Marine Petroleum Trust(US:MARPS)2023-11-13 16:52Financial 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].