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ECA Marcellus Trust I Unit (ECTM-0.55%) has submitted its annual report on Form 10-K filing for the fiscal year ended December 31, 2024.
The filing details the Trust's royalty interests in natural gas wells located in Greene County, Pennsylvania, and includes financial statements showing a decrease in royalty income to $2.2 million from $2.9 million in the previous year. This decline is attributed to a decrease in both the average realized price of natural gas and production volumes.
The Trust reported distributable income of $0.8 million for the year, down from $1.4 million in 2023. General and administrative expenses increased slightly to $1.24 million.
As of December 31, 2024, the Trust's estimated proved reserves were 15.5 billion cubic feet of natural gas, with a discounted future net cash flow of $9.7 million.
The Trust continues to withhold cash reserves to cover future expenses, with a targeted reserve of approximately $3.8 million. As of the end of 2024, the Trust had withheld approximately $2.3 million plus interest toward this reserve.
The Trust's units are traded on the OTC Pink Market under the symbol 'ECTM'. As of March 19, 2025, there were 17,605,000 units outstanding.
The Trust is a passive entity with no directors or executive officers, and its operations are managed by The Bank of New York Mellon Trust Company, N.A., as Trustee.
The Trust's financial statements are prepared on a modified cash basis of accounting, which differs from generally accepted accounting principles (GAAP).
The Trust's cash distributions are primarily dependent on natural gas prices, production volumes, post-production costs, and administrative expenses. The Trust has no hedges in place to protect against price volatility.
The Trust is expected to begin liquidation in March 2030 unless terminated earlier under certain conditions, such as if gross proceeds over any four consecutive quarters fall below $1.5 million.
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 annual 10-K report dated March 19, 2025. To report an error, please email earnings@qz.com.