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Gulf Coast Ultra Deep Royalty Trust Unit (GULTU-5.56%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing details the financial statements for the period, showing no royalty income received during the three- and nine-month periods ended September 30, 2024. This is attributed to the operational issues and subsequent abandonment of the sole producing well in the onshore Highlander subject interest.
Administrative expenses for the quarter amounted to $84,282, compared to $108,432 in the same period the previous year. For the nine-month period, administrative expenses increased to $662,047 from $469,822.
The Royalty Trust reported no distributable income for the quarter, consistent with the previous year, due to the lack of production from the onshore Highlander subject interest.
The filing includes information on the financial support from Freeport-McMoRan Inc. (FCX-4.86%) (FCX), which contributed $350,000 for the payment of trust expenses for the year ending December 31, 2024. FCX also maintains a $1.0 million stand-by reserve account for the Royalty Trust.
The Royalty Trust's overriding royalty interest in the onshore Highlander subject interest was fully impaired by $308,071 during the quarter ended March 31, 2023, due to the cessation of production.
The Trustee requested a loan of $200,000 from FCX on October 16, 2024, which was funded on November 6, 2024, to cover administrative expenses.
The Royalty Trust continues to rely on FCX for funding of administrative expenses, as there are no expected cash distributions to unitholders in the foreseeable future due to the lack of production.
The filing also notes that there are currently no pending legal proceedings involving the Royalty Trust, and no material changes to the risk factors reported in the 2023 Form 10-K.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Gulf Coast Ultra Deep Royalty Trust Unit quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.