Mesa Royalty Trust (MTR) Q1 2025 earnings summary

Executive summary

• Q1 royalty income was $110,963, down from $183,657 YoY; all receipts came from Hilcorp-operated San Juan Basin New Mexico properties.

• Distributable income available for distribution, after Contingent Reserve adjustments, was $61,606, or $0.0331 per unit, versus $114,987, or $0.0617, YoY.

Financial highlights

• Income available for distribution before cash reserves withheld for Trust expenses was $80,999, down from $147,029 YoY; distributable income was $80,999 versus $122,029.

• Interest income was $20,161 versus $24,228 YoY; general and administrative expense was $49,693 versus $46,192.

• Total assets were $3.20 million at March 31, 2025, versus $3.19 million at Dec. 31, 2024; cash and short-term investments were $1.95 million.

Outlook and guidance

• The Trustee intends to increase the Contingent Reserve to $2.0 million; additions will be set monthly and are expected to reduce net proceeds available for distributions.

• Future distributions could be reduced or absent if royalty receipts do not cover reserve funding; material distributions may not occur even if royalty payments continue.