Revenue from oil royalties amounted to $761,232 in fiscal 2019, a decrease from the
$798,650 realized in fiscal 2018. The average price realized for a barrel of oil increased to $66.85 in fiscal 2019 from the $50.76 realized in fiscal 2018. In fiscal 2019, oil production decreased to 11,382 bbls from the 15,138 bbls produced
in fiscal 2018.
Revenue from natural gas royalties amounted to $77,881 in fiscal 2019, an increase from the $64,285 realized in fiscal
2018. In fiscal 2019, the average price per mcf of natural gas increased to $3.52 from the $3.10 realized in fiscal 2018. In fiscal 2019, natural gas production increased to 22,147 mcf from the 20,664 mcf produced in fiscal 2018.
General and administrative expenses for fiscal 2019 amounted to $226,471, an increase from the $210,723 recorded in fiscal 2018, due to
an increase in professional fees and printing expenses.
Fiscal Year 2018 Compared to Fiscal Year 2017. During fiscal 2018, Marine
received approximately 93% of its royalty income from the sale of oil and 7% of its royalty income from the sale of natural gas, as compared to approximately 90% of its royalty income from the sale of oil and 10% of its royalty income from the sale
of natural gas in fiscal 2017. Income from oil and natural gas royalties in fiscal 2018 decreased approximately 6% from fiscal 2017, primarily due to a decrease in production of oil and natural gas, offset in part by an increase in prices realized
for oil and natural gas.
Revenue from oil royalties amounted to $798,650 in fiscal 2018, a decrease from the $830,861 realized in fiscal
2017. The average price realized for a barrel of oil increased to $50.76 in fiscal 2018 from the $45.06 realized in fiscal 2017. In fiscal 2018, oil production decreased to 15,138 bbls from the 18,439 bbls produced in fiscal 2017.
Revenue from natural gas royalties amounted to $64,285 in fiscal 2018, a decrease from the $89,513 realized in fiscal 2017. In fiscal 2018,
the average price per mcf of natural gas increased to $3.10 from the $2.19 realized in fiscal 2017. In fiscal 2018, natural gas production decreased to 20,664 mcf from the 40,867 mcf produced in fiscal 2017.
General and administrative expenses for fiscal 2018 amounted to $210,723, an increase from the $198,032 recorded in fiscal 2017, due to an
increase in investor costs, professional fees, operation data services and transfer agent fees, offset in part by a decrease in printing expenses.
Capital Resources and Liquidity. The Trusts Indenture (and the charter and by-laws of
MPC) expressly prohibits the operation of any kind of trade or business. Due to the limited purpose of the Trust as stated in the Trusts Indenture, there is no requirement for capital. Its only obligation is to distribute to unitholders the
distributable income actually collected.
As an administrator of oil and natural gas royalty properties, the Trust collects income
monthly, pays expenses of administration and disburses all distributable income collected to its unitholders each quarter, less an amount reserved for accrued liabilities and estimated future expenses. Because all of Marines revenues are
invested in liquid funds pending distribution, Marine does not experience liquidity problems.
Marines oil and natural gas
properties are depleting assets and are not being replaced due to the prohibition against these investments. These restrictions, along with other factors, allow the Trust to be treated as a non-taxable grantor
trust for U.S. Federal income tax purposes. Accordingly, all of Marines income and deductions should flow through to its unitholders on a proportionate basis. MPC will owe U.S. Federal (and state) income taxes with respect to its income after
deducting statutory depletion. MPCs income specifically excludes 98% of oil and natural gas royalties collected by MPC, which are retained by and delivered to the Trust in respect of the Trusts net profits interest.
The Trust does not currently have any long term contractual obligations, other than the obligation to make distributions to unitholders
pursuant to the Indenture. The Trust does not maintain any off-balance sheet arrangements within the meaning of Item 303 of Regulation S-K.
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