Marine Petroleum Trust Announces Third Quarter Cash Distribution

Rhea-AI Summary

Marine Petroleum Trust (NASDAQ: MARPS) has declared a quarterly cash distribution of $0.064312 per unit, to be paid on September 28, 2021, for unitholders of record as of August 31, 2021. This distribution is significantly higher than the $0.028228 from last quarter and also exceeds the $0.044516 from the same quarter in 2020. The increase is attributed to higher production volumes and realized prices for both oil and natural gas. Marine's trust has received approvals to extend its duration through June 1, 2041.

Positive

• Quarterly cash distribution increased to $0.064312 per unit from $0.028228 last quarter.
• Higher production volumes of oil and natural gas reported.
• Increased realized prices for oil and natural gas compared to the previous quarter.
• Approval to extend the trust duration through June 1, 2041.

Negative

• Volume of both oil and natural gas produced has decreased compared to last year.

News Market Reaction

+1.31%

1 alert

+1.31% News Effect

On the day this news was published, MARPS gained 1.31%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

DALLAS, Aug. 20, 2021 /PRNewswire/ -- Marine Petroleum Trust (NASDAQ: MARPS) ("Marine") today declared a quarterly cash distribution to the holders of its units of beneficial interest of $0.064312 per unit, payable on September 28, 2021, to unitholders of record on August 31, 2021.  Marine's 2020 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 $0.064312 per unit is higher than the $0.028228 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 increased.  The price realized for both oil and natural gas produced and included in the current distribution increased this quarter. This distribution is higher than the $0.044516 per unit distributed in the comparable quarter in 2020.  As compared to the comparable quarter in 2020, the price realized for both oil and natural gas have increased. As compared to this time last year, the volume of both oil and natural gas produced and included in the current distribution has 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, 2020.

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

View original content:https://www.prnewswire.com/news-releases/marine-petroleum-trust-announces-third-quarter-cash-distribution-301358367.html

SOURCE MARINE PETROLEUM TRUST

FAQ

What is the cash distribution amount announced by Marine Petroleum Trust on August 20, 2021?

The cash distribution amount is $0.064312 per unit.

When will the cash distribution be paid to unitholders of Marine Petroleum Trust?

The distribution will be payable on September 28, 2021.

What was the cash distribution amount in the previous quarter for MARPS?

The previous quarter's cash distribution was $0.028228 per unit.

What significant change was made regarding the trust's duration for Marine Petroleum Trust?

The trust's duration has been extended through June 1, 2041.

How did the production volumes for oil and natural gas change compared to the previous year?

The volume of both oil and natural gas produced has decreased compared to the same time last year.