Financial Performance - The Trust's proportionate share of Gross Proceeds for the three months ended September 30, 2024, was 320,978[60]. - Royalty income for the nine months ended September 30, 2024, totaled 2,426,226 in the same period of 2023[63]. - The Trust's net proceeds for the nine months ended September 30, 2024, were 80,637 in the same period of 2023[63]. - Royalty income for the quarter ended September 30, 2024, was 357,474 for the same quarter in 2023[67]. - Distributable income for the quarter ended September 30, 2024, was 283,672 in the prior year[67]. - Royalty income for the nine months ended September 30, 2024 was 2,982,346 for the same period in 2023[95]. - Distributable income for the nine months ended September 30, 2024 was 2,606,218 in the same period of 2023[95]. Production and Sales - Average sales price for natural gas increased to 1.90 in the same period of 2023, indicating a substantial price recovery[63]. - The Trust's net production volumes attributable to the Royalty for the nine months ended September 30, 2024, were 419,621 Mcf for natural gas, a notable increase from 162,907 Mcf in the same period of 2023[63]. - The average sales price for natural gas was 3.01 per Mcf in Q3 2023, reflecting a decrease of 5.7%[82]. - Average sales price for natural gas in Q3 2024 was 2.31 per Mcf in Q3 2023, reflecting a decrease of approximately 73.6%[93]. - Average sales price for natural gas liquids in Q3 2024 was 23.27 per Bbl in Q3 2023, a decline of about 22.5%[93]. - Actual production volumes attributable to the Royalty paid for San Juan Basin – New Mexico Properties were 378,301 Mcf for the nine months ended September 30, 2024[119]. Operating Costs - Operating costs for the nine months ended September 30, 2024, were 502,974 in the same period of 2023, highlighting increased operational expenses[63]. - The average production costs for natural gas were 8.74 per Mcf in the same period of 2023, indicating improved cost efficiency[63]. - Operating costs attributable to Hugoton Royalty Properties increased by approximately 6.5%, from 397,776 in Q3 2024[81]. - Operating costs for San Juan Basin – New Mexico Properties were 259,980 in Q3 2023[91]. - Operating costs attributable to the San Juan Basin – Colorado Properties increased by approximately 84% to 56,062 in Q3 2023[112]. - Operating costs attributable to Hugoton Royalty Properties were 1,315,846 in the same period of 2023[108]. - Operating costs for the San Juan Basin – New Mexico Properties were 945,844 in the same period in 2023[116]. Income and Expenses - General and administrative expenses increased to 31,131 in Q3 2023, representing a 67.8% increase[69]. - Interest income decreased to 32,329 in Q3 2023, a decline of 19.8%[68]. - The Trust's interest income for the nine months ended September 30, 2024 was 75,351 in the same period of 2023[98]. Contingent Reserve and Future Distributions - The Contingent Reserve balance increased from 1,867,792 in Q3 2024, with plans to reach a total of 2.0 million, which will reduce Net Proceeds available to the Trust and distributions to Trust unitholders[121]. - The Trust may be unable to pay future distributions to unitholders if future Royalty income is less than the amount required to fund the increase in the Contingent Reserve[124]. - Substantial accumulated excess production costs have decreased Trust income and distributions, resulting in some months with no Trust distributions[122]. Governance and Compliance - Mesa Royalty Trust has no principal executive officer or board of directors, indicating a unique governance structure[143]. - The report includes various exhibits related to the trust's agreements and amendments, reflecting ongoing operational activities[138]. - The trust's financial activities are governed under the Sarbanes-Oxley Act of 2002, ensuring compliance with regulatory standards[140]. Commodity Price Influence - The Trust's Royalty income is heavily influenced by commodity prices, which can fluctuate widely due to various factors beyond the Trust's control[58]. - Future distributions and financial performance are subject to risks and uncertainties, including commodity price volatility and operational performance of the Working Interest Owners[52].
Mesa Royalty Trust(MTR) - 2024 Q3 - Quarterly Report