Mesa Royalty Trust (MTR) Q2 2025 earnings summary

Executive summary

• Q2 royalty income was $220,855, all from Hilcorp, versus $305,372 a year earlier; distributable income was $195,817, or $0.1051 per unit, versus $223,651, or $0.1200.

• For H1, royalty income was $331,817 and distributable income $276,815, or $0.1485 per unit, versus $489,029 and $345,680, or $0.1855, in H1 2024.

Financial highlights

• Q2 interest income was $20,446 versus $24,417 YoY; general and administrative expense was $45,484 versus $59,138.

• H1 interest income was $40,607 versus $48,645; G&A expense was $95,177 versus $105,330.

• Cash and short-term investments were $2.087 million at June 30, 2025, versus $1.930 million at Dec. 31, 2024; total assets were $3.321 million versus $3.188 million.

Outlook and guidance

• The Trustee intends to raise the Contingent Reserve from $1.911 million to $2.0 million; additions will be set monthly and will reduce funds available for distributions.

• Reserve funding needs, accumulated excess production costs and uncertain royalty receipts could constrain or eliminate future distributions, even if royalty payments resume.