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Mesa Royalty Trust (MTR-2.56%) has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The filing includes financial statements showing a decrease in Royalty income to $649,164 from $3,279,909 in the previous year. This decline is attributed to lower commodity prices and reduced production volumes.
Total excess production costs increased to $793,838 at December 31, 2024, compared to $260,731 the previous year, affecting distributions to unitholders.
Operating costs for the Hugoton Royalty Properties increased by 8% to $1,829,086, while capital expenditures decreased due to reduced activity.
Royalty income from the San Juan Basin — Colorado Properties was $35,115, down from $65,082 in the previous year, due to ongoing adjustments and deficit positions.
Operating costs for the San Juan Basin — New Mexico Properties were $970,450, a decrease of 19% from the previous year, attributed to lower severance taxes.
The Trust's cash reserves increased to $1,872,026 as of December 31, 2024, with plans to increase the reserve to $2 million to cover future liabilities.
The Trust's net overriding royalty interests in oil and gas properties were valued at $42,498,034, with accumulated amortization of $41,240,185.
Trustee fees totaled $475,000 for the year, with $433,153 paid and $41,847 allocated to offset interest due to the Trust.
The Trust's financial statements are prepared on a modified cash basis, differing from U.S. GAAP, and the Trust does not engage in any business or investment activities.
The Trust's reserve estimates decreased due to lower commodity prices and production volumes, with future Royalty income standardized at $8,907,000, down from $17,071,000.
The Trust's financial condition is highly dependent on commodity prices, and any sustained decrease could affect future distributions and reserve estimates.
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 annual 10-K report dated March 31, 2025. To report an error, please email earnings@qz.com.