Marine Petroleum Trust(MARPS) - 2024 Q2 - Quarterly Report

Financial Performance - Total income for the three months ended December 31, 2023, was $262,914, a decrease of 39.5% compared to $435,129 for the same period in 2022[17] - Distributable income for the three months ended December 31, 2023, was $199,238, down 47.4% from $378,969 in the same period last year[17] - Distributions to unitholders for the six months ended December 31, 2023, totaled $410,984, a decrease of 59.5% compared to $1,012,417 for the same period in 2022[20] - Distributable income per unit for the three months ended December 31, 2023, was $0.10, down from $0.19 in the same period of 2022[17] - Distributable income for the six months ended December 31, 2023 was $427,295, down from $901,338 for the same period in 2022[66] Asset and Trust Corpus - Total assets increased to $994,494 as of December 31, 2023, up from $978,183 on June 30, 2023, representing a growth of approximately 1.6%[13] - The trust corpus at the end of the period was $994,494, compared to $1,043,064 at the end of the same period in 2022, indicating a decline of approximately 4.7%[20] Revenue Sources and Production - For the six months ended December 31, 2023, the Trust's royalty income decreased to $540,221 from $1,021,040 for the comparable period in 2022, primarily due to a decrease in the price and production of oil and natural gas[65] - Oil production for the six months ended December 31, 2023 decreased to 7,041 barrels from 9,499 barrels in the comparable period in 2022, while the average price realized for oil fell to $75.71 per barrel from $100.65[67] - Natural gas production decreased to 5,439 thousand cubic feet from 7,738 thousand cubic feet, with the average price realized dropping to $1.31 per thousand cubic feet from $8.40[68] - For the three months ended December 31, 2023, income from oil and natural gas royalties decreased to $249,200 from $425,321 in the comparable period in 2022[58] - The volume of oil sold in the three months ended December 31, 2023 decreased to 3,077 barrels from 4,311 barrels in the comparable period, with the average price realized for oil decreasing to $80.25 per barrel from $92.18[61] - Income from natural gas royalties (net of expenses) for the three months ended December 31, 2023 decreased to $2,259 from $27,931 for the comparable period in 2022[62] Expenses - General and administrative expenses increased to $140,294 for the six months ended December 31, 2023 from $134,241 for the comparable period in 2022, primarily due to an increase in professional fees[71] Risk and Control - The trust's income is heavily influenced by commodity prices, which can fluctuate widely due to supply and demand changes[39] - The trust's royalty income is highly dependent on the production levels and prices of oil and natural gas, which are influenced by factors beyond the company's control[49] - The trust's only obligation is to distribute the collected distributable income to unitholders, with no requirement for capital due to its limited purpose[41] - The trust's royalty income is recognized in the month received rather than the month of production, affecting the timing of income recognition[29] - As of December 31, 2023, Marine's disclosure controls and procedures were evaluated and deemed effective[76] - There have been no material changes in Marine's internal control over financial reporting during the quarter ended December 31, 2023[77] - No material changes in risk factors have been reported since the Annual Report for the fiscal year ended June 30, 2023[79]