Marine Petroleum Trust(MARPS) - 2025 Q2 - Quarterly Report

Financial Performance - Total income for the three months ended December 31, 2024, was $165,896, down 37% from $262,914 in the same period of 2023[13] - Distributable income for the six months ended December 31, 2024, was $314,690, a decrease of 26.4% compared to $427,295 for the same period in 2023[13] - Distributable income per unit for the three months ended December 31, 2024, was $0.04, down 60% from $0.10 in the same period of 2023[13] - Distributable income per unit for the six months ended December 31, 2024, was $0.16, a decrease from $0.21 for the same period in 2023[48] - Oil production decreased to 5,263 barrels for the six months ended December 31, 2024, down from 7,041 barrels for the comparable period in 2023[49] - Income from oil royalties for the three months ended December 31, 2024, decreased to $151,919 from $246,941 for the comparable period in 2023[52] Distributions and Expenses - Distributions to unitholders for the six months ended December 31, 2024, totaled $395,618, compared to $410,984 in 2023, reflecting a decrease of 3.7%[16] - General and administrative expenses increased to $153,398 for the six months ended December 31, 2024, from $140,294 for the comparable period in 2023[65] Assets and Reserves - Total assets as of December 31, 2024, were $884,292, a decrease of 8.4% from $965,220 as of June 30, 2024[9] - The trust corpus at the end of the period was $884,292, a decline of 11.1% from $994,494 at the end of December 2023[16] - The estimated reserve for future expenses deducted from distributable income for the three months ended December 31, 2024, was $102,500[22] Revenue Sources - During the six months ended December 31, 2024, Marine's royalty income was approximately 94% from oil sales and 6% from natural gas and natural gas liquids[46] - The average price realized for oil increased to $79.17 per barrel for the six months ended December 31, 2024, compared to $75.71 per barrel for the same period in 2023[60] - Income from natural gas royalties (net of expenses) increased to $20,474 for the six months ended December 31, 2024, from $5,272 for the comparable period in 2023[61] - Income from natural gas liquids royalties (net of expenses) increased to $8,383 for the six months ended December 31, 2024, from $1,839 for the comparable period in 2023[62] - The volume of natural gas sold in the three months ended December 31, 2024, increased to 3,343 thousand cubic feet from 2,291 thousand cubic feet for the comparable period in 2023[53] Operational Insights - The trust's income is significantly influenced by commodity prices, which can fluctuate widely due to supply and demand changes[33] - The trust's only obligation is to distribute the collected distributable income to unitholders, with no requirement for capital due to its limited purpose[35] - The trust's oil and natural gas properties are depleting assets, and it is prohibited from engaging in any trade or business[36] - As of December 31, 2024, Marine holds an overriding royalty interest in 19 oil and natural gas leases covering a total of 87,326 gross acres in the Gulf of Mexico[37] Risk Factors and Future Outlook - The company anticipates potential impacts on production and distributions due to factors such as oil and natural gas price fluctuations and public health concerns[66] - Marine's future financial performance is subject to uncertainties that may cause actual results to differ from expectations[66] - The company has not reported any significant market risk changes since the last Annual Report[68] Governance and Compliance - Marine's disclosure controls and procedures were evaluated as effective as of December 31, 2024[70] - There have been no material changes in internal control over financial reporting during the quarter ended December 31, 2024[71] - No material changes in risk factors have been reported since the last Annual Report for the fiscal year ended June 30, 2024[75] - There are no ongoing legal proceedings affecting the company[74] - The company does not have any directors or officers, thus no trading arrangements have been adopted or terminated[77] - Marine's website provides free access to its financial reports, ensuring transparency[67]