In This Story
Mesa Royalty Trust (MTR+2.65%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in royalty income to $63,966 from $357,474 in the same quarter the previous year. The decrease is attributed to lower pricing and production volumes for natural gas and natural gas liquids.
Operating costs for the San Juan Basin — New Mexico Properties were $225,018, a decrease from $259,980 in the same quarter of the previous year. The decrease was primarily due to lower severance tax expenses.
The Trust reported distributable income of $54,942 for the quarter, compared to $283,672 in the previous year, with the decline attributed to reduced royalty income.
Interest income for the quarter was $25,887, down from $32,329 in the previous year, reflecting changes in the interest rate environment.
General and administrative expenses increased to $52,258 from $31,131, primarily due to higher Trustee fees.
The Trust's contingent reserve increased to $1,867,792 as of September 30, 2024, from $1,644,560 in the previous year. The Trustee intends to increase the reserve to $2.0 million.
The filing also details the impact of global oil market volatility, including geopolitical risks and economic conditions, on the Trust's income and distributions.
The Trust has no pending legal proceedings and is not subject to any material litigation that could impact future royalty income.
The Trust relies on the Working Interest Owners for operating and financial information regarding the Royalty Properties, and has no control over their operations or capital expenditures.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Mesa Royalty Trust quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.