Mesa Royalty Trust Announces Trust Income for May 2020
May 19 2020 - 04:45PM
Business Wire
Mesa Royalty Trust (the “Trust”) (NYSE: MTR) announced the Trust
income distribution for the month of May 2020. Unitholders of
record on May 29, 2020 will receive distributions amounting to
$0.023674439 per unit, payable on July 31, 2020.
The Trust received $0 of Royalty income from the Hugoton
properties, resulting in part from steep declines in pricing, as
reported by the working interest owner, Scout Energy Group V, LP.
The Trust received $9,842 of Royalty income from the Colorado
portion of the San Juan Basin Properties. Royalty income received
from the New Mexico portion of the San Juan Basin properties
totaled $55,051, which included an addition of $26,932 attributable
to Royalty income prior period adjustments from January 2020
through April 2020.
As previously reported on the Trust’s Form 10-K for the year
ended December 31, 2019, Hilcorp San Juan LP (“Hilcorp”), the
working interest owner in the New Mexico portion of the San Juan
Basin properties, made an estimated monthly payment of $97,150 in
net proceeds to the Trust with respect to the September 2017 to
March 2019 accounting months consistent with the July 2017
production month previously paid by ConocoPhillips, the prior owner
of the properties. In April 2019, Hilcorp began to generate actual
(instead of estimated) net proceeds due to the Trust on a monthly
basis going forward. Hilcorp has informed the Trust that it will
utilize actual revenue and expense amounts and either add or
subtract reconciled historical amounts on a month-by-month basis
for the accounting months from September 2017 to March 2019, which
will be recognized as information is received by the Trust in
accordance with the Trust's modified cash basis of accounting.
Hilcorp has informed the Trust that such reconciliation of
historical amounts has been temporarily suspended due to the
COVID-19 pandemic. Accordingly, the income distribution for the
month of May 2020 does not include any such reconciled amounts.
Hilcorp has also informed the Trust that significant incremental
expenses were incurred for the New Mexico portion of the San Juan
Basin properties during the time that the estimated payments were
being made. Accordingly, it is expected that reconciliations with
respect to some or all of the prior periods will have a negative
impact on income of the Trust until all reconciliations are
complete.
This press release contains forward-looking statements. No
assurances can be given that the expectations contained in this
press release will prove to be correct. The working interest owners
alone control historical operating data, and handle receipt and
payment of funds relating to the royalty properties and payments to
the Trust for the related royalty. The Trustee cannot assure that
errors or adjustments by the working interest owners, whether
historical or future, will not affect future royalty income and
distributions by the Trust. Other important factors that could
cause these statements to differ materially include delays in
actual results of drilling operations, risks inherent in drilling
and production of oil and gas properties, declines in commodity
pricing, and other factors described in the Trust’s Form 10-K for
the year ended December 31, 2019 under “Part I, Item 1A. Risk
Factors.” Statements made in this press release are qualified by
the cautionary statements made in such risk factors. The Trust does
not intend, and assumes no obligations, to update any of the
statements included in this press release.
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version on businesswire.com: https://www.businesswire.com/news/home/20200519005936/en/
Mesa Royalty Trust The Bank of New York Mellon Trust Company,
N.A., as Trustee Elaina Rodgers 713-483-6020
http://mtr.investorhq.businesswire.com/
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