Eca Marcel Stock Price, News & Analysis

ECA Marcellus Trust I (ECTM) is a statutory trust that was formed to own royalty interests in natural gas properties associated with Greylock Energy LLC and certain of its wholly owned subsidiaries. According to the Trust’s public disclosures, these properties are located in the Marcellus Shale formation in Greene County, Pennsylvania, and the Trust is entitled to receive certain amounts of the proceeds attributable to Greylock’s interest in the sale of production from these properties.

The Trust’s units trade on the OTC market under the symbol ECTM. As described in its filings and recurring press releases, ECA Marcellus Trust I does not operate the underlying natural gas properties. Instead, it holds royalty interests and receives a share of proceeds from production and natural gas sales attributable to Greylock’s interests. The Trust then uses those proceeds, after expenses and reserve withholdings, to make quarterly cash distributions to unitholders when funds are available.

Business model and royalty interests

The Trust’s business model centers on owning royalty interests rather than directly exploring for or producing natural gas. The Trust is entitled to receive certain amounts of the proceeds from the sale of production from specified natural gas properties held by Greylock Energy LLC and its subsidiaries in the Marcellus Shale formation in Greene County, Pennsylvania. The amount of cash available for distribution in any quarter depends on the proceeds received by the Trust, which are influenced by production volumes, natural gas prices and the Trust’s administrative expenses, among other factors described in its filings.

The Trust’s disclosures emphasize that quarterly distributions are expected to fluctuate from period to period. The amount of proceeds received or expected to be received by the Trust, and its ability to pay distributions, has been and will continue to be directly affected by volatility in commodity prices. The Trust notes that low natural gas prices reduce the proceeds to which it is entitled, which in turn reduces the amount of cash available for distribution to unitholders and, in certain periods, can result in no distribution being paid.

Cash reserve policy and distributions

Since the first quarter of 2019, the Trustee of ECA Marcellus Trust I has been gradually building a cash reserve for the payment of future known, anticipated or contingent expenses or liabilities of the Trust by withholding cash reserve amounts from each quarterly distribution. The Trust has disclosed that an initial targeted cash reserve amount of approximately $1.8 million was set, and that in November 2021 the Trustee notified Greylock Energy LLC that it had determined to increase the targeted cash reserve to approximately $3.8 million.

From the first quarter of 2019 through the fourth quarter of 2022, the Trustee withheld from each distribution an amount equal to the greater of $90,000 or 10% of the funds otherwise available for distribution each quarter. After achieving the initial target of approximately $1.8 million in the quarter ended December 31, 2022, the Trustee has disclosed that it has been withholding, and plans to continue to withhold, $90,000 per quarter until a total of approximately $3.8 million in cash reserves is accumulated, unless it elects to change that approach.

The Trustee has stated that it may increase or decrease the targeted reserve amount at any time and may increase or decrease the rate at which it withholds funds to build the cash reserve without advance notice to unitholders. Cash held in reserve is invested as required by the trust agreement. Any cash reserved in excess of the amount necessary to pay or provide for the payment of future known, anticipated or contingent expenses or liabilities of the Trust eventually will be distributed to unitholders, together with interest earned on the funds, as described in the Trust’s communications.

Commodity price exposure and distribution variability

In its press releases, ECA Marcellus Trust I explains that the amount of quarterly distributions is expected to fluctuate from quarter to quarter. This variability reflects changes in proceeds received by the Trust as a result of production and natural gas prices, as well as the level of the Trust’s administrative expenses and the Trustee’s decisions regarding cash reserve withholdings.

The Trust notes that commodity prices have experienced significant fluctuation since the beginning of 2020 due to a variety of factors beyond the control of the Trust or Greylock. Because the Trust’s entitlement is tied to proceeds from natural gas production, lower natural gas prices reduce the proceeds to which the Trust is entitled. This reduction can lower the cash available for distribution to unitholders and, in some quarters, has resulted in no distribution being paid when Trust expenses offset net revenues.

Tax classification and withholding considerations

ECA Marcellus Trust I has disclosed that it is classified as a partnership for federal and state income tax purposes. Its public notices reference Section 1446 of the Internal Revenue Code of 1986, which addresses withholding tax on income effectively connected to a United States trade or business allocated to non-U.S. persons, and Section 1441, which addresses withholding on certain U.S.-source income allocated to non-U.S. persons. The Trust’s qualified notices to nominees and brokers describe applicable withholding obligations at the highest marginal rate for effectively connected income and at a 30% rate for certain fixed or determinable annual or periodic income, unless reduced by treaty.

The Trust has also referenced provisions of the Tax Cuts and Jobs Act, which treat a non-U.S. holder’s gain on the sale of Trust units as income effectively connected to a United States trade or business to the extent such holder would have had effectively connected income if the Trust had sold all of its assets at fair market value on the date of the exchange. The Trust notes that a transferee of units is generally required to withhold 10% of the amount realized on the sale or exchange of units, subject to certain certifications or exceptions, and that final Treasury Regulations apply these rules to transfers of units in publicly traded partnerships such as the Trust.

Trust governance and disclosures

The Bank of New York Mellon Trust Company, N.A. serves as Trustee of ECA Marcellus Trust I. The Trustee issues periodic press releases describing quarterly distributions or, in some quarters, the absence of a distribution when Trust expenses offset net revenues. These releases also summarize the status of the cash reserve, outline the factors affecting distributions and provide qualified tax notices to nominees and brokers regarding withholding obligations for non-U.S. holders.

The Trust files reports with the U.S. Securities and Exchange Commission, including current reports on Form 8-K. For example, a Form 8-K dated November 12, 2025, identifies a press release as an exhibit under Item 2.02, Results of Operations and Financial Condition. The Trust’s filings and press releases together provide ongoing information about distributions, reserves, commodity price impacts on proceeds and other matters relevant to unitholders.

Key characteristics of ECA Marcellus Trust I

• A statutory trust formed to own royalty interests in natural gas properties associated with Greylock Energy LLC and its subsidiaries in the Marcellus Shale formation in Greene County, Pennsylvania.
• Entitlement to receive certain amounts of the proceeds attributable to Greylock’s interest in the sale of production from the properties, rather than operating the properties directly.
• Quarterly distribution profile that can fluctuate significantly based on production, natural gas prices, administrative expenses and reserve withholdings, with some quarters having no distribution when expenses offset net revenues.
• A cash reserve program implemented by the Trustee to fund future known, anticipated or contingent expenses or liabilities, with a targeted reserve level that has been increased over time.
• Classification as a partnership for federal and state income tax purposes, with associated withholding and reporting considerations for non-U.S. holders and transferees of units, as described in the Trust’s qualified notices.