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].

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].

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]

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]

Revenue Sources - For the fiscal year ended June 30, 2022, approximately 93% of Marine's royalty revenues were attributable to the sale of oil, while 7% were from natural gas sales[22]. - Marine holds an overriding royalty interest equal to 0.75% of the value at the well of any oil, natural gas, or other minerals produced and sold from existing leases[19]. - Marine's overriding royalty interests do not apply to new leases that the Interest Owners may acquire, limiting future revenue opportunities[35]. - Two working interest owners accounted for 100% of the royalty payments to Marine for the fiscal year ended June 30, 2022, indicating a high concentration of revenue sources[51]. - Revenue from oil royalties in fiscal 2022 was $1,259,133, a 249% increase from $362,751 in fiscal 2021, driven by higher production and prices[98]. - Natural gas royalties in fiscal 2022 amounted to $89,121, up from $23,905 in fiscal 2021, with an average price of $5.86 per mcf compared to $2.80 per mcf in fiscal 2021[99]. - Marine's total income from oil and natural gas royalties in fiscal 2022 was $1,348,254, compared to $386,656 in fiscal 2021[96]. Financial Performance - Marine's distributable income for fiscal 2022 was $1,204,193, or $0.60 per unit, a significant increase from $161,580, or $0.08 per unit, in fiscal 2021[92]. - Total income for the fiscal year ended June 30, 2022, was $1,441,940, a significant increase of 272% compared to $386,817 in the previous year[148]. - Distributable income before federal income taxes rose to $1,204,193 in 2022, compared to $161,580 in 2021, marking an increase of approximately 645%[148]. - Distributable income per unit increased to $0.60 in 2022 from $0.08 in 2021, reflecting a growth of 650%[148]. - Distributions to unitholders totaled $952,080 in 2022, compared to $196,102 in 2021, reflecting an increase of approximately 385%[150]. Operational Aspects - The Trust's distributions are highly dependent on oil and natural gas prices, with any sustained decline potentially affecting cash distributions to unitholders[30]. - Marine's royalty interests are depleting assets, and no funds are reinvested, leading to potential faster depletion than expected[27]. - The Trust is prohibited from engaging in any business activities and can only receive payments from existing leases[12]. - The Trust's operations are entirely dependent on third parties for production and sale of oil and natural gas[25]. - 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[65]. - No wells were drilled or re-drilled on tracts in which Marine has an interest as of June 30, 2022, indicating no new production activities[72]. Market and Regulatory Environment - The volatility of oil and gas prices reduces the predictability of future cash distributions to unitholders[34]. - Marine's operations are subject to extensive governmental regulations, which could significantly impact its royalty interests[42]. - The Trust anticipates qualifying as a passive entity for the Texas franchise tax, which would exempt it from the tax, as it primarily generates royalty income from oil and gas sales[185]. - The no tax due threshold for the Texas franchise tax is set at $1,230,000 for reports due on or after January 1, 2022, and before January 1, 2024[187]. Asset and Equity Information - Total assets increased to $1,154,143 in June 30, 2022, from $902,030 in June 30, 2021, representing a growth of approximately 28%[145]. - The Trust's corpus at the end of the fiscal year was $1,154,143, compared to $902,030 at the beginning of the year, showing an increase of approximately 28%[150]. - Marine's units have historically been thinly traded, leading to potential volatility in market prices with small sales[49]. - The market price of Marine's units may not reflect the value of the royalty interests due to external factors affecting cash distributions[46]. - The Trust does not maintain any equity compensation plans and has not repurchased any units during the fourth quarter of fiscal 2022[128]. 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[59]. - Audit fees for the fiscal year ended June 30, 2022, were $50,630, compared to $50,000 in 2021[131]. - The Trustee evaluated the effectiveness of disclosure controls and procedures, concluding they were effective as of June 30, 2022[118].

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)

[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)

[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)

Revenue Sources and Dependence - For the fiscal year ended June 30, 2021, approximately 94% of Marine's royalty revenues were attributable to the sale of oil, while 6% were from natural gas[23]. - Arena Energy, LP accounted for 99% of Marine's royalty revenues in the fiscal year 2021, up from 92% in 2019[24]. - The Trust has no revenues from foreign sources and does not engage in any business activities beyond royalty collection[25]. - Marine's royalty revenues are highly dependent on oil and natural gas prices, with any sustained decline potentially affecting cash distributions to unitholders[31]. - Marine's income is highly dependent on oil and natural gas prices, which have historically experienced significant volatility[112]. Financial Performance - Marine's revenue from oil royalties in fiscal 2021 was $362,751, a decrease of approximately 48% from $691,915 in fiscal 2020[99]. - The average price realized for oil in fiscal 2021 was $39.93 per barrel, down from $54.79 per barrel in fiscal 2020[99]. - Marine's revenue from natural gas royalties in fiscal 2021 was $23,905, a decrease from $81,913 in fiscal 2020[100]. - The average price for natural gas increased to $2.80 per mcf in fiscal 2021 from $2.44 per mcf in fiscal 2020[100]. - Marine's distributable income for fiscal 2021 was $161,580, or $0.08 per unit, compared to $574,110, or $0.29 per unit, in fiscal 2020[93]. - Total income for the fiscal year 2021 was $386,817, down 50.9% from $788,185 in 2020[150]. - Distributable income fell to $161,580 in 2021, a decrease of 71.8% compared to $574,110 in 2020[150]. - Distributions per unit decreased from $0.30 in 2020 to $0.10 in 2021, reflecting a reduction of 66.7%[152]. Asset and Lease Information - Marine holds an overriding royalty interest equal to 0.75% of the value at the well of any oil, natural gas, or other minerals produced and sold from existing leases[19]. - The Trust's leases cover an aggregate of 199,868 gross acres, which will remain in force until they terminate or expire[22]. - As of June 30, 2021, Marine had an overriding royalty interest in 55 oil and natural gas leases covering a total of 199,868 gross acres[71]. - There were approximately 201 gross active wells subject to Marine's interests, although the exact classification of these wells is not determinable without unreasonable effort[70]. - Marine does not own or directly lease any physical properties, relying solely on overriding royalty payments from third-party oil and natural gas operations[64]. Risks and Limitations - The Trust's assets are depleting, and no funds are reinvested, which may lead to a reduction in future distributions[28]. - Marine is prohibited from acquiring new royalty interests, limiting its revenue potential to existing leases[36]. - The volatility of oil and gas prices reduces the predictability of future cash distributions to unitholders[35]. - Marine's royalty interest can be adversely affected by the abandonment of properties by working interest owners, which would terminate related royalty interests[44]. - Cash held by Marine for distributions is not insured by the Federal Deposit Insurance Corporation, posing a risk to unitholders in case of financial institution insolvency[58]. Taxation and Compliance - The Trust is exempt from the Texas franchise tax as a passive entity, but if this status changes, distributions may be reduced to cover tax liabilities[61]. - The Texas franchise tax is imposed at a rate of 0.75% on taxable entities' taxable margin apportioned to Texas[184]. - The no tax due threshold for the Texas franchise tax is $1,180,000 for reports due on or after January 1, 2021[187]. - The Trust anticipates qualifying as a passive entity for the tax year ending in 2021, which would exempt it from the Texas franchise tax[185]. - Each unitholder should consult their tax advisor regarding the implications of the Trust's revenue on their franchise tax computation[188]. Administrative and Operational Aspects - The Trust has no directors or officers, and therefore does not maintain a compensation committee or equity compensation plans[125]. - The Trust does not have any long-term contractual obligations other than the obligation to distribute income to unitholders[109]. - The Trustee evaluated the effectiveness of the Trust's disclosure controls and procedures, concluding they were effective as of June 30, 2021[118]. - No changes in internal control over financial reporting were reported during the fourth quarter of fiscal 2021[119]. - General and administrative expenses for fiscal 2021 increased to $225,237 from $214,075 in fiscal 2020[101].

Financial Performance - Total income for the three months ended March 31, 2021 was $82,853, down 62% from $218,106 in the same period of 2020[17]. - Distributable income for the three months ended March 31, 2021 was $11,241, a decrease of 92.6% compared to $150,841 for the same period in 2020[17]. - Distributions to unitholders for the nine months ended March 31, 2021 totaled $139,647, down 64.9% from $399,423 in the same period of 2020[20]. - Distributions per unit decreased from $0.20 in the nine months ended March 31, 2020 to $0.02 in the same period of 2021[20]. - For the nine months ended March 31, 2021, royalty income decreased to $237,686 from $554,588 for the comparable period in 2020, primarily due to a decrease in the price and production of oil and natural gas[66]. - Distributable income per unit for the nine months ended March 31, 2021 was $0.02, a significant decrease from $0.20 for the comparable period in 2020[55]. Asset and Trust Value - Total assets decreased from $936,552 in June 30, 2020 to $846,134 in March 31, 2021, representing a decline of approximately 9.6%[13][15]. - The trust corpus at the end of the period was $846,134, down from $964,835 at the end of the same period in 2020, reflecting a decline of approximately 12.3%[20]. Production and Pricing - Oil production decreased to 6,624 barrels for the nine months ended March 31, 2021, down from 8,161 barrels for the comparable period in 2020[56]. - The average price realized for oil decreased to $34.14 per barrel for the nine months ended March 31, 2021, compared to $59.31 per barrel for the comparable period in 2020[68]. - Natural gas production decreased to 5,546 thousand cubic feet for the nine months ended March 31, 2021, down from 28,110 thousand cubic feet for the comparable period in 2020[69]. - The average price realized for natural gas decreased to $2.08 per thousand cubic feet for the nine months ended March 31, 2021, compared to $2.52 per thousand cubic feet for the comparable period in 2020[69]. Income Sources - Income from oil royalties for the nine months ended March 31, 2021 decreased to $226,167 from $484,061 for the comparable period in 2020[68]. - Income from natural gas royalties (net of expenses) for the nine months ended March 31, 2021 decreased to $11,519 from $70,527 for the comparable period in 2020[69]. - The Trust did not receive any income from distributions from Tidelands for the nine months ended March 31, 2021 and 2020, and does not expect to receive any in future quarters[70]. Expenses and Financial Reporting - General and administrative expenses increased to $188,641 for the nine months ended March 31, 2021, from $172,614 for the comparable period in 2020[72]. - The trust's financial statements are prepared on a modified cash basis, which may differ from GAAP standards[26]. Risk and Control - The trust's income is heavily influenced by commodity prices, which may fluctuate widely due to supply and demand changes[40]. - The trust's distributable income is affected by oil and natural gas prices, with declines leading to reduced income and potential delays in exploration activities[41]. - Marine's disclosure controls and procedures were evaluated as effective as of March 31, 2021[78]. - There have been no material changes in internal control over financial reporting during the quarter ended March 31, 2021[79]. - No material changes in risk factors have been disclosed since the Annual Report for the fiscal year ended June 30, 2020[81].