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ECA Marcellus Trust I (ECTM-1.80%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing royalty income of $0.4 million, consistent with the same quarter the previous year. General and administrative expenses remained unchanged between periods.
The average price realized for the three months ended September 30, 2024 increased to $0.88 per Mcf from $0.83 per Mcf for the same period in 2023. The increase was attributed to a higher average sales price, partially offset by an increase in other post-production costs.
Production decreased by 13.7% from 545 MMcf for the three months ended September 30, 2023 to 471 MMcf for the same period in 2024, due to normal declines and compressor maintenance.
For the nine months ended September 30, 2024, distributable income decreased to $0.4 million from $0.9 million in the previous year. Royalty income decreased by $0.8 million, while general and administrative expenses decreased by $0.2 million.
The average price realized for the nine months ended September 30, 2024 decreased to $0.97 per Mcf from $1.33 per Mcf for the same period in 2023. This was due to a decrease in the average sales price and slightly higher post-production costs.
Production decreased by 10.5% from 1,651 MMcf for the nine months ended September 30, 2023 to 1,478 MMcf for the same period in 2024, due to normal production declines and compressor maintenance.
The Trust's cash receipts are determined after deducting post-production costs and applicable taxes, with cash available for distribution reduced by administrative expenses.
The trust agreement provides for termination if gross proceeds attributable to the Royalty Interests over any four consecutive quarters are less than $1.5 million. If this occurs, the Trustee is required to sell the Royalty Interests.
The Trust has been gradually building a cash reserve for future expenses, with $90,000 withheld per quarter until a target of approximately $3.8 million is reached.
The filing also includes discussions on market risks and disclosure controls, noting no material changes in internal control over financial reporting during the quarter.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the ECA Marcellus Trust I Unit quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.