HOUSTON – (BUSINESS WIRE) – Mesa Royalty Trust (the “Trust”) (NYSE: MTR) today announced the distribution of the Trust’s income for the month of May 2021. Unitholders of record on May 30, 2021 will receive distributions of a amount of $ 0.271394136 per unit, payable in July May 30, 2021. Since May 30, 2021 falls on a weekend, the effective registration date will be May 28, 2021. The trust received $ 526,550, all from the Colorado portion of the Trust’s San Juan Basin properties operated by SIMCOE LLC, a subsidiary of IKAV Energy Inc. (“Operator”). No income was received in May 2021 from any other owner of a working interest.

The trust was formed to hold a controlling royalty on the net proceeds attributable to certain producing oil and gas properties located in the Hugoton field in Kansas and in the San Juan Basin fields in New Mexico and Colorado. As described in public documents filed by the Trust, the amount of monthly distributions is expected to fluctuate from month to month, depending on the proceeds, if any, received by the Trust as a result of production, oil prices. and natural gas and the amount of the Trust’s administrative costs, among other factors. On February 28, 2020, BP Amoco Company (“BP”) completed the sale of all of its interests in the San Juan – Colorado Basin Properties to the Operator. Following the operator’s acquisition of BP’s stake in the San Juan – Colorado Basin Properties, there was a transition period to transfer historical information, knowledge and processes from one owner to the next. ‘other. The Operator has informed the Trustee that the amount paid to the Trust in the month of May 2021 includes the adjusted proceeds for prior periods and is subject to further adjustment in future periods for certain expenses which the Operator is entitled to deduct. under the assignment. The operator would be expected to recover these expense amounts by withholding some or all of the net proceeds that would otherwise be payable to the Trust in future periods. The operator also informed the trustee that the income paid to the trust in May 2021 includes abnormally high prices due to extreme winter conditions, and that the income for future periods could be reduced if prices fall, as expected. to do. Any reduction in the income paid to the Trust for these properties may significantly reduce or eliminate distributions to Unitholders of the Trust in future periods.

The proceeds reported by the owners of the working interest in any given month are generally not indicative of the net proceeds that will be received by the Trust in future periods. As more fully described in Forms 10-K and 10-Q filed by the Trust, the production and development costs for the royalty rights have resulted in substantial accumulated excess production costs, which will reduce the distributions of the Trust and, at certain times, may not result in any distribution from the Trust. . The amount of proceeds, if any, received or expected by the Trust (and its ability to make distributions to Unitholders) has been and will continue to be directly affected by, among other things, industry volatility and income. and expenses. reported to the Trust by the owners of direct interests. Additional charges and adjustments, among other things, will reduce the Trust’s proceeds, which will reduce the amount of cash available for distribution to Unitholders and, at certain times, may not result in any distribution to Unitholders. .

This press release contains forward-looking statements. No assurance can be given that the expectations contained in this press release will prove to be correct. The owners of the working interest have sole control of historical operating data and manage the receipt and payment of funds relating to the royalty properties and payments to the trust for the related royalty. The Trustee cannot guarantee that any errors, adjustments or expenses accrued by the owners of the Working Interest, whether historical or future, will not affect the future royalty income and distributions of the Trust. Other important factors that could cause these statements to differ materially include delays in the actual results of drilling operations, risks inherent in drilling and producing oil and gas properties, declining commodity prices and ‘other factors described in the Trust’s Form 10-K for the fiscal year ended December 31, 2020 under the heading “Part I, Section 1A. Risk Factors. “The statements made in this press release are qualified by the cautionary statements made about these risk factors. The Trust does not intend and assumes no obligation to update the statements included in this press release Each Unitholder should consult their own tax advisor with respect to their particular circumstances.



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