Distributable income increased to $222,009 for the three months ended September 30,
2018 from $186,932 realized for the comparable period in 2017, due to higher pricing for both oil and gas.
Income from oil royalties,
excluding the Trusts interest in Tidelands, for the three months ended September 30, 2018 increased to $224,300 from $195,342 realized for the comparable period in 2017. The volume of oil sold in the three months ended September 30,
2018 decreased to 3,343 bbls from 4,062 bbls realized for the comparable period in 2017, and the average price realized for oil increased to $67.10 per bbl for the three months ended September 30, 2018 from $48.09 per bbl realized for the
comparable period in 2017.
Income from natural gas royalties (net of expenses), excluding the Trusts interest in Tidelands, for the
three months ended September 30, 2018 increased to $14,434 from $12,907 for the comparable period in 2017. The volume of natural gas sold in the three months ended September 30, 2018 decreased to 4,193 mcf from 5,566 mcf realized for the
comparable period in 2017, and the average price realized for natural gas (net of expenses) increased to $3.37 per mcf for the three months ended September 30, 2018 from $2.29 per mcf realized for the comparable period in 2017.
Income from distributions received from Tidelands for the three months ended September 30, 2018 was $0, which was unchanged from the
comparable period in 2017.
The following table presents the quantities of oil and natural gas sold and the average price realized for the
three months ended September 30, 2018, and those realized for the comparable period in 2017, excluding the Trusts interest in Tidelands.
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Three Months
Ended
September
30,
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2018
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2017
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(unaudited)
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Oil
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Bbls sold
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3,343
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4,062
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Average price
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$
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67.10
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$
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48.09
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Natural gas
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Mcf sold
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4,193
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5,566
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Average price, net of expenses
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$
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3.37
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$
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2.29
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General and administrative expenses decreased to $21,224 for the three months ended September 30, 2018
from $21,947 for the comparable period of 2017, primarily due to a decrease in operations data services, offset by increases in printing expenses.
Forward-Looking Statements
The
statements discussed in this Quarterly Report on Form
10-Q
regarding Marines future financial performance and results, and other statements that are not historical facts, are forward-looking statements
as defined in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Exchange Act. This report uses the words anticipate, believe, budget, continue,
estimate, expect, intend, may, plan, or other similar words to identify forward-looking statements. You should read statements that contain these words carefully because they discuss future
expectations, contain projections of Marines financial condition, and/or state other forward-looking information. Actual results may differ from expected results because of: reductions in price or demand for oil and natural gas,
which might then lead to decreased production or impair Marines ability to make distributions; reductions in production due to the depletion of existing wells or disruptions in service, which may be caused by storm damage to production
facilities, blowouts or other production accidents, or geological changes such as cratering of productive formations; changes in regulations; general economic conditions; actions and policies of petroleum-producing nations; other changes in domestic
and international energy markets; the resignation of the Trustee; and the expiration, termination or release of leases subject to Marines interests. Additional risks are set forth in Marines Annual Report on Form
10-K
for the fiscal year ended June 30, 2018. Events may occur in the future that Marine is unable to accurately predict or over which it has no control. If one or more of these
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