Mesa Royalty Trust (MTR) investor relations material

Executive summary

• Q2 2026 royalty income was $155,031, down from $220,855 YoY; distributable income was $130,591, versus $195,817.

• Six-month royalty income was $206,719, versus $331,817; distributable income available for distribution was $134,203, or $0.0720 per unit, versus $237,942, or $0.1277.

• Lower commodity pricing and production, higher operating costs and capital expenditures, and substantial accumulated excess production costs weighed on royalty receipts and distributions.

Financial highlights

• Q2 royalty income: $155,031; interest income: $17,744; G&A expense: $42,184; income available before reserve adjustments: $130,591.

• Q2 distribution after contingent-reserve activity was $120,694, or $0.0648 per unit, versus $176,336, or $0.0946, in Q2 2025.

• H1 royalty income was $206,719; interest income was $35,698; G&A expense was $111,226; income available before reserve adjustments was $131,191.

• Cash and short-term investments were $2.07 million at June 30, 2026, compared with $2.07 million at Dec. 31, 2025; net overriding royalty interest carrying value was $1.20 million.

Outlook and guidance

• The Trustee intends to raise the contingent reserve to $2.0 million from $1,946,006; additions will reduce net proceeds available for distributions and will be assessed monthly.

• A third well in the San Juan Basin–New Mexico properties is expected to be drilled before year-end 2026, following activity on two new wells in Q2.

• Volatile commodity prices, cost pressures and reserve funding could materially reduce future distributions; no material distributions may be paid while reserve needs are funded.