Marine Petroleum Trust Announces Fourth Quarter Cash Distribution And Extension of Trust to June 1, 2041

Rhea-AI Summary

Marine Petroleum Trust (NASDAQ: MARPS) announced a quarterly cash distribution of $0.007178 per unit, payable on December 28, 2020. This marks a significant decrease from $0.044516 per unit in the previous quarter and $0.048759 per unit from last year. The decline in distribution is attributed to reduced production volumes of oil and natural gas, despite an increase in oil prices. Additionally, Marine has successfully extended the trust's termination date to June 1, 2041, following necessary approvals.

Positive

• Successfully extended the trust's termination date to June 1, 2041.

Negative

• Current distribution of $0.007178 per unit is significantly lower than previous distributions of $0.044516 and $0.048759.
• Decreased production volumes of both oil and natural gas compared to previous quarters.
• Decreased prices realized for natural gas compared to previous periods.

DALLAS, Nov. 19, 2020 /PRNewswire/ -- Marine Petroleum Trust (NASDAQ: MARPS) ("Marine") today declared a quarterly cash distribution to the holders of its units of beneficial interest of $0.007178 per unit, payable on December 28, 2020, to unitholders of record on November 30, 2020.  Marine's 2019 tax information, cash distribution history, current and prior year financial reports, a link to filings made with the Securities and Exchange Commission and more can be found on its website at http://www.marps-marine.com/.  Additionally, printed reports can be requested and are mailed free of charge.

This distribution of $0.007178 per unit is lower than the $0.044516 per unit distributed last quarter. As compared to the previous quarter, both the volume of oil and of natural gas produced and included in this distribution have decreased. The price realized for oil produced and included in the current distribution has increased while the price for natural gas has decreased compared to the previous quarter.  This distribution is lower than the $0.048759 per unit distributed in the comparable quarter in 2019.  As compared to the comparable quarter in 2019, the price realized for both oil and natural gas has decreased.  As compared to this time last year, the volume of both oil and natural gas  produced and included in the current distribution have decreased.

Marine's distributions to unitholders are determined by royalties received up to the date the distribution amount is declared. In general, Marine receives royalties two months after oil production and three months after natural gas production.

The prior Restated Marine Petroleum Trust Indenture (the "Indenture') stated that Marine would terminate on June 1, 2021.  In preparing to seek approval to extend the trust by twenty (20) years to June 1, 2041 pursuant to Article X, Section 1(a) of the Indenture, Marine became aware that the necessary approval for this extension of the consent of a majority of the outstanding of units of interest was obtained on May 22, 2014 by a consent solicitation filed with the Securities and Exchange Commission when holders of 63.57% of the outstanding units of interest on the record date of March 28, 2014 approved the extension of Marine through June 1, 2041.  Less than 1% of the outstanding units of interest were voted against the extension.  Since only approval of a majority of the outstanding units of interest was required and not 80% as was believed to be the case at the time of the 2014 consent solicitation, the 63.57% approval authorized the extension of Marine through June 1, 2041.  The updated Indenture reflecting the June 1, 2041 termination date was filed with Marine's Form 10-Q on November 16, 2021.

Contact:	Ron E. Hooper
	SVP, Royalty Trust Services
	Simmons Bank, Trustee
	Toll Free – 1.855.588-7839

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SOURCE Marine Petroleum Trust

FAQ

What is the latest cash distribution for Marine Petroleum Trust (MARPS)?

The latest cash distribution for Marine Petroleum Trust (MARPS) is $0.007178 per unit.

When will the cash distribution for MARPS be paid?

The cash distribution for MARPS will be paid on December 28, 2020.

How does the current distribution compare to previous quarters for MARPS?

The current distribution of $0.007178 per unit is lower than $0.044516 per unit in the previous quarter.

What is the new termination date for Marine Petroleum Trust?

The new termination date for Marine Petroleum Trust is June 1, 2041.

What factors contributed to the decrease in cash distribution for MARPS?

The decrease in cash distribution is primarily due to reduced production volumes of oil and natural gas.