------------------------------- | :---------------------------- | :---------------------------- | | Oil production (bbls) | 11,635 | 6,624 | | Natural gas production (mcf) | 10,457 | 5,546 | | Average oil price per bbl | $69.30 | $34.14 | | Average natural gas price per mcf | $5.65 | $2.08 | | Quarter Ended | Oil (bbls) | Natural Gas (mcf) | Distributable Income Per Unit | Distributions Per Unit | | :----------------- | :--------- | :---------------- | :---------------------------- | :--------------------- | | December 31, 2020 | 2,512 | 1,965 | $0.00 | $0.01 | | March 31, 2021 | 1,965 | 1,428 | $0.01 | $0.02 | | June 30, 2021 | 2,460 | 2,992 | $0.05 | $0.06 | | September 30, 2021 | 3,241 | 3,808 | $0.10 | $0.06 | | December 31, 2021 | 3,676 | 2,967 | $0.09 | $0.11 | | March 31, 2022 | 4,718 | 3,681 | $0.19 | $0.11 | [Results of Operations—Three Months Ended March 31, 2022 Compared to the Three Months Ended March 31, 2021](index=13&type=section&id=Results%20of%20Operations%E2%80%94Three%20Months%20Ended%20March%2031%2C%202022%20Compared%20to%20the%20Three%20Months%20Ended%20March%2031%2C%202021) This section analyzes the Trust's financial performance for the three months ended March 31, 2022, compared to the prior year, focusing on royalty income and expenses - Income from oil and natural gas royalties increased significantly to **$371,382** for the three months ended March 31, 2022, from **$82,501** in the comparable period of 2021, driven by increased production and sharply higher prices[53](index=53&type=chunk) | Metric | 3 Months Ended March 31, 2022 | 3 Months Ended March 31, 2021 | | :----------------------------------- | :---------------------------- | :---------------------------- | | Distributable income | $386,138 | $11,241 | | Oil royalties income | $349,357 | $78,468 | | Oil volume sold (bbls) | 4,718 | 1,965 | | Average oil price per bbl | $74.05 | $39.94 | | Natural gas royalties income | $22,025 | $4,033 | | Natural gas volume sold (mcf) | 3,681 | 1,428 | | Average natural gas price per mcf | $5.98 | $2.82 | | Tidelands distribution | $93,134 | — | | General and administrative expenses | $78,196 | $71,343 | [Results of Operations—Nine Months Ended March 31, 2022 Compared to the Nine Months Ended March 31, 2021](index=14&type=section&id=Results%20of%20Operations%E2%80%94Nine%20Months%20Ended%20March%2031%2C%202022%20Compared%20to%20the%20Nine%20Months%20Ended%20March%2031%2C%202021) This section analyzes the Trust's financial performance for the nine months ended March 31, 2022, compared to the prior year, focusing on royalty income and expenses - Income from oil and natural gas royalties (excluding Tidelands) increased to **$865,314** for the nine months ended March 31, 2022, from **$237,686** in the comparable period of 2021, primarily due to higher prices and production[60](index=60&type=chunk) | Metric | 9 Months Ended March 31, 2022 | 9 Months Ended March 31, 2021 | | :----------------------------------- | :---------------------------- | :---------------------------- | | Distributable income | $770,793 | $49,229 | | Oil royalties income | $806,273 | $226,167 | | Oil volume sold (bbls) | 11,635 | 6,624 | | Average oil price per bbl | $69.30 | $34.14 | | Natural gas royalties income | $59,041 | $11,519 | | Natural gas volume sold (mcf) | 10,457 | 5,546 | | Average natural gas price per mcf | $5.65 | $2.08 | | Tidelands distribution | $93,134 | — | | General and administrative expenses | $187,541 | $188,641 | [Forward-Looking Statements](index=15&type=section&id=Forward-Looking%20Statements) This section identifies forward-looking statements and outlines the inherent risks associated with commodity prices, production, and regulatory changes - Forward-looking statements are identified by words like "anticipate," "believe," "expect," and are subject to risks such as reductions in commodity prices or demand, production declines, regulatory changes, and general economic conditions[66](index=66&type=chunk) [Website](index=15&type=section&id=Website) This section informs that Marine's SEC reports are available free of charge on its website after filing - Marine makes its SEC reports (10-K, 10-Q, 8-K) available free of charge on its website, **www.marps-marine.com**, as soon as practicable after filing[67](index=67&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=15&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There have been no material changes to the market risk disclosures previously provided in Marine's Annual Report on Form 10-K for the fiscal year ended June 30, 2021 - No material changes from the market risk information provided in the Annual Report on Form 10-K for the fiscal year ended June 30, 2021[68](index=68&type=chunk) [Item 4. Controls and Procedures](index=16&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of Marine's disclosure controls and procedures as of March 31, 2022, and reports no material changes in internal control over financial reporting during the quarter [Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures](index=16&type=section&id=Conclusion%20Regarding%20the%20Effectiveness%20of%20Disclosure%20Controls%20and%20Procedures) This section confirms the Trustee's conclusion that Marine's disclosure controls and procedures were effective as of March 31, 2022 - The Trustee concluded that Marine's disclosure controls and procedures were **effective** as of March 31, 2022, following an evaluation of their design and operation[70](index=70&type=chunk)[71](index=71&type=chunk) [Changes in Internal Control Over Financial Reporting](index=16&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) This section reports that there were no material changes in Marine's internal control over financial reporting during the quarter ended March 31, 2022 - There have been **no material changes** in Marine's internal control over financial reporting during the quarter ended March 31, 2022[72](index=72&type=chunk) PART II. OTHER INFORMATION This part addresses market risk, controls and procedures, and lists required exhibits, confirming no material changes to previously disclosed risk factors [Item 1A. Risk Factors](index=17&type=section&id=Item%201A.%20Risk%20Factors) This section states that there have been no material changes to the risk factors previously disclosed in Marine's Annual Report on Form 10-K for the fiscal year ended June 30, 2021 - No material changes from the risk factors previously disclosed in Marine's Annual Report on Form 10-K for the fiscal year ended June 30, 2021[74](index=74&type=chunk) [Item 6. Exhibits](index=17&type=section&id=Item%206.%20Exhibits) This section lists the exhibits included in the report, specifically certifications required by the Sarbanes-Oxley Act of 2002 - Exhibits include Certification of the Corporate Trustee pursuant to Section 302 and Section 906 of the Sarbanes-Oxley Act of 2002[76](index=76&type=chunk)
Marine Petroleum Trust(MARPS) - 2022 Q2 - Quarterly Report
2022-02-14 20:05
[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) Presents Marine Petroleum Trust's financial information, including statements and related disclosures [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents Marine Petroleum Trust's unaudited condensed consolidated financial statements, including assets, liabilities, trust corpus, distributable income, and notes [Condensed Consolidated Statements of Assets, Liabilities and Trust Corpus](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Assets%2C%20Liabilities%20and%20Trust%20Corpus) Presents the condensed consolidated statements of assets, liabilities, and trust corpus Condensed Consolidated Statements of Assets, Liabilities and Trust Corpus | Item | December 31, 2021 (Unaudited) ($) | June 30, 2021 ($) | | :-------------------------- | :------------------------------ | :-------------- | | Cash and cash equivalents | $944,570 | $902,023 | | Producing oil and natural gas properties | $7 | $7 | | Total assets | $944,577 | $902,030 | | Total current liabilities | $— | $— | | Trust corpus | $944,577 | $902,030 | [Condensed Consolidated Statements of Distributable Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Distributable%20Income) Presents the condensed consolidated statements of distributable income Condensed Consolidated Statements of Distributable Income (Three Months Ended December 31) | Item | 2021 (Unaudited) ($) | 2020 (Unaudited) ($) | | :---------------------------------- | :----------------- | :----------------- | | Oil and natural gas royalties | $264,692 | $101,545 | | Total income | $264,707 | $101,545 | | General and administrative expenses | $83,263 | $96,583 | | Distributable income | $181,444 | $4,962 | | Distributable income per unit | $0.09 | $0.00 | Condensed Consolidated Statements of Distributable Income (Six Months Ended December 31) | Item | 2021 (Unaudited) ($) | 2020 (Unaudited) ($) | | :---------------------------------- | :----------------- | :----------------- | | Oil and natural gas royalties | $493,932 | $155,185 | | Total income | $494,002 | $155,287 | | General and administrative expenses | $109,346 | $117,298 | | Distributable income | $384,656 | $37,989 | | Distributable income per unit | $0.19 | $0.02 | [Condensed Consolidated Statements of Changes in the Trust Corpus (Six Months)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20the%20Trust%20Corpus%20%28Six%20Months%29) Presents the condensed consolidated statements of changes in trust corpus for six months Condensed Consolidated Statements of Changes in Trust Corpus (Six Months Ended December 31) | Item | 2021 (Unaudited) ($) | 2020 (Unaudited) ($) | | :-------------------------- | :----------------- | :----------------- | | Trust corpus, beginning of period | $902,030 | $936,552 | | Distributable income | $384,656 | $37,989 | | Distributions to unitholders | $(342,109) | $(103,389) | | Trust corpus, end of period | $944,577 | $871,152 | | Distributions per unit | $0.17 | $0.05 | [Condensed Consolidated Statements of Changes in Trust Corpus (Three Months)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Trust%20Corpus%20%28Three%20Months%29) Presents the condensed consolidated statements of changes in trust corpus for three months Condensed Consolidated Statements of Changes in Trust Corpus (Three Months Ended December 31) | Item | 2021 (Unaudited) ($) | 2020 (Unaudited) ($) | | :-------------------------- | :----------------- | :----------------- | | Trust corpus, beginning of period | $976,619 | $880,546 | | Distributable income | $181,444 | $4,962 | | Distributions to unitholders | $(213,486) | $(14,356) | | Trust corpus, end of period | $944,577 | $871,152 | | Distributions per unit | $0.11 | $0.01 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides explanatory notes to the condensed consolidated financial statements - The financial statements are condensed, consolidated, and unaudited, prepared on a **modified cash basis**, which **differs from GAAP** and includes Marine Petroleum Trust and its wholly-owned subsidiary, Marine Petroleum Corporation[26](index=26&type=chunk)[27](index=27&type=chunk) - Distributable income is paid quarterly to unitholders, less reserves for accrued liabilities and estimated future expenses, with a **$50,000 reserve** deducted for the three months ended December 31, 2021[28](index=28&type=chunk) - Distributable income comprises royalties from offshore Texas leases, **98% of royalties** from offshore Louisiana leases (via MPC), cash distributions from Tidelands Royalty Trust "B", and dividends from MPC, less administrative expenses[29](index=29&type=chunk) - Key differences from GAAP under the modified cash basis include **royalty income recognition upon receipt**, **expense recording upon payment**, and **nominal asset valuation without depletion allowance**[31](index=31&type=chunk) - The Trust owned **32.6%** of Tidelands Royalty Trust "B" as of December 31, 2021, with Tidelands winding up and a **final distribution of $0.205883 per unit** expected on February 14, 2022[32](index=32&type=chunk)[33](index=33&type=chunk) [Item 2. Trustee's Discussion and Analysis of Financial Condition and Results of Operations](index=9&type=section&id=Item%202.%20Trustee%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The Trustee analyzes Marine Petroleum Trust's financial condition and operational results, covering organization, commodity prices, liquidity, leases, and comparative performance [Organization](index=9&type=section&id=Organization) Details the organization and purpose of Marine Petroleum Trust and its subsidiary - Marine Petroleum Trust is a Texas royalty trust established in 1956, administered by **Simmons Bank** as Trustee, with an agreement for Simmons Bank to resign and nominate **Argent Trust Company** as successor, pending unitholder approval[34](index=34&type=chunk) - The Trust's sole purpose is to administer and liquidate rights to payments from oil and natural gas leases in the Gulf of Mexico, holding interests offshore Texas, while its wholly-owned subsidiary, Marine Petroleum Corporation (MPC), holds interests offshore Louisiana[36](index=36&type=chunk)[37](index=37&type=chunk) - Marine's rights are overriding royalty interests, terminating with the underlying lease, with income based on the selling price or wellhead value of produced minerals, and all production and marketing handled by working interest owners[38](index=38&type=chunk) [Commodity Prices](index=11&type=section&id=Commodity%20Prices) Discusses the impact of fluctuating commodity prices on the Trust's income and distributions - The Trust's income and monthly distributions are highly sensitive to fluctuating commodity prices, influenced by supply/demand, market uncertainty, and various external factors[41](index=41&type=chunk)[46](index=46&type=chunk) - Gas royalty income generally relates to production **three months prior**, and crude oil royalty income to production **two months prior**, with declining prices reducing distributable income and potentially decreasing exploration/development activity[42](index=42&type=chunk) [Liquidity and Capital Resources](index=11&type=section&id=Liquidity%20and%20Capital%20Resources) Outlines the Trust's liquidity position and capital resource management, noting no capital requirements - The Trust has **no capital requirements**, as its only obligation is to distribute collected distributable income to unitholders quarterly after administrative expenses[43](index=43&type=chunk) - The Trust is prohibited from engaging in trade or business, its oil and natural gas properties are depleting assets, and it is treated as a **grantor trust** for tax purposes, with income and deductions flowing through to unitholders[44](index=44&type=chunk) [The Leases](index=11&type=section&id=The%20Leases) Describes Marine's overriding royalty interests in Gulf of Mexico oil and natural gas leases - **No new well completions or drilling/recompletion activities** were reported on Marine's interest leases during the three months ended December 31, 2021, or as of February 1, 2022[45](index=45&type=chunk) - Marine holds an overriding royalty interest equal to **three-fourths of one percent** of the working interest on **55 existing leases** in the Gulf of Mexico, covering **199,868 gross acres**, which does not apply to new leases[46](index=46&type=chunk)[47](index=47&type=chunk) - The Trust's **32.6% interest** in Tidelands Royalty Trust "B" will cease to provide income after a final distribution expected on **February 14, 2022**, as Tidelands' term expired in 2021 and it is winding up[47](index=47&type=chunk) [Critical Accounting Policies and Estimates](index=12&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Explains Marine's critical accounting policies and estimates, primarily the modified cash basis method - Marine uses the **modified cash basis method** of accounting, recognizing royalty income when received and expenses when paid, reporting distributable income instead of net income, and permitting cash reserves for contingencies[48](index=48&type=chunk) - There were **no changes** in critical accounting policies or estimates during the three and six months ended December 31, 2021[49](index=49&type=chunk) [New Accounting Pronouncements](index=12&type=section&id=New%20Accounting%20Pronouncements) Addresses the impact of new accounting pronouncements on Marine's financial statements - **No new accounting pronouncements** have been adopted or issued that would significantly impact Marine's financial statements, given its modified-cash basis accounting[50](index=50&type=chunk) [General](index=12&type=section&id=General) Provides general information on Marine's royalty income sources and production expectations - Marine's royalty income is derived from third-party oil and natural gas production and fluctuates based on factors beyond its control, including productive wells, production levels, and commodity prices[51](index=51&type=chunk) - Royalty income depends on the operations of working interest owners responsible for production, sales, and royalty payment calculations, with production expected to decrease in the future due to normal well depletion[52](index=52&type=chunk)[53](index=53&type=chunk) [Summary of Operating Results](index=12&type=section&id=Summary%20of%20Operating%20Results) Summarizes Marine Petroleum Trust's key operating results and performance metrics - For the six months ended December 31, 2021, **93% from oil** and **7% from natural gas** comprised royalty income, compared to **95% from oil** and **5% from natural gas** in the comparable 2020 period[54](index=54&type=chunk) Key Operating Results (Six Months Ended December 31) | Metric | 2021 | 2020 | | :-------------------------- | :----- | :----- | | Distributable income per unit ($) | $0.19 | $0.02 | | Distributions per unit ($) | $0.17 | $0.05 | | Oil production (bbls) | 6,917 | 4,659 | | Natural gas production (mcf) | 6,775 | 4,118 | | Average oil price ($/bbl) | $66.06 | $31.70 | | Average natural gas price ($/mcf) | $5.46 | $1.82 | Net Production Quantities, Distributable Income, and Distributions Per Unit (Last Six Quarters) | Quarter Ended | Oil (bbls) | Natural Gas (mcf) | Distributable Income Per Unit ($) | Distributions Per Unit ($) | | :---------------- | :--------- | :---------------- | :---------------------------- | :--------------------- | | September 30, 2020 | 2,148 | 2,154 | $0.02 | $0.04 | | December 31, 2020 | 2,512 | 1,965 | $0.00 | $0.01 | | March 31, 2021 | 1,965 | 1,428 | $0.01 | $0.02 | | June 30, 2021 | 2,460 | 2,992 | $0.05 | $0.06 | | September 30, 2021 | 3,241 | 3,808 | $0.10 | $0.06 | | December 31, 2021 | 3,676 | 2,967 | $0.09 | $0.11 | [Results of Operations (Three Months Ended December 31, 2021 vs. 2020)](index=13&type=section&id=Results%20of%20Operations%E2%80%94Three%20Months%20Ended%20December%2031%2C%202021%20Compared%20to%20the%20Three%20Months%20Ended%20December%2031%2C%202020) Compares Marine's operating results for the three months ended December 31, 2021, versus 2020 - Total oil and natural gas royalties **increased significantly to $264,692** in Q4 2021 **from $101,545** in Q4 2020, driven by higher production volumes and sharply increased commodity prices[60](index=60&type=chunk) - Distributable income **surged to $181,444** in Q4 2021 **from $4,962** in Q4 2020[61](index=61&type=chunk) Oil and Natural Gas Performance (Three Months Ended December 31) | Metric | 2021 | 2020 | Change (YoY) | | :-------------------------- | :----- | :----- | :----------- | | Oil royalties ($) | $248,187 | $97,903 | +153.5% | | Oil volume sold (bbls) | 3,676 | 2,512 | +46.3% | | Average oil price ($/bbl) | $67.52 | $38.98 | +73.2% | | Natural gas royalties ($) | $16,505 | $3,642 | +353.2% | | Natural gas volume sold (mcf) | 2,967 | 1,965 | +50.9% | | Average natural gas price ($/mcf) | $5.56 | $1.85 | +200.5% | - General and administrative expenses **decreased to $83,263** in Q4 2021 **from $96,583** in Q4 2020, primarily due to lower professional and printing costs[66](index=66&type=chunk) [Results of Operations (Six Months Ended December 31, 2021 vs. 2020)](index=14&type=section&id=Results%20of%20Operations%E2%80%94Six%20Months%20Ended%20December%2031%2C%202021%20Compared%20to%20the%20Six%20Months%20Ended%20December%2031%2C%202020) Compares Marine's operating results for the six months ended December 31, 2021, versus 2020 - Total oil and natural gas royalties **increased significantly to $493,932** for the six months ended December 31, 2021, **from $155,185** in the comparable 2020 period, driven by increased prices and production[67](index=67&type=chunk) - Distributable income **rose substantially to $384,656** for the six months ended December 31, 2021, **from $37,989** in the comparable 2020 period[68](index=68&type=chunk) Oil and Natural Gas Performance (Six Months Ended December 31) | Metric | 2021 | 2020 | Change (YoY) | | :-------------------------- | :----- | :----- | :----------- | | Oil royalties ($) | $456,916 | $147,699 | +209.4% | | Oil volume sold (bbls) | 6,917 | 4,659 | +48.5% | | Average oil price ($/bbl) | $66.06 | $31.70 | +108.4% | | Natural gas royalties ($) | $37,016 | $7,487 | +394.4% | | Natural gas volume sold (mcf) | 6,775 | 4,118 | +64.5% | | Average natural gas price ($/mcf) | $5.46 | $1.82 | +200.0% | - General and administrative expenses **decreased to $109,346** for the six months ended December 31, 2021, **from $117,298** in the comparable 2020 period, mainly due to lower professional and printing costs[73](index=73&type=chunk) [Forward-Looking Statements](index=15&type=section&id=Forward-Looking%20Statements) Highlights forward-looking statements and associated risks regarding future financial performance - The report contains forward-looking statements regarding future financial performance, which are subject to risks such as commodity price fluctuations, production declines, regulatory changes, economic conditions, and the Trustee's resignation[74](index=74&type=chunk) [Website](index=15&type=section&id=Website) Provides information on where to access Marine Petroleum Trust's public filings - Marine's Annual, Quarterly, and Current Reports, along with amendments, are available free of charge on its website at **www.marps-marine.com**[75](index=75&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=15&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk disclosures from the Annual Report on Form 10-K for the fiscal year ended June 30, 2021 - **No material change** from the market risk disclosures in the Annual Report on Form 10-K for the fiscal year ended June 30, 2021[76](index=76&type=chunk) [Item 4. Controls and Procedures](index=16&type=section&id=Item%204.%20Controls%20and%20Procedures) Details the effectiveness of disclosure controls and procedures, with the Trustee concluding they were effective and no material changes in internal control [Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures](index=16&type=section&id=Conclusion%20Regarding%20the%20Effectiveness%20of%20Disclosure%20Controls%20and%20Procedures) Presents the Trustee's conclusion on the effectiveness of disclosure controls and procedures - As of December 31, 2021, the Trustee concluded that Marine's disclosure controls and procedures were **effective**[79](index=79&type=chunk) [Changes in Internal Control Over Financial Reporting](index=16&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) Reports on any material changes in internal control over financial reporting - There have been **no material changes** in Marine's internal control over financial reporting during the quarter ended December 31, 2021[80](index=80&type=chunk) [PART II. OTHER INFORMATION](index=17&type=section&id=PART%20II.%20OTHER%20INFORMATION) Presents other information, including risk factors and exhibits [Item 1A. Risk Factors](index=17&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for the fiscal year ended June 30, 2021 - **No material changes** to the risk factors previously disclosed in the Annual Report on Form 10-K for the fiscal year ended June 30, 2021[82](index=82&type=chunk) [Item 6. Exhibits](index=17&type=section&id=Item%206.%20Exhibits) Lists exhibits in the Form 10-Q, including Corporate Trustee certifications under Sarbanes-Oxley Act Sections 302 and 906 - Exhibits include Certification of the Corporate Trustee pursuant to **Section 302 and Section 906 of the Sarbanes-Oxley Act of 2002**[84](index=84&type=chunk)
Marine Petroleum Trust(MARPS) - 2022 Q1 - Quarterly Report
2021-11-15 20:33
[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements, along with the Trustee's discussion and analysis of financial condition, market risk disclosures, and controls and procedures [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements of Marine Petroleum Trust, including statements of assets, liabilities, trust corpus, distributable income, and changes in trust corpus, along with explanatory notes on accounting policies, basis of accounting, distributable income components, investment in Tidelands Royalty Trust "B", and a subsequent event regarding a trustee change [Condensed Consolidated Statements of Assets, Liabilities and Trust Corpus](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Assets,%20Liabilities%20and%20Trust%20Corpus) This statement presents the financial position of the trust, detailing its assets, liabilities, and trust corpus at specific reporting dates Condensed Consolidated Statements of Assets, Liabilities and Trust Corpus | | September 30, 2021 (Unaudited) | June 30, 2021 | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and cash equivalents | $976,612 | $902,023 | | Producing oil and natural gas properties | 7 | 7 | | Total assets | $976,619 | $902,030 | | **LIABILITIES AND TRUST CORPUS** | | | | Federal income tax payable | — | — | | Total current liabilities | — | — | | Trust corpus | $976,619 | $902,030 | | Total liabilities and trust corpus | $976,619 | $902,030 | [Condensed Consolidated Statements of Distributable Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Distributable%20Income) This statement details the trust's income available for distribution, including royalties, interest, and expenses, for the reported periods Condensed Consolidated Statements of Distributable Income (Three Months Ended September 30) | Income/Expense | 2021 (Unaudited) | 2020 (Unaudited) | | :--- | :--- | :--- | | Oil and natural gas royalties | $229,240 | $53,639 | | Interest and dividend income | 55 | 102 | | Total income | 229,295 | 53,741 | | General and administrative expenses | 26,083 | 20,714 | | Distributable income before federal income taxes | 203,212 | 33,027 | | Federal income taxes of subsidiary | — | — | | Distributable income | $203,212 | $33,027 | | Distributable income per unit | $0.10 | $0.02 | - **Distributable income per unit** significantly increased from **$0.02 in Q3 2020 to $0.10 in Q3 2021**[12](index=12&type=chunk) [Condensed Consolidated Statements of Changes in the Trust Corpus](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20the%20Trust%20Corpus) This statement outlines the movements in the trust's equity, reflecting distributable income and distributions to unitholders over the periods Condensed Consolidated Statements of Changes in Trust Corpus (Three Months Ended September 30) | Item | 2021 (Unaudited) | 2020 (Unaudited) | | :--- | :--- | :--- | | Trust corpus, beginning of period | $902,030 | $936,552 | | Distributable income | 203,212 | 33,027 | | Distributions to unitholders | (128,623) | (89,033) | | Trust corpus, end of period | $976,619 | $880,546 | | Distributions per unit | $0.06 | $0.04 | - **Distributions per unit** increased from **$0.04 in Q3 2020 to $0.06 in Q3 2021**[15](index=15&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides essential context and details for the financial statements, including accounting policies, income components, and significant events - The financial statements are prepared on a **modified cash basis method**, not in conformity with GAAP, as permitted for royalty trusts by SEC Staff Accounting Bulletin Topic 12:E[19](index=19&type=chunk)[22](index=22&type=chunk) - **Distributable income** is comprised of royalties from offshore Texas leases, 98% of royalties from offshore Louisiana leases (via MPC), cash distributions from Tidelands Royalty Trust "B", and MPC dividends, less administrative expenses[21](index=21&type=chunk) - The Trust owned **32.6% of Tidelands Royalty Trust "B"**, which expired earlier in 2021 and is currently winding up; no future income is expected from Tidelands[23](index=23&type=chunk)[54](index=54&type=chunk) - Simmons Bank, the current Trustee, has entered into an agreement to resign and nominate Argent Trust Company as successor trustee, subject to unitholder approval[24](index=24&type=chunk) [Item 2. Trustee's Discussion and Analysis of Financial Condition and Results of Operations](index=8&type=section&id=Item%202.%20Trustee%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides the Trustee's analysis of the Trust's financial condition and operational results, highlighting the Trust's organizational structure, the significant impact of commodity prices on income, its liquidity and capital resources, details about its leases, and a summary of operating results for the quarter, emphasizing the substantial increase in royalty income and distributable income driven by higher production volumes and commodity prices [Organization](index=8&type=section&id=Organization) This section describes the trust's formation, purpose, and structure, including its term and the nature of its royalty interests - Marine Petroleum Trust is a royalty trust created in 1956, with a term expiring on **June 1, 2041**, organized solely for the administration and liquidation of rights to payments from certain oil and natural gas leases in the Gulf of Mexico[25](index=25&type=chunk)[26](index=26&type=chunk) - The Trust holds interests in properties offshore Texas, while its wholly-owned subsidiary, Marine Petroleum Corporation (MPC), holds interests offshore Louisiana; both are prohibited from engaging in trade or business[26](index=26&type=chunk)[28](index=28&type=chunk) [Commodity Prices](index=9&type=section&id=Commodity%20Prices) This section discusses the significant influence of commodity price fluctuations on the trust's income and operational activities - The Trust's income and monthly distributions are heavily influenced by **commodity prices**, which fluctuate widely due to supply/demand changes, market uncertainty, political conditions, worldwide economic conditions, and governmental regulation[31](index=31&type=chunk)[33](index=33&type=chunk) - Declining crude oil and natural gas prices reduce distributable income and may lead to decreased exploration and development activity on the Trust's royalty properties[32](index=32&type=chunk) [Liquidity and Capital Resources](index=10&type=section&id=Liquidity%20and%20Capital%20Resources) This section explains the trust's financial structure, highlighting its lack of capital requirements and prohibition on new investments - The Trust has no capital requirements, as its sole obligation is to distribute collected distributable income to unitholders quarterly after administrative expenses, operating as a grantor trust for tax purposes[34](index=34&type=chunk)[35](index=35&type=chunk) - The Trust's oil and natural gas properties are depleting assets, and new investments are prohibited by its indenture[35](index=35&type=chunk) [The Leases](index=10&type=section&id=The%20Leases) This section details the trust's royalty interests and recent operational activities on its leases, including the status of its investment in Tidelands Royalty Trust "B" - Marine holds a **three-fourths of one percent overriding royalty interest** in 55 leases covering **199,868 gross acres** in the Gulf of Mexico[37](index=37&type=chunk) - No new well completions or drilling/recompletion activities were reported on Marine's leases during the three months ended September 30, 2021, or as of November 1, 2021[36](index=36&type=chunk) - The Trust's **32.6% interest in Tidelands Royalty Trust "B"** is no longer expected to generate income, as Tidelands expired in 2021 and is winding up[37](index=37&type=chunk) [Critical Accounting Policies and Estimates](index=10&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section outlines the specific accounting methods and principles used by the trust, particularly its modified cash basis approach - Marine uses the **modified cash basis method of accounting**, recording royalty income when received and expenses when paid, and reports distributable income instead of net income[38](index=38&type=chunk) - There were no changes in Marine's critical accounting policies or estimates during the three months ended September 30, 2021[39](index=39&type=chunk) [New Accounting Pronouncements](index=11&type=section&id=New%20Accounting%20Pronouncements) This section addresses the impact of recent accounting standards on the trust's financial reporting, noting no significant effects - No new accounting pronouncements have been adopted or issued that would have a significant impact on Marine's financial statements, given its modified-cash basis accounting[40](index=40&type=chunk) [General](index=11&type=section&id=General) This section discusses the external factors and inherent limitations affecting the trust's royalty income and future production levels - Marine's royalty income is derived from third-party oil and natural gas production activities and fluctuates based on factors beyond its control, including productive wells, production levels, and selling prices[41](index=41&type=chunk)[42](index=42&type=chunk) - Production from existing wells is anticipated to decrease in the future due to normal well depletion, and operators do not provide information regarding future drilling or re-working operations[43](index=43&type=chunk) [Summary of Operating Results](index=11&type=section&id=Summary%20of%20Operating%20Results) This section presents key operational and financial metrics over recent periods, highlighting production volumes, prices, and distributions Key Operating Metrics (Three Months Ended September 30) | Metric | 2021 | 2020 | | :--- | :--- | :--- | | Oil production (bbls) | 3,241 | 2,148 | | Natural gas production (mcf) | 3,808 | 2,154 | | Average oil price realized ($/bbl) | $64.40 | $23.19 | | Average natural gas price realized ($/mcf, net of expenses) | $5.39 | $1.78 | | Distributable income per unit | $0.10 | $0.02 | | Distributions per unit | $0.06 | $0.04 | Net Production Quantities, Distributable Income and Distributions Per Unit (Last Six Quarters) | Quarter Ended | Oil (bbls) | Natural Gas (mcf) | Distributable Income Per Unit | Distributions Per Unit | | :--- | :--- | :--- | :--- | :--- | | June 30, 2020 | 4,466 | 5,529 | $0.09 | $0.10 | | September 30, 2020 | 2,148 | 2,154 | $0.02 | $0.04 | | December 31, 2020 | 2,512 | 1,965 | $0.00 | $0.01 | | March 31, 2021 | 1,965 | 1,428 | $0.01 | $0.02 | | June 30, 2021 | 2,460 | 2,992 | $0.05 | $0.06 | | September 30, 2021 | 3,241 | 3,808 | $0.10 | $0.06 | [Results of Operations—Three Months Ended September 30, 2021 Compared to the Three Months Ended September 30, 2020](index=12&type=section&id=Results%20of%20Operations%E2%80%94Three%20Months%20Ended%20September%2030,%202021%20Compared%20to%20the%20Three%20Months%20Ended%20September%2030,%202020) This section analyzes the financial performance for the specified comparative periods, focusing on royalty income, production volumes, and expenses Income from Oil and Natural Gas Royalties (Three Months Ended September 30) | Royalty Type | 2021 | 2020 | | :--- | :--- | :--- | | Total oil and natural gas royalties | $229,240 | $53,639 | | Oil royalties | $208,729 | $49,795 | | Natural gas royalties (net of expenses) | $20,511 | $3,844 | | Distributable income | $203,212 | $33,027 | Oil and Natural Gas Sales Volume and Average Price (Three Months Ended September 30) | Commodity | Metric | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Oil | Bbls sold | 3,241 | 2,148 | | | Average price ($/bbl) | $64.40 | $23.19 | | Natural gas | Mcf sold | 3,808 | 2,154 | | | Average price, net of expenses ($/mcf) | $5.39 | $1.78 | - General and administrative expenses increased to **$26,083** for the three months ended September 30, 2021, from **$20,714** for the comparable period in 2020, primarily due to timing of payment of expenses[57](index=57&type=chunk) [Forward-Looking Statements](index=13&type=section&id=Forward-Looking%20Statements) This section provides a cautionary note regarding statements about future events and potential risks that could affect the trust's performance - Forward-looking statements in the report are identified by words like "anticipate," "believe," and "expect," and are subject to risks such as reductions in commodity prices or demand, production declines, regulatory changes, and the trustee's resignation[58](index=58&type=chunk) [Website](index=13&type=section&id=Website) This section informs about the availability of public filings and reports on the trust's official website - Marine makes its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K available free of charge on its website at www.marps-marine.com[59](index=59&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=13&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that there have been no material changes to the quantitative and qualitative disclosures about market risk since the previous Annual Report on Form 10-K - There has been no material change from the market risk information provided in Marine's Annual Report on Form 10-K for the fiscal year ended June 30, 2021[60](index=60&type=chunk) [Item 4. Controls and Procedures](index=14&type=section&id=Item%204.%20Controls%20and%20Procedures) This section concludes that Marine's disclosure controls and procedures were effective as of September 30, 2021, and reports no material changes in internal control over financial reporting during the quarter - The Trustee concluded that Marine's disclosure controls and procedures were **effective as of September 30, 2021**[62](index=62&type=chunk) - There have been no material changes in Marine's internal control over financial reporting during the quarter ended September 30, 2021[63](index=63&type=chunk) [PART II. OTHER INFORMATION](index=15&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section addresses other required disclosures, including updates on risk factors and a list of exhibits [Item 1A. Risk Factors](index=15&type=section&id=Item%201A.%20Risk%20Factors) This section states that there have been no material changes to the risk factors previously disclosed in the Annual Report on Form 10-K - As of the filing date, there have been no material changes from the risk factors previously disclosed in Marine's Annual Report on Form 10-K for the fiscal year ended June 30, 2021[65](index=65&type=chunk) [Item 6. Exhibits](index=15&type=section&id=Item%206.%20Exhibits) This section lists the exhibits included in the report, specifically certifications required by the Sarbanes-Oxley Act - The report includes certifications from the Corporate Trustee pursuant to **Section 302 and Section 906 of the Sarbanes-Oxley Act of 2002**[67](index=67&type=chunk)
Marine Petroleum Trust(MARPS) - 2021 Q4 - Annual Report
2021-09-24 19:16
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, 2021 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 No. 000-08565 Marine Petroleum Trust (Exact name of registrant as specified in its charter) Texas 75-6008017 (State or ot ...
Marine Petroleum Trust(MARPS) - 2021 Q3 - Quarterly Report
2021-05-17 18:27
(Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q 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) (State or other jurisdic ...
Marine Petroleum Trust(MARPS) - 2021 Q2 - Quarterly Report
2021-02-16 15:58
PART I. FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents Marine Petroleum Trust's unaudited condensed consolidated financial statements for periods ended December 31, 2020 [Condensed Consolidated Statements of Assets, Liabilities and Trust Corpus](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Assets,%20Liabilities%20and%20Trust%20Corpus) Total assets decreased to $871,152 by December 31, 2020, primarily due to reduced cash and cash equivalents Assets, Liabilities, and Trust Corpus (As of Dec 31, 2020 vs. June 30, 2020) | Account | December 31, 2020 (Unaudited) | June 30, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $868,345 | $933,745 | | Total assets | $871,152 | $936,552 | | **Liabilities and Trust Corpus** | | | | Total current liabilities | $0 | $0 | | Trust corpus | $871,152 | $936,552 | [Condensed Consolidated Statements of Distributable Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Distributable%20Income) Distributable income significantly decreased for periods ended December 31, 2020, due to lower oil and natural gas royalties Distributable Income Comparison (Three and Six Months Ended Dec 31) | Metric | Q4 2020 | Q4 2019 | 6 Months 2020 | 6 Months 2019 | | :--- | :--- | :--- | :--- | :--- | | Oil and natural gas royalties | $101,545 | $141,361 | $155,185 | $339,609 | | Total income | $101,545 | $145,648 | $155,287 | $349,340 | | General and administrative expenses | $96,583 | $37,196 | $117,298 | $105,349 | | **Distributable income** | **$4,962** | **$108,452** | **$37,989** | **$243,991** | | Distributable income per unit | $0.00 | $0.05 | $0.02 | $0.12 | [Condensed Consolidated Statements of Changes in Trust Corpus](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Trust%20Corpus) Trust Corpus decreased as distributions exceeded distributable income, resulting in lower distributions per unit Changes in Trust Corpus (Six Months Ended Dec 31) | Metric | 2020 | 2019 | | :--- | :--- | :--- | | Trust corpus, beginning of period | $936,552 | $969,426 | | Distributable income | $37,989 | $243,991 | | Distributions to unitholders | ($103,389) | ($268,519) | | **Trust corpus, end of period** | **$871,152** | **$944,898** | | Distributions per unit | $0.05 | $0.13 | Changes in Trust Corpus (Three Months Ended Dec 31) | Metric | 2020 | 2019 | | :--- | :--- | :--- | | Trust corpus, beginning of period | $880,546 | $933,964 | | Distributable income | $4,962 | $108,452 | | Distributions to unitholders | ($14,356) | ($97,518) | | **Trust corpus, end of period** | **$871,152** | **$944,898** | | Distributions per unit | $0.01 | $0.05 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Financial statements are modified cash basis, not GAAP; Trust holds interest in Tidelands Royalty Trust 'B' - The financial statements are prepared on a modified cash basis, which differs from GAAP. Key differences include recognizing royalty income when received (not produced) and expenses when paid (not incurred)[27](index=27&type=chunk)[30](index=30&type=chunk) - The Trust owns **32.6%** of Tidelands Royalty Trust 'B'. Tidelands reported a distributable loss of **$4,774** for the three months and **$9,842** for the six months ended December 31, 2020, and has suspended its SEC reporting obligations[31](index=31&type=chunk) [Trustee's Discussion and Analysis of Financial Condition and Results of Operations](index=9&type=section&id=Item%202.%20Trustee's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Trustee discusses significant declines in royalty and distributable income due to lower commodity prices and natural gas production [Overview and Business Structure](index=9&type=section&id=Overview%20and%20Business%20Structure) Marine Petroleum Trust is a royalty trust for oil and gas lease payments, income sensitive to commodity price fluctuations - The Trust was created solely to administer and liquidate payment rights from certain oil and natural gas leases in the Gulf of Mexico and cannot engage in any other business activity[33](index=33&type=chunk) - The Trust's income is heavily influenced by commodity prices, which are subject to wide fluctuation based on supply, demand, political conditions, and other factors beyond the Trustee's control[38](index=38&type=chunk)[40](index=40&type=chunk) [Liquidity, Capital Resources, and Leases](index=11&type=section&id=Liquidity,%20Capital%20Resources,%20and%20Leases) Trust has no capital requirements, distributes net royalties quarterly, holds 0.75% overriding royalty interest in Gulf of Mexico leases - The Trust has no capital requirements and is prohibited from operating a trade or business. Its purpose is to collect and distribute net royalties to unitholders quarterly[41](index=41&type=chunk)[42](index=42&type=chunk) - Marine holds a **0.75%** overriding royalty interest in **55** leases in the Gulf of Mexico. Public records indicate no new well completions during the three months ended December 31, 2020[43](index=43&type=chunk)[44](index=44&type=chunk) [Summary of Operating Results](index=12&type=section&id=Summary%20of%20Operating%20Results) Operating results for six months ended December 31, 2020, show significant declines in distributable income and distributions per unit Production and Price Comparison (Six Months Ended Dec 31) | Metric | 2020 | 2019 | % Change | | :--- | :--- | :--- | :--- | | Oil Production (bbls) | 4,659 | 4,823 | -3.4% | | Natural Gas Production (mcf) | 4,118 | 18,691 | -78.0% | | Average Oil Price ($/bbl) | $31.70 | $60.57 | -47.7% | | Average Natural Gas Price ($/mcf) | $1.82 | $2.54 | -28.3% | Quarterly Production and Distribution Data | Quarter Ended | Oil (bbls) | Gas (mcf) | Distributable Income Per Unit | Distributions Per Unit | | :--- | :--- | :--- | :--- | :--- | | Sep 30, 2019 | 2,700 | 10,542 | $0.07 | $0.09 | | Dec 31, 2019 | 2,123 | 8,150 | $0.05 | $0.05 | | Mar 31, 2020 | 3,339 | 9,418 | $0.08 | $0.07 | | Jun 30, 2020 | 4,466 | 5,529 | $0.09 | $0.10 | | Sep 30, 2020 | 2,148 | 2,154 | $0.02 | $0.04 | | Dec 31, 2020 | 2,512 | 1,965 | $0.00 | $0.01 | [Results of Operations - Three Months Ended Dec 31, 2020 vs 2019](index=13&type=section&id=Results%20of%20Operations%E2%80%94Three%20Months%20Ended%20December%2031,%202020%20Compared%20to%20the%20Three%20Months%20Ended%20December%2031,%202019) Q4 2020 royalty income decreased due to lower oil prices and natural gas production, despite increased oil production volume Q4 Production and Price Comparison (2020 vs. 2019) | Metric | Q4 2020 | Q4 2019 | | :--- | :--- | :--- | | **Oil** | | | | Bbls sold | 2,512 | 2,123 | | Average price | $38.98 | $57.32 | | **Natural Gas** | | | | Mcf sold | 1,965 | 8,150 | | Average price, net of expenses | $1.85 | $2.41 | - General and administrative expenses increased to **$96,583** from **$37,196** year-over-year, mainly due to the timing of expenses related to the annual financial statements[63](index=63&type=chunk) [Results of Operations - Six Months Ended Dec 31, 2020 vs 2019](index=14&type=section&id=Results%20of%20Operations%E2%80%94Six%20Months%20Ended%20December%2031,%202020%20Compared%20to%20the%20Six%20Months%20Ended%20December%2031,%202019) Six-month royalty income significantly declined due to substantial drops in oil prices and natural gas production volumes Six-Month Production and Price Comparison (2020 vs. 2019) | Metric | 6 Months 2020 | 6 Months 2019 | | :--- | :--- | :--- | | **Oil** | | | | Bbls sold | 4,659 | 4,823 | | Average price | $31.70 | $60.57 | | **Natural Gas** | | | | Mcf sold | 4,118 | 18,691 | | Average price, net of expenses | $1.82 | $2.54 | - Distributable income for the six-month period decreased to **$37,989** from **$243,991** in the comparable 2019 period[65](index=65&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=15&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to market risk disclosures since the Annual Report on Form 10-K for the fiscal year ended June 30, 2020 - There has been no material change from the market risk information provided in the Annual Report on Form 10-K for the fiscal year ended June 30, 2020[74](index=74&type=chunk) [Controls and Procedures](index=15&type=section&id=Item%204.%20Controls%20and%20Procedures) Trustee concluded disclosure controls and procedures effective as of December 31, 2020, with no material internal control changes - Based on an evaluation as of December 31, 2020, the Trustee concluded that Marine's disclosure controls and procedures were effective[76](index=76&type=chunk) - There were no changes in internal control over financial reporting during the quarter ended December 31, 2020, that materially affected or are likely to materially affect such controls[77](index=77&type=chunk) PART II. OTHER INFORMATION [Risk Factors](index=17&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors since the Annual Report on Form 10-K for the fiscal year ended June 30, 2020 - As of the filing date, there have been no material changes from the risk factors disclosed in the Annual Report on Form 10-K for the fiscal year ended June 30, 2020[79](index=79&type=chunk) [Exhibits](index=17&type=section&id=Item%206.%20Exhibits) Lists Form 10-Q exhibits, including Corporate Trustee certifications under Sarbanes-Oxley Act Sections 302 and 906 - The report includes certifications from the Corporate Trustee as required by Sections 302 (Exhibit 31.1) and 906 (Exhibit 32.1) of the Sarbanes-Oxley Act of 2002[80](index=80&type=chunk)
Marine Petroleum Trust(MARPS) - 2021 Q1 - Quarterly Report
2020-11-16 17:02
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 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) Te ...