Mesa Royalty Trust Announces Trust Income for April 2024

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Mesa Royalty Trust (MTR) announced Trust income distribution for April 2024. Unitholders will receive $0.019208416 per unit on July 31, 2024, from San Juan Basin properties. The Trust received $89,860 with $35,797 in distributable net profits. The Trust's monthly distributions fluctuate based on production, prices, and expenses. Distributions will be reduced until cash reserves reach $2.0 million. Excess production costs may lead to no distributions in some periods.

Positive

• Unitholders of Mesa Royalty Trust (MTR) will receive $0.019208416 per unit on July 31, 2024, from the Trust's San Juan Basin properties.
• The Trust received $89,860 in total income for April 2024, with $35,797 available for distribution after withholding for cash reserves and administrative expenses.
• The Trust's monthly distributions vary based on production, oil and gas prices, and administrative costs, as stated in public filings.
• Distributions to unitholders will be significantly reduced until the Trust's cash reserves reach $2.0 million to enhance liquidity.
• Accumulated excess production costs may impact Trust distributions, potentially leading to no distributions in certain periods.
• Volatility in the industry, revenues, and expenses reported by working interest owners directly affect the Trust's ability to pay distributions to unitholders.

Negative

• Distributions to unitholders will be materially reduced until the Trust increases its cash reserves to $2.0 million.
• Excess production costs have resulted in substantial accumulated costs, potentially leading to no distributions in some periods.
• Volatility in the industry and expenses reported by working interest owners may reduce proceeds to the Trust, impacting cash available for distribution to unitholders.
• Additional expenses and adjustments can further reduce proceeds to the Trust, potentially resulting in no distributions to unitholders in certain periods.

HOUSTON--(BUSINESS WIRE)-- Mesa Royalty Trust (the “Trust”) (NYSE: MTR) announced today the Trust income distribution for the month of April 2024. Unitholders of record on April 30, 2024 will receive distributions amounting to $0.019208416 per unit, payable on July 31, 2024. The Trust received $89,860, all of which came from the New Mexico portion of the Trust’s San Juan Basin properties operated by Hilcorp San Juan LP, an affiliate of Hilcorp Energy Company. No income was received in April 2024 from any other working interest owner. This month, after the Trust’s withholding for cash reserves and the payment of administrative expenses, income from the distributable net profits was $35,797.

The Trust was formed to own an overriding royalty interest of the net proceeds attributable to certain producing oil and gas properties located in the Hugoton field of Kansas and the San Juan Basin fields of New Mexico and Colorado. As described in the Trust's public filings, the amount of the monthly distributions is expected to fluctuate from month to month, depending on the proceeds, if any, received by the Trust as a result of production, oil and natural gas prices and the amount of the Trust’s administrative expenses, among other factors. In addition, as further described in the Trust’s most recent filing on Form 10-K, distributions to unitholders are expected to be materially reduced, until the Trust increases its cash reserves to a total of $2.0 million in order to provide added liquidity.

Proceeds reported by the working interest owners for any month are not generally representative of net proceeds that will be received by the Trust in future periods. As further described in the Trust’s Form 10-K and Form 10-Q filings, production and development costs for the royalty interest have resulted in substantial accumulated excess production costs, which will decrease Trust distributions, and in some periods may result in no Trust distributions. The amount of proceeds, if any, received or expected to be received by the Trust (and its ability to pay distributions to unitholders) has been and will continue to be directly affected, among other things, by volatility in the industry and revenues and expenses reported to the Trust by working interest owners. Any additional expenses and adjustments, among other things, will reduce proceeds to the Trust, which will reduce the amount of cash available for distribution to unitholders and in certain periods could result in no distributions to unitholders.

This press release contains forward-looking statements. No assurances can be given that the expectations contained in this press release will prove to be correct. The working interest owners alone control historical operating data, and handle receipt and payment of funds relating to the royalty properties and payments to the Trust for the related royalty. The Trustee cannot assure that errors or adjustments or expenses accrued by the working interest owners, whether historical or future, will not affect future royalty income and distributions by the Trust. Other important factors that could cause these statements to differ materially include delays in actual results of drilling operations, risks inherent in drilling and production of oil and gas properties, declines in commodity pricing, prices received by working interest owners and other risks described in the Trust’s Form 10-K for the year ended December 31, 2023. Statements made in this press release are qualified by the cautionary statements made in such risk factors. The Trust does not intend, and assumes no obligations, to update any of the statements included in this press release. Each unitholder should consult its own tax advisor with respect to its particular circumstances.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240418554648/en/

Mesa Royalty Trust

The Bank of New York Mellon Trust Company, N.A., as Trustee

Elaina Rodgers

713-483-6020

Source: Mesa Royalty Trust

FAQ

How much will unitholders of Mesa Royalty Trust (MTR) receive per unit for April 2024?

Unitholders will receive $0.019208416 per unit on July 31, 2024, from the Trust's San Juan Basin properties.

What was the total income received by Mesa Royalty Trust (MTR) for April 2024?

The Trust received $89,860 in total income for April 2024, with $35,797 available for distribution after withholding for cash reserves and administrative expenses.

Why will distributions to unitholders be reduced for Mesa Royalty Trust (MTR)?

Distributions will be significantly reduced until the Trust's cash reserves reach $2.0 million to enhance liquidity.

What factor may impact Trust distributions, potentially leading to no distributions in some periods for Mesa Royalty Trust (MTR)?

Accumulated excess production costs may impact Trust distributions, potentially leading to no distributions in certain periods.

How does volatility in the industry affect the ability of Mesa Royalty Trust (MTR) to pay distributions to unitholders?

Volatility in the industry, revenues, and expenses reported by working interest owners directly affect the Trust's ability to pay distributions to unitholders.